Ban ownership or trading of individual stocks by members of Congress and the Administration. Too many public servants make a lot of money buying and selling stocks based on information the general public doesn’t have.
Also, audits on family members. Punish insider trading by family members.
I dont think banning ownership is american, but not allowing new purchases or sells while in office and for a timeframe after would be nice. That way, they can not set laws that could impact them immediately after, in their favor.
It’s not un-American to make sure that civil servants have no incentive to cheat. Forcing them into a general investment fund that is tied to the overall health of the country would be an incentive for them to do things that benefit the country, for example. But not owning any stock at all might be safer; Treasury bonds, perhaps.
Cheaters will always cheat no matter how strict the rules. Rather than continually moving the boundaries to keep them in, why not just make it easier for citizens to remove them while in office if they do something treasonous?
Don’t ban it, just make all records public. Arrange for meaningful censure if the use their influence to profit.
Amen
As an employee of a company, you’re banned from trading stocks, with trading windows
Same should apply for anyone else with insider information
The same types of restrictions that bank employees have to follow at the VERY least. For example, employees at JP Morgan Chase have to fill out a form at least one business day before entering or exiting a trade. In addition, the trade needs to be approved by an oversight committee to ensure to the highest degree of confidence that there are no conflicts of interest or insider information pertaining to the positions. It’s common sense. This type of process needs to be applied to immediate family members of the politician as well. No more Pelosi magic please!
Include family members, members of the Supreme Court and employees of all three branches. The problem is that big.
You can’t prove insider trading by family members.
It’s a ridiculous proposal and suggestion.
What if I have a bad relationship with a family member who is a politician, have nothing to do with them, and purchase shares of a company? Why should I be investigated?
You can’t stop insider info from leaking. This is like if you worked for an airline company and you found out that there was going to be a great deal on some flights. 100%, you are telling it to your friends or family members. So how would the airline figure any of this out? They can’t.
The best thing to do is to put term limits and LIMIT the amount of corruption they can do. Politicians, by default, are put in charge of so much power that it’s impossible to stop them from leaking insider info while they are in office. That’s why if you put term limits, they’re unable to profit significantly from it.
Or let them buy etf’s so they are still participating but camt make hundreds of millions on insider trading
Term limits would help.
Need to get rid of people like Pelosi who legislate based on what’s best for their own interests/investments
How about we start by enforcing current insider trading laws?
This should be mandatory
Clarify that elected officials and their immediate family may only own diversified index funds (e.g S&P 500, Nasdaq 100, etc). No individual stocks or weighted funds which benefit from their insider trading. Automatic office disqualification for violation.
I’ve always wondered if extra legislation is necessary? Congress & the administration have access to classified information. Therefore, they have access to inside information which will impact companies and economy. Trading with this kind of knowledge IS insider trading. Just start prosecuting them. Maybe I’m missing details?
Also, would the SEC have access to what congress sees? If we are making the case that they are trading companies who aren’t impacted by their classified intel, how could it be regulated? If the SEC can’t review what they knew ahead of a trade due to confidentiality, how can they make that call?
I like the idea about this but what if instead of fully banning we only allowed large index funds where they only benefit if the whole economy is benefiting rather than their targeted companies.
Considering it would be very tricky to enforce, maybe we change the law so that they must disclose their purchases/sales within an hour of their action. This would allow citizens to benefit from the politician’s unfair advantages.
Vivek Ramasawmy in an interview with Shawn Ryan proposed laws like this would be hard to pass unless politicians are grandfathered into these regulations. If they vote yes on this, it applies to their successors.
I don’t think it needs to be banned. Like CEOs, you have a maximum of 10 days to disclose. Unlike CEOs, if not disclosed, all profit from the trade should be forfeited. Further, the SEC should have heightened supervision around family, friends and close associates. Matched trades/ timing should be reviewed with a similar penalty. While it doesn’t eliminate all problems, removing the profit motive will help, and as a low enforcement bar, its easy to “over prescribe” and there should be high levels of willingness.