Watchdog Blog

Insider Trading: How Congress Can Make Big Bucks at Our Expense

It has been a difficult start for the financial services sector thus far in 2009 - yet it may be even more difficult to excuse the multitude of bad decisions made by Wall Street already (refusing to release information about bailout spending, Bank of America's $10 million super bowl ads, obscenely large bonuses for AIG executives...the list goes on).  Thankfully, it looks like Congress and the federal government are finally getting more serious about oversight of Wall Street and the financial sector.

Now also would be a good time to put an end to secret spending and insider trading immunity for government officials. 

A recent piece of legislation proposes to do just that.  Introduced by Reps. Brian Baird (D-Wash.), Louise McIntosh Slaughter (D-NY) and Tim Walz (D-Minn.), the “Stop Trading on Congressional Knowledge Act” (H.R. 682) would ensure that those with access to privileged "non-public information" gathered through oversight proceedings would not be able to use that information for personal benefit in securities and commodities trading.

Specifically, H.R. 682 would negate a little-known loophole in the law which could allow members of Congress as well as executive staffers and government officials to practice insider trading in order to enrich themselves as well as their associates.  Of course,  this type of insider trading would be wholly illegal for citizens like you and me.

The act would also be effective in combating corrupt lobbying practices, since lobbyists and stock traders ("political intelligence consultants") who haunt the halls of Congress precisely in order to glean insider tips from staff would also be banned from insider trading.

The legislation would require members of Congress and their staff to disclose stock transactions of $1,000 or more within 90 days, and require “political intelligence consultants” to register under the Lobbying Disclosure Act and disclose their financial activities.

The time to pass this legislation is now, before our tax dollars pay for any more lucrative insider investments.

Posted by Craig Holman

Arb Study Points Out System's Lack of Checks and Balances

Opponents of the Arbitration Fairness Act strained to see a glass half full in a new study on consumer arbitrations administered by the American Arbitration Association, but they didn’t realize that the tonic contained a poison pill.

The study – released Wednesday by the Searle Center, a conservative Northwestern University think tank – found that consumers received an award in 53 percent of the cases they initiated and received about 52 percent of the amount they sought in those cases. Businesses received an award in 84 percent of cases they brought and won 93 percent of what they ask for in those cases. This means that businesses got roughly 78 percent of what they sought compared to 28 percent for consumers.

Time to Blow the Whistle on Washington

Beginning on Sunday, an important assembly will convene to urge Congress to take the next step forward in strengthening accountability and transparency in government. The 2009 National Whistleblower Assembly is a gathering of whistleblowers and advocates organized by the Make It Safe Coalition. Over the course of four days, the assembly will lobby members of Congress, share stories, and educate the public. The event takes place in Washington D.C. from Sunday, March 8th - Wednesday, March 11th. 

As we've said over and over again, whistleblowers ensure real accountability, protect our tax dollars in the stimulus and other government spending, and are indispensable to a healthy, non-corrupt government. It's a disgrace that speaking out about government fraud, misconduct, waste and corruption is still such a risky endeavor, especially in these times, after countless studies have verified that whistleblowers are the most effective weapon against fraud.

If you can, please join us in D.C. and take a stand for government accountability and civil servant rights.  But if you can't make it to Washington, you can still help. You can join those making the rounds to members of Congress from home.

For more information about this event and whistleblower and taxpayer rights, visit us here.

Guns, Votes and DC

On last Thursday, the Senate finally approved at least one vote in Congress for the long-disenfranchised citizens of the nation's capital.  That was the hand that giveth . . .

The other hand promptly took away the common-sense gun control laws put into place by the locally-elected government of Washington, D.C.

Senator John Ensign (R-NV) offered an amendment to the D.C. House Voting Rights Act (61-37) that - if it should become law - could make D.C. one of the most free-wheeling-gun-toting places in the country.  It passed by 62-36.  That's right - more guns got one vote more than democracy.

First of all, what business does Congress have removing safeguards on selling and possessing firearms that meet the standards set by the highest court?  The D.C. City Council recently amended its local gun laws to comply with a Supreme Court ruling.  There is no sound reason for Congress to use extraordinary powers to preempt the democratic will of the people of D.C. - especially to make the city less safe. 

This gun measure is more than symbolism, or politics:  It's about public safety.  Specifically, the gun amendment would undermine federal anti-trafficking laws, repeal D.C.’s ban on military-style weapons, allow teenagers to possess semiautomatic assault rifles, and prohibit D.C. from passing laws that could “discourage” gun possession or use, by anyone - even children or felons.

And exactly what do gun laws have to do with the right to vote?  House leadership should not consider this or any other non-germane proposal with this civil and voting rights bill.  This is about righting a historic wrong and bringing more democracy to the so-called capital of the free world.  

It seems some in Congress think it is within their power to rule over the more than half a million people who live in the District of Columbia, even if those people have no democratic representation in Congress. This has got to change. It's time to tell members of the House that We the People are more powerful than the gun lobby who are pushing to have their interests imposed upon District residents. 

The House likely will vote on the bill on Wednesday, March 4.  Hopefully, they will walk our nation's democratic talk and do right by the people of D.C. by restoring their voting representation in the House AND rejecting any attempts to undermine their local democratic government.  If they succeed, members of the House will then need to negotiate with the Senate for the removal of the dangerous and unnecessary gun amendment.  President Obama should not have to consider whether to sign a divisive gun measure into law at the same time he acts to return voting rights to the citizens of the District.

If you live outside of Washington, D.C., please feel enfranchised to give your rep. a nudge to take a stand for more democracy now.  District residents can thank their non-voting delegate, Eleanor Holmes Norton, for tirelessly fighting for their rights.