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Bachus Under Investigation For Insider Trading - What About Nancy?

lizzy36's picture




 

Yesterday the Washington Post reported that House Financial Services Chairman Spencer Bachus (Ala.) is under investigation for possible insider-trading violations.

The Office of Congressional Ethics is investigating the chairman of the House Financial Services Committee over possible violations of insider-trading laws, according to individuals familiar with the case.

 

Rep. Spencer Bachus (R-Ala.), who holds one of the most influential positions in the House, has been a frequent trader on Capitol Hill, buying stock options while overseeing the nation’s banking and financial services industries.

There can be no doubt that part of the impetus for this investigation was the 60 minutes investigation into Congressional insider trading and the book on soft corruption "Throw Them All Out" by Peter Schweizer.

One can’t help but wonder how Nancy Pelosi escaped a similar ethics investigation?

Three years ago, then-House Speaker Nancy Pelosi and her husband, Paul, made Hillary Rodham Clinton’s success with cattle futures look like a child’s lemonade stand. The credit card giant Visa was holding an initial public offering, among the most lucrative ever seen. The Pelosis were granted early access to the IPO as “special customers” who received their shares at the opening price, $44. The lucky investors turned in a 50 percent profit in just two days.

 

Starting on March 18, the speaker and her husband made the first of three Visa stock buys, totaling between $1 million and $5 million. “Mere mortals would have to wait until March 19, when the stock would be publicly traded, to get their shares,” writes Peter Schweizer of the Hoover Institution in his new book. On the surface, it appeared to be quite a gamble. Mr. Schweizer reports that the investment represented at least 10 percent of the Pelosis’ stock portfolio and perhaps as much as half of their equity holdings.

 

But maybe there was more to it than meets the eye. The Pelosis got their IPO stocks just two weeks after legislation was introduced in the House that would have allowed merchants to negotiate lower interchange fees with credit card companies. Visa’s general counsel described it as a “bad bill.” The speaker squelched it and kept further action on interchange fees bottled up for more than two years. During that time period, the value of her Visa stock jumped more than 200 percent while the stock market as a whole dropped 15 percent.

In a Zerohdge piece from June 2011, Mrs. Pelosi disclosed that she had been privy to material non public information about US sovereign credit review conducted by Moody’s Investor Service:

House Minority leader Nancy Pelosi that it likely wouldn't downgrade the US debt as long as several weeks ago. Per Dow Jones: "Moody's earlier Thursday took the unusual step of warning that it might place the U.S. government's debt rating under review for a possible downgrade. The agency said the review would come if Congress doesn't make progress on raising the country's debt ceiling. Pelosi said she was alerted to the Moody's report just after House Democrats met with President Barack Obama at the White House. She said a few weeks ago she was in New York and the head of Moody's told her that it "would probably not downgrade, so this is interesting news today," she said. "But the fact is we cannot default" on the debt."

At the time Zerohedge wondered if perhaps during some pillow talk with her husband Nancy had let this material non public information slip. One can’t help but wonder over the last  25 years how many times Nancy slipped material non public information to Paul. For those who are unaware Paul Pelosi owns and operates Financial Leasing Services, Inc., a San Francisco, California-based real estate and venture capital investment and consulting firm. The bulk of the Pelosi wealth has come from Pauls investing acumen.

It became so obvious that there was money and lots of it to be made from “insider access and tips” based on the actions that were occurring in Washington, that Hedge Funds wanted in on this “information”.

When Senate Democrats finally brokered a compromise over the proposed health-care law, a group of hedge funds were let in on the deal, learning details hours before a public announcement on Dec. 8, 2009.

 

The news was potentially worth millions of dollars to the investors, though none would publicly divulge how they used the information. They belong to a select group who pay for early, firsthand reports on Capitol Hill.

 

Seeking advance word of government decisions is part of a growing, lucrative—and legal— practice in Washington that employs a network of brokers, lobbyists and political insiders who arrange private meetings between hedge funds and officials, including lawmakers and their aides.

 

With markets moving sharply on actions in Washington, hedge funds and other big Wall Street players are willing to pay for access. News tips, combined with data and analysis, help steer firms to profitable investment decisions.

At this point one can’t help but wonder if Senator Bachus is a mere sacrificial lamb.That Bachus plus the Stock Act (which oddly does not address option trading - which is what Bachus did, or congressional spouses being on preferred IPO lists - Pelosi)  is meant to demonstrate how “accountable” Washington is becoming. After all, in Washington the appearance of justice being done is often more important than actual justice being done.

