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Particularly bad violations have been the Fed presidents making multimillion dollar trades with personal accounts, and Nancy Pelosi’s husband apparently directl

Particularly bad violations have been the Fed presidents making multimillion dollar trades with personal accounts, and Nancy Pelosi’s husband apparently directly trading on privileged information. https://www.cnbc.com/2021/09/16/fed-chief-powell-orders-ethics-review-after-multimillion-dollar-trades.html https://www.cnbc.com/2021/09/16/fed-chief-powell-orders-ethi... https://fortune.com/2021/07/08/house-speaker-nancy-pelosi-husband-paul-big-tech-stocks/ https://fortune.com/2021/07/08/house-speaker-nancy-pelosi-hu...

bastardoperator 5y ago
It's widespread, republicans seem to be doing it more though https://www.nytimes.com/2020/12/02/us/politics/david-perdue-stock-trades.html https://www.nytimes.com/2020/12/02/us/politics/david-perdue-... https://www.cnbc.com/2021/01/19/doj-will-not-charge-sen-richard-burr-for-covid-stock-trades.html https://www.cnbc.com/2021/01/19/doj-will-not-charge-sen-rich... https://www.washingtonpost.com/politics/2021/08/11/rand-paul-gilead-stock/ https://www.washingtonpost.com/politics/2021/08/11/rand-paul... https://tulsaworld.com/news/u-s-sen-jim-inhofe-responds-after-stock-deal-draws-scrutiny/article_0165940a-44ca-57fb-983e-7ebce0a6254b.html https://tulsaworld.com/news/u-s-sen-jim-inhofe-responds-afte...
- 8b16380d 5y ago
  They are just reported on more. This problem is party agnostic.
- leesalminen 5y ago
  Bernie Sanders is worth $3 million and has never worked outside of politics in his entire life. Maybe that seems like not a lot to the SV types, but it’s far, far more than what most people I know have to show for a lifetime of actually hard work. https://finance.yahoo.com/news/rich-bernie-sanders-210000864.html https://finance.yahoo.com/news/rich-bernie-sanders-210000864...
  - sdfjksbdf 5y ago
    It's from selling books. What is your point?
  - jakeinspace 5y ago
    1: That's not a real source, it just cites celebretynetworth.com. 2: Any particular reason to single him out, considering he's one of the oldest and lowest-net-worth senators? I'd say $3 million is a fairly understandable net worth for an 80 year old who's been in congress 30 years, and held public office for 40. His wife is also fairly successful.
  - magu0 5y ago
    Okay, but what does this have to do with trading stocks on inside knowledge? As far as I’ve heard, that money is from salary and book sales.
  - caymanjim 5y ago
    Senators get paid pretty well, have great benefits, and lots of reimbursed expenses. Sanders is also older than dirt and still hasn't retired despite his age. I can't believe he's only worth $3 million.
  - DavidPeiffer 5y ago
    He's also 80 and still working. $310/month invested over 60 years is about $3 million at 7% annual growth. Or assume he had nothing until being elected to the senate in 2007, then started putting 60k/year into an S&P 500 index fund. That also gets you to about $3 million.
    - mgkimsal 5y ago
      I mostly take your point(s), and really... $3m is not a large amount for someone who's worked and been moderately diligent about finances. You don't need to have insider knowledge or bend the rules to have saved $3m over 60 years. BUT... $310/month back in 1950 was a lot of 'savable' income for most working people. Most manufacturing workers in mid 1950s were earning under $2.50/hr - even assuming some overtime, monthly earning might be $500.
