Senators holds hearing on Congressional insider trading allegations

The State Column | Staff | Friday, December 02, 2011

The Senate Homeland Security and Government Affairs committee held an “Insider Trading and Congressional Accountability” hearing Thursday, that latest fallout and acknowledgement of concern from the government over possible congressional insider trading on the open stock market.

“There is genuine ambiguity in the law, that needs to be resolved,” Sen. Joe Lieberman (I-Conn.) said during the hearing.

Mr. Lieberman, the chairman of the Senate Homeland Security and Government Affairs, also appeared on FOX News Thursday. He addressed the “60 Minutes” special and the public perception of Congress since then.

“The appearance of this is a real problem, in public life, perception matters,” Mr. Lieberman stated.

“If the public think that members of Congress can use their public jobs to make personal financial gains, we’ve got to make it explicitly clear that the law against insider trading relates to members of Congress and their staff,” the Connecticut senator added.

The Securities and Exchange Commission, responsible for regulating the federal securities and national stock and options exchanges, was also represented at the hearing.

“There is no reason why trading by Members of Congress or their staff members would be considered ‘exempt’ from the federal securities laws, including the insider trading prohibitions,” Robert Khuzami, the director of the SEC’s enforcement division, said in testimony before the Senate committee.

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Nancy Pelosi backs ban on insider trading

The State Column | Staff | Thursday, December 01, 2011

House Minority Leader Nancy Pelosi On Thursday expressed support for an ban on insider trading by members of Congress, saying the House would consider a bill to overhaul the current measure.

“I think it’s important,” said Ms. Pelosi. “I would hope that it’s not as necessary as the whoop-de-doo over it makes it seem. But I do think that we all disclose what we do.”

The California Democrat’s comment comes as she was one target of a recent “60 Minutes” investigation that examined the trading practices of members of Congress. Ms. Pelosi, who denied any connection to insider trading, said she would support such a bill coming to the House floor, predicting that “it seems like it would fly through Congress.”

Ms. Pelosi’s support for the proposal comes as the Securities and Exchange Commission announced Thursday that while insider trading by U.S. lawmakers is unlawful, “distinct legal and factual issues” make it difficult to successfully prosecute.

I wonder what Martha Stewart would have to say about this!???

Don