Insider Trading And Congress: How Lawmakers Get Rich From The Stock Market
- 🎬 Video
- ℹ️ Description
In spring 2020, four U.S. senators faced accusations of using insider knowledge about the coronavirus crisis to sell off hundreds of thousands of dollars in stock. A couple of months later, the investigations into senators Kelly Loeffler (R-GA), Dianna Feinstein (D-CA), and James Inhofe (R-OK) were closed. Sen. Richard Burr (R-NC) stepped down as chairman of the Senate Intelligence Committee amid the allegations.
Congressional insider trading has long been a hot button issue, and lawmakers continue to look for a way to put an end to the practice. In 2012, the STOCK (Stop Trading on Congressional Knowledge) Act was passed following allegations of insider trading before the 2008 financial crisis. However, experts say the law didn’t go far enough. Watch the video to find out how prevalent insider trading is in Congress and what’s being done, and what’s not being done, to stop it.
UPDATE (December 1, 2020): With the U.S. presidential election over, attention is shifting to runoff elections for Georgia’s two senate seats slated for Jan. 5, 2021. Incumbent Senators Kelly Loeffler and David Perdue each face allegations of insider trading and possible violations of the STOCK act based on their investment decisions at the start of the coronavirus pandemic. Here’s how insider trading works when it comes to members of Congress, and what’s being done to curtail the practice.
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Insider Trading And Congress: How lawmakers Get Rich From The Stock Market