US Congress Stock Trade Ban Bill Arrives via Dems

Let’s see if Nancy P gets behind this.

And the worst of the covid trade fuckers:

And lastly, let’s see if Warren comes charging across the prairie hair on fire and pushes this bill forward.

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I’m having trouble figuring out where you stand in this issue based on your commentary. Do you think it’s a good thing congresspeople are able to trade stocks when they are clearly acting on information that the people they represent don’t have access to? Or do you agree with the bill but you hate that it’s Dems pushing it through, so you disagree with it?

You should just focus on where you stand.

However, since I personally manage my family‘s investments, I’ll share.

Do you think it’s a good thing congresspeople are able to trade stocks when they are clearly acting on information that the people they represent don’t have access to?

Absolutely not. Which renders the next question moo.

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Speaker Pelosi was asked recently about the potential to ban members of Congress and their family members from owning individual stocks as a means to avoid such potential conflicts of interest.

As noted in part above, she retorted, “We’re a free market economy. They should be able to participate in that.” While I would love for the U.S. to be a free market economy, we have trended more toward cronyism and central planning, courtesy of our ever-expanding government.

Congress is certainly not part of a free market when it inserts itself-with no competition – into all types of law making and capital allocation decisions.

I don’t support a ban. But way more regulation and electronic oversight.

Let the children play, right Nance?

This needs to happen, and will certainly pass into law right after term limits are instituted.

Coker was notorious for this but yea, both sides of the aisle have plenty of $luts.

If they came out and asked then, hey so, after the meeting on lowering drug prices, what are you buying tomorrow, I’d be OK with it. Share the wealth. Literally.

Some of the criticism has been pretty obtuse. “These 20 congresspeople did better than the S&P!” “Dan Crenshaw is the #5 stock trader!” type of stuff. I’d like to know how they did on average perhaps, and certainly any unusual patterns.

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For consideration, the rules for personal trading accounts ¶ for front office employees (to be clear, that’s generally anyone who works on the same floor as someone who is client facing) in investment banks with some offices in the US include:

There is a restricted list containing any company that has current activity with the investment bank. These can’t be traded: no buying, no selling of pre-existing positions. No IPOs at all.

All trades must be pre-cleared by compliance, requiring stock name, shares, expected trade price. The employee must affirm no inside information of the stock. Compliance must pre-clear before a trade can be made and may make checks and enquiries before pre-clearing.

All stock trades must be held a minimum of 30 days.

All PA trading accounts must be registered with compliance and with an approved trading firm. The employee must agree to and arrange for duplicate statements and trade confirmations from the trading firm to go to compliance. These are reconciled with the pre-approval/other rules.

Violation of the policy may be disciplined and may include employee termination.

I’ll end the list there, but there are more.

This policy covers hundreds of thousands of US tax payers whether they have inside information or not. Why should the tax receivers in Congress get no restrictions?

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