Thread by @AliVelshi

1/17
Among the reasons Americans lack faith in their legislators is the impression that they play by a different set of rules than the rest of us mere mortals and, in some cases, that’s entirely true. #velshi

2/17
One key area in which Members of Congress are able to do things that might be considered downright illegal if the rest of us did it, is in their ability to use non-public information to invest in public companies. #velshi

3/17
This isn’t a partisan thing “it’s done by members of both parties, and it’s validly criticized by conservative and liberal watchdogs alike. #velshi

4/17
The practice of congressional trading has come under renewed scrutiny after several lawmakers from both parties traded stocks suspiciously timed with the start of the pandemic. #velshi

5/17
Outrage ensued because - while the rest of the nation was blissfully unaware of the health and economic catastrophe that was about to unfold - some legislators seemed more concerned with lining their pockets and protecting their assets. #velshi

6/17
There *is* something of a law in place, although it’s weak tea, and that’s being charitable. The STOCK Act - otherwise known as The Stop Trading on Congressional Knowledge Act - became law in 2012. #velshi

7/17
It requires members of Congress, their family members, and staffers to disclose the sale or purchase of individual stocks, bonds, and commodity futures within 45 days. #velshi

8/17
It’s meant to discourage conflicts of interest, though I am not sure it does. It doesn’t *prohibit* members of congress from doing something unethical; it just means they ultimately must disclose the actual trade. #velshi

9/17
It’s generally a disappointing piece of legislation. What was also disappointing is that, when asked about it last week, House Speaker Nancy Pelosi affirmed her view that lawmakers - and their spouses - should not be barred from trading stock. #velshi

10/17
Pelosi said, “We are a free-market economy. They should be able to participate in that.” She’s right, this is a free-market economy. #velshi

11/17
And there are several ways in which people who either get non-public information or, like journalists, can influence the performance of a stock, CAN participate in the stock market while avoiding potential or perceived conflicts of interest. #velshi

12/17
Like investing in mutual funds or ETF’s - exchange traded funds - rather than in specific companies. Or by using a blind trust- a real one - not the kind the former President used.. Or maybe there’s some middle ground that someone smarter than I am has thought of. #velshi

13/17
But the status quo is an invitation for some unscrupulous members of congress to do the wrong thing. Here’s the thing. Betty Schmo in Philadelphia does not have access to classified briefings and non-public information like members of Congress do. #velshi

14/17
And let’s say Ms. Shmo *did* get her hands on sensitive information related to the price of stock, and then uses it to buy or sell. She would be in big trouble. #velshi

15/17
It’s called insider trading. And for people like Betty who aren’t Members of Congress, it could mean a jail sentence. And rightly so. Sorry, Betty. #velshi

16/17
Look, Americans should absolutely be allowed to buy and sell stocks to grow their wealth. But they should do it without an unfair advantage over the very constituents they serve. #velshi

17/17
If Congress would fix this problem by removing the incentive to do the wrong thing, it might just go some distance in restoring the faith of the public in Congress. #velshi