In 2006, Democratic Representatives Louise Slaughter (photo) and Tim Walz introduced the STOCK Act (Stop Trading On Congressional Knowledge), intended to stop members of Congress from benefiting from insider knowledge of stocks. The legislation was placed on the congressional backburner — that is, until it was featured on CBS’s 60 Minutes. Now the bill has moved to center stage and has garnered a significant number of co-sponsors in the Congress.
The 60 Minutes episode aired on Sunday, November 13, and by the following Friday, the number of co-sponsors of the bill had shot from 9 to 91.
The CBS report incriminated congressmen on both sides of the aisle, specifically citing three: Spencer Bachus (R-Ala.), Nancy Pelosi (D-Calif.), and John Boehner (R-Ohio). According to 60 Minutes, Spencer Bachus bet on option funds which would increase in value after the stock market dropped. He took that action after having sat in on several confidential meetings in September of 2008 regarding the nation’s financial crisis.
Likewise, Nancy Pelosi, 2007-2010 Speaker of the House, invested in a stock offering from Visa in 2008 while simultaneously preventing a bill on tough Visa regulations from making it to the House floor for a vote.
Click here to read the entire article.