New York Times Pushes Ban on Congressional Insider Trading

The New York Times published an editorial today supporting a bill banning the common practice of insider trading on Capitol Hill. They wrote:

A long-languishing bill to ban stock trading on inside information that lawmakers glean at private hearings and discussions has begun moving toward passage. The bill was lifted from hibernation by a new study from the Hoover Institution and a report on “60 Minutes” detailing the apparent freedom lawmakers have long enjoyed from the insider trading ban that applies to the rest of America.

The reports question the trading practices of leading legislators in the House like Speaker John Boehner, Nancy Pelosi, the Democratic minority leader, and Spencer Bachus, chairman of the House financial committee, when issues like health care reform and the financial crisis occupied center stage. All deny any wrongdoing but, with many others, are jumping aboard legislation offered five years ago by Louise Slaughter, a Democrat of New York.

Ms. Slaughter first proposed the bill when a Republican staffer privy to inside information was discovered making thousands of day trades from his office. The measure gathered dust and only nine co-sponsors — until the “60 Minutes” report was broadcast Nov. 13. Since then, more than 130 other members have signed up.

That report complemented research by Peter Schweizer of the Hoover Institution tracking the stock profits and legislative activities of lawmakers who wind up millionaires. Earlier university studies had found stock-trading legislators smartly outperforming the market by 6 percent to 12 percent in the 1980s and 1990s.

The potential for trading on insider information from the halls of Congress is undeniable and needs to be policed. Indeed, Congress should have protected itself long ago.

Read the entire piece here.

Peter Schweizer discussed the bill on Fox News Business, but doesn't believe it goes far enough. He doesn't think that the SEC will prosecute congressmen once the bill is passed out of the fear of having their own budget cut.

NY Times: Palin’s Well-Timed Reminder to Freshmen

Did Governor Palin's well-timed Facebook post influence this afternoon's events on Capitol Hill? New York Times writer Michael Shear posted an article today pondering the matter. He wrote:

Sarah Palin has impeccable timing.

The former Republican vice presidential nominee took to her Facebook page Thursday afternoon to warn freshman Republicans in the House that they just might face primary opposition if they cave in to demands by their party to raise the debt ceiling.

“All my best to you, GOP Freshmen, from up here in the Last Frontier. Sincerely, Sarah Palin,” she wrote. “P.S. Everyone I talk to still believes in contested primaries.”

Just two hours later, House Speaker John A. Boehner was forced to postpone the vote on his proposal to increase the debt ceiling at the last minute, apparently facing a revolt among some of those very members.

The House delayed the vote on Mr. Boehner’s bill, moved onto the business of naming post offices, and eventually went into recess.

There is no proof that Ms. Palin’s online missive was even read by any of the wavering Republicans or played any role in helping to stir up the sheep in Mr. Boehner’s flock.

But the former Alaska governor is very good at capturing media attention when she wants it. And refusing to go along with what the establishment — especially the Republican establishment — wants is one of the ways she does it.

I do take issue with Mr. Shear's slight insinuation there, that the governor was looking for media attention. As was obvious from the Scott Conroy interview with CBS from earlier today, the "conventional wisdom" in Washington DC is that Governor Palin does things strictly FOR media attention. Just how ignorant is DC "conventional wisdom" anyway? Do these people not realize that Governor Palin could pick up the phone at any given time and call any reporter of her choosing to get some "attention" if that is what she wanted? No, Sarah Palin doesn't do things so people will feed her ego. That's a trait usually reserved for the non-hobbits who currently reside in the nation's capitol.

Beyond that, it is interesting the how things panned out today. GOP House leaders had been telling the media that their bill was as good as passed, then all of the sudden, it wasn't. Shortly after she republished her letter to the freshmen congress-members from last November, things in the House shifted. Her statement was a reminder about principles and it was a timely reminder, indeed.