Now we learn of allegations of wide-spread insider trading occurring in our
After a comment by Rep. Louise Slaughter (D-NY) on Air America's Majority
Report Wednesday evening, RAW STORY has learned that House Democrats are
pushing the ethics committee to investigate allegations of congressional
offices providing privleged information to Wall Street investors.
An article that ran below the radar in November revealed the "day
trading" practice, in which little-known firms use sources in Congress to
glean information relevant to publicly-traded stocks. As Washington turns
its eyes to fallen conservative superlobbyist Jack Abramoff, new focus has
come to other allegations of congressional wrongdoing.
Independently, RAW STORY has received word that such activity -- which
involves passing on information to stock brokers on how the House is going
to vote on legislation that affects large companies, such as Defense
Appropriations bills -- is a practice that may go beyond a single individual
or congressmember's office. Individuals on Capitol Hill have pointed to
others already ensnared in the Abramoff probe as possibly having engaged in
Rep. Slaughter told the Majority Report (clip available via
AMERICABlog) last night that she has learned Tom Delay and Bill Frist both
engaged in this activity regularly. A new report is due out in a couple weeks
highlighting these problems. This is further evidence of how our democracy has
become an auction.