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Public Citizen Legislative Representative Craig Holman on why insider trading should be illegal for members of Congress, just like everyone else.
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-- it's been a year ago now when we first told you about members of congress making.
Lots of money off of stock purchases made through insider trading.
And while it's wrong it's not a leader of the eagle legal that is for them believe it or not.
If you or I did this would be behind bars well lately the mainstream media has picked up on and outrage over the practices growing.
Including the call for lawmakers to pass a bill that would make it illegal joining me now.
-- -- Public citizen's legislative representative discovered this for a long time and talk to us about it numerous times so -- Why is is getting so much attention now.
It's getting a lot of attention by -- first I want to praise you Jerry for following this story you were the only one that has been following this until this report.
It's getting a lot of attention now because we're finally starting to connect the dots.
Over the last year to it's just been theoretical sort of an abstraction we new congress is getting richer.
They've increased their overall wealth 25%.
Between 20082010.
We knew they were active stock traders third of the senate is trading stock.
Half of the house is trading stock and we knew that they enjoy a much higher rate of return than the rest of us do I mean this in the senate literally enjoys a 12% hiring -- -- Lynn -- show our viewers those numbers because I think that's really the take away in this segment CNC the local congress over the past two years.
Their wealth in these very difficult last 24 months up 25%.
Now congress a higher rate of return the senate is making 12% above market those heavy traders as we saw a house 6% about market.
This tough thing to -- there are professional traders out there who try to do this every single day can't make it happen.
I can't emphasize.
In the -- you know what what a mystery is to me how they're able to pull this off I I guess they must have special inside information.
Now as you heard the folks at sixty minutes talk about this and they went after John Boehner and they went after Nancy Pelosi and others on this.
And of course the people who were elected said hey we're not this no your wrong we're not breaking the law.
But it's not just about -- the -- and it's about doing the right thing.
Yeah very unfortunately they're not breaking the law but I do want to point out the reason why it's getting so much attention is because we're now getting specific names.
All the way to -- Through the last couple years everyone would just not point the finger at anybody.
We now have Jack Abramoff was going out -- -- book promotion saying he's been told by more than a dozen members of congress and staffers that they do insider trading.
We've got this new study by Schweitzer that is identifying specific individuals Boehner Pelosi Backus and others who are doing that type of trading.
So no we're connecting the dots and -- -- I knew all along these folks aren't just super geniuses when it comes -- trade not ayalon shot my friend a certain.
They're trading and something that we don't know and it's becoming very evident that last point.
Yeah I saw our story recently at and and it was to appeal to the Occupy Wall Street crowd.
Saying that some fifty members of congress are part of the 1% I guess this explains.
This certainly does explain a good part of it.
You know there is also have been the earmarking program that is brought in a lot of wealth for people like Dennis -- -- -- -- Who have bought real -- and then set up your marketing programs that -- it's extremely you know inflate the value of that real estate.
So there are a number of different avenues in which congress is -- enriching itself.
Credit -- what about what's the solution here you know a lot of people talk about blind trust that.
Are blind trust I -- -- I mean can we make sure the people don't know how to professional money managers are running their money if they have a blind trust.
You know blind -- would certainly help but it's not an ideal solution I mean if you recall the controversy was senator Bill Frist who set up a qualified blind trust in the senate.
IE he was apparently talking to his trust manager.
And you know -- -- says selling out stock in HC a when he knew the business was about -- the about the fail.
So these blind trust don't quite work and furthermore in congress since members of congress are required.
To take a look at those reports and -- him off as their financial -- personal financial disclosure forms.
If they're not really blind.
-- you drill.
I know well how do you fix the problem has got to be a way to fix the problem.
We're seeing a good solution happened very fast.
I wanna build -- stop.
Stop -- congress is trading on congressional valid checked the stock act.
Has been introduced ever since 2006 and never got more than fourteen co sponsors but suddenly with a connecting the dots since some.
Days and these are then they go public.
That they mavericks you think what -- -- putting up this.
Right -- since since Sunday the number co sponsors on the house bill increase more than fivefold and the number will be larger right after this interview.
Unless -- the senate side on the senate -- we've never even had a bill introduced.
And now both Republicans and Democrats have of fallen over themselves to introduce two different stock bills.
In the senate.
So we are seeing some very very important movement happening in both houses -- Analysts have to -- yeah.
I wrote in jail you would be thrown in jail for doing this but not congress hands up to got a maker money.
Craig thanks for Conan tonight really appreciate your help great -- is a pleasure --