Finally, there is nothing in the Stock Act which prevents Wall Street insiders and Hedge Funds from paying for access to information. In the House version they even scrapped the language that would require political intelligence consultants to register as lobbyists. Perhaps those paying for access would be wise to follow the much cheaper, Paul Pelosi route, and put a ring on it.

One ends where they started.....What about NANCY?

Sources:
http://www.washingtonpost.com/politics/2012/02/09/gIQA21Ui2Q_story.html?hpid=z1

http://www.washingtontimes.com/news/2011/nov/22/legislators-and-honest-graft/

http://www.upi.com/Top_News/US/2012/02/09/House-passes-its-version-of-STOCK-Act/UPI-69781328807781/

http://www.zerohedge.com/article/moodys-leaked-again-told-nancy-pelosi-will-probably-not-downgrade-us-weeks-ago-did-her-multi

http://www.cbsnews.com/8301-250_162-57324034/pelosi-defends-record-after-60-minutes-report/

http://online.wsj.com/article/SB10001424052970204844504577100260349084878.html

 

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Tue, 02/14/2012 - 21:02 | 2160031 AN0NYM0US
AN0NYM0US's picture

Bitch36

 

aren't you a canuck

keep out of our politics

Fri, 02/10/2012 - 16:10 | 2147330 Jena
Jena's picture

 

"In the House version they even scrapped the language that would require political intelligence consultants to register as lobbyists."

 

Great article, Lizzy.

Fri, 02/10/2012 - 14:54 | 2146920 roadhazard
roadhazard's picture

As soon as the House passed the Stock bill my Rep. (Shuler NC) decided to not run again. I guess if he couldn't make any money he is pulling up his pants and going home. Good riddance, it was hard watching him try to form a thought anyway.

Fri, 02/10/2012 - 14:01 | 2146662 ThisIsBob
ThisIsBob's picture

There ain't no amount of money which would induce me to pillow talk with Nancy.  Dude earned every penny.

Fri, 02/10/2012 - 13:59 | 2146644 RichardENixon
RichardENixon's picture

A little off-topic, but not way out there. I get accused by Obama supporters of being racist when I criticize Obama, and I finally came up with a response  that seems to work.I swear to them that if  for some reason it came down to voting for either Pelosi, Reid or Obama I would pull the lever for Obama. That usually shuts them up, at least the ones whose next question isn't "Who's Pelosi Reid?"

Fri, 02/10/2012 - 14:58 | 2146940 Richard Whitney
Richard Whitney's picture

Ask those Obama supporters if they liked Carter.

Fri, 02/10/2012 - 13:40 | 2146517 non_anon
non_anon's picture

they are all a bunch of self-serving criminals, DRIP on them

 

Don't

Re-elect

Incumbent

Politicians

DRIP

Fri, 02/10/2012 - 12:45 | 2146218 YesWeKahn
YesWeKahn's picture

Everytime the congress debates on something, this Nancy person always comes out and use stock market as a measure. It looks like Nancy is a day trader.

Fri, 02/10/2012 - 12:32 | 2146142 Dermasolarapate...
Dermasolarapaterraphatrima's picture

"It's all about the bucks, kid. The rest is just conversation" .....Wall Street.

Fri, 02/10/2012 - 12:21 | 2146099 apberusdisvet
apberusdisvet's picture

The only Rule of Law left in this country is the fascist boot on your neck; be afraid, be very afraid.

Fri, 02/10/2012 - 11:59 | 2145973 dexter_morgan
dexter_morgan's picture

Where is that republican Jon Corzine these days?

Fri, 02/10/2012 - 11:48 | 2145932 dexter_morgan
dexter_morgan's picture

It's not what you know, it's who you .................

Fri, 02/10/2012 - 16:13 | 2147349 BlackholeDivestment
BlackholeDivestment's picture

''it's who you know'' ...now that is the face of political Legion. 

If you have ever been to the Capitol you know about the Capitol Crypt and it brings to mind the image of the man possessed by Legion, the man who lived among the tombs. Legion is the fallen image of the spirit based on Lucifer's offer of ''knowledge''. This corrupt branch of government is the branch that writes the law(s) which have sacrificed labor upon the alter of corruption. These ''insiders'' and the insider knowledge is pure evil. We the people are now possesed with the mark of debt defined upon the SEAL on the Federal Reserve Debt Note. That is the mark of the beast, which the insider(s) have based the global economic world reserve currency upon.

