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Washington Post staff writer Kimberly Kindy and University of Minnesota Law Professor Richard Painter on members of Congress changing their investment...
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Early as you can't -- this information and you looked at the trade thing you looked at the meetings.
Did you feel like they crossed the line was it nonpublic information that was passed that they then traded on.
That's -- -- one of the problems here is that we don't know on members are allowed to have these confidential conversations there's no audiotape there's no.
Video tape there's no trans grant and -- we're supposed to trust that they don't use that information.
I mean the reason why congress is -- very different rules for treasury secretary's mr.
Paulson.
Is to prevent ID.
Even the ability for them to trade on it for instance.
It's this Treasury Secretary heat he certainly knew a lot of information as he was talking -- members about what they all plan to -- to try to stabilize the economy.
But he is prohibited by law by virtue of rules and laws that congress -- passed.
From being able to trade in treasury securities he couldn't move to the safer treasury notes he's -- And what we saw weren't members doing us yeah so but the rules they set up for other people to safeguard and prevent.
Moments like this front it happening.
Prevent the ability for people to cash in if they should get tempted they take that off the table for the executive branch they don't take it off the table for themselves.
Yeah I guess that's what's really hard to understand because Kimberly you know as I look to -- specific instances on one hand during this period in time.
We all knew that the financial system was in deep trouble -- mean we were in news of the time he knew exactly how serious it was getting.
Even if the average person was and is dialed in it was still out there as public information on the other hand.
They're having his private conversations about how the government is gonna responded to meet.
That seems like material information that you shouldn't be trading on doesn't does the stock act now address this sort.
Or it does this fit through the -- -- Well the stock -- does a couple of things and it and it doesn't do a lot of things on the for example what I just talk to you about a doubt on the executive ranks having a different standard.
On there certainly was an amendment to trot up to try to make the stock act beef -- up address what President Obama asked for called for which was.
If you oversee an industry by virtue of your committee -- -- in congress.
You shouldn't be able to trade in nap right now you can be on the energy committee and you can trade actively.
In oil and gas stock and other energy stocks.
While U shape legislation.
That you know what impact the value of those -- companies -- trading ends ends with the stock gap doesn't address that the stock act does nothing for that Richard doesn't back to find common sense and maybe.
Shouldn't legislators may -- take it upon themselves to not.
Actively trade stocks are we should hold the -- standard where you know.
Reporters are are like Kimberly are out there doing stories like this to push them to -- standard where they're not trading.
Well absolutely and they should have their money in a blind trust or find some.
Acceptable -- to invest their money where they're not moving around.
In response to what they hear in the halls of congress are from the Treasury Department and where -- the insider trading laws applied -- them.
Just like those laws due to everybody else -- And they need to follow the law and if there's been a violation here that needs to be investigated by the SEC I don't know whether there has been I don't know all the facts but this yes.
This is disturbing news Kimberly what their response the congressman when you confronted -- would there's information.
While in every instance they said they were discussing policy -- sometimes unrelated to the on the economic crisis.
They each one said that they in no way or get we're given information that they then.
Used to inform their financial trades many of them also said that they had on.
Financial advisors who made these decisions without consulting with them.
I might point out that particular argument yeah.
A financial advisor did a -- that is not something they permit the executive branch to do they do not allow them to say.
Hey as long as your wife does the trades were as a financial invest and advice does the trades were cool we you.
Trading stocks -- where there's a conflict just as long as you're not doing great that's not a standard they permit the executive branch now that's -- was.
Now that's the thing we kept that wasn't the explanation that we kept hearing okay.
Great reporting Kimberly thank you so much for coming and we appreciate it Richard we appreciate your perspective as well thanks about the -- that we her thank you.
