The underlying claim behind these stories is intuitive and compelling. Regulations, taxes, and subsidies can make or break entire industries and congresspeople can get information on these rules before anyone else, so it wouldn’t be surprising if they used this information to make profitable stock trades.
That’s not the only factor. Information about insider information that a company lobbyist knows that is likely to change the stock price when made public is a great way to bribe a politician.
If anyone knows about the interaction the lobbyist can easily say “I just told the politician because I want the politician to understand our business very well” which the lobbyist can’t say when he hands over the cash directly.
It’s a way to give the politician money that they can use privately and not only for their campaign that’s easy to offer in a way that’s completely deniable.
That’s not the only factor. Information about insider information that a company lobbyist knows that is likely to change the stock price when made public is a great way to bribe a politician.
If anyone knows about the interaction the lobbyist can easily say “I just told the politician because I want the politician to understand our business very well” which the lobbyist can’t say when he hands over the cash directly.
It’s a way to give the politician money that they can use privately and not only for their campaign that’s easy to offer in a way that’s completely deniable.