Lead financial services lawmaker defends trading (Bachus R-Ala)

[brentspeak]

Source: AP

Lead financial services lawmaker defends trading
By BEN EVANS – 1 hour ago

WASHINGTON (AP) — The top Republican on the House Financial Services Committee struck paydirt on a stock option last year after betting that a Chinese advertising company would jump in value.

(snip)

The trade was among dozens made in 2007 by the powerful congressman, whose public statements alone can influence markets. Most of his trades were short-term options in which Bachus bet that a stock price would rise or fall and made a quick profit or loss accordingly. Sometimes, he made several trades in the same week, supplementing his $165,200 annual congressional salary with up to $160,000 for the year.

(snip)

As Congress prepares for a massive Wall Street bailout, legal experts say Bachus' activities raise questions about where his allegiances lie and how he spends his time.

"Is he working for the American people or working on his securities accounts?" asked Mercer Bullard, a securities law professor at the University of Mississippi and a former attorney with the Securities and Exchange Commission. "I think it's totally inappropriate ... you cannot as a member of the House Financial Services Committee provide a truly unconflicted point of view if you are actively trading in the markets."



Read more: http://ap.google.com/article/ALeqM5jwYW3HPsLcS2RM0bvnlbRHrftszAD93CIE700

[unblock]

1. wall street firms (not that there are any, anymore) banned employees from trading their own accounts

partly due to the potential appearance of conflict of interest, and partly because they wanted you working for THEM during trading hours.

if ordinary workers on wall street can't trade, why not ban trading for congresscritters?

[kirby]

2. Anyone in Congress long enough to get a retirement should be

forced to divest of all investments at that time, IMO.

[cstanleytech]

4. Agreed, other than a single primary residence they

shouldnt but the question is could such a law and/or rule stand up to a constitutional challenge in the courts?

[KoKo]

3. How many others were doing Trading on the Side...profiting while legislating

what Lobbyists were writing for them... :eyes:

[mhatrw]

5. This is whom we are being asked to bail out! n/t

[struggle4progress]

6. kick

:kick: