Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Forget Pelosi, Here's The Most Stunning Detail From The Congressional Insider Trading Report
Business Insider ^ | 11/14/2011 | Grace Wyler

Posted on 11/14/2011 9:51:58 AM PST by SeekAndFind

Washington is buzzing about last night's 60 Minutes report that revealed the startling frequency with which members of Congress financially benefit from inside information they get as legislators.

Most of the focus has been on the ethically questionable trading of House Speaker John Boehner and House Minority Leader Nancy Pelosi, the two highest-ranking and most-visible members of the House.

But the most shocking revelation actually concerns a lesser-known Congressman, Rep. Spencer Bachus, who shorted the market as the economy collapsed in 2008, at the same time that he was the ranking member of the House Financial Services Committee.

The 60 Minutes report just touched on the Bachus trades. Luckily, the new book on which the broadcast was based has more details.

Slate's Dave Weigel got an early copy of the book, Throw Them All Out by Hoover Institute fellow Peter Schweizer, and the evidence is pretty damning. According to Schweizer, Bachus and Pelosi got secret briefings from Fed Chair Ben Bernanke and Treasury Secretary Hank Paulson, who basically told the legislators that it was "a matter of days before there is a meltdown in the global financial system.”

From the book, via Weigel:

The next day, September 19, Congressman Bachus bought contract options on Proshares Ultra-Short QQQ, an index fund that seeks results that are 200% of the inverse of the Nasdaq 100 index. In other words, he was shorting the market. It was an inexpensive way to bet that the market would fall. He bought options for $7,846 on a day when the Dow Jones Industrial Average opened at 8,604. A few days later, on September 23, after the market had indeed fallen, he sold the options for over $13,000 and nearly doubled his money.

And that's only the beginning

(Excerpt) Read more at businessinsider.com ...


TOPICS: Crime/Corruption; Culture/Society; Government; News/Current Events; US: California
KEYWORDS: 60minutes; congress; corruption; insidertrading; pelosi; schweizer

1 posted on 11/14/2011 9:52:02 AM PST by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

setting the future media template.

The only people you are going to be able to trust to sit in Congress are devout anti-capitalists.


2 posted on 11/14/2011 9:53:30 AM PST by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Throw Them All Out... I like it! Both parties are worthless to the core.


3 posted on 11/14/2011 9:54:50 AM PST by 556x45
[ Post Reply | Private Reply | To 1 | View Replies]

Get rid of them all.


4 posted on 11/14/2011 9:55:16 AM PST by Driftwood1
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

Absolutely do not forget Pelosi. She is also responsible; so don’t try to make another one take the fall.


5 posted on 11/14/2011 10:00:11 AM PST by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 556x45
Throw Them All Out... I like it! Both parties are worthless to the core.

And imprison the criminal elements.
6 posted on 11/14/2011 10:06:21 AM PST by crosshairs (Liberalism is to truth, what east is to west.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Buckeye McFrog

Pelosi is a devout anti-capitalist! She still does big government things like inside trading! You just need some honest people in there and outlaw lobbyist!


7 posted on 11/14/2011 10:07:35 AM PST by tallyhoe
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

*


8 posted on 11/14/2011 10:08:01 AM PST by PMAS
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind


9 posted on 11/14/2011 10:08:29 AM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: freekitty

Not only does Pelosi blatantly lie in front of cameras and mics. She’s not even sophisticated enough to do a good job of it.


10 posted on 11/14/2011 10:09:05 AM PST by morphing libertarian
[ Post Reply | Private Reply | To 5 | View Replies]

To: Buckeye McFrog
The only people you are going to be able to trust to sit in Congress are devout anti-capitalists.

Bull cookies.

Why not stop electing people who are lawyers? Deceit and greed are their stock-in-trade.

11 posted on 11/14/2011 10:13:58 AM PST by Bloody Sam Roberts (Attacking Wall Street because you're jobless is like burning down Whole Foods because you're hungry.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Buckeye McFrog

Maybe we can elect an all Amish congress. At least when they vote in their own self interest they’ll be voting to be left the hell alone.


12 posted on 11/14/2011 10:16:13 AM PST by cripplecreek (A vote for Amnesty is a vote for a permanent Democrat majority. ..Choose well.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: freekitty
I'm not sure I agree with the premise of the author. What Bachus did was wrong, using insider knowledge to make investments. One could also argue that Bachus' investments were chump change. I personally don't think an economically challenged congressman should be treated any differently than a rich crooked congresswoman.

What Pelosi did was one step beyond. Not only was she making seven figure investments in an exclusive IPO, she insured she would make money on it by killing a big piece of legislation that would have hurt that investment.

