Insider Trading?

There is law in the United states against Insider trading. The law is intended to keep "insiders" from trading on information that is not generally available to the public.

The Obama administration is negotiating with the Russians over their activities in Ukraine. I was surprised to see that the administration is apparently notifying hedge funds what is happening in the negotiations. (also here)

You may think that's a good thing. Giving a little heads-up to those managers is certainly a good thing for the managers who get the information. The trouble is that it puts at a disadvantage all those hedge funds that do not get the information.

This is the essence of insider trading. Doesn't the administration understand that this is inappropriate? There is no way for the administration to distribute this information "fairly". The appropriate thing is to not have any contact between the investors and the negotiators. Don't reporters or investors understand that this politicizes the investment process, and leaves the appearance that negotiations are driven by "Wall Street"?

If true, imagine this information as a fundraising tool. Donate to the president's campaign, and he will put you on the list of people to keep informed on international negotiations. Can money be made with early access to this sort of information? You bet!

If true, I am very disappointed that this basic concept, of fair treatment of all in the economic sphere has been neglected or ignored by the White House.

Insider trading? Corruption? Ignorance of the law? Ignorance of economics? Incompetence?

Pick your poison. It should stop.

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