Tuesday, March 28, 2006

New Bill In Congress Seeks To Ban Insider Trading

There is a new bill that is being proposed in congress that seeks to ban insider trading by members of congress and their aides. Whether this bill will garner much support or not is a good question.

But for now members of congress can own stock in a corporation and know that a future appropriations bill will cause the stocks value to rise and make a handsome profit. It is also possible to sell stocks short that may be subject to some sort of congressional probe or action.

Many persons enter congress and the senate as wealthy. With extra money that can be made through insider trading, it is possible to become a millionaire in office.

It will be interesting to see how congress will respond to this challenge to this major loophole in ethics that allows members of congress to have a close relationship to the very same corporations that they are regulating or appropriating funds for.


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