congress insider trading

Why Won’t Washington Take On Wall Street’s Biggest Crimes?

Yesterday, the judge in the SAC case accepted the firm’s plea deal with the Justice Department, in which the firm and its subsidiaries pled guilty to wire fraud and securities fraud and agreed to pay a $900 million penalty and $300 million in disgorged profits. The Southern District hailed the deal as the crowning victory in their multi-year campaign against insider trading, which notably has resulted in more than 70 convictions and exactly zero acquittals. Congratulations.

But what many of us want to know is: why, immediately after the most severe financial crisis in more than seventy years, which resulted in the loss of almost nine million jobs, did the Justice Department choose to train its heavy artillery on insider traders? Sure, insider trading is bad. It’s very rich people cheating to make themselves extravagantly rich. It should be illegal, and people should go to jail for it. But it’s far from the biggest thing wrong with our financial markets and institutions.

Read more. [Image: Reuters]

Countries with high levels of economic freedom enjoy a better quality of life than those with little economic freedom. For a country that wishes to foster economic freedom, one crucial element is an impartial rule of law. Laws and regulations must be applied to everyone equally, and they should not change arbitrarily or frequently.
—  Economic Freedom Blog reflects on Congressional insider trading.