More Scrutiny Coming on Government Insider Trading

Yesterday, we ran a piece pointing out that there’s really nothing stopping lawmakers, congressional staffers and other government employees from using the non-public information they gather from their daily duties to guide investments and reap enormous profits. Although a House bill — the Stop Trading on Congressional Knowledge Act — takes steps to end the practice, support on Capitol Hill has been less than enthusiastic. Indeed, only four of 435 House members have endorsed the proposal, leaving even public-interest advocates to write off its chances of going anywhere.

Today, however, Rep. Dennis Moore (D-Kans.), who heads the House Financial Services Oversight and Investigations Subcommittee, announced that his panel will take a closer look at just how prevalent government insider trading really is. The hearing, entitled “Preventing Unfair Trading by Government Officials,” is scheduled for July 13.

Expect attendance to be spare.