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There are US senators that make millions by using their spouses as intermediaries to buy and sell shares. Insider trading as a crime only exists for those that

There are US senators that make millions by using their spouses as intermediaries to buy and sell shares. Insider trading as a crime only exists for those that are not well connected enough

infecto 2y ago
I am not denying small cash is being made like that. I am referring to the argument that the Medallion fund was a purely a play on insider trading.
chollida1 2y ago
Those senators just trade on their own behalf because its not illegal to. Why would they involve their spouse? If it was illegal for them to trade but their spouse made a trade it would be trivial for the SEC to trace it back to intel they learned.
- crynom 2y ago
  It is illegal. https://www.congress.gov/bill/112th-congress/senate-bill/2038 https://www.congress.gov/bill/112th-congress/senate-bill/203... You are right that enforcement is weak, but that is not because it is legal. The notion that members of Congress can legally trade on knowledge derived from or used in the performance of their duties has not been true for over a decade at this point.
  - chollida1 2y ago
    https://campaignlegal.org/update/stock-act-failed-effort-stop-insider-trading-congress https://campaignlegal.org/update/stock-act-failed-effort-sto... No congress can trade on insider information full stop https://blogs.luc.edu/compliance/?p=4459 https://blogs.luc.edu/compliance/?p=4459 > Simply put, insider trading is illegal. But, if you are a member of Congress, there is a loophole. Members of Congress and their families are allowed to trade stocks with almost no limitations. There isn’t a limit on lawmakers trading stocks based on classified information nor is there oversight regarding the trades that lawmakers are allowed to make based on other information they are privy to as part of their job. This is in glaring contrast to the strict insider trading laws that ban the same kind of behavior of everyone else in the county.

There are US senators that make millions by using their spouses as intermediaries to buy and sell shares. Insider trading as a crime only exists for those that are not well connected enough

infecto 2y ago

I am not denying small cash is being made like that. I am referring to the argument that the Medallion fund was a purely a play on insider trading.

chollida1 2y ago

Those senators just trade on their own behalf because its not illegal to. Why would they involve their spouse? If it was illegal for them to trade but their spouse made a trade it would be trivial for the SEC to trace it back to intel they learned.

crynom 2y ago
It is illegal. https://www.congress.gov/bill/112th-congress/senate-bill/2038 https://www.congress.gov/bill/112th-congress/senate-bill/203... You are right that enforcement is weak, but that is not because it is legal. The notion that members of Congress can legally trade on knowledge derived from or used in the performance of their duties has not been true for over a decade at this point.
- chollida1 2y ago
  https://campaignlegal.org/update/stock-act-failed-effort-stop-insider-trading-congress https://campaignlegal.org/update/stock-act-failed-effort-sto... No congress can trade on insider information full stop https://blogs.luc.edu/compliance/?p=4459 https://blogs.luc.edu/compliance/?p=4459 > Simply put, insider trading is illegal. But, if you are a member of Congress, there is a loophole. Members of Congress and their families are allowed to trade stocks with almost no limitations. There isn’t a limit on lawmakers trading stocks based on classified information nor is there oversight regarding the trades that lawmakers are allowed to make based on other information they are privy to as part of their job. This is in glaring contrast to the strict insider trading laws that ban the same kind of behavior of everyone else in the county.