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Lawmakers with stock holdings vote in ways that juice their portfolios

“Amid calls for stricter regulation of congressional stock ownership, researchers find that financial self-interest outweighs party, ideology and other factors in policy decisions” according to Washington Post reporter Christopher Ingraham
December 20, 2020. 

“A series of well-timed stock trades early in the pandemic brought Justice Department scrutiny on at least five U.S. senators this year over potential insider trading, including Georgia Republicans Kelly Loeffler and David Perdue. Though the inquiries were dropped, both lawmakers have taken heat on the issue as their respective campaigns head into a January runoff election that will determine partisan control of the Senate.”

“New research from political scientists Jordan Carr Peterson and Christian Grose underscores why tighter regulations might be necessary. They found that members of Congress who own stock tend to vote in ways that benefit their portfolios and that these decisions can’t be explained away by other factors, such as ideology or constituent interests.”

“This behavior, it’s worth noting, is perfectly legal. While the 2012 Stock Act prohibits members of Congress from insider trading, there is nothing to prevent them from casting votes that increase the value of their assets based on public information.”

So if you think your representative is voting to represent your interests as a constituent, time to reassess.

Source: Financial Planning for Women