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Nov
23

Policy, portfolios and the investor lawmaker

Here’s something I haven’t really given much thought: should members of Congress be permitted to invest in publicly traded companies?

“Some of the most popular stocks in Congress are also widely held across the country, including General Electric, Microsoft, Bank of America, Procter & Gamble and other blue-chip names. Some of these companies are also government contractors or bailout recipients. Top industries include oil and gas, electronics and health-care products. In the medical-device field alone, 108 lawmakers collectively own $6 million to $14 million worth of stock.

The rise in congressional investing has come at a time when longstanding ethics rules leave it almost entirely to the lawmakers themselves to decide whether investments pose a conflict. Although Congress has imposed numerous strict conflict-of-interest rules on federal agencies and private business, the rules it has set for itself are far more permissive.”

My inclination would be to say no.  It seems like an unavoidable conflict of interest.  Wouldn’t it compromise their decisions around legislation?

2 years ago

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