Ban politicians from owning individual stocks and bonds. They can only own broad based index funds and ETFs. Politicians should concentrate on growing the economy for all to benefit, not for them to take advantage of picking winners and losers through spending or regulation. This should happen at the federal level at a minimum. Ideally, the law should be extended to state level officials as well due to the proximity of the working relationship. Being found guilty of taking advantage of any knowledge gained in their governmental duties will result in immediate expulsion from office, disgorgement of profits, and ineligibilty of holding any public office in the future. To be clear, violators lose the ability to run for their local school board.
This is an absolute must.
How did we ever allow this to happen, and continue to happen.
Insider trading laws obviously already exist, but when it comes to politicians, the laws aren’t applied. This act would specify stiffer penalties and limit their holdings to a portfolio that they couldn’t influence. If existing laws were enforced, I wouldnt be so adamant about placing draconian limitations on politicians, but the worst offenders make an absolute mockery of financial markets and the laws they create. In general, the regulators need to be regulated.
Completely agree, I would also add federal charges from insider trading.
Whatever the charges are, they should be punitive enough to keep the offender out of a position of influence and prevent others from thinking insider trading is a good idea.