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catoismymotor (24.55)

"Congress Members Bet on Fall in Stocks"

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May 04, 2010 – Comments (4)

WSJ Article

By JASON ZWEIG, TOM MCGINTY And BRODY MULLINS

Some members of Congress made risky bets with their own money that U.S. stocks or bonds would fall during the financial crisis, a Wall Street Journal analysis of congressional disclosures shows.

Senators have criticized Goldman Sachs Group Inc. for profiting from the housing collapse. And Congress is considering legislation to curb Wall Street risk-taking, including the use of financial instruments known as derivatives and of leverage, or methods that amplify returns.

According to The Journal's analysis of congressional disclosures, investment accounts of 13 members of Congress or their spouses show bearish bets made in 2008 via exchange-traded funds—portfolios that trade like stocks and mirror an index. These funds were leveraged; they used derivatives and other techniques to magnify the daily moves of the index they track.

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WSJ Article

4 Comments – Post Your Own

#1) On May 04, 2010 at 10:09 AM, leohaas (31.56) wrote:

"Some members of Congress made risky bets with their own money that U.S. stocks or bonds would fall during the financial crisis..."

No, they didn't: they simply hedged ;)

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#2) On May 04, 2010 at 4:11 PM, chk999 (99.97) wrote:

I saw this. Our congress critters have no shame. And things like this are why I don't think government is the answer to all our problems.

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#3) On May 04, 2010 at 4:21 PM, ragedmaximus (< 20) wrote:

i think cutting congress by 50 percent would be a good idea

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#4) On May 04, 2010 at 4:23 PM, topsecret10 (< 20) wrote:

 The majority of Congress are corrupt self serving Idealogs that have no concern whatsoever about American Citizens. They pander to Illegals,they pander to big business (which likes to hire Illegals) and they put this nation at risk every day with unsecured borders,and their lame attempt at upholding our countries Sovereign Laws. They ram healthcare down our throats,they bailout the criminals at the big banks and Investment firms that some of them are STILL connected to,and everyone wonders why the Congress of the UNITED STATES has an approval number In the low 20's.....   As they say In Vegas, "read em and weep"!!    TS

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