The STOCK Act

[Townsend]

STOCK Act passes Senate by vote of 96-3

http://www.politico.com/news/stories/0212/72391.html

[Gaspar]

Yess!!!!!!! 

. . .and it looks like they cleaned it up quite a bit.  Most of the amendments were withdrawn.

Now the president needs to sign that puppy!

[Townsend]

Yess!!!!!!! 

. . .and it looks like they cleaned it up quite a bit.  Most of the amendments were withdrawn.

Now the president needs to sign that puppy!

Can the family still take the information and trade?  I didn't see anything about that.

[Gaspar]

Can the family still take the information and trade?  I didn't see anything about that.

Yes that falls under the section covering UNDISCLOSED SELF-DEALING.  Covers spouses, children, business partners, etc.

They made it rather broad.  That should keep them on their toes.  

[heironymouspasparagus]

On the surface it looks like they actually did something right.  Good!


Now let's see how they screwed it up so it's worse than before...

[JCnOwasso]

Can the family still take the information and trade?  I didn't see anything about that.

I am a little confused on this.  If I provide source selection information to a member of congress, like I am required to, they are required to protect that privaleged information, i.e. not disclose it to anyone.  I would also assume that they are supposed to keep information received from other governmental workings protected as well.  And I hope that they scrutinize all members of the family on this because if I cannot benefit from this information, the snot nosed spoiled brat of a kid (or wife/business partner) should not be benefiting from it. 

[Townsend]

Eric Cantor under fire for STOCK Act tweaks


http://www.politico.com/news/stories/0212/72624.html

House Majority Leader Eric Cantor (R-Va.) has released his version of a congressional insider-trading ban, and it strips a provision that would require so-called political intelligence consultants to disclose their activities, like lobbyists already do. It also scraps a proposal that empowers federal prosecutors going after corruption by public officials.

That's stoked backlash from Democrats and even some Republicans, who are furious at Cantor and are accusing the Virginia Republican of watering down the popular legislation that easily passed Senate last week.

Sen. Chuck Grassley (R-Iowa) slammed the House for deleting his amendment targeting the political intelligence industry, which tracks action on Capitol Hill and then sells the information to investors. Instead, the House bill requires just a study of the industry's activities within 12 months.

"It's astonishing and extremely disappointing that the House would fulfill Wall Street's wishes by killing this provision," Grassley said in a statement. "If Congress delays action, the political intelligence industry will stay in the shadows, just the way Wall Street likes it."

Cantor spokeswoman Laena Fallon said the provision was deleted because it was "extremely broad" and added that the "unintended consequences on the provision could have affected the first amendment rights of everyone participating in local rotaries to national media conglomerates."

Democrats weren't comforted by that explanation.

"The thing we greatly feared has come upon us," Rep. Louise Slaughter (D-N.Y.) told reporters on Wednesday. "It has been weakened, totally, as far as I'm concerned."

Sen. Patrick Leahy (D-Vt.), who co-authored with Sen. John Cornyn (R-Texas) an amendment to crack down on public corruption using a number of measures, said he was "deeply disappointed" his provision had disappeared from the House bill. Leahy noted that a similar measure cleared the House Judiciary Committee in December.

"If we are serious about restoring faith in government and addressing the kinds of egregious misconduct that we have witnessed in recent years in high-profile public corruption cases, Congress must act now to enact serious anti-corruption legislation," Leahy said in a statement. "The House Republicans' version of the STOCK Act misses that opportunity."

For Cantor's part, the House's No. 2 Republican has added provisions that he says strengthens the STOCK Act, which explicitly bars lawmakers and their aides from using nonpublic information gained through their jobs to profit themselves.

The new version of the House's STOCK Act ensures that the bill's insider-trading ban and its disclosure requirements apply to the executive branch, and it also bans lawmakers convicted of a crime from collecting pensions.

In a shot at House Minority Leader Nancy Pelosi, Republicans also added a so-called "Pelosi provision" that imposes stricter rules on public officials who participate in initial public offerings. The California Democrat was targeted in a "60 Minutes" probe that reported Pelosi and her husband participated in Visa's IPO while a bill governing credit-card legislation was pending before Congress.

Pelosi has denied any conflict of interest or special access related to the Visa IPO.

Slaughter was peeved at the "Pelosi Provision" when asked about it on Wednesday.

"I think the fact that they put this in was strictly to cause grief to [Pelosi]," Slaughter said, "and I resent it."

Cantor said in a statement late Tuesday that he consulted "dozens of members" as he reworked the bill. But neither Slaughter nor Rep. Tim Walz (D-Minn.), the primary sponsors of the STOCK Act, worked with Cantor on the new bill, the Democrats said.

