GOP Rep. Bachus Profited from 'Insider Trading' on TARP Bailout

GOP Rep. Bachus Profited from 'Insider Trading' on TARP Bailout

Post by NewsToBeRea » Tue, 15 Nov 2011 14:38:48


http://SportToday.org/

EXCLUSIVE: Financial Documents Suggest GOP Rep. Bachus Profited from 'Insider Trading' on
TARP Bailout

by Wynton Hall

U.S. Representative Spencer Bachus (R-AL) had access to highly sensitive financial
information during the 2008 bailout debates that may have helped him earn tens of
thousands of dollars by trading stock options, even as most Americans' portfolios took a
beating.

On Sunday, Rep. Bachus's trading behavior came under fire in a 60 Minutes report based on
Throw Them All Out, the book by investigative journalist and Breitbart editor that has
triggered a political earthquake in Washington. Schweizer, who is also a Breitbart editor,
devotes a significant portion of the book to exposing possible congressional insider
trading.

Bachus's trades during debate over the Troubled Asset Relief Program (TARP) raise serious
questions about whether he invested based on information he acquired as a result of his
political power.

"Here's the rub: all too often his trades coincided with his congressional work," says
Schweizer. "Bachus was neck-deep in crucial financial decision-making at the highest
levels."

BigGovernment.com has obtained and reviewed Rep. Bachus's Fidelity stock options trading
records. The dates of the congressman's trading patterns paint a troubling picture.

In the summer and fall of 2008, Rep. Bachus-who is the current chairman of the House
Financial Services Committee-was then the ranking Republican on the committee. That gave
him access to high-level private meetings and phone conversations with then-Treasury
Secretary Henry Paulson, among other senior financial officials.

From July to November 2008, by executing well-timed, highly risky options trades
throughout the turbulent period, Congressman Bachus made at least 40 options trades that
netted him as much as $50,000 in capital gains.The timeline of Rep. Bachus's trades is
unsettling:

  a.. July 14th: Bachus bets $4,500 that the financial sector will fall, and sells short.
Bachus comes up a winner and cashes out the next day for $1,500 in profit.
  b.. August 15th and 22nd: the Alabama congressman buys over $11,000 of SPDR sector
option contracts, and sells them a few days later for $5,000.
  c.. September 8th: Paulson gets a troubling call from General Electric CEO Jeffrey
Immelt, saying GE is having trouble moving its bonds. Two days later, Bachus shorts GE
options four times in a single day, more than doubling his money.
  d.. September 10th and 15th: Bachus shorts GE a total of 12 times and comes up a winner
9 times-an impressive average for the high-risk options game.
  e.. September 18th: Bachus and congressional leaders receive a private briefing from
Paulson and Federal Reserve chairman Ben Bernanke inside then-Speaker Nancy Pelosi's
office. Bernanke warns of a total financial meltdown in a matter of days. The very next
day, September 19th, Bachus shorts the market by buying contract options on Proshares
Ultra-Short QQQ, an index fund that strives for results 200% of the inverse of the Nasdaq
100. He nearly doubles his money when he sells his shares four days later for over
$13,000.
  f.. October 21st: the Federal Reserve announces it will spend $540 billion to buy debt
from money market mutual funds. The next day Bachus buys over $5,000 of options in Market
Vectors TRN, and more than doubles his money.
How Rep. Bachus had the time to juggle his frenetic stock-picking with his actual job as a
legislator remains unclear. But Schweizer says Spencer Bachus's lucrative investment habit
predates the 2008 financial crisis, stretching all the way back to 1997. In fact, in 2007,
Bachus made enough supplemental income from buying stocks that he almost doubled his total
$165,200 congressional salary with $160,000 in profits from his put and call options on
stocks.

In Throw Them All Out, Schweizer catalogs several other incidents in Bachus's unusually
good stock track record, dating back nearly fif*** years, and concludes that "in over two
dozen cases, representing more than two-thirds of all the trades he made, he guessed
correctly."

Jeff Emerson, a spokesman for Bachus, told Schweizer there's nothing wrong with the
congressman's actions. "There is no conflict of interest," says Emerson. "He asked the
[U.S. House of Representatives] Ethics Committee if he could do this, and they said there's
no problem."

Indeed, therein lies the real scandal; congressional insider trading is totally legal, no
matter how egregious.

Schweizer is careful to point out that it is impossible to know with 100 percent certainty
whether Rep. Bachus had perfect and prior insider knowledge that led to each of his scores
of option trades. Furthermore, Schweizer notes that the Alabama congressman was hardly the
only member of Congress engaged in aggressive and heavy trading throughout the financial
crisis.

