Are Wall Street investors getting specialized investment tips and information from Congress, the Obama administration, and federal agencies. Senator Chuck Grassley (R-Iowa) writes about how “political intelligence is being bought and sold at the expense of the average investor” and criticizes the version of the STOCK act that was recently passed.
From the post on Politico:
The Wall Street Journal reported that hedge funds and key senators had meetings brokered by political intelligence firms during sensitive negotiations over the health care overhaul legislation in 2009. The next year, the firms arranged more than a dozen private briefings between senior lawmakers and aides working on financial services reform.
A whistleblower came to me with concern that the Centers for Medicare and Medicaid Services has meetings with Wall Street firms to discuss agency policy. No record is kept. Employees are essentially on the honor system to make sure they don’t give investors inside information. In one example, more than a dozen agency employees are said to have briefed Wall Street analysts and investors for two hours on the taxpayer’s dime.