December, 21 2011, 03:52pm EDT
Buying Insider Trading Information From Congress - and Getting Rich
Congress Must Prohibit ‘Political Intelligence Consultants’ – as Well as Themselves – From Congressional Insider Trading
WASHINGTON
Public Citizen today sent a letter urging both the U.S. House of Representatives and the Senate to move forward with the stalled "Stop Trading on Congressional Knowledge" (STOCK) Act in the beginning of the new year and prevent it from being watered down while the legislation languishes.
House Republican leaders, under the direction of House Majority Leader Eric Cantor (R-Va.), have halted progress of the commonsense legislation, which would ban members of Congress, their staffs and others who do business with Congress from trading and profiting on insider information gathered during their official duties. Reps. Timothy Walz (D-Minn.) and Louise Slaughter (D-N.Y.) are the lead proponents of this critical legislation (H.R. 1148), which has 239 co-sponsors and for which support grows daily.
"Rep. Cantor has publicly stated that he pulled the legislation to expand the measure, but the stalling is providing lobbyists and others with precious time to weaken the bills," said Craig Holman, government affairs lobbyist for Public Citizen.
One key provision that would prohibit "political intelligence consultants" - lobbyists and stock brokers who develop close working relations with those in Congress - from trading on insider information derived from non-public meetings with members and staff is in the process of being stripped from the legislation in the Senate and is being threatened in the House as well.
"Make no mistake: Though no one will admit it, lobbyists and brokers appear to have enjoyed a very profitable relationship with members of Congress, getting them to divulge information about pending legislation that will directly impact the markets, and then trading on that information," Holman said.
A Wall Street Journal investigative report (Dec. 20, 2011) found that "Seeking advance word of government decisions is part of a growing, lucrative - and legal - practice in Washington that employs a network of brokers, lobbyists and political insiders who arrange private meetings between hedge funds and officials, including lawmakers and their aides. ... News tips, combined with data and analysis, help steer firms to profitable investment decision."
"Mr. Cantor, insider trading is illegal for the rest of America," said Holman. "It should be illegal for you and your friends as well. Let the STOCK Act, unweakened and unadulterated, move forward."
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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'Stuff of Parody': Trump Taps Election-Denying Ally Kari Lake to Run Voice of America
"Authoritarians love to control and instrumentalize media organizations, especially state-funded ones," journalist Mehdi Hasan wrote in response to the news.
Dec 12, 2024
President-elect Donald Trump said Wednesday that he has chosen Kari Lake, a far-right election denier and failed U.S. Senate candidate, to lead the federally funded international broadcast network Voice of America, a move that critics said underscores Trump's effort to transform government entities into vehicles to advance his own interests.
In a Truth Social post, Trump wrote that as director of VOA, Lake would "ensure that the American values of Freedom and Liberty are broadcast around the World FAIRLY and ACCURATELY, unlike the lies spread by the Fake News Media."
Lake, a former television news anchor in Arizona who has echoed Trump's insidious attacks on journalists, wrote in response to the president-elect's announcement that she was "honored" to be asked to lead VOA, which she characterized as "a vital international media outlet dedicated to advancing the interests of the United States by engaging directly with people across the globe and promoting democracy and truth." VOA, which is supposed to have editorial independence, has long faced criticism for its coverage and treatment of employees.
Though the VOA's Charter states that the outlet will "present a balanced and comprehensive projection of significant American thought and institutions," Lake made clear that she views the network as a propaganda channel for the United States.
"Under my leadership, the VOA will excel in its mission: chronicling America's achievements worldwide," Lake, an outspoken Trump loyalist, wrote Wednesday.
Hours after Trump's announcement that she's his pick to lead VOA, Lake applaudedTIME magazine for naming Trump its "Person of the Year" and gushed that he "should have been the Person of the Year every year for the last decade."
Journalists and watchdogs expressed a mixture of alarm and mockery in response to Trump's attempt to elevate Lake to VOA director.
"Kari Lake as (head of) Voice of America is the stuff of parody. Or tragedy," Robert Weissman, co-president of Public Citizen, wrote on social media. "VOA matters."
Zeteo's Mehdi Hasan added that "authoritarians love to control and instrumentalize media organizations, especially state-funded ones."
"Good luck to the VOA," he wrote.
VOA is the largest federally funded international broadcaster and is overseen by the U.S. Agency for Global Media.
It is not clear whether Trump will be able to easily install Lake as VOA director. The Washington Post noted that "under rules passed in 2020, the VOA director is appointed by a majority vote of a seven-member advisory board."
"Six members of the board are named by the president and require Senate consent, and the seventh member is the secretary of state," the Post explained.
During his first term in the White House, Trump's pick to lead the U.S. Agency for Global Media worked aggressively to influence VOA coverage.
"In 2020, Mr. Trump appointed Michael Pack, an ally of his former aide Stephen K. Bannon, to run the U.S. Agency for Global Media," The New York Timessummarized on Thursday. "Mr. Pack was accused of trying to turn Voice of America into a mouthpiece for the Trump administration, and a federal judge ruled that Mr. Pack had violated the First Amendment rights of the outlet's journalists. A federal investigation later found that Mr. Pack had grossly mismanaged the U.S. Agency for Global Media, repeatedly abusing his power by sidelining executives he felt did not sufficiently support Mr. Trump."
