Also in this playlist...
This transcript is automatically generated
-- -- that session on the docket today why is it illegal for regular folks to make stock trades with inside information.
But apparently not for members of congress.
Joining me now Fox News legal analyst Mercedes colon and NSA and -- -- new a New York.
-- -- -- So this is.
This this has been in the headlines this week because of the sixty minutes piece that was in depth and talking about how.
Everyone from Nancy Pelosi John Boehner according to the sixty minutes piece has made investments.
-- close in time to the date confidential information was being discussed about.
Those companies on Capitol Hill and that's sixty minutes piece suggested Mercedes -- that that is perfectly legal but shouldn't be.
Is that true.
Most certainly is no -- out there that.
-- -- this but it's really oversimplification.
Of the securities and exchange act which -- and which actually makes this type of behavior illegal but.
Here's the key issue here.
It's not just nonpublic information it's have to be material nonpublic information.
You have to be let's say that there's a press conference and the CEOs going to come -- that I've been stealing from the company for hours for years rather and they press conference is the day or two away and somehow that members of congress know about it.
They go and start to trade up they sell their stock immediately that's the kind of conduct and kind of nonpublic material information that's really at the crux of it.
But there's so many factors involved when it.
I know evening of course there is -- there it and that's about it but it does this suggestion is that because they're gonna have hearings on Capitol Hill.
And it to change this law because they say actually right now the law is such.
That members of congress if they're if they're you know doing -- -- having a debate on like a critical let's say you know.
I don't know it's.
Some company that lets you did Pelosi examples -- right.
And having this debate and they learn in this debate behind closed doors that they're gonna going to be a very unfavorable thing coming up for visa and they go in -- short the visa stock.
That right now.
It has and the reason that it is because there's no -- in place specifically addressing a snow and Mercedes talking whether it's material or not it doesn't matter what we're talking about congress and the reason is is because right now there's no rule in place.
Saying that they are technically under an obligation to keep that information they learn confidential about current our upcoming congressional activity.
So you know is it curiouser that they just using the rules that are in this case not in place to their advantage and that's why people are so outraged -- Everything else they eight bit.
You know what that -- not -- -- -- -- -- they go in these confidential meetings on Capitol Hill and they have some debate.
Let's talk about on Fox News it's not about us and it's likely it's it's out there anyway so.
The fact that they may have like a new tiny new wants DTL should that make the difference to make what they do unlawful.
How I don't think I I think exactly right there is so much information out there the Internet 24 hour news cycle.
Media print media there's so much information out there folks are trading on that information.
All the time and the bills the bills -- sometimes -- proposed for years so folks know that those bills are pending.
What is that they'd be whether it's going to be passed with -- it's not -- the -- of probability of heat.
All of those factors do have an influence as to whether stocks rise and fall because frankly the stocks rise and fall.
Based on consumer confidence so if someone feels confident about a company based on the wealth of information that's out there sure not they're gonna buy more -- -- doesn't mean that what.
Are doing -- -- well like they were talking in the sixty minutes piece about Spencer Bachus and they were suggesting that he went into this meeting back in -- -- with Ben Bernanke.
And Hank Paulson in this dark meeting or it was like golly -- this that the cold financials as is about to collapse and a and that he came out and he -- bet against the financial system that paid well for him.
All signs of the time it didn't somehow transform it is something that's illegal or inappropriate or unethical.
Just because he knows a little bit more than the New York's times reported.
And that's why these are either so hard to prosecutor just aren't prosecuted because then who's to say that he was already thinking about selling that stock and in this is a guy who.
Has been doing this for years and that is his hobby.
Besides his profession he's treats in the -- so how much of that was based on information but again you're talking about public confidence that that's really the it's like an examination.
-- -- -- because you wanna believe that your lawmakers and their making a decision based on what's good for the country.
And not based on.
And if I make a decision and Michael -- I could wind up a millionaire -- I'm not now.
Right and and that's it and I don't think this is so much -- prosecutor not because they're very tough to pass you don't think it's really the big issue is a crime the issue is.
What does this do to public confidence is certainly at a time that we need to believe in our members of congress -- doing right but -- constituents and for the country.
That's where this becomes a problem just days not a not -- -- area creates public and the next RS and I can thank you both so much again and we will be.
Filter by section