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As usually our royal rulers in Congress exempted themselves from the rules they expect the rest of us to follow!
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Congress looks at members, insider trading by Larry Margasak - Nov. 30, 2011 11:14 PM Associated Press WASHINGTON - Members of Congress, battling single-digit approval ratings, are paying attention to the perception that some lawmakers enriched themselves through insider trading. Bills in the House and Senate are getting hearings, and the House Ethics Committee has sent out a memo reminding lawmakers that insider trading could violate the law and House rules. The interest was sparked by a CBS "60 Minutes" story Nov. 13 that reported members of Congress can legally trade stock based on non-public information. The House memo makes clear this is not true. The Senate Homeland Security and Governmental Affairs Committee will hold a hearing today on a bill to prohibit insider trading by members of Congress and their employees. The chief sponsor is Sen. Scott Brown, R-Mass., who is running for re-election in the normally Democratic state against consumer advocate Elizabeth Warren. Rep. Louise Slaughter, D-N.Y., has been introducing her bill to ban insider trading by lawmakers since 2006. Before the "60 Minutes" story, there were nine sponsors; now there are 118, and the House Financial Services Committee has scheduled a hearing for Tuesday. Brown's bill would prohibit members or employees of Congress, as well as executive-branch employees, from using non-public information -- obtained through their public service -- to invest money for financial gain. The legislation is known as the STOCK Act. The letters stand for Stop Trading on Congressional Knowledge. The House Ethics Committee memo compiled previous advisories on the use of non-public information. It said members of Congress may be liable as insider traders, whether they obtain non-public information outside of their official duties or as part of them. In addition, the memo said insider trading may violate federal civil and criminal laws. Brown insisted current law does not clearly define whether government officials trading on inside information is considered illegal. Slaughter said, "I'm particularly pleased because my colleagues are really starting to understand that light needs to be shed on insider trading and political intelligence, which has been creeping into the halls of Congress for years now. "The fact that any one of us would think to personally profit off the information that's shared with us upsets me greatly. Members of Congress and their staff should be subject to the same rules as everyone else." The "60 Minutes" segment highlighted financial transactions involving Democratic leader Nancy Pelosi; Rep. Spencer Bachus, R-Ala., chairman of the Financial Services Committee; and Speaker John Boehner, R-Ohio. All three previously denied wrongdoing. Pelosi spokesman Drew Hammill disputed a "60 Minutes" claim that Pelosi blocked a financial bill in 2008. He said the bill was reported out of committee on the last day of regular session -- too late for a vote in the full House. It was the same day the House approved the Wall Street bailout. |