Insider trading by government officials and politicians in education stocks
I was watching 60 Minutes last night and almost fell out of my chair. If you work for the US Government or an an elected to federal office, insider trading rules have not applied to you until recently. Because of widespread insider trading and concerns over a horrendous backlash (since the SEC was ramping up insider trading cases against all sorts of non-government people, a new law was passed making it illegal for people in government to trade on inside information (such as front running new regulations or laws that were being prepared but were not publicly disclosed). In this new law government officials were supposed to have to list publicly all their investment trades for the past number of years. Well, 60 minutes revealed that Congress snuck through legislation that revokes the requirement that all prior and future trades be posted for federal officials. What a scam.
It is clear what is going on. The fallout from the rampant federal insider trading was going to be massive. The number of officials that were going to get caught up in the scheme was huge. Even if it were legal at the time, anyone congressperson shown to have done this type of trading would immediately be attacked by the opposition and would lose their seat in the next election. Can you imagine campaigning against an opponent who conducted insider trades based on legislation form which he had advanced knowledge of and from which he made a ton of money (at the expense of other public shareholders). It would look so bad and display such an incredible lack of honesty and judgement.
There is no question that all sorts of government officials were trading against the education companies. I was hopin to see the lineup of #$%$ politicians that were working against the education companies and shorted the stocks in front of legislation, committee hearings, new regulations, etc.