Is it legal? How Politicians Make Millions in Stocks | by Pavle Marinkovic | October 2023

It appears that insider trading is still legal in the US

Generated with PLATE

Members of the US Congress (with an average age of 150) have been making millions of dollars through insider trading for decades.

Using information not available to humans, they have in several cases created wealth beyond our wildest dreams:

  • At least 34 members of Congress benefited the 2008 financial crisis (including John Boehner, Ben Nelson and Kent Conrad).
  • Lawmakers were once again caught insider trading during the event pandemic (Richard Burr, Kelly Loeffler, Dianne Feinstein, and Jim Inhofe, among others).

This happens on both sides (Republicans and Democrats) and unfortunately is still common practice.

Some have become so skilled in stock trading as Speaker of the House Nancy Pelosithat several Tick ​​Tock accounts and other social media channels follow her every move. There is even an ETF with a ticker NANC (“Subversive Unusual Whale Democratic ETFs”) that benefit from the business activity of members of Congress.

Instead of stopping this practice, laws turn a blind eye and people accept it. So if these plans go ahead, you can also find out all about it.

Prior to 2012, when the law lacked the Stop Trading on Congressional Knowledge Act (i.e. the STOCK Act), politicians were immune from many of the regulations that governed the rest of the people.

They had inside information and acted on it. They could attend a meeting, get all the sensitive data they needed, and then buy stocks before anyone knew what was going on.

Then came the Stock Act which legislators required them to disclose their trades and…nothing has changed.

Politicians now had a buffer 30 to 45 days before they posted their trades and if they exceeded the deadline they would get a slap on the wrist. There would be hell to pay $200 fine (which has now been raised to 500 dollars). That’s what they spend on lunch.

Leave a Comment