Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Want Great Returns? Win a Seat in Congress.

According to an academic study published this year, stocks held by members of the U.S. House out-earn the market by an average 6 percent annually. That's either really lucky or really unfair.

In a recent Huffington Post article, Dan Froomkin speculates that the above-average returns that members of the U.S. Congress see from their stock holdings may be the result of biased voting and trading on non-public information.

And, it's not just the House. The researchers involved in this year's study conducted one five years ago that analyzed the stock returns for members of the U.S. Senate. According to that study, stocks held by U.S. Senators outperform even those held by U.S. Reps - an average of 10 percent per year over the market.

Yet, despite the indications that these abnormally positive returns may be obtained unfairly, neither federal law nor Congress' codes of conduct restrict the financial actions of senators or representatives.

"House rules don't require them to divest themselves of common stocks when they assume office, don't prevent them from trading freely while in office - and don't require them to recuse themselves from votes that could affect their own interests," writes Froomkin. (For more, read the entire articlehere.)

H.R. 1148 (the Stop Trading on Congressional Knowledge Act) was recently re-introduced by Rep. Timothy Walz (D-MN) and several Democratic co-sponsors. Unsurprisingly, no actions have been taken on the bill since March 29, when it was referred to the House Ethics committee.

Also not surprising - 100 percent of the users on support the passage of the bill.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram