From sweetheart land deals to initial public
offering (IPO) stock gifts to insider trading with non-public government
information, the methods of unethical wealth accumulation for our
permanent political class are endless. The reaction from the Beltway
establishment to the revelations concerning insider trading among
members of Congress was predictable. First they denied it, then they
dismissed the problem as much ado about nothing. Some said there was no
need for new laws or action because the Securities and Exchange
Commission could prosecute members of Congress under existing laws against insider trading.
But
under current law, there is no way the SEC will ever go after a
powerful congressman or senator. The SEC never has, even though insider
trading prohibitions have existed since the 1930s. Here's why: Congress
sets the SEC's budget, and senators approve the head of the SEC.
Congress uses its power of the purse strings to threaten federal
agencies that get in their way.
For example, in 2006 the FBI got a search warrant from a federal judge to comb former congressman William Jefferson's
office. The FBI already had evidence that Jefferson was taking bribes.
Congress was furious that the FBI would dare search a fellow member's
office. Members claimed the search was unconstitutional. They even
threatened to cut the Justice Department's budget in retaliation. All this despite the fact that 86% of Americans supported the FBI raid.
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