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Why Is Eric Cantor Blocking the Congressional Insider Trading Act? (Complicated)
cnbc ^ | December 11, 2011 | John Carney

Posted on 12/11/2011 5:30:08 PM PST by khnyny

In a strange and unexpected twist, the Republican leader in the House of Representatives is now blocking progress on a bill that would definitively outlaw insider trading [cnbc explains] by federal lawmakers.

The Republican sponsor of the bill in the House, Financial Services Chairman Spencer Bachus of Alabama, had scheduled a markup of the Stop Trading on Congressional Knowledge (STOCK) Act for next week. But on Wednesday, Majority Leader Eric Cantor of Virginia cancelled the markup session.

Cantor reportedly said he blocked the bill to give Congress more time to examine the issue. Critics of the move, however, fear that any delay could kill the bill entirely.

Some version of the the STOCK Act has been bouncing around Capitol Hill for six years. But recent attention to the issue of Congressional insider trading, following reports from CNBC's Eamon Javers and a "60 Minutes" report, brought the bill out of stasis and made its passage into law seem likely. If the latest delay pushes the bill into next year, it may become lost in election-year politics.

Trading by lawmakers based on non-public information about legislation falls into what many see as a loophole in insider trading regulations.

Although corporate insiders are banned from trading on non-public information about their companies, congressional representatives and senators may not be banned from trading on non-public information about legislation or regulation. The legal issue is disputed by scholars and regulators.

The head of the enforcement division of the Securities and Exchange Commission recently argued that congressional insider trading is already banned. But he admitted that no legal action has ever been taken against a member of Congress.

Studies have shown the investment portfolios of House members and Senators consistently outperform the market by significant degrees, suggesting they are either miraculously bright and lucky investors or

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government
KEYWORDS: cantor; congress; corruption; cultureofcorruption; insidertrading; stockact; wallstreet
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This is scheduled for a vote next week. Imho, I do believe that Bacchus is being particularly disingenuous with this bill (in other words he is trying to do some major pr damage control cya mode), but that doesn't totally explain Cantor's response.
1 posted on 12/11/2011 5:30:17 PM PST by khnyny
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To: khnyny

Congress does not even need insider information. All they have to do is buy stocks in any company they know will win appropriations. Instant cash!


2 posted on 12/11/2011 5:32:41 PM PST by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: American in Israel
All they have to do is buy stocks in any company they know will win appropriations

That is what they are talking about. Congressional committee members are the ultimate insiders even though the term has historically not been aimed at them. That is the whole problem.

3 posted on 12/11/2011 5:37:39 PM PST by hinckley buzzard
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To: khnyny
During their Tenure...

*Put all Non-Qualified and all Qualified monies ( 401k etc ) in a Trust where an investment adviser makes all decisions and they have no hands buy/sell decision on at all.
* All tax forms from all 535 of them are to be made public during their terms.

That would be a good start. IMHO Cantor is becoming a worm, ugh, another one that disappoints...

4 posted on 12/11/2011 5:43:04 PM PST by taildragger (( Palin / Mulally 2012 ))
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To: taildragger

Sounds good, but they could tell a third party their insider information very easily...family member, staff member, etc. It’s difficult, in not impossible, to legislate morality. Human ingenuity always seems to find a work around.


5 posted on 12/11/2011 5:51:15 PM PST by khnyny (Our government has become Hal in "2001 A Space Odyssey")
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To: khnyny

Oyy Vehyy, eees so complicated....


6 posted on 12/11/2011 5:55:50 PM PST by nkycincinnatikid
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To: khnyny

Oyy Vehyy, eees so complicated....
mein kopf is zo krank
such a katzenjammer.....


7 posted on 12/11/2011 5:58:59 PM PST by nkycincinnatikid
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To: taildragger
IMHO Cantor is becoming a worm, ugh, another one that disappoints...

Is becoming??? He's been a squish for a long time. He needs to be primaried.

8 posted on 12/11/2011 6:00:09 PM PST by iceskater (I am a Carnivore Conservative - No peas for me. (h/t N.Theknow))
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To: taildragger
IMHO Cantor is becoming a worm, ugh, another one that disappoints...

