dckingsfan wrote:Pointgod wrote:dckingsfan wrote:Not trading stocks is going to be hard unless there is some sort of blind trust provision. How about spouses? Close relatives. Friends?
I have thought about this one but haven't come up with a solution.
I think the most straight forward place to start is stipulate that all stock trading for members of congress, aides, and immediate family members should be done through a blind trust. And there should be actual penalties for violating the rules. What happened during the beginning of COVID was 100% insider trading, but everyone just looked the other way.
There are rules in place especially for reporting - but it wasn't enforced.
I would be good with a blind trust and enforcement. But then you get back to the relatives. Spouses, children, sisters, brothers, cousins, aunts and uncles... where do you draw the line? Especially when someone is on congress and their spouse is a business person?
I think you make it simple as possible to enforce. Partners, children, parents and siblings all have to put their trades in a blind trust. What you’re trying avoid is the situation with Ron Paul’s wife which is obvious insider trading to anyone with a brain.
https://www.cnbc.com/2021/08/12/rand-pauls-wife-bought-shares-in-covid-treatment-maker-gilead-as-virus-spread.htmlRand Paul’s wife is a journalist and political consultant who hadn’t made a stock purchase in decades but conveniently timed her purchase in a pharmaceutical company.
The purchase of up to $15,000 worth of Gilead shares was made three weeks before the World Health Organization declared Covid a pandemic. On Feb. 26, 2020, the day Kelley Paul bought the shares, there were only 14 confirmed cases of Covid in the United States.
You could have exceptions for relatives who are actually investment professionals. But again at the end of the day it’s about personal trading so it might not even be applicable in a business context.