Do you remember last year when insider stock purchases by members of Congress was in the news? I had this over at Truthout: License to Profit: Legalized Corruption in the US Congress,
This is the shocking truth: elected officials, their staff, and other government employees with access to information and the ability to influence legislation and regulation are allowed to own and trade in stocks. The fact that members of Congress and their staff – and any government employee, for that matter – are allowed to own and/or trade in stocks at all leaves wide open the perception if not the actual fact that they can use information that is not available to others for personal enrichment.
In response to the public outrage Congress passed an anti-corruption bill called the Stop Trading on Congressional Knowledge (STOCK) Act. Actually all it did was make legislators and staffers who make more than about $120K to disclose what they are doing. It didn’t prohibit them from trading with insider knowledge gained from their position, just to disclose it.
The Act was set to go into effect next week. Thursday night the Senate, and Friday the House repealed the STOCK Act, with only a voice vote.