Barney Frank Urges Spencer Bachus: Take Up Bill On Insider Trading (Video)
Massachusetts Democrat Congressman Barney Frank on Thursday sent a letter to Alabama Republican Congressman Spencer Bacchus urging him to take up a bill that would prohibit members of Congress and federal workers from trading on non-public information that they’ve obtained through their jobs.
A “60 Minutes” report suggested that Bachus engaged in “insider trading” during the height of the financial crisis.
The “60 Minutes” segment was based on a book authored by conservative author Peter Schweizer called “Throw Them All Out.”
Bachus, appearing on the Kudlow Report Wednesday night, denied the allegations.
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“40 options trades during the financial crisis,” Schweizer said during his Thursday night appearance on the CNBC Kudlow Report. “For him to say this was concocted is ridiculous!”
Schweizer claimed he attempted to reach out to Bachus prior to publishing the book and the Congressman would not comment.
“He had access to information,” Schweizer insisted.
The STOCK Act, sponsored by Reps. Louise Slaughter (D-N.Y.) and Tim Walz (D-Minn.), was little known before Sunday’s “60 Minutes” broadcast and now has 46 co-sponsors. Frank himself acknowledged that he should’ve acted on the bill – first introduced in 2006 – when he headed the committee.
“I did not pay sufficient attention to this when it was first discussed with me, in part because I did not see this as a problem that was of any great substance,” Frank wrote in a letter to Bachus.
“I am still not sure that this is widespread, but given the attention that we have seen on this matter now, and given the importance of those whom we represent being fully assured that we are behaving appropriately, I think that we should now take up this legislation and, after suitable study, enact some version of it,” Frank added.
The current House Financial Services Committee Chairman, Bachus, has agreed to hold a hearing on the legislation.
Frank is a staunch supporter of legalized online gambling in the US who has drafted a series of bills that would regulate the industry. Bachus has been an ardent opponent of the industry, often blacking Congressman Frank’s efforts while the Massachusetts Congressman headed up the House Financial Services Committee.
- Chris Costigan, Gambling911.com Publisher
