20H·

You know Capitol Trades? But you do NOT know Bundestag Trades

And there is a good reason for this. In Germany, the law simply does not stipulate that insider trading by politicians must be made public. In the USA, the reporting limit is only $1,000 - all trades that exceed this value must be published. This doesn't do much good at first, because it doesn't stop members of parliament per se from shamelessly enriching themselves.


In Germany, however, the regulation is even more blatant. Here, politicians are allowed to invest up to 5% of the market cap in a company without having to tell any stupid voters. With a company like $RHM (-0,05%) (which has performed +1650% within a few years), a politician could own share packages worth around 3 billion euros without anyone having the right to even ask questions about bias. By way of comparison, managers are only allowed to make trades of €50,000 per calendar year in their own company without having to make this public.


If you now add general financial law, the limit drops to around 3% of the market cap to really ensure that you remain completely anonymous. That would be around €2 BILLION in Rheinmetall alone. Of course, the limit then applies per company and there are also several defense companies and other interesting sectors, for example in the ... uh healthcare sector ... aren't there?


So while we pathetic little citizens here are struggling to somehow not end this year with a bottomless minus, the decisions about all this are not made by us, but by people who would at least have had the opportunity to become multi-billionaires completely legally and secretly. At least that's exactly what I would have done. And that perhaps also explains why some politicians are fighting with their lives against certain crises ever ending.

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7 Comentários

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It is simply an absurd loophole in the law Christian Wulff had to resign and step down as Federal President because of a sum of €400.

At the same time, however, it is legal to secretly invest billions in companies whose entire business model is dependent on politics.
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Where did you get this 5% threshold from? According to the WpHG, the threshold in Germany is 3%; whenever the threshold is exceeded or fallen below, this must be reported to the issuer and BaFin within 4 trading days, regardless of who you are; this also applies to politicians 😅
From 10%, you even have to disclose the strategic objectives of your investment.

@Bonus Here in Austria it starts at 4%.

I always look at these reports on my shares, it's interesting to see which of the major shareholders are increasing or decreasing their holdings.

PS: about insider trading

Insider trading can be punished with a prison sentence of up to five years or a fine. If the violation is not intentional but reckless, BaFin can prosecute it as an administrative offense. In addition, fines of up to 10 million euros or up to 15% of the company's total annual turnover may be imposed.

It's not quite as simple as you say, at least in the EU.
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@TomTurboInvest I did mention that. The 3% applies to shareholders in general from then on, as you said, you have to inform BaFin and can no longer be anonymous. That is also the effective limit for politicians. However, the theoretical limit from which entry in the Bundestag register would be mandatory is only 5% - i.e. above the limit in the WpHG.

Yes, but it is that simple. Because nobody would ever think of investigating in this direction. Firstly, it would hardly be feasible in terms of the effort involved, even obvious insider trading is almost impossible to prove legally watertight, there is also no investigating authority that would even dare to do this and finally, the immunity of the MPs also rules out any charges being brought.

As Donald Trump once said: "I could stand in the middle of Fifth Avenue and shoot somebody and I still wouldn't lose any voters"
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@Soprano It's good that we don't yet have the same conditions as in the USA, but when you see how many people fall for such clumsy populists, it may yet happen.
It is slowly dawning on the small voters in the USA that their Trump is not really doing what he promised the small "voter"🤣
Jobs lost in industry, prices up, wars etc... well, every nation has its representatives verdient🤷🏽‍♂️
Unbelievable what damage he has done to his country in 12 months.

PS: insider trading is already being looked at, it's not that wild, and with RHM any small one would have had enough time to jump on the bandwagon, they didn't go through the roof in minutes like Trump's family and friends oil trades.
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@TomTurboInvest But isn't it all much worse in Germany than in the USA? More jobs lost, more broken election promises, poorer economic growth, higher taxes, less prosperity.

Who is supposed to look at that? And how, if the purchases are anonymous? And insider trading is basically not even provable or the only thing you can get in trouble for is if you don't comply with transparency obligations. But it's basically not punishable if you have certain secret knowledge and therefore make better investment decisions than everyone else.

Well, I don't think it was really realistic for Kleine to earn a lot of money with Defense. That's actually completely insane. Any layman would assume that there is an interest in ending wars as quickly as possible so that fewer lives are lost. Nobody could have assumed 5 years ago that we would still be talking about the same mindless wars in 2026 as we were back then. I even sold $LDO back then because I firmly assumed that every effort would certainly be made to settle matters diplomatically and without bloodshed.
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I don't know, but it's probably no different in Austria.
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@Bonus These laws were obviously written from Wilhelm's savings book. After all, having a part-time job in the economy was somehow already seen as a problem.
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