- andrew_ 5y ago
  Is there a word for ignorance based on tribalism? Legitimate question; I'd like to add it to my vocabulary, and it would perfectly describe the parent comment.
  - rajin444 5y ago
    Politics.
    - spaetzleesser 5y ago
      Especially American politics. It seems to be a very american phenomenon for voters to find bad things only on the "other" side and totally ignore the same thing on "their" side.
      - camjohnson26 5y ago
        I’m not sure if your comment was meant to be ironic but it is.
- camjohnson26 5y ago
  I wouldn’t make it a Republican/Democrat thing since that’s guaranteed to start a flame war, Pelosi’s husband is the highest profile culprit but as you said corruption is widespread.
  - lastofthemojito 5y ago
    Pelosi's husband isn't a lawmaker himself though ... which makes me wonder, if there was a ban on lawmakers (and their spouses) actively trading, I wonder if we'd see divorces of convenience. "Oh sure, my ex-husband (and now boyfriend) trades stocks, but that's none of the public's business". Gotta think people who have an edge that can help them get rich(er) will do anything within the letter of the law to keep that edge, rather than you know, comply with the spirit of the law.
    - Consultant32452 5y ago
      Courts are pretty good at not letting people get away with these sorts of "loopholes." Judges tend not to interpret the law like an autistic person.
    - camjohnson26 5y ago
      My company got acquired by a big 4 accounting firm and the rules for independence are pretty strict. Some people left after the acquisition because they were living with a partner, unmarried, who would be required to sell stocks under the independence rules.
- tooltalk 5y ago
  Not sure why Rand Paul is in your list, or how it demonstrates your point that repubs are doing it more. IIRC Paul's problem was that the disclosure filing was late, not that he, or his wife, abused his position to make that one ~$10K trade for Gilead, the maker of Remdesivir, the only stock trade during his 10-years in the Senate.
koheripbal 5y ago
Your sources do not say that they traded based upon insider info. In the case of the Fed, they only questioned whether they should be allowed to own individual stocks at all. ....and the selling of tech by NP's husband. That doesn't mean he sold because he had specific info that was secret. The article does not even make that allegation. Tech has gone up a lot - selling some is not unreasonable.
deleted 5y ago
[deleted]
tusslewake 5y ago
If it's reasonable to assume that someone like a Fed president is aware of the perils of market timing, of information asymmetries, of the disadvantage that an individual investor has against institutional funds, etc.--is there any plausible explanation for his trading individual stocks outside of being in possession of some kind of insider information that gives him an edge on the market? Surely he can't just claim that he doesn't know what he's doing. And could a Fed president be in a position to have legal insider information that gives him an edge on trading individual stocks, or is any insider info that he could trade on illegal to do so by definition?

