To: POLITICAL EDITORS

Contact: Kamy Akhavan, Managing Editor, ProCon.org, +1-310-587-1407, kamy@procon.org

SANTA MONICA, Calif., Oct. 15 /PRNewswire-USNewswire/ -- The economy is in serious trouble. Markets are volatile. Business practices are under increasing scrutiny. Should insider trading by Congress be prohibited? It's not.

Some authorities defend insider trading by Congress; others object to the practice. ProCon.org examines both positions with its newest nonpartisan website at insidertrading.procon.org.

Information, Please

Government officials and staff have access to nonpublic, market moving information that may give them an advantage in the stock market. A Georgia State University study in 2004 revealed that U.S. Senators' stock performance beat the market average by approximately 11%.

In 2007, the 10 wealthiest U.S. Senators traded stocks in a total of 45 different companies including AIG and Sallie Mae. Those 45 businesses also received $18 billion in federal appropriations that same year.

Under insider trading law, as enforced by the U.S. Securities Exchange Commission, it is unclear whether members of Congress owe a fiduciary duty to public corporations when they trade stocks based on knowledge gained from legislative work.

ProCon.org, a nonpartisan research organization that explores controversial issues in a pro and con format, examines Congressional insider trading and presents information on the core question "Should insider trading by Congress be prohibited?" Responses to this question and 16 related questions come from 60 experts including SEC officials, securities lawyers, legal scholars, investigative journalists, business leaders, and sitting members of Congress.

ProCon.org made its research publicly available for free on the website http://insidertrading.procon.org.

Issues Covered

Among the issues explored are:

-- The performance of congressional representatives' stock portfolios in comparison to the general market -- The challenge of evaluating the financial disclosure reports filed annually by members of Congress -- The concept of "political intelligence," and how it's acquired and employed to make investment decisions -- The role of insider trading in market efficiency and public confidence -- The concept of insider trading as a victimless offense -- The idea that a person found to be engaged illegally in insider trading might not be subject to punishment if he or she can prove ignorance of the regulation violated

PRO: Supporters of legislation restricting Congress from insider trading believe it violates the Code of Ethics for Government Service. They say congressional insider trading raises questions of accountability and conflicts of interest. They believe government officials should be held to the same standards as other Americans.

CON: Opponents believe that insider trading law applies only when a Congressional representative breaches a duty of confidentiality to the source of information, and that lawmakers who trade stocks based on nonpublic knowledge have no such duty to Congress. They say that regulating insider trading in general is inefficient, would be impossible to implement in Congress and could impede the flow of information between Capitol Hill and the public.

About Us

ProCon.org is a nonpartisan, nonprofit, 501(c)(3) public charity whose mission is "Promoting education, critical thinking, and informed citizenship by presenting controversial issues in a simple, nonpartisan primarily pro-con format."

ProCon.org has used its comprehensive nonpartisan approach on many issues including the 2008 presidential election, medical marijuana, the Iraq war, the Israeli-Palestinian conflict, illegal immigration, the phrase "under God" in the Pledge of Allegiance, and several others.

For an explanation of our methodology and a full listing of our other topics, visit www.procon.org.

SOURCE ProCon.Org

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