Former SEC Commissioner: Insider trading by Congress is perfectly legal


In response to my post about insider trading by Congress, I had some follow up questions from readers. As I mentioned, research found that the average person in Congress earns investment returns that are 25 percent above average. And two Congress people are trying to introduce a law banning the practice of Congressional insider trading because there are currently no laws prohibiting it.

So let me explain how it's not illegal for Congress to use inside information it gets about companies and industries to trade at a profit. Since I am not a legal expert, I posed some questions to a former Commissioner of the Securities and Exchange Commission (SEC) who ought to know.