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Forum Post: We Spoke and They Listened (The Stock Act) . . .

Posted 5 years ago on July 21, 2012, 12:18 p.m. EST by jk1234 (257)
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and then both parties painted lipstick on a pig and presented us with . . .


And cut and paste from Yahoo: Disturbing Omissions What's most disturbing about the STOCK Act is not so much what it contains, but what it omits. When a hedge fund or an influence peddling individual wants inside information, they can still buy it – by paying members of Congress or other high level officials for something called "political intelligence." This rogue but still legal practice of gathering information from lawmakers and Hill aides is regularly used by Wall Street to steer money into profitable investments. It's nothing more than legalized cheating, because he with the most money and political influence wins. CASE STUDY: Former US Treasury Secretary, Henry Paulson sold political intelligence when he tipped off hedge funds about Fannie Mae's rescue in 2008 while he was serving as the U.S. Treasury Secretary. Paulson's hedge funds pals made billions in illicit profits. That type of unethical conduct is still legal under the "new and improved" STOCK Act. Here's another gaping omission: The STOCK Act still allows elected officials to own stock in industries they can affect with their political power. For example, a senator that owns an energy stock (NYSEArca:XLE - News) can still draft and pass laws that benefit his investment holdings. Isn't it obvious that allowing this kind of seedy behavior badly waters down the effectiveness of the STOCK Act? Weak Execution, Weak Legislation In summary, don't be hoodwinked by news headlines proclaiming the STOCK Act will end Congressional insider trading. Lying, cheating, and stealing are still legal and the latest legislation is weaker than previous versions. Worse yet, it still doesn't stop the sale of political intelligence. Maybe the real reason the STOCK Act was even passed, was so that political leaders can make themselves look good when fall elections take place. No doubt, they'll be using the STOCK Act promote the misleading idea they are doing everything in their power to stop high level corruption.



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