In an interview with Fox News this morning, Sen. Joe Lieberman (I-CT) said that the Securities & Exchange Commission believes that under existing law they can prosecute lawmakers who trade on insider information.
“The Securities & Exchange Commission is going to say in testimony submitted to our committee today that under existing law they could prosecute members of Congress guilty of using insider information to make money,” he said, POLITICO reported.
Lieberman is the Chairman of the Senate Homeland Security and Governmental Affairs Committee which is holding a hearing today into allegations raised on ’60 Minutes’ last month that lawmakers are getting rich by abusing their offices. Initial reports suggested that lawmakers were exempt from insider trading laws.
He also told Fox News that such practices harm the reputation of Congress — already at 9 per cent approval in the polls.
“The appearance of this is a real problem… in public life, perception matters. If the public think that members of Congress can use their public jobs to make personal financial gains, we’ve got to make it explicitly clear that the law against insider trading relates to members of Congress and their staff,” Lieberman said.
We’ll have more from the hearing once it begins.
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