GOP Rep. Spencer Bachus Facing House Ethics Probe For Insider Trading

The Wall Street Journal reports that Republican Rep. Spencer Bachus (AL) is about to be the subject of an investigation by the House Ethics Committee into insider trading.

Bachus, the chairman of the House Financial Services Committee, will likely be investigated for options trades he made possibly based on inside information he received. Securities and Exchange Commission rules prohibit such trades based on information not available to the public.

In 2007 and 2008, Bachus was criticized for option trades he made in advance of the global financial crisis where he profited from losses on the international stock exchanges.

The STOCK Act, which would prohibit insider trading by members of congress, recently passed the House. [Wall Street Journal]