Insider Trading – Congress At Work

Insider Trading

How the Congress works. Another example of how Wall street gets it’s contributions back. The problem is those using the inside information don’t go to jail if they get it from the Congress.

Inside the shadowy, poorly policed world of “political intelligence”

The article, from BusinessWeek Mar 23rd, is too long to post here. To download click Insider Trading

An excerpt…
On April 1, 2013, an hour before the markets closed, a congressional staffer named Brian Sutter passed along to a lobbyist the kind of tip that can make a savvy investor a quick fortune: Medicare was about to raise some reimbursement rates, which would be a windfall for big insurance companies. Ten minutes later the lobbyist, Mark Hayes of Greenberg Traurig, whose clients included Humana, notified an analyst at Height Securities, a small Washington investment research firm. And minutes after that, Height issued a “flash report” to 200 investor clients, including several large hedge funds and money managers, 44 of which traded on the information and profited when shares of large insurers jumped just before the close, according to court filings by the Securities and Exchange Commission. Fifteen minutes after the bell, Medicare’s administrators announced to the public what this network of Washington insiders had long since ferreted out: Reimbursements were going up.