Insiders: The road to the STOCK act

Baird: When you have a bill like this that makes so much sense and you can't get the co-sponsorships, you can't get the leadership to move it, it gets tremendously frustrating. Set aside that it's the right thing to do, it's good politics. People want their Congress to function well. It still baffles me.

But what baffles Baird even more is that the situation has gotten worse. In the past few years a whole new totally unregulated, $100 million dollar industry has grown up in Washington called political intelligence. It employs former congressmen and former staffers to scour the halls of the Capitol gathering valuable non-public information then selling it to hedge funds and traders on Wall Street who can trade on it.

Baird: Now if you're a political intel guy. And you get that information. Long before it's public. Long before somebody wakes up the next morning and reads or watches the television or whatever, you've got it. And you can make real-- real-time trades before anybody else.

Baird says its taken what would be a criminal enterprise anyplace else in the country and turned it into a profitable business model.

Baird: The town is all about people saying-- what do you know that I don't know. This is the currency of Washington, D.C. And it's that kind of informational currency that translates into real currency. Maybe it's over drinks maybe somebody picks up a phone. And says you know just to let you know it's in the bill. Trades happen. Can't trace 'em. If you can trace 'em, it's not illegal. It's a pretty great system. You feel like an idiot to not take advantage of it.

Following our broadcast, more than 284 members of the House signed up to co-sponsor the Stock Act. It passed the House and Senate and was signed into law by the president in April. However, the provision requiring registration for people involved in political intelligence was dropped from the legislation.

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[tebow2]

Thank you former Congressman Brian Baird for your efforts to continue to push this bill through, even though it appears not much will come forth from your efforts. You said it best, when you mentioned that if our Congressmen and women along with state Senators are not just going to Washington for the American people, but how can we take advantage of the situation while we are here in Washington is morally corrupt. Not only should the lawyers who create these loopholes held accountable, but also the Republicans and Democrats who take full advantage of the situation while they are in Washington. No wonder the American people lack trust of those who go to Washington anymore. They bicker while they are there and if not, they make sure their financial advisors take advantage of information they are privy too. I don't care at all by being slapped in the face, but please give me the blindfold when you do.

[dlp33160]

I NEVER respond to these shows, especially online. But after watching Kroft and Schwiezer on this documentary last night addressing the unethical buying/selling of stocks by corporate executives based on 'insider information', I am so infuriated and motivated that I had to say something. Perhaps it wouldn't have so greatly affected me prior to the U.S. economic crash that has changed EVERY American's life, but I'm sitting by my television, listening to the accusations then watching the response of the corporate executives. In summary I'm thinking: how do you expect me (and America) to believe your slimy, nervous and avoid-the-real-question-at-all-cost responses to the accusations? You all look so guilty and none of you can justify or intellectually answer to the charges being brought against you by this report. How dare you use exclusive information to stuff your pocketbooks (and certainly NOT to FEED you and your families, but to pad your bank accounts) when there continues to be people in this country without jobs, without food and the basic needs of life??? How do you sleep at night? I know I'm naive, I really do, but I'm shocked and appalled by this "hoarding" and looking out for #1 behavior. You should all be ashamed of yourselves and come clean. Obviously, the laws will not protect the rest of us who go to work every day (and sometimes on the weekends) just to make enough to get by (what's done behind closed doors isolates the rest of us, keeping us ignorant), leaving the ethical decision-making up to those with exclusive rights to the information, trusting you to do what is Right and Ethical. I guess that's what we all expected in the first place; again, I'm naive. Should we expect corruption? I'm thankful to 60 minutes for shedding some light on this ridiculous and shameful behavior and hope that one day some of you might listen to the "little voice" inside of you telling you to do the RIGHT THING. All the money in the world is not going to make you happier, especially money gotten by such means. My guess is that one day you will find that out. In the meantime, think about your 'neighbor' who breaks out in a cold sweat at the end of the grocery line hoping that he has enough money to buy food for himself and family. Thanks 60 Minutes, keep up the good work!

