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Senatorial Privilege
In February we reported on a new study showing that the stock picks of Senators, as revealed in their financial disclosure forms, outperformed the market by a whopping 12 percent. Insider trading anyone? Although it's not clear whether any laws have been broken, Alan Ziobrowski, one of the study's authors says "there is cheating going on, at a 99 percent level of confidence."
The SEC looked at the study but, surprise, surprise, it seems that they are too busy going after Martha Stewart to have the time to look into evidence that our leaders are using their political power and influence for personal gain. An article in the Philadelphia Inquirer notes slyly, "the SEC may have little incentive to tangle with the Senate, given their relationship. Senators approve members of the SEC's governing body, as well as the agency's budget."
Unfortunately the article is not yet published, it is forthcoming in the Journal of Financial and Quantiative Analysis.
Thanks to Professor Bainbridge for the pointers.
Posted by Alex Tabarrok on November 13, 2004 at 07:16 AM in Economics, Political Science | Permalink
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» Senatorial Privilege from Zmetro.com
Alex Tabarrok asks why the SEC does not seem to have time to look into the fact that Senator's investments substantially outperform the rest of us. The SEC does have time, of course, to chase Martha Stewart.... [Read More]
Tracked on Nov 13, 2004 10:38:32 PM
» Senatorial Privilege from Zmetro.com
Alex Tabarrok asks why the SEC does not seem to have time to look into the fact that Senator's investments substantially outperform the rest of us. The SEC does have time, of course, to chase Martha Stewart. I wrote about... [Read More]
Tracked on Nov 14, 2004 2:06:11 PM
» Why the SEC Won't Investigate Congress from Flit(tm)
Alex Tabarrok picks up the scent that the SEC has detected that there might be stock picking cheating going on among our nation's legislators. He seems somewhat surprised that the SEC is highly reluctant to investigate. The problem is not... [Read More]
Tracked on Nov 14, 2004 10:00:21 PM
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» Senatorial Privilege from Zmetro.com
Alex Tabarrok asks why the SEC does not seem to have time to look into the fact that Senator's investments substantially outperform the rest of us. The SEC does have time, of course, to chase Martha Stewart. I wrote about... [Read More]
Tracked on Nov 15, 2004 9:11:17 PM