This same book also details how 80% of the DoE green energy loans and grants money went to Obama bundlers, campaign chairs and DNC contributors. The program was run by a political appointee whose wife worked for the DNC.

13 posted on 11/14/2011 10:22:29 AM PST by USNBandit (sarcasm engaged at all times)
[ Post Reply | Private Reply | To 5 | View Replies]

To: SeekAndFind

Silly me!! And I thought that the laws were supposed to apply EQUALLY to ALL Americans, not just those who aren’t politicians!!

I am truly disgusted at their non-stop hypocrisy ahd “do as I say, not as I do” blather!!!


14 posted on 11/14/2011 10:32:12 AM PST by DustyMoment (Congress - Another name for white collar criminals!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: freekitty
Absolutely do not forget Pelosi. She is also responsible; so don’t try to make another one take the fall.

Nancy Pelosi.
The faux ignorance and arrogance of the woman is beyond contempt. But it's easy for her to dissimulate with a straight face and her uncoordinated hand gestures.

As House Speaker, she, and she alone had the absolute power to prevent a pending bill to come to the floor of the house.

She claims credit for passing strict rules against credit card companies to benefit consumers -------- AFTER she had made her financial killing by delaying debate, using the inside knowledge that would send anyone else to jail. Ask Martha Stewart.

The timeline is on the record. If this doesn't retire her immediately, nothing will. Criminal charges are possible for the next 7 years. Venezuela is nice this time of year.

15 posted on 11/14/2011 10:33:53 AM PST by Publius6961 (My world was lovely, until it was taken over by parasites.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Bloody Sam Roberts

“Why not stop electing people who are lawyers? Deceit and greed are their stock-in-trade.”

Better still, do as Great Britain has done, make it illegal for a lawyer to become a legislator! My guess though is that the lawyers alone are not the problem. If we had an objective media that would research and report exactly what each member of Congress has done, that we would re-elect almost none of them. And yet, the 21 longest serving members of the US Senate have been there for a total of more than 521 years! So we are to blame for allowing them to stay and line their pockets at our expense.


16 posted on 11/14/2011 10:34:56 AM PST by vette6387 (Enough Already!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: SeekAndFind

Not saying the Rs are any better, but they’re trying to do damage control by lumping the Rs with the most OBVIOUS corrupt one, Pelosie.

They need to take the spotlight off their sweetie.


17 posted on 11/14/2011 10:36:32 AM PST by TribalPrincess2U (WE ARE AMERICA! DONATE TO FR MORE!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
He bought options for $7,846 on a day when the Dow Jones Industrial Average opened at 8,604.

The peak of the Dow was just over 14,000 before the 2008 meltdown. If he traded at 8,604, then he already saw firsthand a 4,000 point slide in the Dow.

18 posted on 11/14/2011 10:39:37 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Publius6961

Exactly. bttt


19 posted on 11/14/2011 10:41:41 AM PST by Matchett-PI ("A Republican Larry Flynt should wave around $50,000 for proof of sexual harassment at Politico" -RL)
[ Post Reply | Private Reply | To 15 | View Replies]

To: SeekAndFind
...early copy of the book, Throw Them All Out by Hoover Institute fellow Peter Schweizer.

My kindle order has been placed for delivery Nov 25.

Amazon also has two often quoted books by Schweizer, Do As I Say and Makers and Takers, for less than $2 (plus shipping) new, from affiliated bookstores.
Ordered them, too.

20 posted on 11/14/2011 10:46:36 AM PST by Publius6961 (My world was lovely, until it was taken over by parasites.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: crosshairs
"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong."

Thomas Sowell

21 posted on 11/14/2011 10:57:25 AM PST by B.O. Plenty (Elections have consequences....)
[ Post Reply | Private Reply | To 6 | View Replies]

To: SeekAndFind
Lehman Bros collapsed on Sept 16, and according to the article Bachus met with Bernanke on September 18 and then on September 19 Bachus bought contract options on Proshares Ultra-Short . It seems to me that the financial collapse was well underway on the 19th and for sure had made the paper. I suspect many people bought the same contract options throughout the fall of 2008. I am not sure how this qualifies as insider trading when prior to the meeting with Bernanke the financial system had already imploded.

The MSM seems to want us to believe the Bachus incident excuses Pelosi for her actions in her official capacity in killing legislation and directly profiting .

22 posted on 11/14/2011 10:57:32 AM PST by JIM O
[ Post Reply | Private Reply | To 1 | View Replies]

To: USNBandit
What Pelosi did was one step beyond. Not only was she making seven figure investments in an exclusive IPO, she insured she would make money on it by killing a big piece of legislation that would have hurt that investment.

Pelosi may be criminal but not stupid.

She didn't kill it, she simply delayed it until she and her husband had made the killing.

