It is standard practice that bank employees are prevented from trading the moment they are informed that they are losing their jobs and are only able to collect any belongings under supervision.
Cross trading could happen in any firm and the head of compliance for Sky Capital itself informed those within the firm that the practice was not illegal.
The governor allegedly speculated about trading the Senate seat for the job of energy secretary because, as "Deputy Governor A" helpfully informed him, that was the cabinet position "that makes the most money" -- by which he almost certainly did not mean that it carried the greatest salary.