House insider trading bill takes dig at Pelosi (FEBRUARY 7, 2012)
WASHINGTON (Reuters) – Republicans in the House of Representatives will take an election-year dig at top Democrat Nancy Pelosi in changes added to a fast-moving ethics bill, adding new curbs to prevent government officials from gaining special access to initial public stock offerings.
A senior House Republican aide said on Tuesday the so-called “Pelosi Provision” would strengthen the Stop Trading on Congressional Knowledge (STOCK) Act passed by the Senate last week.
The bill, scheduled for a House vote on Thursday, aims to prevent lawmakers from using inside knowledge gained through their positions to profit in the stock market by subjecting them to new trading disclosure requirements.
The provision, one of a number of changes drafted by House Majority Leader Eric Cantor, aims to shine a spotlight on Pelosi’s husband’s purchase of shares in the 2008 initial public offering by Visa Inc as Congress was considering new credit card regulations.
The CBS news show “60 Minutes” highlighted the transaction as one of several controversial trades by lawmakers in a piece last November that drew national attention to the profits generated by Congress’ inside knowledge — and sparked new support for a bill that had languished in the House for years.
Within two days of the Visa offering, the 5,000 shares purchased by Paul Pelosi had risen $20 each.
House Republicans widely described the addition as the “Pelosi Provision” on Capitol Hill, with specific references to the Visa transaction in the 60 Minutes piece.
“The Pelosi provision prohibits members of Congress, executive branch officials and their staffs from receiving special access to initial public offerings because of their position,” the senior House Republican aide said.
It is important to study where our representatives get their wealth. One of the ways Nancy Pelosi got her wealth was through insider trading (which was considered legal).
Here is a 60 minutes segment where Pelosi was questioned about her IPO shares in Visa (at the same time new credit card regulations were going through the House – those regulations failed to pass the House).
More info on Pelosi
Source for the statement, “in at least 8 Initial Public Offerings (IPOs):
The former speaker and her husband have participated in at least eight IPOs, one of which was from Visa in 2008 – just as a troublesome piece of legislation that would have hurt credit card companies began making its way through the House. The Pelosis purchased 5,000 shares of Visa at the initial price of $44 dollars. Two days later it was trading at $64.