Many believe it's time to do away with lawmakers making stock trades

#1

Post by DocFeind » Fri, Sep 24, 2021, 1:33 PM UTC

Many believe it's time to do away with lawmakers making stock trades
npr.org

Re: Many believe it's time to do away with lawmakers making stock trades

#2

Post by ravedave5 » Fri, Sep 24, 2021, 2:05 PM UTC

There are so many loop holes. I mean then they just make a company that does stock trades for them and tell that company what to trade. Or their spouse does the trades instead of them.

Re: Many believe it's time to do away with lawmakers making stock trades

#3

Post by Traubenfuchs » Fri, Sep 24, 2021, 2:06 PM UTC

And their partners, parents, children, friends?

This problem looks unsolvable to me.

Re: Many believe it's time to do away with lawmakers making stock trades

#4

Post by pwillia7 » Fri, Sep 24, 2021, 2:06 PM UTC

ravedave5 wrote: post #2

There are so many loop holes. I mean then they just make a company that does stock trades for them and tell that company what to trade. Or their spouse does the trades instead of them.

*purposeful loopholes

Re: Many believe it's time to do away with lawmakers making stock trades

#5

Post by kory » Fri, Sep 24, 2021, 2:07 PM UTC

Banning stock trading for lawmakers in any form will even moreso restrict these positions to very wealthy people.

If you’re worth several million, stock trading restrictions don’t change much. If you aren’t, they could be a big deciding factor in the quality of your housing or retirement.

Re: Many believe it's time to do away with lawmakers making stock trades

#6

Post by darig » Fri, Sep 24, 2021, 2:09 PM UTC

Traubenfuchs wrote: post #3

And their partners, parents, children, friends? This problem looks unsolvable to me.

Corrupt politicians and their partners, parents, children, and friends could all be publicly beheaded in a group at the slightest whiff of impropriety.

Sell tickets.

Re: Many believe it's time to do away with lawmakers making stock trades

#7

Post by s_Hogg » Fri, Sep 24, 2021, 2:09 PM UTC

Traubenfuchs wrote: post #3

And their partners, parents, children, friends? This problem looks unsolvable to me.

Maybe with that attitude :)

Part of solving the problem is legislation, part of it is cultural. If you don't have both, then sure, it's too hard.

Re: Many believe it's time to do away with lawmakers making stock trades

#8

Post by wayoutthere » Fri, Sep 24, 2021, 2:10 PM UTC

Great! Pretty sure this is not controversial among the voting public.

However, the lawmakers will never vote on a law to ban trading on non-public knowledge because this kind of insider trading is frequently the reason they’re in politics in the first place. We have long since passed the time where community service drove public officials to run; it’s all about getting rich. Even the few true believers like Bernie Sanders can’t help themselves from dabbling a bit; and he’s basically the exception that proves the rule.

Re: Many believe it's time to do away with lawmakers making stock trades

#9

Post by athenot » Fri, Sep 24, 2021, 2:10 PM UTC

At aa high level, if one is involved in shaping policy which can then affect stock prices, it's no different than insider trading. It's just that it's not limited to a single company.

Re: Many believe it's time to do away with lawmakers making stock trades

#10

Post by unethical_ban » Fri, Sep 24, 2021, 2:11 PM UTC

kory wrote: post #5

Banning stock trading for lawmakers in any form will even moreso restrict these positions to very wealthy people. If you’re worth several million, stock trading restrictions don’t change much. If you aren’t, they could be a big deciding factor in the quality of your housing or retirement.

I didn't RTFM, but I imagine the difference would be between "sending my investment money to a trusted, independent broker to be put into index funds" and "personally trading stocks over which I have legislative responsibilities".