Democratic Senator involved in insider trading

From the Washington Times:

Sen. Richard J. Durbin, Illinois Democrat and assistant majority leader, looked like such a great investor. On Sept. 19, he sold off $42,696 in mutual-fund shares, and quickly sold off another $73,000 during the rest of September. The stock market collapsed after that. Within two weeks, by Oct. 3, the Dow Jones Industrial Average had fallen by 9 percent. A month later, by Oct. 17, it had plummeted over 22 percent. On Tuesday this week, the average is still down about 25 percent from Sept. 19.

If Mr. Durbin ever leaves his day job as a Democratic politician, he should have a plum position waiting for him as a market timer. On second thought, maybe not. It turns out that on Sept. 18, Mr. Durbin participated in a closed-door meeting with then-Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke. The Fed chairman and Treasury secretary briefed Mr. Durbin and other congressional leaders on the financial crisis and efforts to help financially troubled banks.

Mr. Durbin's great sell-off started the day after this privileged briefing. . . . .

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