Insider trading on Capitol Hill?
Members of Congress are much better at picking stocks than the average investor, according to new research. Are they playing fair?

A new study found that from 1985 to 2001, members of the House of Representatives made 6.8 percent more on their stock purchases and sales than the average investor. An earlier investigation by the same researchers found that senators also beat the market. The latest report, which was published in the journal Business and Politics, concludes that members of Congress were almost certainly relying on insider information to fatten their stock portfolios. Are lawmakers engaged in shady trading, or are they just unusually savvy investors?
This is corruption, pure and simple: There is no denying it now, says Vox Populi. "Congress is shamelessly crooked." And the most disgusting part of this is that it's perfectly legal, because members of Congress have exempted themselves from laws that send corporate executives to prison for doing the same thing — trading on insider knowledge for personal gain.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Wait, there is no direct proof of anything shady: The researchers have no specific evidence to back up their conclusions, says Seth Fiegerman at Minyanville. They're just assuming politicians are picking stocks based on inside information about the industries and companies they oversee. But maybe they really are just good investors. "If nothing else, next time you write a letter to your congressman, you may want to ask him for stock advice."
"Your congressman: A better investor than you?"
Still, congressmen should be regulated like bankers: Beating the market by 6.8 percent over so many years is "better than hedge-fund superstars" can do, says Randall W. Forsyth at Barron's. It defies credulity to suggest that everyone on Capitol Hill is that good. But don't worry, there is an "estimably logical" solution. Let "the same reporting requirements imposed on corporate insiders be placed on members of Congress. After all, being on Capitol Hill makes one an ultimate insider."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Critics’ choice: Restaurants worthy of their buzz
feature A fun bistro, a reservation worth the wait, and a modern twist on Mexican dishes
By The Week US Published
-
Film reviews: Snow White, Death of a Unicorn, and The Alto Knights
Feature A makeover for Disney’s first animated feature, greedy humans earn nature’s wrath, and a feud between crime bosses rattles the mob
By The Week US Published
-
Bombs or talks: What’s next in the US-Iran showdown?
Talking Points US gives Tehran a two-month deadline to deal
By Joel Mathis, The Week US Published
-
The JFK files: the truth at last?
In The Spotlight More than 64,000 previously classified documents relating the 1963 assassination of John F. Kennedy have been released by the Trump administration
By The Week Staff Published
-
'Seriously, not literally': how should the world take Donald Trump?
Today's big question White House rhetoric and reality look likely to become increasingly blurred
By Sorcha Bradley, The Week UK Published
-
Will Trump's 'madman' strategy pay off?
Today's Big Question Incoming US president likes to seem unpredictable but, this time round, world leaders could be wise to his playbook
By Sorcha Bradley, The Week UK Published
-
Democrats vs. Republicans: who are the billionaires backing?
The Explainer Younger tech titans join 'boys' club throwing money and support' behind President Trump, while older plutocrats quietly rebuke new administration
By Harriet Marsden, The Week UK Published
-
US election: where things stand with one week to go
The Explainer Harris' lead in the polls has been narrowing in Trump's favour, but her campaign remains 'cautiously optimistic'
By Harriet Marsden, The Week UK Published
-
Is Trump okay?
Today's Big Question Former president's mental fitness and alleged cognitive decline firmly back in the spotlight after 'bizarre' town hall event
By Harriet Marsden, The Week UK Published
-
The life and times of Kamala Harris
The Explainer The vice-president is narrowly leading the race to become the next US president. How did she get to where she is now?
By The Week UK Published
-
Will 'weirdly civil' VP debate move dial in US election?
Today's Big Question 'Diametrically opposed' candidates showed 'a lot of commonality' on some issues, but offered competing visions for America's future and democracy
By Harriet Marsden, The Week UK Published