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I was reading about this a week or so back. It's terrible stuff.

There's a bill going through Congress right now that'll place limits on trading by congressional members, but I doubt it'll go though at this time:

http://www.washingtonpost.com/politics/bill-to-ban-insider-trading-in-congress-is-suddenly-popular/2011/11/30/gIQAn193DO_story.html