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How political intelligence can come from Congress itself
Key Excerpts from Article on Website of Washington Post


Washington Post, May 6, 2013
Posted: May 14th, 2013
http://www.washingtonpost.com/business/economy/how-political...

On the same morning a congressional staffer told investors in a private call that odds were improving for a government decision that would help medical insurers, trading spiked in a major health-care company. The private call, arranged by a consulting firm called Capitol Street, took place the morning of March 18. At 11:05 a.m., a certain form of speculative trading in Humana, the health insurer, jumped. That day, there was nearly 10 times as much volume as any day in the previous two weeks. There is no evidence that the trades were in response to the Capitol Hill phone call with a top aide for Sen. Orrin G. Hatch (R-Utah). But the conference call reveals the extent to which a direct pipeline of valuable political insight exists between Capitol Hill and Wall Street, one that ordinary Americans and investors do not enjoy. Political intelligence firms companies that sell their analysis of federal actions to investors have drawn much of the scrutiny from lawmakers and investigators worried about potential insider trading. Congress itself has become a source of sophisticated political analysis for investors, for whom every nugget of exclusive information can translate to millions of dollars in profit. Information in Washington is both highly valuable and extremely fluid. This has given rise to a booming business in researchers claiming to offer political intelligence that could give investors an edge in their trading. Stan Brand, a Washington lawyer specializing in congressional ethics, said he is hearing increasingly about Hill staffers being called to participate in financial industry and investor briefings like the one hosted by Capitol Street.

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