Stockblockers

  • Aired:  02/15/12
  •  | Views: 37,919

The government investigates trading on non-public information -- unless members of Congress are doing it. (3:56)

>> Jon: WELCOME TO "THE DAILY

SHOW."

MY NAME IS JON STEWART.

MY GUEST TONIGHT REPRESENTATIVE

LOUISE SLAUGHTER WILL BE HERE

VIA SATELLITE.

SATELLITE.

THAT'S RIGHT, SPACE.

(LAUGHTER)

OOH.

HAPPY OH MY GOD YESTERDAY WAS

VALENTINE'S DAY (BLEEP).

(LAUGHTER)

THAT'S THE DAY WHEN YOU REMEMBER

THAT YESTERDAY WAS VALENTINE'S

DAY.

AND NOW YOU'RE ALONE.

(LAUGHTER)

LET'S BEGIN TONIGHT WITH THE

STATE OF OUR CAPITAL MARKET.

I KNOW YOU'VE BEEN GETTING A LOT

OF REQUESTS ON THE SHOW TO DO

MORE CAPITAL MARKETS BITS.

THEY'VE BEEN THROUGH A BIT OF A

ROUGH PATCH.

REPUTATIONS HAVE SUFFERED.

NOT LEAST OF WHICH DUE TO A RASH

OF INSIDER TRADING.

WE KNOW INSIDER TRADING IS BAD.

WHY ELSE WOULD JOHN CRYER'S DEAD

BROTHER HAVE GONE TO JAIL IN

THAT '80s MOVIE.

YOU KNOW, THE MOVIE ABOUT...

WALL STREET.

I CAN'T REMEMBER THE NAME OF

THAT MOVIE.

BUT WHATEVER IT WAS.

IT HAPPENS ALL THE TIME AND IT

WAS NOT TOLERATED.

>> GOLDMAN SACHS TECHNOLOGY

ANALYST IS REPORTED UNDER

INVESTIGATION BY FEDERAL

AUTHORITIES FOR LEAKING INSIDE

INFORMATION TO HEDGE FUNDS.

>> Jon: GOOD!

(LAUGHTER)

I'M GLAD.

NOT THAT HE'S LEAKING.

(LAUGHTER)

I'M GLAD THAT PEOPLE TRADING ON

SECRET INFORMATION WHICH

UNDERMINES THE VERY INTEGRITY OF

OUR MARKETS IS A PROBLEM.

YOU TRADE ON NONPUBLIC

INFORMATION, YOU GET IN TROUBLE.

THAT'S SOMETHING THE GOVERNMENT

SHOULD INVESTIGATE.

UNLESS THEY'RE DOING IT.

FOR EXAMPLE, INSIDER TRADING ON

THE STOCK MARKET.

IF YOU ARE A MEMBER OF CONGRESS,

THOSE LAWS ARE DEEMED NOT TO

APPLY.

THERE ARE ALL SORTS OF FORMS OF

HONEST GRAFTS THAT CONGRESSMEN

ENGAGE IN THAT ALLOW THEM TO

BECOME VERY, VERY WEALTHY.

>> Jon: JUST LIKE THE FOUNDING

FATHERS INTENDED.

(LAUGHTER)

IT'S OUR SYSTEM OF CHECKS AND

BALANCES.

THEY T DEPOSIT CHECKS, IT

INCREASES THEIR BALANCES.

(LAUGHTER)

LOOK, CONGRESSIONAL TRADING ON

NONPUBLIC INFORMATION IS

SURPRISINGLY COMMON.

"60 MINUTES" REPORTED IN

NOVEMBER FINANCIAL SERVICES

COMMITTEE CHAIRMAN SPENCER

BACHUS MADE INVESTMENTS AFTER

CLOSED-DOOR BRIEFINGS ON THE

ECONOMY.

JOHN BOEHNER DABBLED IN

INSURANCE STOCKS DURING THE

HEALTH CARE DEBATE AND NANCY

PELOSI TOOK PART IN AN EXCLUSIVE

VISA I.P.O. WHILE CONSIDERING

LEGISLATION ON CREDIT CARDS.

AND SEVERAL MEMBERS OF THE HOUSE

ITTY-BITTY TITTY COMMITTEE ARE

SHORTING THE OVER THE SHOULDER

BOLDER HOLDER MARKET AND HOW IS

THAT NOT ILLEGAL AND HOW DID I

STAY THAT WITHOUT TRIPPING UP ON

THE WORDS?

I DON'T KNOW.

(CHEERS AND APPLAUSE)

REALLY?

ARE YOUR STANDARDS FOR ME THAT

LOW?

(LAUGHTER)

THIS GENTLEMAN GOT THROUGH

ITTY-BITTY TITTY COMMITTEE.

I SAY WE CARRY HIM OUT ON OUR

SHOULDERS.

LOOK, THE REPORT ON "60 MINUTES"

MADE SOME REAL WAVES ON CAPITOL

HILL.

MEMBERS VOWED ACTION.

WE MUST MAKE IT UNAMBIGUOUS THAT

THIS KIND OF BEHAVIOR IS

ILLEGAL.

>> WE SHOULD NOT BE SHIELDING

CONGRESS FROM LAWS THAT APPLY TO

OTHER AMERICANS.

>> Jon: YES!

CONGRESS SHOULD OBEY THE SAME

LAWS AS EVERYONE ELSE.

I BELIEVE THAT WAS IN THE NO

(BLEEP) SHERLOCK ACT OF 2000 AND

ALWAYS.

THAT'S WHY LAST THURSDAY

CONGRESS PASSED SOMETHING CALLED

THE STOP TRADING ON

CONGRESSIONAL KNOWLEDGE, OR

STOCK ACT.

IT'S AN ACRONYM.

IT WAS DESIGNED TO PREVENT

CONGRESS PEOPLE OR THEIR STAFF

FROM BENEFITING FINANCIALLY FROM

INFORMATION THEY LEARNED IN THE

COURSE OF BEING IN CONGRESS.

SO NOW AT LONG LAST IF YOU'RE ON

THE SENATE BANKING COMMITTEE YOU

CAN'T TRADE BANK STOCKS.

>> IF YOU'RE ON THE SENATE

BANKING COMMITTEE, YOU'RE GOING

TO STILL BE ABLE TO TRADE BANK

STOCK.

(AUDIENCE REACTS).

(LAUGHTER)

Loading...