Forum Post: Insider trading laws do not apply to members of Congress

Why do we continue to let the fox guard the hen house?

From Wikipedia: Insider trading by members of Congress

Members of Congress are exempted from insider trading laws and thus can act on information they are bound to gain in the course of their congressional activities, although house rules [22] may consider it unethical. A 2004 study found that stock sales and purchases by Senators outperformed the market by 12.3% per year.[citation needed] Peter Schweizer points out several examples of insider trading by members of Congress, including action taken by Spencer Bachus following a private, behind-the-doors meeting on the evening of September 18, 2008 when Hank Paulson and Ben Bernanke informed members of Congress about the imminent financial crisis, Bachus then shorted stocks the next morning and cashed in his profits within a week.[23]