To those of us in the public, this seems like a slam dunk: Because they have insider information, and because they are in position to pass bills affecting company stock prices, don't let Congress members buy or sell stock.
Don't.
Nancy Pelosi has been the target of such proposed legislation. Her husband, Paul, being a venture capitalist and property investor, deals heavily in the stock market. Nancy and Paul's net worth has soared since she took office. Soared. It has increased by tens of millions since she took her first walk through the halls of Congress.
So, did her insider information bring on the large increase? Perhaps, perhaps not. With Facebook, Google, Amazon, Apple, and Microsoft being among the key investments, perhaps it is just that she and her husband picked successful high-tech companies, and since those companies have figured in the technology revolution, naturally money was made.
The same: Congress members should not be allowed to invest in stocks. They hobknob with company executives, who might give them insider information. They sit on committees that affect the companies they invest in. They accept campaign contributions from companies that they must legislate on.
Make them put their investments in a blind trust when they enter Congress, administered by those forbidden to discuss the stock with them.
Out of the 535 members of Congress, 284 own stock -- and 97 sit on committees influencing the stocks they own. This is not a Nancy Pelosi problem; it is a problem with Congress.
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