bastardoperator 5y ago

It's widespread, republicans seem to be doing it more though https://www.nytimes.com/2020/12/02/us/politics/david-perdue-stock-trades.html https://www.nytimes.com/2020/12/02/us/politics/david-perdue-... https://www.cnbc.com/2021/01/19/doj-will-not-charge-sen-richard-burr-for-covid-stock-trades.html https://www.cnbc.com/2021/01/19/doj-will-not-charge-sen-rich... https://www.washingtonpost.com/politics/2021/08/11/rand-paul-gilead-stock/ https://www.washingtonpost.com/politics/2021/08/11/rand-paul... https://tulsaworld.com/news/u-s-sen-jim-inhofe-responds-after-stock-deal-draws-scrutiny/article_0165940a-44ca-57fb-983e-7ebce0a6254b.html https://tulsaworld.com/news/u-s-sen-jim-inhofe-responds-afte...

8b16380d 5y ago
They are just reported on more. This problem is party agnostic.
leesalminen 5y ago
Bernie Sanders is worth $3 million and has never worked outside of politics in his entire life. Maybe that seems like not a lot to the SV types, but it’s far, far more than what most people I know have to show for a lifetime of actually hard work. https://finance.yahoo.com/news/rich-bernie-sanders-210000864.html https://finance.yahoo.com/news/rich-bernie-sanders-210000864...
- sdfjksbdf 5y ago
  It's from selling books. What is your point?
- jakeinspace 5y ago
  1: That's not a real source, it just cites celebretynetworth.com. 2: Any particular reason to single him out, considering he's one of the oldest and lowest-net-worth senators? I'd say $3 million is a fairly understandable net worth for an 80 year old who's been in congress 30 years, and held public office for 40. His wife is also fairly successful.
- magu0 5y ago
  Okay, but what does this have to do with trading stocks on inside knowledge? As far as I’ve heard, that money is from salary and book sales.
- caymanjim 5y ago
  Senators get paid pretty well, have great benefits, and lots of reimbursed expenses. Sanders is also older than dirt and still hasn't retired despite his age. I can't believe he's only worth $3 million.
- DavidPeiffer 5y ago
  He's also 80 and still working. $310/month invested over 60 years is about $3 million at 7% annual growth. Or assume he had nothing until being elected to the senate in 2007, then started putting 60k/year into an S&P 500 index fund. That also gets you to about $3 million.
  - mgkimsal 5y ago
    I mostly take your point(s), and really... $3m is not a large amount for someone who's worked and been moderately diligent about finances. You don't need to have insider knowledge or bend the rules to have saved $3m over 60 years. BUT... $310/month back in 1950 was a lot of 'savable' income for most working people. Most manufacturing workers in mid 1950s were earning under $2.50/hr - even assuming some overtime, monthly earning might be $500.
andrew_ 5y ago
Is there a word for ignorance based on tribalism? Legitimate question; I'd like to add it to my vocabulary, and it would perfectly describe the parent comment.
- rajin444 5y ago
  Politics.
  - spaetzleesser 5y ago
    Especially American politics. It seems to be a very american phenomenon for voters to find bad things only on the "other" side and totally ignore the same thing on "their" side.
    - camjohnson26 5y ago
      I’m not sure if your comment was meant to be ironic but it is.
camjohnson26 5y ago
I wouldn’t make it a Republican/Democrat thing since that’s guaranteed to start a flame war, Pelosi’s husband is the highest profile culprit but as you said corruption is widespread.
- lastofthemojito 5y ago
  Pelosi's husband isn't a lawmaker himself though ... which makes me wonder, if there was a ban on lawmakers (and their spouses) actively trading, I wonder if we'd see divorces of convenience. "Oh sure, my ex-husband (and now boyfriend) trades stocks, but that's none of the public's business". Gotta think people who have an edge that can help them get rich(er) will do anything within the letter of the law to keep that edge, rather than you know, comply with the spirit of the law.
  - Consultant32452 5y ago
    Courts are pretty good at not letting people get away with these sorts of "loopholes." Judges tend not to interpret the law like an autistic person.
  - camjohnson26 5y ago
    My company got acquired by a big 4 accounting firm and the rules for independence are pretty strict. Some people left after the acquisition because they were living with a partner, unmarried, who would be required to sell stocks under the independence rules.
tooltalk 5y ago
Not sure why Rand Paul is in your list, or how it demonstrates your point that repubs are doing it more. IIRC Paul's problem was that the disclosure filing was late, not that he, or his wife, abused his position to make that one ~$10K trade for Gilead, the maker of Remdesivir, the only stock trade during his 10-years in the Senate.

koheripbal 5y ago

Your sources do not say that they traded based upon insider info. In the case of the Fed, they only questioned whether they should be allowed to own individual stocks at all. ....and the selling of tech by NP's husband. That doesn't mean he sold because he had specific info that was secret. The article does not even make that allegation. Tech has gone up a lot - selling some is not unreasonable.

deleted 5y ago

[deleted]

tusslewake 5y ago

If it's reasonable to assume that someone like a Fed president is aware of the perils of market timing, of information asymmetries, of the disadvantage that an individual investor has against institutional funds, etc.--is there any plausible explanation for his trading individual stocks outside of being in possession of some kind of insider information that gives him an edge on the market? Surely he can't just claim that he doesn't know what he's doing. And could a Fed president be in a position to have legal insider information that gives him an edge on trading individual stocks, or is any insider info that he could trade on illegal to do so by definition?