The undue influence of corporate money in public policy is at the root of nearly all the major problems facing the U.S. right now, and in the wake of the Citizens United decision it's only going to get worse. That's why it was good to hear President Obama call out the "corrosive influence of money in politics" during his State of the Union speech. Unfortunately, his primary call to action doesn't even address the real issue.Read Full Article
Following last month's 60 Minutes expose on insider trading by Congress, the House Financial Service Committee Act is holding a mark-up this morning of the STOCK Act, which seeks to end the practice of members of Congress trading stocks based on nonpublic information. Under current law, insider trading laws are hardly ever enforced for members of Congress, and we've known for some time that members' investments consistently outperform the market by a significant amount. Legislation to stop congressional insider trading has been pending in the House and Senate for 6 years, and only now is the bill starting to move forward.Read Full Article
You know what's sketchy? According to a new report, members of Congress who invest in the stock market consistently end up making abnormally high returns. Dan Froomkin reports:
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Four university researchers examined 16,000 common stock transactions made by approximately 300 House representatives from 1985 to 2001, and found what they call "significant positive abnormal returns," with portfolios based on congressional trades beating the market by about 6 percent annually.