In February we reported on a new study showing that the stock picks of Senators, as revealed in their financial disclosure forms, outperformed the market by a whopping 12 percent. Insider trading anyone? Although it’s not clear whether any laws have been broken, Alan Ziobrowski, one of the study’s authors says "there is cheating going on, at a 99 percent level of confidence."
The SEC looked at the study but, surprise, surprise, it seems that they are too busy going after Martha Stewart to have the time to look into evidence that our leaders are using their political power and influence for personal gain. An article in the Philadelphia Inquirer notes slyly, "the SEC may have little incentive to tangle with the Senate, given their relationship. Senators approve members of the SEC’s governing body, as well as the agency’s budget."
Unfortunately the article is not yet published, it is forthcoming in the Journal of Financial and Quantiative Analysis.
Thanks to Professor Bainbridge for the pointers.