EDITOR NOTE: You’d think that after the Stop Trading on Congressional Knowledge Act of 2012 was passed, senators would’ve gotten the message. Apparently not, as four more of them just got busted for insider trading. This is kind of scary--either they, like many people, find the temptation too difficult to resist (making them human), or they clearly didn’t know they were trading with insider information, making them more naive than we think. Either way, these are our policy makers, and what they did doesn’t bolster our confidence in their capacity to lead the country.
Four U.S. senators were accused in March of using insider information about the coronavirus pandemic to profit in the stock market.
A couple of months later, the investigations into Sens. Kelly Loeffler, R-Ga., Dianna Feinstein, D-Calif., and James Inhofe, R-Okla., were closed. Sen. Richard Burr, R-N.C., stepped down as chairman of the Senate Intelligence Committee amid the allegations.
Until the 2008 financial crisis, lawmakers were under few restrictions, and the public wasn’t able to find out much about lawmakers’ investments. In 2012, the Stop Trading on Congressional Knowledge Act was passed to clean up Washington. But recent events have yet again thrust the issue to the forefront.
How big an issue is insider trading in Congress? How does it work? And what’s being done to stop it? Watch the video above to find out.
Originally posted on CNBC