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U.S. President Joe Biden on Thursday announced that he is commuting the sentences of nearly 1,500 Americans and pardoning 39 people convicted of nonviolent crimes, a move the White House described as "the largest single-day grant of clemency in modern history."
But the president's sweeping use of his clemency power as his term nears its conclusion did not appear to extend to any of the 40 men currently on death row—some of whom have been there for decades.
According to a White House fact sheet, those who received commutations "have been serving their sentences at home for at least one year under the Covid-era CARES Act," a law that extended the amount of time in which people could be placed in home confinement to reduce the spread of the virus in prisons.
The White House did not name those who received pardons or commutations but said the list includes a "decorated military veteran," a "nurse who has led emergency response for several natural disasters," and "an addiction counselor who volunteers his time to help young people find their purpose."
The Biden Justice Department paused federal executions in 2021, but President-elect Donald Trump pledged on the campaign trail to expand the use of the death penalty and is expected to allow the executions of the 40 men on death row to take place if they're still there when he takes office next month.
In a statement on Thursday, Biden said that he has "the great privilege of extending mercy to people who have demonstrated remorse and rehabilitation, restoring opportunity for Americans to participate in daily life and contribute to their communities, and taking steps to remove sentencing disparities for non-violent offenders, especially those convicted of drug offenses."
"That is why, today, I am pardoning 39 people who have shown successful rehabilitation and have shown commitment to making their communities stronger and safer," the president said. "I am also commuting the sentences of nearly 1,500 people who are serving long prison sentences—many of whom would receive lower sentences if charged under today’s laws, policies, and practices. These commutation recipients, who were placed on home confinement during the Covid pandemic, have successfully reintegrated into their families and communities and have shown that they deserve a second chance."
Biden, who campaigned on ending the death penalty at the federal level, vowed to "take more steps in the weeks ahead" as his administration reviews clemency petitions, leaving open the possibility of commutations for death row prisoners.
But he's running out of time, human rights organizations, religious leaders, former federal judges, and progressive lawmakers have warned in recent days as they've ramped up pressure on Biden to act.
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Despite the Pentagon's repeated failures to pass audits and various alarming policies, 81 Democrats in the U.S. House of Representatives voted with 200 Republicans on Wednesday to advance a $883.7 billion annual defense package.
The Servicemember Quality of Life Improvement and National Defense Authorization Act (NDAA) for Fiscal Year 2025, unveiled by congressional negotiators this past Saturday, still needs approval from the Senate, which is expected to vote next week. U.S. Sen. Bernie Sanders (I-Vt.) said Wednesday that he plans to vote no and spoke out against the military-industrial complex.
The push to pass the NDAA comes as this congressional session winds down and after the U.S. Department of Defense (DOD) announced last month that it had failed yet another audit—which several lawmakers highlighted after the Wednesday vote.
Reps. Mark Pocan (D-Wis.) and Barbara Lee (D-Calif.), co-chairs and co-founders of the Defense Spending Reduction Caucus, said in a joint statement, "Time and time again, Congress seems to be able to find the funds necessary to line the pockets of defense contractors while neglecting the problems everyday Americans face here at home."
"Instead of fighting the rising cost of healthcare, gas, or groceries, this Congress prioritized rewarding the wealthy and well-connected military-industrial complex with even more unaccountable funds," they continued. "After a seventh failed audit in a row, it's disappointing that our amendment to hold the Pentagon accountable by penalizing the DOD's budget by 0.5% for each failed audit was stripped out of the final bill. It's time Congress demanded accountability from the Pentagon."
"While we're glad many of the poison pill riders that were included in the House-passed version were ultimately removed from the final bill, the bill does include a ban on access to medically necessary healthcare for transgender children of service members, which will force service members to choose between serving their country and getting their children the care they need," the pair noted. "The final bill also failed to expand coverage for fertility treatments, including in vitro fertilization (IVF), for service members regardless of whether their infertility is service-connected."
Several of the 124 House Democrats who voted against the NDAA cited those "culture war" policies, in addition to concerns about how the Pentagon spends massive amounts of money that could go toward improving lives across the country.
"Once again, Congress has passed a massive military authorization bill that prioritizes endless military spending over the critical needs of American families. This year's NDAA designates $900 billion for military spending," said Rep. Ilhan Omar (D-Minn.), noting the audit failures. "While I recognize the long-overdue 14.5% raise for our lowest-ranking enlisted personnel is important, this bill remains flawed. The bloated military budget continues to take away crucial funding from programs that could help millions of Americans struggling to make ends meet."
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As Omar, a leading critic of the U.S.-backed Israeli assault on the Gaza Strip, also pointed out: "The NDAA includes a provision that blocks the Pentagon from using data on casualties and deaths from the Gaza Ministry of Health or any sources relying on those statistics. This is an alarming erasure of the suffering of the Palestinian people, ignoring the human toll of ongoing violence."
Israel—which receives billions of dollars in annual armed aid from the United States—faces a genocide case at the International Court of Justice and the International Criminal Court last month issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Defense Minister Yoav Gallant. The NDAA includes over $627 million in provisions for Israel.
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Rep. Ro Khanna (D-Calif.), who also opposed the NDAA, wrote in a Tuesday opinion piece for MSNBC that he looks forward to working with DOGE "to reduce waste and fraud at the Pentagon, while strongly opposing any cuts to programs likeSocial Security, Medicare, the Department of Veterans Affairs, or the Consumer Financial Protection Bureau."
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