Still, says Schweizer, the opportunities for misconduct and undue influence are too
glaring to ignore.

"If you bet on a particular sector of the economy to fall over the course of a few days or
weeks," writes Schweizer, "how can you be sure that your subsequent decisions are not
influenced by that bet?"

 
 
 

GOP Rep. Bachus Profited from 'Insider Trading' on TARP Bailout

Post by Gunner Asc » Tue, 15 Nov 2011 17:50:03

On Sun, 13 Nov 2011 21:38:48 -0800, "NewsToBeRead"

Quote:

>Jeff Emerson, a spokesman for Bachus, told Schweizer there's nothing wrong with the
>congressman's actions. "There is no conflict of interest," says Emerson. "He asked the
>[U.S. House of Representatives] Ethics Committee if he could do this, and they said there's
>no problem."

>Indeed, therein lies the real scandal; congressional insider trading is totally legal, no
>matter how egregious.

>Schweizer is careful to point out that it is impossible to know with 100 percent certainty
>whether Rep. Bachus had perfect and prior insider knowledge that led to each of his scores
>of option trades. Furthermore, Schweizer notes that the Alabama congressman was hardly the
>only member of Congress engaged in aggressive and heavy trading throughout the financial
>crisis.

>Still, says Schweizer, the opportunities for misconduct and undue influence are too
>glaring to ignore.

>"If you bet on a particular sector of the economy to fall over the course of a few days or
>weeks," writes Schweizer, "how can you be sure that your subsequent decisions are not
>influenced by that bet?"

The above...is the core of the matter. Its legal for a Congress critter
to do. He was not the only critter to be doing it.  He got approval
beforehand.

So there was no crime, he got legal advise before doing it and he was
smart enough to leave fully visible tracks in his activities.

So whats the problem?  If there is a problem..then correct it..make it
unlawful for Congress critters to do such.

***ing about it at this moment..and using a Republican as the
figurehead for a non-crime..is a bit wrong..dontcha think?

Gunner

One could not be a successful Leftwinger without realizing that,
in contrast to the popular conception supported by newspapers
and mothers of Leftwingers, a goodly number of Leftwingers are
not only narrow-minded and dull, but also just stupid.
                                   Gunner Asch

 
 
 

GOP Rep. Bachus Profited from 'Insider Trading' on TARP Bailout

Post by Shall not be infringe » Wed, 16 Nov 2011 00:05:02


Quote:
> On Sun, 13 Nov 2011 21:38:48 -0800, "NewsToBeRead"


> >Jeff Emerson, a spokesman for Bachus, told Schweizer there's nothing wrong with the
> >congressman's actions. "There is no conflict of interest," says Emerson. "He asked the
> >[U.S. House of Representatives] Ethics Committee if he could do this, and they said there's
> >no problem."

> >Indeed, therein lies the real scandal; congressional insider trading is totally legal, no
> >matter how egregious.

> >Schweizer is careful to point out that it is impossible to know with 100 percent certainty
> >whether Rep. Bachus had perfect and prior insider knowledge that led to each of his scores
> >of option trades. Furthermore, Schweizer notes that the Alabama congressman was hardly the
> >only member of Congress engaged in aggressive and heavy trading throughout the financial
> >crisis.

> >Still, says Schweizer, the opportunities for misconduct and undue influence are too
> >glaring to ignore.

> >"If you bet on a particular sector of the economy to fall over the course of a few days or
> >weeks," writes Schweizer, "how can you be sure that your subsequent decisions are not
> >influenced by that bet?"

> The above...is the core of the matter. Its legal for a Congress critter
> to do. He was not the only critter to be doing it. ?He got approval
> beforehand.

> So there was no crime, he got legal advise before doing it and he was
> smart enough to leave fully visible tracks in his activities.

> So whats the problem? ?If there is a problem..then correct it..make it
> unlawful for Congress critters to do such.

> ***ing about it at this moment..and using a Republican as the
> figurehead for a non-crime..is a bit wrong..dontcha think?

> Gunner

> One could not be a successful Leftwinger without realizing that,
> in contrast to the popular conception supported by newspapers
> and mothers of Leftwingers, a goodly number of Leftwingers are
> not only narrow-minded and dull, but also just stupid.
> ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Gunner Asch- Hide quoted text -

> - Show quoted text -

"Equal Before The Law"

There needs to be a seperate cemetary for those above the law.