If this story is true…it really, really stinks.
We live in a world where access to information is the key to success. Gaining access to a particular piece of information before the competition can often mean billions in return. So it is not surprising that the information gathering business has become “big business,” particularly within the hallowed halls of Wall Street.
And since money and politics go hand in hand it comes as no surprise that there is an growing class of consultants in Washington that specialize in providing information to Wall Street; dealing in what is referred to as the “political intelligence” business.
What is surprising is that according to several media outlets, the White House has allowed access to these political intelligence consultants and provided them with advanced information on major White House initiatives.
The Washington Post is reporting that “Wall Street investors repeatedly held private discussions with Obama Administration officials, including a top White House adviser helping to implement the Affordable Care Act....These White House meetings were reportedly arranged by political intelligence firms who specialize in providing information to Wall Street."
The Affordable Care Act will have huge financial implications on the insurance, pharmaceutical and health provider industries. Advanced access to information could provide investors in these industries with an unfair advantage.
If these reports are true do they constitute some form of insider trading? It is too early to tell. At the very least it is just one more sign that the system is rigged. The rich just keep getting richer and the chasm between the haves and the have nots grows ever wider.