Monday, November 14, 2011
From CNN:
Pelosi fires back at "60 Minutes" report...
First Headline of the day. The basic jist of this story is that Pelosi, in a report on "soft corruption" in DC is accused of investing in stock while legislation was being discussed that would have a significant impact on the value of that stock. The legislation in question; Credit Card Reform, the stock; Visa. Before my conservative and Republican readers get too excited, also named in the 60 Minutes report are Speaker of the House John Boehner and Rep. Spencer Bachus. Both are also implicated in investing in stocks that would be impacted by legislation under debate in Congress. Bachus, at the time of his purchase, was a ranking member of the House Committee on Financial Services. With his position, the report alleges, he was able to get information concerning the US financial situation prior to the public. In the case of Bachus, he bought market options betting the market would decline. His office has denied these allegations. Boehner meanwhile, purchased health-insurance stocks during the debate over "Obamacare". His stocks significantly after the death of the "public option", which Boehner fiercely opposed.
Here is your interactive question of the day. Should lawmakers be forbidden from purchasing stock that could be DIRECTLY impacted by a piece of legislation they are debating. Is this insider trading? Could they manipulate the legislation for financial gain? Let us hear from you!
Pelosi fires back at "60 Minutes" report...
First Headline of the day. The basic jist of this story is that Pelosi, in a report on "soft corruption" in DC is accused of investing in stock while legislation was being discussed that would have a significant impact on the value of that stock. The legislation in question; Credit Card Reform, the stock; Visa. Before my conservative and Republican readers get too excited, also named in the 60 Minutes report are Speaker of the House John Boehner and Rep. Spencer Bachus. Both are also implicated in investing in stocks that would be impacted by legislation under debate in Congress. Bachus, at the time of his purchase, was a ranking member of the House Committee on Financial Services. With his position, the report alleges, he was able to get information concerning the US financial situation prior to the public. In the case of Bachus, he bought market options betting the market would decline. His office has denied these allegations. Boehner meanwhile, purchased health-insurance stocks during the debate over "Obamacare". His stocks significantly after the death of the "public option", which Boehner fiercely opposed.
Here is your interactive question of the day. Should lawmakers be forbidden from purchasing stock that could be DIRECTLY impacted by a piece of legislation they are debating. Is this insider trading? Could they manipulate the legislation for financial gain? Let us hear from you!
2 comments:
I think it would depend on any Stock owned prior to election, but should bar any stock from being purchased or sold after being elected. The only perceived loophole in this idea is Mr Pelosi's Stock Portfolio, which I hear is quite large.
However a perceived SEC violation may be a bit harder to prove when the anti visa bill gets debated we get the same information the House/Senate does, So if the Rep/Sen sells off their stock in the days before the publics knowledge then its a case for insider trading.
This is an interesting issue, but I do not think it will get very far as it involves members of both parties. While the Dems would love to fry a Repub, and vice versa, they will not cut their own throats, so I suspect this will die off very shortly. If the public did this, well, Martha Stewart..enough said.
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