How Were They Exempted in the First Place?

The Senate reacted Thursday to a public uproar over the awkward reality that insider trading laws don’t already apply to members of Congress. With lawmakers fearful of being painted on the wrong side of the issue, the STOCK Act passed 96-3. Senators from both sides of the aisle practically fell over themselves to herald the bill’s passage and tout the importance of restoring the public’s trust in Congress.

  TPM

Yes, I’m sure that will do it.

They were already on the wrong side of the issue, nobody needs to paint them there.

“On closer examination, it appears that what Congress really wants is to keep making the big bucks that come from trading on inside information but to trick those outside of the Beltway into believing they are doing something about this corruption,” wrote Yale law professor Jonathan Macey in the Wall Street Journal. “For one thing, the rules proposed for Capitol Hill are not like those that apply to the rest of us. Ours are so broad and vague that prosecutors enjoy almost unfettered discretion in deciding when and whom to prosecute.”

Sen. Susan Collins (R-ME), who played a role in developing the bill, didn’t agree with Macey’s argument. “I don’t see how that could possibly be the case,” she said in response to a question from TPM, and argued that the bill makes “crystal clear that members of Congress are not exempt from insider trading laws, regulations or rules.”

So why does Congress need a separate law from the rest of us anyway? Why aren’t they individually covered under the same insider trading laws the rest of us are? Do the laws that apply to us specifically exclude members of Congress? I don’t think I understand.

I guess I'm going to have to check out that 60 Minutes program that leaked this bit of information if I can find it.

That was easy...

Click the pic to watch at CBS.



UPDATE:

Senator Tom Coburn of Oklahoma, one of the three legislators to vote against the legislation, said he opposes the bill partially because he “honestly believe[s] everyone in our body is never gonna use insider trading to advantage themselves over the best interests of our country.”

  Republic Report

I just have noooooooooooooo comment for that.