House Financial Services Committee Proposes New Restrictions on Congressional Insider Trading
- Posted on December 7, 2011 at 9:00pm by
Becket Adams
- Print »
- Email »
Both Democrats and Republicans on the House Financial Services Committee advocated new restrictions on insider trading Tuesday.
“This is about restoring faith,” said Representative Tim Walz, a Minnesota Democrat who is sponsoring legislation to ban insider trading. “If you think a 9 percent approval rating is bad, don’t do anything, drag it out and watch what happens,” he said, referring to polling on Americans’ approval of Congress.
House Financial Services Committee chairman Spencer Bachus, an Alabama Republican, said the panel would vote on legislation next week. “It is absolutely essential that we do restore the public’s trust,” said Bachus. “If this is the answer, so be it.”
This isn’t the first time that restrictions have been proposed. There have been previous efforts made, but they all failed to advance in Congress.
And although those earlier efforts failed, it has suddenly become a topic of debate after a report last month by the CBS News program “60 Minutes” claimed that members of Congress bought stock in companies during debates on legislation that might affect the businesses.
As reported earlier on The Blaze, since the “60 Minutes” report was originally released, voters have been extremely upset with the fact that none of the investments were illegal (technically speaking).
But let’s pause for a moment and reflect on the irony of Bachus commenting on the new restrictions.
Recall that Bachus was among the lawmakers mentioned in the “60 Minutes” report. CBS reported that during the 2008 financial crisis, Bachus, then the ranking Republican on the Financial Services Committee, bet stock prices would fall while being briefed privately that a global crisis might be imminent. In a statement at the time, Bachus’s office denied he ever traded on nonpublic information.
Still, the CBS report led lawmakers concerned with public perception to take another look at legislation first introduced in 2006 by Representative Louise Slaughter (D-NY). Reintroduced this year by Representative Walz, the measure would label as securities fraud any trading on legislation information by lawmakers or members of staff. The bill would require all trades of more than $1,000 be reported within 90 days.
The bill would require regulators to draft rules barring individuals and political intelligence firms from selling nonpublic information obtained from federal employees, and would require any firms or individuals involved in political intelligence to register in the same way as federal lobbyists.
Will the House Financial Services Committee actually restrict Congressional insider trading, or will this most recent attempt to curb the practice end up like all the others?
[Editor's note: portions of the above are from an article that originally appeared on Wall St. Cheat Sheet.]
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 695 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 508 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 353 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 341 Comments
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 329 Comments
Faith
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 329 Comments
Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 341 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
President Obama Issues Major ‘Green Energy’ Executive Order 252 Comments- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 148 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 302 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 329 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (78)
AzDebi
Posted on December 7, 2011 at 10:55pmHum…makes you think that some of the members of congress must be fans of GBtv, huh? He did a great report on this (I believe it on Monday’s program)…
Report Post »COFemale
Posted on December 7, 2011 at 10:45pmPlease tell me why this has to be voted on? It should just be stated as a crime, no ifs, and, or buts. If it does go for a vote we need to post the names of all those who voted NO. We keep bringing their names up until the constituents in their state, so long you swine.
I find it ironic that the Democrats are the loudest to yell fair share when they are the ones who abuse it the most along with all their special little friends.
Report Post »CatB
Posted on December 7, 2011 at 11:31pmI agree … it wasn’t legal .. by any stretch of the imagination .. I don’t care what Congress and the rest of the thieves decided for themselves. They should be brought up on AT LEAST ethics charges. I know Congress and ethics in the same breath … dream on I guess.
TEA!
Throw the bums out 2012!
Report Post »JohnQTaxpayer
Posted on December 7, 2011 at 11:36pmOh no we were found out; let’s pass a law that says we are temporally equal to the cattle we rule over. And when they go back to grazing we will quietly some late AM presto change it will be gone.
Do not forget;
Report Post »Here they come; Werewolves, Vampires, and Hyenas
(Oooooo I forgot) and Liars
Ok taxpayers let’s get ready for, the parade of liars or the 2012 election cycle.
Are you ready for the fantastic stories?
I, Hercules (your elected representative) with my bare hands ripped off your front door, ran into your burning house, with my super urine, put out the fire, saved your children, their grandparents, the dog, pet fish and gerbil, Vote for me.
I, Sir Lancelot (your elected representative) with my bright armor, sword, and shield went to battle and vanquished the evil trolls who wanted to take your children sell them into slavery to the republicans who were going to use them in child labor camps making oil barrels. Vote for me
I, Wonder-Woman (your elected representative) have been in a steel cage match with the invisible man, the joker, Billy the Kid, Charles Manson, Lucifer, Donald Trump, and both Bushes 41 and 43 all at the same time. Because I was victorious you are safe to walk the streets. Vote for me.
