WingNews logo WingNews
top | item 30836306

(no title)

RspecMAuthortah | 3 years ago

Not a sympathizer of these idiots who clearly thought that would get away. But what really astonishes me is how SEC is consistently after these retail small players when members of congress and its different committees are brazenly involved in insider trading and no one bats an eye. Hell even the Fed itself and its members were involved in trades that could only be explained by insider knowledge.

My sense is SEC wants to send the message it is OK if big players do it but small players beware.

discuss

order

JumpCrisscross|3 years ago

> even the Fed itself and its members were involved in trades that could only be explained by insider knowledge

What's your source for this? We've seen questionably-timed broad-market transactions that yielded a few points. (The officials were fired and the Fed revised its rules.) But nothing that looks like insider trading.

The simple answer may be more mundane. Anyone who has spent time on Wall Street or in rule making knows how effective the SEC's systems are at catching insider trades ex post facto. The only seeming way around it is to avoid letting your trades get too profitable. At which point the risk-reward ratio becomes unattractive for anyone with much to lose.

paulpauper|3 years ago

Because it's not as obvious regarding congress. Person A gets tip, hands to B and makes trade, is a direct link and can be proven in court. Also, Congress has 532 people, so by statistical certainty we should expect some to beat the market.

throw10920|3 years ago

> Also, Congress has 532 people, so by statistical certainty we should expect some to beat the market.

Congress has many individuals that consistently beat the market by significant margins over a prolonged period of time, far past the point of reasonable arguments that you can make based on statistics.

carimura|3 years ago

Sure but many are beating the market by making trades on companies that those members are supposed to regulate.