Last updated on: 5/1/2009 8:35:00 AM PST
Insider Trading by Congress Home Page > Source Biographies > >Stephen M. Bainbridge, MS, JD
Stephen M. Bainbridge, MS, JD Biography
||William D. Warren Professor of Law at the University of California, Los Angeles (UCLA) School of Law
||Con to the question "Should Insider Trading by Congress Be Allowed?"
"A few thoughts:
Stephen M. Bainbridge, "Insiders on the Hill," TCSDaily.com (Technology Commerce Society Daily), Mar. 30, 2006
1. Stock trading by Congressmen and their staffs presents a double-edged conflict of interest. They may vote on the basis of their trading plans or trade on the basis of their voting plans...
2. Congress has lots of access to confidential information, but one key source is its power to investigate. Do we want Congress 'investigating' companies so that members or staffers can get stock tips?
3. Congressional insider trading is a real problem...[A] study of trading by US Senators found that they were earning rates of returns from stock trading that would make Warren Buffet proud. The study's authors found that 'the senators also appeared to know exactly when to buy or sell their holdings. Senators would buy stocks just before the shares suddenly would outperform the market by more than 25%.' As every investor knows, you can't do that sort of thing routinely without having access to nonpublic information...
Congress often exempts itself from the laws that apply to everybody else. In most cases, we might infer that it is the laws in question that are a bad idea. In this case, however, it is the Congressional exemption that is the bad idea. This gaping conflict of interest needs to be staunched."
|Theoretical Expertise Ranking:
Individuals with JDs, PhDs, or equivalent advanced degrees in fields relevant to insider trading issues. Also top-level government officials (such as foreign leaders, US presidents, Founding Fathers, Supreme Court Justices, members of legislative bodies, cabinet members, military leaders, etc.) with positions relevant to insider trading issues.
|Involvement and Affiliations:
||William D. Warren Professor of Law, UCLA School of Law, 1996-present
Blogger, StephenBainbridge.com, BusinessAssociationsBlog.com, ProfessorBainbridgeOnWine.com
Columnist, TCSDaily.com (Technology Commerce Society Daily)
Editorial Advisory Board, Journal of Markets and Morality
Executive Committee, Federalist Society's Corporations, Securities & Antitrust Practice Group
Taught at La Trobe University, Melbourne, Australia, 2005
Joseph Flom Visiting Professor of Law and Business, Harvard Law School, 2000-2001
Taught at Aoyama Gakuin University, Tokyo, Japan, 1999
Salvatori Fellow, Heritage Foundation, 1994-1996
Faculty, University of Illinois Law School, 1988-1996
||JD, University of Virginia, 1997
MS, Chemistry, University of Virginia, 1983
AB, Western Maryland College, 1980