I, Robin Hood (your elected representative) have taken all the money from the rich and will upon my re-election, will present every person who voted for me; a 5 million dollar gift card, a new car, a new 5000 sq foot mansion, and a puppy for each of y
Detroit paperboy
Posted on December 8, 2011 at 12:10amOnly because it was exposed ,are these slimeballs pretending to be outraged….. Chase them thru the ourtyards of DC and string them up…… Thomas Jefferson 1793
Report Post »1casawizard
Posted on December 8, 2011 at 1:06amFirst off, let’s find out who all are privy to this inside trading and shut that off. Public officials may ought to be made public info. concerning financial dealings. Term limits on all elected persons will help eliminate alot of greed that comes from insider stock information.
Report Post »heartitorleaveit
Posted on December 8, 2011 at 2:14amThe problem is they wont have the cajones to inforce out of fear of reprisal!
Report Post »Snowleopard {gallery of cat folks}
Posted on December 7, 2011 at 10:38pmAny changes to the insider trading for members of Congress should be this simple…
You do the crime, you do the time in the crossbar hotel; no exceptions.
Report Post »whatthecrazy
Posted on December 7, 2011 at 10:25pmBlaBlaBla that bunch of thieves arent going to do anything that will take that easy money out of thier pockets,our government is full of liars and thieves and we are helpless to do anything about it . We are fighting the beast after all…………………
Report Post »chasbronson
Posted on December 7, 2011 at 10:24pmALL public officials should not be allowed to trade in ANY capacity at any level while in office,and for 1 year afterwards. That would help with term limits itself.Conflict of interest and self dealing should be criminalized. Martha Stewart should be exonerated as a saint compared to these corruptocrats.
Report Post »valleyfever
Posted on December 7, 2011 at 10:22pmLet’s see, they got caught with their hand in the cookie jar and a face full of cookies. We now expect them to make stealing cookies a crime. They will just make it look like they were justified in checking out the cookies. Nobody wants poison cookies so now their job will be to make sure they are safe before they let the average cookie eater have any. Cookies, stocks or other investments that is. Don’t expect too much here. This is how these folks go from rags to riches in a single term and fabulously rich after a multiple terms. Why else would they pay so much to get into office. Crime incorporated except it’s they who are defining what crime is.
Report Post »abbygirl1994
Posted on December 7, 2011 at 10:21pmSmoke and mirrors, smoke and mirrors.. nothing will change.. while they get richer we watch the demise of our country.. thanks to the bums in Washington! God help us!
Report Post »headbtweenlegs
Posted on December 7, 2011 at 10:20pmhttp://hosted.ap.org/dynamic/stories/U/US_GOP_CAMPAIGN?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-12-07-18-54-33
Report Post »RepubliCorp
Posted on December 7, 2011 at 10:11pmRon Paul has been appointed to head the Domestic Monetary Policy Subcommittee of the House Financial Services Committee. And so far he has been a total zero.all talk, no show
Report Post »TRILO
Posted on December 7, 2011 at 10:09pm@ DARLANASH – Go look at Newt’s voting and lobbying record. His votes over the past decade and his interview with Glenn the other day show his big government, war mongering, constitutional bashing history. Medicare part D, support for Fannie and Freddie while in Congress and as a lobbyist, continued support for wars in the middle east, etc, etc. Do your homework before you throw support for one of the biggest progressive RINO’s running on the republican ticket. I would vote for my dog before I would vote for Newt.
Report Post »dmforman
Posted on December 7, 2011 at 10:15pmGlen’s interview with Newt woke me up. I don’t know who I am voting for now, but it won’t be for Newt or Paul.
Report Post »abbygirl1994
Posted on December 7, 2011 at 10:19pmLook into Bachmann and Santorum… the rest are history for me
Report Post »progressiveslayer
Posted on December 7, 2011 at 10:03pmThat’s right guys make it look like you have some honor and are honest,this is going nowhere the criminals aren’t going to kill the gravy train.
Report Post »Darmok and Jalad at Tanagra
Posted on December 7, 2011 at 10:15pmI got mine, lets close the barn door now that we have burned it down. The only thing these guys are doing is ensuring the next group can’t come after them or their friends, and make sure no one gets caught.
Report Post »All this while the Commander in Crook talks about fairness.
I.Gaspar
Posted on December 7, 2011 at 10:02pmToo late for the restoration of faith while the crooks are still steering the bus, but it’s a start.
Report Post »Let’s get honest conservatives voted in and with a lot of luck we may someday reverse the damage done, not just by the d-bag dems, but the RINOs who pretend to be working for us.
I guess my dream would be indictments for pelosi, frank, reid, schumer and the whole gang of thieves..
