Elected insiders: Ex-lobbyist accuses Congress of being rife with insider trading

AP File PhotoFormer lobbyist Jack Abramoff alleges that Congress members gain thousands of dollars from insider stock trading.

AP File PhotoFormer lobbyist Jack Abramoff alleges that Congress members gain thousands of dollars from insider stock trading.

WHAT: Notorious former lobbyist Jack Abramoff, who served three years in federal prison and now labels himself a whistle-blowing reformer, alleged “it is pretty widely known” that Congress members a routinely gain thousands of dollars from insider stock trading.

HOW: Among the most valuable types of information for Congressional insider trading is advance knowledge of announcements for investigative hearings on a company. Hearings usually drive down a company’s stock price, which opens short-selling opportunities.

WHY IT’S OUTRAGEOUS: Congress members and their top staffers come into daily contact with market-moving tips. For years, academic studies showed that members of the House of Representatives beat the market by as much as 6 percent per year, and senators do even better.

 

Daily OutrageOpinionOther OpinionSFExaminer

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

A cyclist heads past an artistic sign onto Page Street, a Slow Street, at Stanyan Street near Golden Gate Park on Monday, April 12, 2021. (Kevin N. Hume/S.F. Examiner)
Push to make street closures permanent meets with resistance

Hastily thrown together during the pandemic, Slow Streets program now struggles to build support

Agnes Liang, who will be a senior at Mission High School, is running for one of the two student representative seats on the San Francisco Unified School District Board of Education. (Kevin N. Hume/S.F. Examiner)
Turbulent year on school board leaves student delegates undeterred

Around this time last year, Shavonne Hines-Foster and Kathya Correa Almanza were… Continue reading

(Kevin N. Hume/S.F. Examiner)
Three people killed in SF shootings in less than 24 hours

San Francisco police were scrambling Saturday to respond to a series of… Continue reading

Muni operator Angel Carvajal drives the popular boat tram following a news conference celebrating the return of the historic F-line and subway service on Friday, May 14, 2021. (Kevin N. Hume/S.F. Examiner)
Mayor, transit officials celebrate return of Muni service

Mayor London Breed and city transit officials gathered Friday to welcome the… Continue reading

San Francisco police investigated the scene of a police shooting near Varney Place and Third Street on May 7. (Kevin N. Hume/S.F. Examiner)
SFPD shooting may prompt new body camera rules for plainclothes cops

Police chief says incident ‘should not have happened’

Most Read