Insider trading ban is almost OK d in ‘House’

The following news item from the Los Angeles Times (dated February 10,  2012) shows how well tied the GOP is to Wall Street.

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LISA MASCARO REPORTING FROM WASHINGTON

The House passed a sweeping new ethics bill that bans lawmakers from using insider information for per­sohal gain, but Republican leaders came under criti­cism for softening the legis­lation in a way that some view as beneficial to Wall street investors.

Both parties gave the bill overwhelming support – it passed 417 to 2 – as lawmak­ers try to show voters they are holding themselves to tough ‘ethical standards. The Senate gave nearly unanimous approval to a version of the bill last week.

The legislation prohibits lawmakers and executive branch officials from using information they learn on the job, if it is not known publicly, in their personal fi­mmcial transactions.

But the decision by House Majority Leader Eric Cantor (R-Va.) to exclude a provision that sought to monitor the flow of “political intelligence” – a relatively newly defined practice of selling Washington informa­tion largely to financial in­vestors – puts the legisla­tion on an uncertain path. The Senate bill required those who broker in political intelligence to register much the way lobbyists must do.

“What a sorry – but tell­ing – display,” said Craig Holman, a lobbyist for Pub­lic Citizen, a government watchdog group. “The Re­publican leadership’s weak­ening of legislation banning congressional insider trad­ing reflects its commitment to the hedge funds and Wall street interests.”

GOP leaders stood by their decision to dash the provision, which had been added to the Senate bill by Sen. Charles E. Grassley (R-­Iowa). House Republicans instead opted to have the is­sue studied.

Grassley called House GOP leadership’s action “extremely disappointing.” The different versions of the bills must be resolved if they are to become law.

The overwhelming sup­port for the bills came after news reports, including a “60 Minutes” episode, drew at­tention to lawmakers’ per­sonal financial activities.

One addition the GOP leaders made to the House bill stemmed· from the show’s reporting on the dealings of Minority Leader Nancy Pelosi (D-San Fran­cisco), whose husband pur­chased Visa stock before Congress considered legis­lation on credit cards .. Dubbed the “Pelosi Provi­sion,” it would bar lawmak­ers from using insider infor­mation to act on initial pub­lic offerings.

lisa.mascaro @latimes.com