Insider House Rules

  • Aired:  04/23/13
  •  | Views: 66,027

When it comes to reforming the Congressional exemption from insider trading rules, lawmakers get a gentleman's F minus. (4:43)

>> Jon: WELCOME TO THE DAILY

SHOW.

MY NAME IS JON STEWART.

MY GUEST TONIGHT MR. SALOMON

RUSHDIE WILL BE JOINING US.

I'M GOING TO BEGIN TONIGHT

TALKING ABOUT PERKS.

LITTLE JOB BENEFITS, MAYBE

THE BENEFITS OF YOUR JOB

THAT MAKE IT WORTHWHILE.

THE ABILITY TO WORK FROM

HOME, PERHAPS A PERK.

A MACHINE THAT DISPENSES THE

FREE COFFEE, A PERK.

IMMUNITY FROM MURDER CHARGES,

A PERK.

BUT AS "60 MINUTES" TAUGHT

US A YEAR AND A HALF AGO

THERE MAY BE NO BETTER PERK

THAN THE ONE MEMBERS OF

CONGRESS RECEIVE.

>> CONGRESS LAWMAKERS HAVE

NO CORPORATE RESPONSIBILITY

AND HAVE LONG BEEN

CONSIDERED EXEMPT FROM

INSIDER TRADING LAWS, EVEN

THOUGH THEY HAVE DAILY

ACCESS TO NONPUBLIC

INFORMATION AND PLENTY OF

OPPORTUNITIES TO TRADE ON

IT.

>> IF YOU ARE ON THE SENATE

BANKING COMMITTEE, YOU CAN

TRADE BANK STOCK AS MUCH AS

YOU WANT.

AND THAT REGULARLY GOES ON

IN ALL THESE COMMITTEES.

>> Jon: INTERESTING.

LADIES AND GENTLEMEN, IF YOU

WILL--

(LAUGHTER)

>> Jon: MY IMPRESSION OF THE

SENATE BANKING COMMITTEE

SENATE BANKING COMMITTEE

MEETING FOLLOWING SOME

CRUCIAL DECISIONS ON

FINANCIAL REGULATIONS.

OKAY.

>> HEY, CAN WE TAKE A FIVE,

I GOT TO RUN QUICK TO CALL

MY BROKER TO MAKE A [BLEEP]

OF MONEY BASED ON WHAT JUST

HAPPENED IN HERE.

(LAUGHTER)

>> I MEAN PEE.

(LAUGHTER)

I HAVE TO GO PEE.

[BLEEP] LOAD OF MONEY.

SO APPARENTLY THE LAW OF THE

LAND WAS IT IS ABSOLUTELY

FOREGID-- FORBIDDEN FOR

ANYONE IN AMERICA TO INSIDER

TRADE UNLESS YOU HAPPEN TO

BE ACCESSING THE BEST

POSSIBLE, PURIST FORM OF

INSIDE INFORMATION.

IT'S LIKE SAYING NO ONE IS A

AROUND ALLOWED TO USE

RECREATIONAL DRUGS UNLESS IT

IS THAT 100% PURE MEDICAL

KRAD COCAINE AND

THEN-- AMAZINGLY LAST APRIL

THAT "60 MINUTES" PIECE

YIELDED RESULTS.

>> PRESIDENT OBAMA SIGNING

THE SO-CALLED STOCK ACT

TODAY.

>> NOW GOVERNMENT OFFICIALS

ARE SUBJECT TO THE SAME

INSIDER TRADING RULES AS

EVERYBODY ELSE.

>> WHAT DO YOU HAVE THERE,

AN ACRONYM, THE STOP ACT OR

STOP TRADING ON

CONGRESSIONAL KNOWLEDGE ACT.

IT WAS PASSED I GUESS

BECAUSE THE FISCAL USE OF

CONGRESSIONAL KNOWLEDGE IS

EXPRESSLY RESTRICTED ACT--

(LAUGHTER)

>> PURE ON THE NOSE.

ANYWAY-- THE STOCK ACT-- IS

THERE NOTHING I CANNOT TURN

INTO VULGARITY.

I AM THE MIDAS OF PROFANITY.

THE STOCK ACT WAS DESIGNED

TO DO THREE THINGS.

ONE, BRING A LITTLE

TRANSPARENCY TO THIS INSIDER

INFORMATION CASH GRAB

MACHINE.

TWO, STOCK LAWMAKER-- STOP

LAWMAKERS AND THEIR STAFF

FROM USING SAID CASH GRAB

MACHINE AND THREE STOP WELL

CONNECTED INVESTORS FROM

GAINING ACCESS TO THE INSIDE

INFORMATION CASH GRAB

MACHINE ONCE THE

CONGRESSIONAL STAFF WAS THEN

USED.

WELL CONNECTED INVESTORS GOT

TO IT BEFORE IT GOT TO O AM

ABOUTA'S DESK I ASSUME

PURELY BY PERSUASIVE AND

RATIONAL ARGUMENTS.

(LAUGHTER)

SOMETHING LIKE HEY, WHERE DO

YOU THINK ARE YOU GOING WITH

THAT MONEY MACHINE.

NAH NAH NAH NAH NAH.

BUT STILL T WAS A GOOD DAY.

>> I'M VERY PROUD TO SIGN

THIS BILL INTO LAW.

I SHOULD SAY THAT OUR WORK

ISN'T DONE.

THERE'S OBVIOUSLY MORE THAT

WE CAN DO TO CLOSE THE

DEFICIT OF TRUST AND LIMIT

THE COROSSIVE INFLUENCE OF

MONEY AND POLITICS.

>> Jon: I LOVE THAT, LIMIT

THE COROSSIVE INFLUENCE.

LET'S FACE T THERE HAS TO BE

COROSSIVE INFLUENCE OF MONEY

AND POLITICS.

WE'RE WEAK PEOPLE.

WE WILL TRY TO LIMIT IT.

LIKE THE FDA DOES WITH YOUR

FAVORITE BREAKFAST CRER

CALL-- CEREALS OF RAT POOP,

IT IS GOING TO BE THERE IN.

THERE IS NOTHING YOU CAN DO

TO KEEP THAT RAT [BLEEP] OUT

OF YOUR CEREAL.

YOU EAT IT AND YOU ARE LIKE

I'M MOSTLY CEREAL HERE, IT

IS VERY DEI WILL HAVE

HAVECIOUS-- DELICIOUS.

I'M JUST GETTING SOME-- OF

RAT POOP AND JUST A HINT OF

THE MAGAZINEOUTS.

-- MAGGOTS, BUT TWO OUT OF

THREE IS NOT BAD, HUH?

>> CONGRESS HAS KILLED A

MANDATE THAT CONGRESSIONAL

STAFFERS AND EXECUTIVE

BRANCH EMPLOYEES POST THEIR

FINANCIAL-DISCLOSURE FORMS

ON-LINE.

>> Jon: WELL, ONE OUT OF

THREE IS NOT BAD.

33%, IT'S STILL A

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