Sunday, 22 June 2014

This Little SEC Battle To Go Epic

Once upon a time.....the House sat down and got into the Affordable Healthcare Act.  The House, the Senate, and the White House....all were sitting and discussing the apparatus, and weaving this 2,300-page document into reality.  Somewhere along the way.....some people knew various pieces that would benefit from the law, and pieces that would be hurt by the law.  What that did with this now in a public fight with the Security Exchange Commision (SEC).

Well....the SEC stumbled into apparently....was some individuals working on the Wall Street side of the house....who knew what was going to happen when the act became law.  Someone profited to the extreme.....maybe a bunch of people had a profit.

So, the SEC wants to engage the House and get documents to identify who knew what, and then act on search warrants.  The House?  They have more or less laid down some markers and said that they will not cooperate with the SEC....mostly because what the House their own business.

Yeah, you can smell a bunch of issues here.

The House is agency under the White House....can dig into the House's business.  If they attempt this....the court system will likely side with the House.

On the other hand.....for decades.....members of the House and Senate have actively used insider information to help their friends, associates, and themselves in the stock market.

Where does this lead onto?  We might find two or three staff members of the Democratically-run House of 2009/2010, who knew lots of stuff about companies that would come out ahead, and they briefed their House and Senate bosses.....who went onto help their special friends.  To be honest, it'd take a special prosecutor and at least two years to gather enough evidence....then another two years of court battles to maybe drag one House member and maybe a couple of staff members off to jail for a year.  The rest would just be slipping through the cracks and avoid jail by cooperating.

Does any of this matter?  It's hard to stop House or Senate insider dealing.  In this case....I'd make a bet that if the leak probably was worth $500 million in gains for some folks.  You'd need a full-time staff to continually investigate various members of the House and where exactly would this go onto?  So, it's an epic development and worth watching.....just to see some political players squarm a bit over who knew what and what they did with the money.

No comments: