
Time for a Broad Prophylactic against Congressional Insider Trading
In 2011, Peter Schweizer published a book, Throw Them All Out, exposing some questionable means by which politicians manage to increase their personal wealth 50 percent faster than the average American does.
Schweizer suggested that trading on material nonpublic information is one way members of Congress achieve outsized returns on their investments. He cited one study that found:
- The average American investor underperforms the market.
- The average corporate insider, trading his own company’s stock, beats the market by 7 percent a year.
- The average senator beats the market by 12 percent a year.
Schweitzer’s book was followed by … Read more