Note that she can now say with a frozen face and uncoordinated hand gestures that she (eventually) passed consumer protection legislation against VISA and the big banks.

23 posted on 11/14/2011 10:57:47 AM PST by Publius6961 (My world was lovely, until it was taken over by parasites.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: vette6387
So we are to blame for allowing them to stay and line their pockets at our expense.

My policy is the DRIP policy;

D on't

R e-elect

I ncumbent

P oliticians

24 posted on 11/14/2011 11:05:48 AM PST by Bloody Sam Roberts (Attacking Wall Street because you're jobless is like burning down Whole Foods because you're hungry.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: vette6387

I did not know that Britain barred lawyers from being legislators, but I damn well like the idea.

Wall St.
Big Oil
Mega-Corp.....

All pikers compared to the legal industry in this country. They’ve got the biggest self sustaining, self regulating racket going.

Corrupt to the core.


25 posted on 11/14/2011 11:10:44 AM PST by AFreeBird
[ Post Reply | Private Reply | To 16 | View Replies]

To: SeekAndFind

Is Bachus a Dem or a Pubbie?


26 posted on 11/14/2011 11:10:59 AM PST by no dems (Why do you never see "Obama" bumper stickers on cars going to work in the morning?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Publius6961; SeekAndFind; tallyhoe
Pelosi tells us what she is with her own actions and words. For just a few examples:

She “resigned” from the Congressional Progressive Caucus, an offshoot of the Democratic Socialist of America, upon becoming Speaker of the House.

She was a role model for many of us…
Speaking at the funeral of Vivian Hallinan who, along with her husband Vincent, was deeply involved with communist activities via association with several U.S. fronts of the Communist Party, a friendship with Daniel Ortega and relations with Fidel Castro.

If we are ever going to protect the American people, we must have an outside independent committee.
Quotesandpoems.com (subsequently removed)

Referred to raids by ICE which were conducted pursuant to procedures established by Congress as, un-American.
March 14, 2009

And, then this warning spoken to a reporter:
Anybody who’s ever dealt with me knows not to mess with me...

27 posted on 11/14/2011 11:17:55 AM PST by frog in a pot (Timely recognition of your enemies is an important element of survival.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: SeekAndFind

The best way to skin the Pelosi cat is to go after the broker that allocated her 5000 shares of a “hot” IPO. The stock was issued at $44 a share and the first trade was $55 a share meaning an instantaneous %55000 profit in her account Having spent a number of years as a syndicate manager allocating IPOs on Wall Street, I can tell you everyone in the world wants a hot IPO but it is very rare for an individual investor unless the investor is Buffet size having produced massive commissions for the broker in the past to get 5000 shares. Pelosi is small potatoes. The best way to get at Pelosi is to embarrass the brokerage house and ask who and in what amounts they allocated their shares to and watch them dance redfaced while they try to explain why this one individual account received a lion’s share of the allocation relative to the other individual investors in their firm subscribing for the stock who were denied any allocation at all.


28 posted on 11/14/2011 11:20:51 AM PST by chuckee
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Bachus is my rep. Look up “empty suit” in the dictionary and you’ll see his picture.


29 posted on 11/14/2011 11:24:55 AM PST by 6ppc (It's torch and pitchfork time)
[ Post Reply | Private Reply | To 1 | View Replies]

To: USNBandit
One could also argue that Bachus' investments were chump change

Exactly right. Bachus isn't smart enough to make real money out of an insider tip.

This same book also details how 80% of the DoE green energy loans and grants money went to Obama bundlers, campaign chairs and DNC contributors

And they are the real crooks.

30 posted on 11/14/2011 11:27:38 AM PST by 6ppc (It's torch and pitchfork time)
[ Post Reply | Private Reply | To 13 | View Replies]

To: no dems

He’s a republican. Not that that makes any difference.


31 posted on 11/14/2011 11:52:31 AM PST by Terry Mross (We need an opposition party. I will only vote for a second party.)
[ Post Reply | Private Reply | To 26 | View Replies]

To: Bloody Sam Roberts

Why not stop electing people who are lawyers? Deceit and greed are their stock-in-trade.
~~~~~~~~~~~~~~~~~~~~~~~~~~
Look up the missing 13th Amendment.


32 posted on 11/14/2011 3:30:59 PM PST by Cockroach (If you want a picture of the future, imagine a boot stamping on a human face forever. 1984 G Orwell)
[ Post Reply | Private Reply | To 11 | View Replies]

To: SeekAndFind

Does anyone know when this passed? Is it recent or decades old?


33 posted on 11/14/2011 4:29:07 PM PST by alice_in_bubbaland ( Obama, President of the Democrats and Joe Biden, VP are the top morons of the DNC.)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson