Lawmakers could vote for infrastructure bill, then buy stock in a concrete firm.
Could? You mean do?
They have it backwards too. They'll buy stock, then vote on the bill that'll raise stock prices (or vice versa with shorts)
If they haven't yet voted, then the bill might not pass.
In any case, upcoming bills are public knowledge. If you think a bill will pass, you too can buy the stock before the vote.
Does the bill specify who they're going to be paying the money to, though? Because an infrastructure bill saying we're going to spend a certain amount of money on these projects can predict changes in certain industries, but being on a committee and saying, "We're going to hire this specific company with this huge government contract to do this work," can tell you exactly what company is about to have a huge boost to their value.
Usually the committee gives the executive branch a sum of money and tells them to find someone to do the job.
Occasionally a specific company is designated by legislators. But this wouldn't be a secret, the committee meetings themselves are open to the public. And likewise when everyone votes on the bill, the name of the company would be public.
Yeah were not getting any movement on this until people like Pelosi are far removed from any role in the democrat party. They're just gonna keep pointing and screaming at the big orange distraction because it's a lot easier than making peoples lives better.
When it comes to making people's lives better, Democrats did more last year alone then Republicans have in the last twenty years put together.
I agree with you. But it's important to still point out and want to fix problems even in the "better party." We can't simply be accepting of "be less bad." We need to always strive to improve. And weakening the connections between Wall Street and Washington is a big progressive goal that the old guard of Democrats have directly opposed.
Problem is, we don't get any forewarning about how they're gonna vote.
The example was about someone who votes for an infrastructure bill and then buys a stock. Votes are public, so you could buy the stock at the same time they do.
The problem there is that automated traders have the same idea - and are a shit ton faster than you. So by the time you've so much as heard of it, the price is already up 25%
Maybe, but then legislators would have the same problem buying that stock.
No they don't. They can buy the stock before the vote, knowing which way the vote is gonna go.
Senators do communicate with each other on these things, even exchange votes (eg: I'll vote for this if you vote for that). That's before we get into the matter of party whips pressing members to vote certain ways. None of that is public record.
They can buy the stock before the vote, knowing which way the vote is gonna go.
Well that would seemingly be against the "STOCK" act. I'm sure the SEC would have something to say about that...
lol :(
The example was someone who bought after voting. So at least that doesn't seem to present a problem.
If someone knows a bill is coming up that is likely to pass, they too can buy the stock before the vote.
If nobody knows whether it will pass besides the legislator, then yeah that's totally insider trading. Which is already illegal.
But frankly that's a pretty rare situation. Legislators usually telegraph well in advance how they are going to vote for upcoming bills. And when the outcome is a surprise, it usually surprises the legislators too.
If nobody knows whether it will pass besides the legislator, then yeah that’s totally insider trading. Which is already illegal.
Correct. The problem is that it's not enforced on senator's as they don't want to indict their fellow congressperson
Sure, but if that's true then banning it with another law won't change anything.
Correct. It's the enforcement of the law that needs to change.
Specifically, enforcement needs to be automated, rather than relying on someone in the political game manually pulling the trigger. Because that someone at the moment has every politics reason not to, thus enforcement is the exception and not the norm
Insider trading is not illegal for legislators. They specifically made it legal for themselves.
The article says it is illegal for them to trade on nonpublic information. Isn't that the definition of insider trading?
In 2012, President Barack Obama signed the STOCK Act, banning members of Congress from trading with nonpublic information, meaning details they glean in their work that are not available to the general public.
Not saying it doesn't still happen, but it is illegal.
Insider trading is absolutely illegal for legislators. In fact, Chris Collins (NY-27) is currently serving time for insider trading.
Could? You mean do?
They have it backwards too. They'll buy stock, then vote on the bill that'll raise stock prices (or vice versa with shorts)
If they haven't yet voted, then the bill might not pass.
In any case, upcoming bills are public knowledge. If you think a bill will pass, you too can buy the stock before the vote.
Does the bill specify who they're going to be paying the money to, though? Because an infrastructure bill saying we're going to spend a certain amount of money on these projects can predict changes in certain industries, but being on a committee and saying, "We're going to hire this specific company with this huge government contract to do this work," can tell you exactly what company is about to have a huge boost to their value.
Usually the committee gives the executive branch a sum of money and tells them to find someone to do the job.
Occasionally a specific company is designated by legislators. But this wouldn't be a secret, the committee meetings themselves are open to the public. And likewise when everyone votes on the bill, the name of the company would be public.
Yeah were not getting any movement on this until people like Pelosi are far removed from any role in the democrat party. They're just gonna keep pointing and screaming at the big orange distraction because it's a lot easier than making peoples lives better.
When it comes to making people's lives better, Democrats did more last year alone then Republicans have in the last twenty years put together.
I agree with you. But it's important to still point out and want to fix problems even in the "better party." We can't simply be accepting of "be less bad." We need to always strive to improve. And weakening the connections between Wall Street and Washington is a big progressive goal that the old guard of Democrats have directly opposed.
Fair enough!
Public service doesn't mean much in America.
Nothing happens in this country without someone getting paid.
You could buy that stock too.
Not at the price they did.
If they vote for an infrastructure bill and then buy a stock, then you might even buy the stock before they do.
Problem is, we don't get any forewarning about how they're gonna vote.
The example was about someone who votes for an infrastructure bill and then buys a stock. Votes are public, so you could buy the stock at the same time they do.
The problem there is that automated traders have the same idea - and are a shit ton faster than you. So by the time you've so much as heard of it, the price is already up 25%
Maybe, but then legislators would have the same problem buying that stock.
No they don't. They can buy the stock before the vote, knowing which way the vote is gonna go.
Senators do communicate with each other on these things, even exchange votes (eg: I'll vote for this if you vote for that). That's before we get into the matter of party whips pressing members to vote certain ways. None of that is public record.
Well that would seemingly be against the "STOCK" act. I'm sure the SEC would have something to say about that...
lol :(
The example was someone who bought after voting. So at least that doesn't seem to present a problem.
If someone knows a bill is coming up that is likely to pass, they too can buy the stock before the vote.
If nobody knows whether it will pass besides the legislator, then yeah that's totally insider trading. Which is already illegal.
But frankly that's a pretty rare situation. Legislators usually telegraph well in advance how they are going to vote for upcoming bills. And when the outcome is a surprise, it usually surprises the legislators too.
Correct. The problem is that it's not enforced on senator's as they don't want to indict their fellow congressperson
Sure, but if that's true then banning it with another law won't change anything.
Correct. It's the enforcement of the law that needs to change.
Specifically, enforcement needs to be automated, rather than relying on someone in the political game manually pulling the trigger. Because that someone at the moment has every politics reason not to, thus enforcement is the exception and not the norm
Insider trading is not illegal for legislators. They specifically made it legal for themselves.
The article says it is illegal for them to trade on nonpublic information. Isn't that the definition of insider trading?
Not saying it doesn't still happen, but it is illegal.
Insider trading is absolutely illegal for legislators. In fact, Chris Collins (NY-27) is currently serving time for insider trading.
You're confusing the series of events.