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Congressional stock trading has fallen off sharply this year, according to an analysis by a popular financial news site and some insiders believe its because US lawmakers are feeling heat from a possible legislative clampdown.

The volume of stock trades made by members of Congress tumbled more than 75% in the nine months of this year to just 1,800 trades versus 8,000 a year earlier, according to data from Unusual Whales. 

Former House Speaker Nancy Pelosi has made just six trades this year as a congresswoman representing San Francisco. Those include selling Roblox shares, buying Apple and Microsoft shares and acquiring a stake in a luxury hotel, according to recent filings.

Thats a steep dropoff from the 39 trades she made in 2022, the 24 trades she made in 2021, and the 38 trades she made in 2020.

A spokesperson for Pelosi did not respond to a request for comment.

While the markets have been bumpy this year, overall trading volume is down just 10%, according to CBOE data, versus the three-quarters plunge inside Congress.

Passing legislation, sources say, is critical to keep Congress from trading again.

If a movement doesnt turn into a law, Congress isnt going to remain scared, Jeff Hauser, founder of nonprofit watchdog the Revolving Door Project, said. The combination of a bill that could pass and the broader conversation acts as a deterrent.

Ethics experts say the another reason may simply be that members dont feel the trades are worth the trouble anymore.

Federal Reserve governors Eric Rosengren and Robert Kaplan resigned after scrutiny of their trades. Now-retired Sen. Richard Burr stepped down as Chair of the Intelligence Committee and now-ex-Sen. James Inhofe resigned after scrutiny of trades. 

It may not be worth the grief, Charles Stewart III, a political science professor at MIT, told On The Money.

The founder of Unusual Whales, who prefers to remain anonymous, notes that members of Congress have lately been far more diligent about filing their trades quickly. The STOCK Act requires members to file their trades within 45 days but members of Congress like Pelosi lately are filing within just a few days.

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There is limited upside and maybe a lot of downside to congressional trading these days, agrees Thomas Hayes, chairman at Great Hill Capital. Shining a light on this has played a big role.

Another issue: Some of the most lucrative, valuable stocks like Google and Amazon which Pelosi had snatched up are presenting an even greater conflict of interest than they did previously.

The tech high flyers that many members wanted to trade in are politically fraught these days a reference to lawsuits both Google and Amazon are facing, Stewart adds.

While some applaud the recent trend, others are more cautious and note stronger laws against stock trading need to be codified. 

Attention helps and attention makes transparency more effective, Jeff Hauser, founder of nonprofit watchdog the Revolving Door Project, said. But even more effective than transparency is strict rules.

As for the question of whether regulators will ever be willing to regulate themselves, the answer is almost always no. Still, Hauser is optimistic that with enough sticks not to mention the dwindling supply of carrots lawmakers could eventually succumb. 

If the momentum grows big enough, it could pass, Hauser said. And it only has to pass one time.

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Sports

Mizuhara pleads guilty to felony bank, tax fraud

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Mizuhara pleads guilty to felony bank, tax fraud

Ippei Mizuhara agreed Wednesday to plead guilty to federal charges of felony bank fraud and submitting a false tax return after authorities found that he stole nearly $17 million from Los Angeles Dodgers superstar Shohei Ohtani in order to pay off gambling debts to an illegal sportsbook.

Mizuhara, 39, who had been Ohtani’s longtime interpreter, is expected to enter his guilty plea in the coming weeks. His arraignment is scheduled for Tuesday in the U.S. District Court for the Central District of California.

A sentencing date has not been set. The total maximum sentence Mizuhara could receive for both crimes would be 33 years imprisonment and fines of $1.25 million, but in exchange for his plea — outlined in the agreement released Wednesday — prosecutors would recommend a reduced sentence.

A spokesperson for Ohtani declined to comment.

Federal authorities filed the complaint against Mizuhara on April 11, just three weeks after an ESPN investigation detailing wire transfers of $500,000 from Ohtani’s bank account to the bookmaking operation. Mizuhara initially told ESPN Ohtani had sent the money to help him pay his debts but later changed his story to say Ohtani had no knowledge of his gambling or the wire transfers. Ohtani’s attorneys alleged the slugger had been the victim of a “massive theft.”

“The extent of this defendant’s deception and theft is massive,” said United States Attorney Martin Estrada in a press release. “He took advantage of his position of trust to take advantage of Mr. Ohtani and fuel a dangerous gambling habit.”

Also in the statement, IRS Criminal Investigation Special Agent in Charge Tyler Hatcher said, “Mr. Mizuhara exploited his relationship with Mr. Ohtani to bankroll his own irresponsibility.”

The documents filed Wednesday further detailed a relationship of trust in which Ohtani, who did not speak English, relied on his Japanese translator to help him with everything from answering questions at press conferences, transacting with financial advisors and sports agents, and opening bank accounts.

Mizuhara began placing bets with an illegal bookmaker in September 2021, and as his losses quickly mounted, he began to exploit his access to Ohtani’s financial accounts to pay off his debts.

Mizuhara took many steps to deceive Ohtani, including changing contact information on the baseball player’s bank accounts so communication would come to Mizuhara. He even impersonated Ohtani on the phone with calls to the bank, which he did at least 24 times, according to the plea agreement.

In September 2023, Mizuhara told Ohtani he needed $60,000 for dental work, which Ohtani arrange to give him via a check drawn from a business account. However, Mizuhara pocketed that money and instead used Ohtani’s debit card to pay the $60,000 dental bill.

ESPN’s Tisha Thompson contributed to this report.

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Politics

Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years

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Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years

The bill introduced in the House would impose a fine of up to $100,000 for handling funds from mixers, while the Treasury writes a report.

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UK

Three men arrested on suspicion of terrorism offences

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Three men arrested on suspicion of terrorism offences

Three men have been arrested on suspicion of terrorism offences.

The men have been taken into custody in northern England on suspicion of “commission, preparation and instigation of acts of terrorism”.

Greater Manchester Police said that at about 7.30pm, four warrants were executed in the Bolton, Great Lever, Abram and Hindley areas.

The men, aged 35, 36 and 51, were arrested at separate locations and have been taken into custody for questioning.

Scenes remain in place at the four addresses as inquiries are carried out, the force said, while warning the local community they may see an increased police presence in the coming days.

Assistant Chief Constable Rob Potts, who holds responsibility for counter terrorism policing in the north west, said: “This evening we have executed a number of planned warrants as part of an ongoing counter terrorism investigation.

“Three men have been taken into custody for questioning and scenes remain in place as we conduct further enquiries.

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“Today’s activity has been the culmination of much detailed planning and we have put measures in place to minimise disruption to local residents as much as possible.”

He added: “I want to reassure members of the public that we do not currently believe there to be any wider threat linked to today’s activity.”

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