INSIDER TRADING? ONLY ILLEGAL IF YOU'RE NOT IN THE CONGRESS
When Americans think about fairness in the stock market, there’s a clear expectation: no one should have an unfair advantage, especially not elected officials. Yet, in a troubling display of double standards, members of Congress have historically sidestepped rules that would land everyday citizens in serious legal trouble for violating insider trading laws.
Fauxcahontas speaks…
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Top Senate Democrats urge SEC probe into whether Trump, GOP manipulated stocks Top Senate Democrats accused President Trump and his inner circle of manipulating the market before he announced his 90-day pause on most tariffs. Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, urged the Securities and Exchange Commission to investigate whether Mr. Trump, members of his Cabinet, administration officials, insiders or donors engaged in “insider trading, market manipulation or other securities laws” after the president’s insistence that it was a “great time to buy” ahead of his announcement to pause his reciprocal tariffs. Mr. Trump this week announced that he would drop his tariff rate to 10% for countries that don’t retaliate, while cranking up tariffs against China to 125%. As a result, the stock market on Wednesday mounted a historic rally. The Dow Jones Industrial Average surged 7.9%, the Nasdaq skyrocketed 12.2%, and the S&P 500 rose 9.5%. But stocks flopped again the next day. But Ms. Warren of Massachusetts, alongside Senate Minority Leader Charles E. Schumer of New York, Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, and others alleged that a social media post before the president’s announcement warranted a probe into whether any market manipulation occurred. The lawmakers noted in a letter to the agency on Thursday that hours before his announcement to pause tariffs, the president wrote on his social media platform Truth Social, “THIS IS A GREAT TIME TO BUY!!! DJT.” They said it was “unclear which officials and affiliates of President Trump had advance knowledge” of his plan, but insiders may have been wise to his next move and the impact it would have on the stock market. “It is unconscionable that as American families are concerned about their financial security during this economic crisis entirely manufactured by the President, insiders may have actively profited from the market volatility and potentially perpetrated financial fraud on the American public,” the lawmakers wrote. “At this critical moment, the SEC must do its part to restore Americans’ faith in the rule of law and to preserve the integrity of the financial system, in accordance with its statutory mission,” they continued. The lawmakers called on the SEC to outline what steps have been or will be taken to investigate market manipulation, insider trading or other violations of federal securities laws in connection with the tariff pause, whether the White House has communicated with the agency about a possible investigation and how staff reductions at the SEC have affected the agency’s ability to investigate such a matter. The Washington Times reached out to the White House for comment. House Minority Leader Hakeem Jeffries, New York Democrat, similarly said House Democrats would mount investigations into whether any market manipulation surrounded the president’s tariff announcement. “We need to get to the bottom of the possible stock manipulation that is unfolding before the American people,” Mr. Jeffries said on Thursday. “Including what, if any, advance knowledge did members of the House Republican Conference have of Trump’s decision to pause the reckless tariffs that he put into place?” <Source> |
Senators and the Insider Trading Loophole: A Broken Trust
The STOCK Act, passed in 2012, was meant to increase transparency and prohibit members of Congress from using non-public information for financial gain. It sounded like a step in the right direction.
However, enforcement has been weak over the years, and compliance has been questionable. Lawmakers have delayed or failed to disclose trades, and investigations rarely lead to consequences. Even when red flags are raised, political privilege often shields those in power.
This perceived self-exemption damages public trust and creates a dangerous precedent: those who write the rules aren’t always subject to them.
Until there is meaningful reform—with real enforcement, penalties, and accountability—the message is clear: in the halls of Congress, it’s not always rules for thee and not for me.
True reform would require tightening the STOCK Act, mandating real-time trade disclosures, banning individual stock trading by sitting members of Congress, and establishing an independent body to enforce violations. Without these changes, the perception—and often the reality—remains that lawmakers can legally profit from information the public doesn’t have.
Bottom line…
Insider trading isn’t just an ethical issue; it’s a legal one. Elected officials are supposed to serve the people, not their portfolios. Trust in government is already fragile, and every shady stock trade only deepens the divide between so-called public servants and the public they claim to represent.
If democracy is to mean anything, it must be rooted in fairness. That means no special treatment for Members of Congress, no loopholes, and no more excuses.
It’s time Congress played by the same rules as everyone else—or step aside for those who will.
We are so screwed.
-- Steve
“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS