An interesting legislative battle has developed in Congress over a bill aimed at prohibiting “insider trading” by members of Congress and their staffs based on nonpublic information acquired in the performance of their official duties. This restriction, if passed, would close an astonishing loophole whereby members have been able to profit from stock trades motivated by inside information about pending legislation.
A lawmaker ambitious enough to read the proverbial 1,000-page bill and discover an earmark on page 764 that will benefit a particular industry can buy stock and then profit from its appreciation when the earmark becomes public. You and I have no such privilege. If we trade on inside information, we can go to jail.
