Insider Trading News, Insider Trading Pictures
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]
The Securities & Exchange Comission (SEC) is asking Standard & Poor’s (S&P) for information on which employees knew about the downgrade of U.S. debt before it was announced. The Financial Times reports that the questions are preliminary inquiries into possible insider trading.
S&P’s downgrade of the U.S. has come under fire, with some pointing out that the agency gave mortgage securities positive ratings even as the real estate market was beginning to collapse. [Reuters]
Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation, according to people familiar with the matter.
The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.
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