Is becoming??? He's been a squish for a long time. He needs to be primaried.

9 posted on 12/11/2011 6:00:18 PM PST by iceskater (I am a Carnivore Conservative - No peas for me. (h/t N.Theknow))
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To: iceskater

Sorry for the double post. Getting used to the new computer.


10 posted on 12/11/2011 6:02:16 PM PST by iceskater (I am a Carnivore Conservative - No peas for me. (h/t N.Theknow))
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To: khnyny

Cantor is not indespensable,IMHO, and conservatives don’t really need the aggravation he brings with his generally establishment leaning actions. Cantor needs to be replaced.


11 posted on 12/11/2011 6:04:46 PM PST by RitaOK (wRasmussen- the polling standard for accuracy.)
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To: nkycincinnatikid

What, exactly is your point?? Please let it be clear for everyone...unless that’s too taxing for you.


12 posted on 12/11/2011 6:04:51 PM PST by khnyny (Our government has become Hal in "2001 A Space Odyssey")
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To: khnyny

Eeesss verrry complicated


13 posted on 12/11/2011 6:06:27 PM PST by nkycincinnatikid
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To: hinckley buzzard

A link to another article.

http://www.mysanantonio.com/news/article/End-Capitol-Hill-insider-trading-2392830.php

It would be interesting to follow this bill and see you supports and opposes. That being said, the wording of the bill itself could be problematic so we need to look at it from all angles.


14 posted on 12/11/2011 6:07:33 PM PST by khnyny (Our government has become Hal in "2001 A Space Odyssey")
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To: khnyny
The head of the enforcement division of the Securities and Exchange Commission recently argued that congressional insider trading is already banned. But he admitted that no legal action has ever been taken against a member of Congress.

If this is correct this is a simple solution.Take legal action on them all and clean it all out now! Who would we have remaining the tea party and DeMint?

15 posted on 12/11/2011 6:07:33 PM PST by Dubya-M-DeesWent2SyriaStupid!
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To: hinckley buzzard

A link to another article.

http://www.mysanantonio.com/news/article/End-Capitol-Hill-insider-trading-2392830.php

It would be interesting to follow this bill and see you supports and opposes. That being said, the wording of the bill itself could be problematic so we need to look at it from all angles.


16 posted on 12/11/2011 6:07:49 PM PST by khnyny (Our government has become Hal in "2001 A Space Odyssey")
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To: khnyny

YES...and they could Also “hint” at things....what we have are unscrupulous, unethical individuals in Congress. TERM LIMITS seems the only way.


17 posted on 12/11/2011 6:14:36 PM PST by goodnesswins (Bad planning on your part does not constitute an emergency on mine....)
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To: iceskater
He's been a squish for a long time. He needs to be primaried.

The legislation is worthless. There are so many loopholes that it's not even worth considering. It's a way for the Dems to say they stood up against insider-trading without actually penalizing insider-trading.

Interesting you term him a "squish" for resisting this worthless bill.

18 posted on 12/11/2011 6:18:38 PM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: BfloGuy

The bill may or not be worthless - although I tend to believe it’s probably not worth the paper it’s printed on. Nevertheless, Cantor is conservative when it’s convenient to be so. Whatever conservative foundation he had has long since been polluted by the Potomac Crud. He voted for TARP when Bush wanted it, against it when Obama wanted it.

He is incredibly unavailable to answering questions by his constituents. If you want to go to his townhall meetings, you have to make a donation to his campaign or you don’t get in. He refused to come to the Virginia Tea Party Convention last year. Even George Allen came to that event.

Cantor is entirely too comfortable in his seat and should be primaried.


19 posted on 12/11/2011 6:28:18 PM PST by iceskater (I am a Carnivore Conservative - No peas for me. (h/t N.Theknow))
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To: goodnesswins

I totally agree.

Term limits with limited life time benefits.

Maybe like ours???


20 posted on 12/11/2011 6:30:22 PM PST by berdie
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