Pigpen
Posted on December 7, 2011 at 10:00pmIt will be 150,000 pages long and do nothing but EXPAND their ability to trade on material, non-public information and will even provide ways for them to legally SELL said information, but the B@$T@RD$ will call it the “RESTORING FAITH AND HONOR IN CONGRESS ACT”
Report Post »Modawg734Blue
Posted on December 8, 2011 at 12:00amCareful Pen, If the Bas#@$%& know you are on to them they’ll put you on the domestic terrorists list. The sad thing is you are probably 99.9% correct.
Report Post »TRILO
Posted on December 7, 2011 at 9:59pmYeh, right… like they will pass this. Even if they do, I am sure there will be some loophole that will allow business as usual to continue. They are not going to cut off their gravy train, no matter what they say to the public. This is all show and smoke & mirrors. The entire US government and both parties in Congress are corrupt to the core. After the Senate passed the National Defense Authorization Act I am officially denouncing my affiliation with the Republican party. The republican party no longer stands for the rule of constitutional law or freedom and liberty.
I heard someone the other day call our country a corrupt welfare/warfare state. Sad to say but I completely agree. There is as much of a chance that this will pass as there is that the FED will quit printing money, monetizing our debt or bailing out their banker buddies and the Eurozone. I won’t hold my breath.
It is a very sad state of affairs in America. :-(
Report Post »Southernsoul
Posted on December 7, 2011 at 9:49pmI would love to see it happen just as we all see it, but I have more than a few doubts. I just don’t see these weasels doing anything that will hurt them. They may close the door, but they will open every window they can find. Most of them are beyond trusting and they need to go in the next elect they run in, Republican and Democrat alike. We need to breed into them, two terms and out.
Report Post »ares338
Posted on December 7, 2011 at 9:48pmOh blah…blah…..they will of course leave a convent loop hole in this regulation that they only will know about! Either that or they will just ignore it…yeah that’s the one!
Report Post »The Eleventh Doctor
Posted on December 7, 2011 at 9:47pmThrow them all out!
Report Post »darlanash
Posted on December 7, 2011 at 9:45pmThese politicians are also American citizens, who should follow the same rules and regulations as the the rest of us. We don’t need anymore restrictions and regulations, just follow the laws as they are now. So funny Obama preaches we should all be equal, equal pay etc…, but our politicians can do inside trading? How do we put our Congress on an equal playing field?
Report Post »majorsco
Posted on December 7, 2011 at 9:24pmIf they have to live by the same rules as the rest of us, they won’t be able to get rich by going to Washington. This will be a blow to politician recruting. But that’s good. Maybe we’d actually get someone woth having in office. They should start by having a prohibition on anyone with a JD degree, that would get the lawyers out which would be a great start.
Report Post »KeystoneState
Posted on December 7, 2011 at 9:24pmYep, don’t worry, the Foxes will sort out this “guarding the henhouse” thing once and for all, just wait and see!
Report Post »CulpepperJosh1638
Posted on December 7, 2011 at 9:23pmSend Nancy and Newt to jail. What a shame RINOs support that reptile Newt when he is the quintessential Insider in DC.
Report Post »darlanash
Posted on December 7, 2011 at 9:38pmyou have proof or just hear say?
Report Post »BLACKDIAMONDSKIER
Posted on December 7, 2011 at 9:16pmActually, making Congress follow the same rules we have to play by…….We may be on to something here!!!
Report Post »TXPilot
Posted on December 7, 2011 at 9:15pmDo we really think that our traitorous politicians are going to allow the way they get rich, to be taken away from them.
Report Post »dealer@678
Posted on December 7, 2011 at 9:24pmThere are ways to get around a new law. Crooks will always find a way
Report Post »cassandra
Posted on December 7, 2011 at 9:15pmWhat took them so long ? I think it is because Glenn Beck is getting this info out God Bless him
Report Post »mils
Posted on December 7, 2011 at 9:20pmI agree…
Report Post »The people we elect to represent us should follow exactly the same laws they pas for us to follow.
I hope Beck will keep up the ‘uncovering” of the shadowy actions of our law makers…
Martha went to prison…Nancy needs to follow…
txn4justice
Posted on December 7, 2011 at 9:43pmMartha went prison for insider trading and Nancy Pelosi is insider trading and doesn’t go to prison.
Where is the justice?
Breaking the law is breaking the law; I don’t care who you are.
Maybe if we start holding the politicians accountable to the laws we all must follow, they will start doing a better job. Ex Gov of Illinois Blagojevich just got 14 years.
Report Post »politicianssuck
Posted on December 7, 2011 at 9:14pmDo not worry my fellow Americans, they will find a way to word the bill so that they can still profit among us. After all it would be wrong for them to become any different, YOU ALL KEEP VOTING FOR THEM!!!
Report Post »Shasta
Posted on December 7, 2011 at 9:49pmThey don’t need to worry about how it is worded. The SEC would never open an investigation because they now congress would come down on them hard.
Report Post »