Thursday, May 26, 2011

House members in the know score 'abnormal' stock profits, study says

“We find strong evidence that members of the House have some type of non-public information which they use for personal gain,” according to four academics who authored the study, “Abnormal Returns From the Common Stock Investments of Members of the U.S. House of Representatives.”

To the frustration of open-government advocates, lawmakers and their staff members largely have immunity from laws barring trading on insider knowledge that have sent many a private corporate chieftain to prison.

The watchdog group said on its blog Wednesday that the findings suggest “that U.S. House members are using their powerful roles for more than just political gain.”

Posted via email from The Blue Pelican

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