In case you do not know, no one can buy sell or trade ''legally'' to escape this mark of debt which is now causing the people to rise up in rebelion against the corrupt governments of the nations. This is prophetic. If you accept the mark of the beast you do it with the same lack of mercy that set the foundation for the law set by the insiders and those political scumbags that accepted the offer of temptation at labors expense.

The fact that Americans are not up on Capitol Hill right now and casting out this Legion of Corrupt scumbags is amazing. They surely cannot do it by casting their vote. The fact that these scumbags have been profiting fron insider knowledge and the FBI and SEC etc... are worthless and compartmentalized by the corrupt system is clear enough. The only defense the people have is to rise up and tell this government it is out of order. That must be done on a State level, a local level and in person. The two party corruption must end now.

                     ...but that is not going to happen. Americans are pathetic and weak. They ride Harelys and drive GM cars to see Madonna at the Super Bowl or on TV as their country is sucked down the black hole. 

Judgment is coming and most people do not wish to deal with it. When it comes they will accept the ''change'' offered by the government thinking this will secure them from harm. It will not. Americans will accept the new world order and the nations will do the same. This crisis we see now will turn into a ''sudden destruction'' event and what will rise from it will lead to the fulfillment of prophecy. It will not take long for this to happen. The insiders have already sealed the future and that is a fact proven by what we now see before us, like these corrupt people on Capitol Hill now making a show after they already proved they are a corrupt body possessed with the knowledge of insider information etc... 

 

Fri, 02/10/2012 - 11:46 | 2145919 williambanzai7
williambanzai7's picture

Meets Nancy Peloski...

NANCY BELOESKI

Fri, 02/10/2012 - 13:04 | 2146281 LouisDega
LouisDega's picture

Hey WillyB. Do you give Adobe PS classes? You are hands down the undisputed fucking Photoshop lord master king. I am not worthy.... I am not worthy.

Fri, 02/10/2012 - 12:31 | 2146133 Dermasolarapate...
Dermasolarapaterraphatrima's picture

cereal running out my nose ...so funny!

Fri, 02/10/2012 - 12:13 | 2146059 dracos_ghost
dracos_ghost's picture

So wrong on so many levels... But funny.

Fri, 02/10/2012 - 11:50 | 2145938 GeneMarchbanks
GeneMarchbanks's picture

You've compromised the sweetness of my sleep indefinitely.

Fri, 02/10/2012 - 11:44 | 2145910 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Impeach Pelosi? Capitalism hard at work in the Capitol.

Fri, 02/10/2012 - 11:42 | 2145899 Fix It Again Timmy
Fix It Again Timmy's picture

That's a pole dance I would pay good money to see....

Fri, 02/10/2012 - 11:41 | 2145897 williambanzai7
williambanzai7's picture

CONGRESSMAN IVAN BACHUS

Fri, 02/10/2012 - 11:47 | 2145924 Mercury
Mercury's picture

Graft is God for these assholes.

Fri, 02/10/2012 - 15:31 | 2147031 BlackholeDivestment
BlackholeDivestment's picture

                       http://www.theinsider.org/reports/dollar-bill-symbols/       

                                  http://bible.cc/revelation/11-18.htm               

                                        http://bible.cc/luke/10-18.htm                 

 The Saints are grafted in by the mercy of our Father in Christ, the fruit of the tree of life.

                                        http://bible.cc/galatians/3-13.htm

http://www.biblegateway.com/passage/?search=Revelation+9&version=KJV

                            ''change'' that big government ''G'' http://2.bp.blogspot.com/_KKM-Bq5Rbm8/R7EazFzm0HI/AAAAAAAABnM/sJgLrbnjjdI/s400/GW_MasonicMemorial.jpg

                                      Replace it with  ''CRAFT'' ...the root of the corrupt tree 

                                                                  http://bible.cc/daniel/8-25.htm

                                                     Now do ^ you see the Masonic New World Order?  

                                                http://www.youtube.com/watch?v=Z4iOBvAJTe8

                This Branch of the big government ''G'' is ''Fed'' by the hidden secret beast.

                                          The big govvernment ''G'' http://bible.cc/mark/11-21.htm

                                                       insider ''know l edge'' defines the hidden line 

                                                                  ^^^^^^^^^^^^

                                                                the New World Order

                                                               EVIL

insider edge''Lies''on the surface..HELL                    GATE..criminal ground.....prosecution.