Despite the partisan bickering, the legislation is expected to pass when it comes up for a vote Thursday.



Read more: http://www.politico.com/news/stories/0212/72624.html#ixzz1lp5X9mQk

[Gaspar]

I love Politico.

Now that's funny.  The provision was originally stripped from the senate bill by Harry Reid who requested a year-long GAO study to see if the provision would cause any long term problems.  The provision was then re-introduced to the bill during the amendment process by at the opposition of the Democratic leadership.

Cantor's version calls for the same GAO study before adding that provision.  The reason behind Reid and Cantor's caution is the interpretation of "analyst" and "intelligence" is so broad that it could produce regulations too cumbersome to enforce, and introduce the possibility of constitutional challenge.  This could threaten the legislation.

"There are many concerns about the political intelligence provision from members on both sides of the aisle and both sides of the Capitol, news organizations and community groups," Brad Dayspring, deputy chief of staff and communications director for the majority leader, said in an email.

"The unintended consequences on the provision could have affected the First Amendment rights of everyone participating in local rotaries to national media conglomerates.  For example, members of the media who report on federal and congressional issues to a paid subscriber list might have to register as a political intelligence consultants for their reporting under the [Senate's] provision."

From the Right Wing http://abcnews.go.com/blogs/politics/2012/02/democrats-reluctantly-support-stock-act-scold-gop-for-weakening-bill/

[Townsend]

So are you agreeing with their actions?

I'm glad you like Politico...

[Gaspar]

So are you agreeing with their actions?

I'm glad you like Politico...

I don't know.  I think that there may be some wisdom in Reid and Cantor's position.  We have certainly seen enough problems caused by legislation with loose language.  I would hate to see this bill scrapped or sent back because it can't withstand constitutional analysis or challenge.  Much like what happened in the Senate, I think we will see this re-introduced, hopefully with more precise vocabulary.

At this point, it seems that both parties are wrestling for control over bragging rights for this bill.  We will have to watch this play out.

[Conan71]

The "Pelosi Amendment":

House Republicans plan to include in their inside trading legislation a so-called "Pelosi provision" to strengthen rules that govern lawmakers' participation in initial public offerings.

The plan will be part of a package of amendments to the Stock Act expected to be released Tuesday evening. The Senate passed its own version of the ethics legislation last week.

The idea is a shot across the bow at Minority Leader Nancy Pelosi (D-Calif.). The public uproar for Congress to tighten restrictions on lawmaker stock trading came after a CBS "60 Minutes" report, which said the wealthy Pelosi and her husband Paul participated in Visa's initial public offering while credit card regulation legislation was pending before Congress.

http://hotair.com/headlines/archives/2012/02/07/republicans-poke-directly-at-pelosi-with-new-amendment-to-the-stock-act/

Much better explanation of this on CBS news this morning.  It was hilarious to watch Pelosi stammer through why it was perfectly okay that her husband bought 5000 shares of the VISA IPO when she was SOTH and was shepherding credit card friendly legislation.  She's a hoot!

At this point, it seems that both parties are wrestling for control over bragging rights for this bill.  We will have to watch this play out.

Ah yes, so each side can claim to be responsible to the people for once.

[Townsend]

At this point, it seems that both parties are wrestling for control over bragging rights for this bill.  We will have to watch this play out.

Until it's shown to be unable to enforce anything due to changes in the bill I'd guess.  "look at us.  We're attempting."

[Gaspar]

The only person that stands to come out smelling like a rose on this bill will be the president.  With all the jockeying for credit and blame, this congress has no redeemable qualities.

If I were the president, I would make my desire for quick passage of this bill even more prominent.  It's a major campaign feather that could show some capacity for leadership.  Time to shake that finger!

[Townsend]

If I were the president, I would make my desire for quick passage of this bill even more prominent. 

He already has pushed hard for it.  May be why all the changes.  To hold it up for as long as possible. 

Well that, and they want to do as much insider trading as possible before they can't do it overtly.

[Gaspar]

It has now been 6 days since the STOCK act was overwhelmingly passed by the House by a vote of 417 to 2.  On the 9th after the bill passed the house "as amended" it was sent to Senator Reid's desk to present to the President.

Still no action by the president. Understandable, I'm sure he wants to read the bill and have time to analyze it, I'm also sure/hopeful he is waiting for the right political opportunity to make an announcement that will be advantageous to his campaigning.

The media has all but stopped reporting on this bill, but I have and RSS set up to watch it.

http://clerk.house.gov/evs/2012/roll047.xml