A bill is now before Congress to curtail insider trading by its members, which currently is legal. This is highly appropriate.
For example, in 2008 then-House Speaker Nancy Pelosi bought 5,000 shares of Visa at $44 just as a troublesome bill that would have hurt credit card companies began making its way through the House. Two days later, Visa was trading at $64, when the credit card legislation never made it to the House floor (imagine that). Pelosi made $100,000 overnight. She completely refused to discuss the transaction with the media. This type of trading on inside knowledge should be illegal for everybody!
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The Stop Trading on Congressional Knowledge (STOCK) Act passed the Senate 96-3. Let’s hope it doesn’t suffer the same fate as the credit card bill in the House.
John L. Paxton
Murray
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