                                                  ^^^^^^^^^^^

THE ROOT OF BIG GOVERNMENT ''G''  ''GRAVEN IMAGE OF LUCIFER'' Of The BLACK HOLE

                          THIS IS THE ROOT OF THE CURSED TREE WHICH BARES NO FRUIT 

                     IT IS THE SUICIDAL VAMPIRE SQUID OF THE GREAT WAL MART OF CHINA

                                                                AND

                                           THE DARKNESS OF THE BLACK HOLE 

                                                               OF THE

                                                         BOTTOMLESS PIT

                                                                 OF

                                                                HELL

                                ??? http://www.youtube.com/watch?v=sgHUZXgNAWo ??? 

                                       http://www.youtube.com/watch?v=RsApTrDY2fE

 

Fri, 02/10/2012 - 11:39 | 2145885 Seasmoke
Seasmoke's picture

they will be hanging from light poles at a gas station one day....Nancy upside down

Fri, 02/10/2012 - 11:37 | 2145875 Normalcy Bias
Normalcy Bias's picture

Life's on Easy Street when you're a member of The Club...but it's MLK Blvd for everyone else.

Fri, 02/10/2012 - 11:44 | 2145874 Mercury
Mercury's picture

An old childhood friend of mine makes big bucks working for a consultancy firm founded and run by Ted Kennedy's son.  Their whole business model is "consulting" hedge funds (and insurance companies etc) on issues surrounding healthcare legislation, enforcement and the like.

Now, it may be the case that Ted Kennedy's son just happens to be a medical and legal genius whose keen insights are worth paying big money for or you can draw your own conclusions about how value is added for clients. In any case it's apparently legal...or may as well be.

Whether or not an idiot like Pelosi can trade her PA out of a paper bag even with tomorrow's newspaper in her hand is just the tip of the iceberg here.

 

Fri, 02/10/2012 - 11:35 | 2145860 Fix It Again Timmy
Fix It Again Timmy's picture

But, but...Nancy needs the money for the 55 gallon drum of botox she goes through in a week!!

Fri, 02/10/2012 - 11:39 | 2145888 Vince Clortho
Vince Clortho's picture

I've heard if you drink it straight, it will take the wrinkles right out of your tongue.

Fri, 02/10/2012 - 11:28 | 2145825 PulpCutter
PulpCutter's picture

Led by Bachus, the GOP fought like hell to have the insider trading bill watered down.

http://themoderatevoice.com/137685/weakening-the-stock-act-stock-and-trade-of-the-house-republicans/

Excerpt:

Once again, House Republicans have been unwilling to take a strong stand against insider trading. Though a revised version of the STOCK Act (Stop Trading On Congressional Knowledge) was passed yesterday by the House by an overwhelming margin, it was only after Republicans had weakened the bill. In December, Republican Spencer Bachus from Alabama, Chairman of the House Financial Services Committee postponed voting on a bill that would have prohibited insider trading by members of Congress. This was despite the fact that the bill had over a hundred co-sponsors and overwhelming public support. Today the Washington Post reported today that Bacchus is under investigation by the Office of Congressional Ethics for possible insider-trading violations. How’s that for having the fox in the henhouse?

In the current bill, Republican Representative Eric Cantor of Virginia and the House Republican leadership eliminated a provision that would have regulated the collection of intelligence gleaned from political insiders; ie members of Congress, senators and other federal officials. This valuable knowledge can be passed on to hedge funds, mutual funds and other financial industry personnel who use it to determine investment strategies. The Senate had previously approved the bill with a provision that required “political intelligence consultants” to register as lobbyists and divulge their activities. Republican Senator Grassley of Iowa, who had crafted the amendment on political intelligence, was quite angry over the House Republicans’ actions, saying- “It’s astonishing and extremely disappointing that the House would fulfill Wall Street’s wishes by killing this provision.” But Congressman Cantor wanted further study of the issue by the Government Accountability Office which could delay action for up to a year.

According to Democratic Representative Louise Slaughter of New York, one of the originators of the STOCK Act, Wall Street and those involved in the political intelligence industry had been lobbying against the Grassley measure. They were concerned that the required registration would have compelled transparency from investment advisors regarding clients to whom they transmitted political intelligence. And Wall Street and their lobbyists were successful in their efforts to gut the bill of the troublesome provision.

Fri, 02/10/2012 - 12:51 | 2146266 Shizzmoney
Shizzmoney's picture

That's funny about hte Cantor thing, since he is known to have a short position on US Treasuries.

Where would he get that advice?  Well, Goldman Sachs, of course!

Fri, 02/10/2012 - 11:39 | 2145884 knightowl77
knightowl77's picture

Nothing new here....they're ALL crooks....If you are in Congress, neither you or your spouse should be allowed to own anything more than a mutual fund....