[pennylily]

This is why America is going to hell. The sad part is that I don't think we can do anything about it. Whether or not we vote people in or out, it has come to a point where it doesn't matter anymore. When we vote in a different politician, they all end up the same way once they get in. I am thinking that we need to change the entire political system itself. If voting doesn't make a difference, what else can be done about it? Most americans don't even know what bills or laws are presented in congress. Also, isn't it fair to say that members of congress represent their own state so when something is presented, they vote on how it would affect their own state and not the country as a whole. What is best for america is different for each member of congress. I wish that americans could somehow have a chance to voice our approval or disapproval about bills and laws before they are passed. Our approval or disapproval should be factored into the decision making process somehow. We should be able to participate in online petitions in real time. We could log in using our voter registration record. Maybe, congress could require and explaination of how a bill or law would benefit our country as a whole aside from personal interests. Furthermore, if someone makes an unfair or unethical gain by the passing of a bill or law, then those gains should be addressed so that they are shared appropriately with the citizens of this country and not just a privilaged few. Ugghh, I throw up my arms!

[cmilla9]

boy if looks could kill both boehner and pelossi would have done that to steve kroft, and congratulations to him for taking them to the task, obviously they do not want to talk about it, but in reality it is the the only thing they can accomplish in congress, take that back only one of 2 things they can accomplish, first being their ability to enter the wishes of their masters better known as lobbyists, so they can run to their stock analysts and invest based on their information...they are so useless and sleazy, pelossi claimed she did not understand the question, of all the people in that room she is the one that understood it the best and her expression along with her body language showed that and she did all she could to avoid answering..which they are masters of...plus the land deals that is just wonderful along with the IPO bet some did well with face book...horrible but an excellent report and follow through thank you

[fiddlestickawshucks]

Just because the STOCK act was passed doesn't mean that these crooks are going to pay any attention to it.

I'm sure they all feel this could not possibly apply to them.

After all, they get their raises automatically ever year without lifting a finger, and they have "special" healthcare and pension plans.

We are so far above the rest of the people in the US "It couldn't possibly apply to me".!!

[dickkahrs]

The words corruption and government go hand-in-hand. When you read or hear about governments in other countries, it is always about a 'corrupt government'. I don't think the U.S. is any different. Lord Acton said it best: 'Power tends to corrupt, and absolute power corrupts absolutely.'

[twmat311]

Rather than get derailed on semantics or Obama/Romney politicking, does everyone know the main point: that these "fine statesmen" (and women) get the fact that their constituents believe the whole lot is to blame - EXCEPT their own representative? Despite the huge disapproval rating, we keep re-electing incumbents! Face it, we like to feed at the pork barrel.
We want some nanny to fix the problem, when all we have to do is our basic duty, and vote them out. Let's try it, and see if a large turnout can override the legend that money buys elections.

[okanaganorchardist]

Americans deserve exactly what they get when voting for their representatives, from the dog catchers on up.
Read Peter Schweizer's book, THROW THEM ALL OUT. This will give you all the details, with names, of all the people he found were using insider information -- 500 times more than what 60 Minutes did.

[KansasCity-2012]

It would have been better to make political lobbying illegal in all forms of government to stop this, along with many other problems facing legislative ethics.

[hypnotoad72]

You both raise good points

[spoonie88]

A "CORPORATE COTERIE" RUNS AMERICA LED BY THE KOCH BROS-TRUMP- ROMNEY et at. WHAT DO YOU EXPECT THE PUBLIC IS BEING DIVIDED ON RACIAL LINES TO CAUSE A TOTAL CORPORATE TAKEOVER LED BY ROMNEY AND THE 'CORPORATE COTERIE' AMERICA HAS ALWAYS LET RACE TRUMP THEIR FINANCIAL INTERESTS AND 2012 WILL BE NO DIFFERENT
THE GREAT DEPRESSION OF THE 21st CENTURY IS ONLY A YEAR AWAY !!!!!!!!!!! THE AMERICAN PUBLIC DUE TO LACK OF CRITICAL THINKING WILL BE TO BLAME ------- GEORGE ROMBEY WAS RIGHT --- AMERICANS CAN BE BRAINWASHED SUCCESSFULLY!!!!!!!!!!

[rightofwrong]

Obama is lock step with them.

[nomorelibs]

I noticed you only name Republicans. Do you believe no Democrats take part in this?

[hypnotoad72]

nomorelibs has a valid point.

Even I, regarding one list I like to repeat, usually try to remember to write in how there are some - on both sides - that support the same decisions.

You, spoonie88, aren't entirely wrong, nor entirely right, but the claim of partisan-only chicanery won't cut much ice.

And please turn of the caps lock key...

[Bojax39]

Hey, loonie88... better do some more reading. This time, research left of the center aisle as well.