SEC Looking to Implement Tougher Rules to Stop Insider Trading
The hype has started since a Republican lawmaker presented its bill to stop the insider trading at US stock markets. However it is not widely argued that the proposed legislation is too weak to affect insider trading at all.
The bill has not only faced bipartisan criticism but is also being questioned by regulators such as Securities & Exchange Commission. In a recent discussion at CBS program â€œ60 minutesâ€ it was revealed that the lawmakers presenting the proposals to stop inside trading are at many times themselves have been somehow involved in it.
Similar allegations were made in book titled â€œThrow Them All Outâ€ by Peter Schweizer published in November. According to the book, Republican Senator Bachus made trades right after participating in briefing with Treasury Secretary Henry Paulson back in 2008, which can be categorized as insider trading.
Similarly, many other names have pointed out in the book and US congress seems to be on a hot seat now. How the current dilemma ends would have a major impact on stock market regulations.