Insider Trading Is Ripe for Regulating
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  • Douglas Levene

    I predict that it will be extraordinarily hard to draw lines here between permitted discussions between staffers and constituents and illegal discussions. Any really effective law will inevitably have to be drawn very broadly and will cut off a lot of communications. Is that what we really want? Is that really in the public interest, to cut off communications between congressional offices and their constituents?

    IMHO, the whole frenzy about insider trading is misplaced. It shouldn’t be a crime at all. It doesn’t harm anyone (at least, no one can figure out who is harmed by it), it makes markets more efficient, and it greatly facilitates getting negative information out into the market. The claim that investor confidence depends on enforcement of insider trading rules is unproven. The criminal law should have no role to play in regulating insider trading. I would leave it to corporations and their shareholders to decide, solely as a civil, contract matter, whether or not to allow corporate executives to trade on the basis of inside information.

  • Jim Luebke

    The return of Honest Graft! Didn’t Nancy Pelosi defend this practice a few years back?

    The only real solution here is to reduce the amount of power and influence that politicians have over the operation of business in this country.

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