Tuesday, May 11, 2010

Congress Permitted to Trade on Inside Information

Based on what Tech Ticker and the Wall Street Journal report, members of Congress are permitted to trade on material, non-public information pertaining to publicly traded companies:

http://finance.yahoo.com/tech-ticker/congress-refuses-to-outlaw-insider-trading-for-lawmakers-478701.html?tickers=^dji,^gspc,^ixic,brk-a,brk-b,gs,xlf

We could make an argument that current SEC regulations don't distinguish between legislators and non-legislators, so theoretically the insider trading that has occurred is technically already a violation of U.S. securities laws.

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