Stockblockers - Political Intelligence

  • Aired:  02/15/12
  •  | Views: 65,575

A whole industry of parasites rides on the backs of Congresspeople, gathering non-public information and selling it to hedge funds. (4:23)

SOLVING THE PROBLEM THEN.

BUT TO FULLY APPRECIATE THE SIZE

OF CONGRESS' BALL AND THE BILL'S

LACK OF THEM YOU'VE GOT TO LOOK

AT ANOTHER PROVISION DEALING

WITH SO-CALLED POLITICAL

INTELLIGENCE.

I'LL LET "60 MINUTES" EXPLAIN

USING FOOTAGE OF PEOPLE WHOSE

FACES HAVE BEEN SURGICALLY

REMOVED.

>> A WHOLE NEW TOTALLY

UNREGULATED $100 MILLION

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 NONPUBLIC INFORMATION

THEN SELLING IT TO HEDGE FUNDS.

>> Jon: HEADLESS ZOMBIES!

ROAMING THE HALLS.

THERE'S A WHOLE INDUSTRY OF

PARASITES JUST RIDING ON THE

BACKS OF OUR CONGRESS PEOPLE

LIKE TICKS ON A WATER BUFFALO OR

MICE ON AN EAGLE.

(LAUGHTER)

I'M BEING TOLD THAT WAS NOT HOW

MICE GET AROUND.

HERE'S AN EXAMPLE AT WORK.

A FIRM CALLED J.N.K. SECURITIES

SET UP A MEETING BETWEEN SEVERAL

HEDGE FUNDS AND SENATOR CHRIS

DODD, THE GUY THAT WROTE ALL THE

FINANCIAL LEGISLATION.

THE SENATOR TOLD THEM HE

WOULDN'T BE PURSUING A PRO

VISION TO CAP DEBIT CARD FEES.

NO ONE OUTSIDE THE MEETING HAS

THE INFORMATION.

THEN ONE OF THE HEDGE FUNDS THAT

WAS THERE BOUGHT OVER 300,000

SHARES IN VISA.

HERE'S WHAT IT LOOKS LIKE IF THE

SAME TYPE OF ACTIVITY HAPPENS IN

THE REGULAR NON-CONGRESS

ECONOMY.

>> PRIMARY GLOBAL SALES MANAGER

JAMES FLEISCHMAN GUILTY OF

CONSPIRACY IN AN INSIDER TRADING

CASE.

>> SECURITIES AND EXCHANGE

COMMISSION FILED SUIT AGAINST

ANGLO MA ZILLO, FORMER HEAD OF

COUNTRYWIDE MORTGAGE ACCUSING

HIM OF INSIDER TRADING AND

FRAUD.

>> A FORMER MANAGING DIRECTOR OF

THE NASDAQ HAS BEEN CHARGED WITH

INSIDER TRADING.

>> I FORMER GOLDMAN SACHS BOARD

MEMBER HAS BEEN CHARGED WITH

INSIDER TRADING.

>> SENTENCED TO 11 YEARS IN

PRISON, THE HARSHEST PUNISHMENT

EVER FOR AN INSIDER TRADING

CASE.

>> Jon: YOU KNOW WHO I BET

FINDS THE JUXTAPOSITION OF WHAT

CONGRESS PEOPLE CAN DO AND

REGULAR PEOPLE CAN DO

HYSTERICAL?

MARTHA STEWART.

I BET SHE'S JUST LAUGHING AND

LAUGHING AS SHE TAKES A

RECLAIMED BARN WOOD BASEBALL

FOOT A SHELF FULL OF VASES SHE

RAFTD FROM RECYCLED NEW ENGLANDC

LOBSTER TRAPS.

(LAUGHTER)

SHE'S MAD.

THE SENATE VERSION OF THE STOCK

ACT DEALT WITH THESE POLITICAL

INTELLIGENCE PEOPLE.

IT DIDN'T BAN THEM FROM

SHUTTLING INFORMATION FROM

CONGRESS TO HEDGE FUNDS BUT IT

DID REQUIRE THEM TO DO ONE

THING.

>> IT TAKES THESE PEOPLE THAT

YOU CALL POLITICAL INTELLIGENCE

PROFESSIONALS AND HAVE THEM

REGISTER JUST LIKE EVERY

LOBBYIST REGISTERS SO IT'S

TOTALLY TRANSPARENT SO WHEN

THESE PEOPLE COME AROUND TO GET

INFORMATION FROM YOU THAT THEY

SELL TO HEDGE FUNDS...

>> Jon: OH, MY GOD, THEY'RE

GOING TO MAKE THEM REGISTER LIKE

LOBBYISTS.

NOW THEY'LL NEVER BE ABLE TO GET

IN AND SEE CONGRESS PEOPLE.

(LAUGHTER)

EXCEPT ALWAYS.

BUT IT'S BETTER THAN NOTHING.

DOES GIVE IT A LITTLE

TRANSPARENCY.

WHO COULD OBJECT TO THAT?

>> HOUSE REPUBLICANS REJECTED A

PROVISION THAT REQUIRES

SO-CALLED POLITICAL INTELLIGENCE

FIRMS TO REGISTER THE SAME AS

LOBBYISTS.

(LAUGHTER)

>> Jon: THANK YOU FOR TAKING

(BLEEP) ON OUR CHESTS.

NOW TO BE FAIR THE OPPONENTS OF

REGISTERING POLITICAL OPERATIVES

HAD A GOOD POINT.

>> THINK OF THE WORDING

"POLITICAL INTELLIGENCE."

THERE'S SO MUCH QUESTION ABOUT

WHAT THAT MEANS.

>> POLITICAL INTELLIGENCE IS

DEFINED AS INFORMATION WHICH IS

INTENDED FOR USE IN ANALYZING

SECURITIES OR COMMODITY MARKETS

OR INFORMING INVESTMENT

DECISIONS.

BUT WHAT DOES THAT MEAN?

>> Jon: WHAT DOES IT MEAN?

YOU WROTE THE (BLEEP) THING!

WHAT DO YOU MEAN WHAT DOES IT

MEAN?

YOU WROTE IT!

(CHEERS AND APPLAUSE)

REALLY, LIEBERMAN?

(AS LIEBERMAN)

POLITICAL INTELLIGENCE, ARE

THOSE EVEN WORDS?

WHEN I SEE THE COLOR BLUE, DO I

KNOW YOU'RE SEEING THE SAME

COLOR I'M SEEING?

I MEAN, WHAT IF CONGRESS IS JUST

LIKE THE DREAM OF A SLEEPING

BUTTERFLY?

(LAUGHTER)

YOU WRITE LAWS, NOT POETRY.

BUT SUDDENLY SENATORS SOUND LIKE

ENGLISH PROFESSORS.

WELL, THAT SENTENCE, WHAT DOES

IT MEAN TO YOU?

(LAUGHTER)

HERE'S WHAT I THINK IT MEANS,

"PACK YOUR SHUTES, PEOPLES, NO

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