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 ...
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.
Naaah. It’s not complicated: Cantor is a weasel.
I would say check into Cantor’s financial records and the records of his friends and you will have the answer.
I have NEVER liked Cantor... but, been unsure of the reason why.
Now....I know.
Can you provide a link? Thanks.
I have never researched Cantor or his “connections” - familial or otherwise.
A wee bit of cronyism...
http://www2.timesdispatch.com/news/2010/apr/29/cantgat29_20100429-180802-ar-160325/
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Why?
Because the entities that would prosecute them for insider trading -- i.e. Justice Department, U.S. Attorneys, SEC, whoever -- RELY on Congress for their funding every year.
How could you trust Bachus in this regard. The bill shouldn’t say anything less than they put all their investments in a blind trust.
There’s probably an IPO coming up in a few weeks that Cantor wants to buy into before passing the new legislation.
Cantor must not have made it to multi millionaire status jst yet.He needs more time.The guy is no conservative and thats a fact.
Often reform comes from the corrupt ones so they can claim they are not corrupt. I don’t care who proposes an end to Congressional insider trading - as long as it happens.
In fact, every law passed on the public should apply to Congress. If they don’t want a law on themselves because it will obstruct their work, it will do the same to the public. Inequality before the law is unconstitutional - even if they have managed to name it constitutional.
No. CA has had term limits for 20 years. The politicians change places but the bureaucrats and lobbyists remain forever.
Except this bill may be worthless. It may be a fake, a phony, a fraud. If it's fake reform, then it should die or be fixed before it comes to a vote.
Maybe if we readi it we will see that its not strong enoough to do the job, and what else is being attached to it?
Studies have shown the investment portfolios of House members and Senators consistently outperform the market by significant degrees, suggesting they are either miraculously bright
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Using the words “miraculously bright” in the same sentence as House members and Senators ought to be punishable by 50 whacks with an idiot stick.
The insider-trading loophole, is that congress uses time to hinder prosecution and cover up, hide their trading activity. Robert Khuzami, director of the enforcement division at the Securities and Exchange Commission, pointed out Tuesday that congressional investments in ETFs, options and mutual funds based on inside information aren’t covered under the House bill, nor is tipping off outside sources.
Donna Nagy, a professor at the Indiana University School of Law, added that because the bill mentions only “pending or prospective legislative action,” trading based on other kinds of non-public information — for example, cabinet briefings — could go unpunished.
Congress will not promptly disclose information that can be used against them in time that it will be of any use to the SEC. People calling for longer disclosure times look like they need more time to cover corrupt activities, and to destroy evidence.
The can put the stocks in a blind trust, then send contracts to it when they are in congress.
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