 

Asswipes

Fri, 02/10/2012 - 11:56 | 2145965 dexter_morgan
dexter_morgan's picture

Unless they are democrats, because we all know democrats are as pure as the driven snow and if we'd only disband the GOP we could really get the whole world humming!

Fri, 02/10/2012 - 11:25 | 2145820 Benjamin Glutton
Benjamin Glutton's picture

Are you unaware this committee investigation was initiated by GOP?

 

 

if there was anything to your assertions about piglosi she would already be under investigation.

Fri, 02/10/2012 - 11:33 | 2145850 knightowl77
knightowl77's picture

You are seriously mistaken.....

 

They will throw Bacchus under the bus first before going after Piglosi...Otherwise the Dems would scream it's a "witch hunt"

 

Of course, she is a witch, and does need to be hunted........Oh well

Fri, 02/10/2012 - 11:47 | 2145923 MrBoompi
MrBoompi's picture

We'll never get anywhere if we don't admit both parties are corrupt pieces of shit.  Go ahead and elect your precious Republican candidates and watch them act no better, or be more effective, than any Democrat.

Fri, 02/10/2012 - 13:55 | 2146621 TexasAggie
TexasAggie's picture

actually, we should just select tow people from each distict in Sep of every even number yr to run for the HR. Then once one is elected, his/her assets are submitted to the public, and if in two yrs that have increased more than the cost of living, the representative is hung the last day of their term and the family loses all of the increase in value.

 

for those that survive, if there net worth increases in the next two years and the increase is from work done while a member of Congress, the person is executed and the funds recovered. This includes spouses income.

Fri, 02/10/2012 - 12:08 | 2146023 mkhs
mkhs's picture

Well, you know, it is sort of like truth in advertizing: with a Repub, you expect a business loving neo-con warmonger; with a progressive Dem, you get a business loving neo-con warmonger, the opposite of expectations.

Fri, 02/10/2012 - 14:13 | 2146726 Manthong
Manthong's picture

Calling Pelosi a witch disparages witches.

I think seditious hag is closer to the mark.

Fri, 02/10/2012 - 11:29 | 2145835 dontgoforit
dontgoforit's picture

....really?....

Fri, 02/10/2012 - 11:23 | 2145811 wonderatitall
wonderatitall's picture

nancy is a nazi democrat. bacchus is a innefectual useless no spine repub....democrat nazis do't go to jail. 

WHERE IS JON "LOOK DOWN HIS NOSE " CORZINE?

I REST MY CASE

 

Fri, 02/10/2012 - 13:39 | 2146511 DoChenRollingBearing
DoChenRollingBearing's picture

+ another 1  

Correct.  

Democrats don't suffer the consequences of their actions.  

Corzine & Pelosi.  Indeed, your case is rested.  They are guilty, but no jail for them.

Fri, 02/10/2012 - 14:05 | 2146682 Manthong
Manthong's picture

I prefer to think of Nancy as a Democrat Nazi.

That is a Nazi who happens to be a Democrat rather than a Democrat who happens to be a Nazi.

Fri, 02/10/2012 - 11:19 | 2145792 GeneMarchbanks
GeneMarchbanks's picture

Moonbats love Nancy. Hence the avoidance of conflict. Election year also, wouldn't look right.

Fri, 02/10/2012 - 11:42 | 2145901 MrBoompi
MrBoompi's picture

Yes, we love Pelosi, but we don't condone this bullshit.  Who isn't on the fucking take?  If there is no law enforcement, there is no law.  Party leaders are paid to protect the status quo, not threaten it. 

Hasn't Congress always protected themselves, the US government, and the big business interests?  In any protection scheme, you get paid for providing protection. 

Fri, 02/10/2012 - 11:57 | 2145966 GeneMarchbanks
GeneMarchbanks's picture

Wait... are you admitting to being a real, live moonbat? Clearly "we" signals some sort of identification here it seems. Anyway, you need not explain to me but Lizzy might want see your take as moonbats are so rarely spotted in real life.

Fri, 02/10/2012 - 11:18 | 2145787 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Erybody in the club gettin' twisted!

Fri, 02/10/2012 - 13:36 | 2146492 DoChenRollingBearing
DoChenRollingBearing's picture

NO ONE close to Obama gets touched.

Fri, 02/10/2012 - 13:53 | 2146605 john39
john39's picture

the only politicians that will get thrown under the bus are the ones who won't play ball for the cabal, or who no longer serve any useful purpose (scapegoat).  

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