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Re: [infoguys-list] Re: ISPLA News: S2038 "STOCK Act" Passes Senate With Political Intelligence Restrictions-House Passes Without

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  • Ronald DeCaro
    Republican House Majority Leader Eric Cantor, according to a Washington Post ... Some argue that the restrictions on the Senate version would have prevented
    Message 1 of 3 , Feb 11, 2012
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      Republican House Majority Leader Eric Cantor, according to a Washington Post
      > alert today, "nixed a provision that would have required a burgeoning K
      > Street industry of consultants who glean inside information about
      > legislative proposals then alert their clients - hedge funds and other
      > investment houses - about the likely outcome so they can buy or sell their
      > stakes in advance. Unlike federally registered lobbyists the political
      > intelligence industry has operated below the radar."
      Some argue that the restrictions on the Senate version would have prevented Congressmen from discussing pending bills with their constituents which made it unworkable. Any additional information in this regard other than the article from the Washington Post?


      Ronald R. DeCaro
      INTEGRATED INSURANCE INVESTIGATIONS
      California License No. PI21993
      PO Box 888 - Mira Loma - CA 91752-0888
      Phone (951) 360-8880 Fax (951) 360-5957


      "If we are together nothing is impossible. If we are divided all will fail" Winston Churchill






      -----Original Message-----
      From: Salvatore Alioto <sfapi59@...>
      To: infoguys-list <infoguys-list@yahoogroups.com>
      Sent: Sat, Feb 11, 2012 10:13 pm
      Subject: [infoguys-list] Re: ISPLA News: S2038 "STOCK Act" Passes Senate With Political Intelligence Restrictions-House Passes Without





      Thank you Peter and Bruce forthis valuable information.
      If I may digress for just a moment, If there is one and only one - shining example - of an oxy-moron, the term "political intelligence" has to be it.

      --- In infoguys-list@yahoogroups.com, "Peter Psarouthakis" <peter@...> wrote:
      >
      > Important Note from Bruce Hulme, ISPLA Director of Government Affairs:
      >
      > Regarding ISPLA's analysis of S 2038 below the line which passed the Senate,
      > since its writing the House passed its version today (February 9) by a vote
      > of 417 to 2 and redacted the section pertaining to the regulation of
      > "political intelligence" which, if passed, would affect a segment of
      > Washington lobbyists as well as some private investigators. This bill to
      > eliminate Congressional inside trading will now have to go to a conference
      > committee to resolve differences between House and Senate versions.
      >
      > Republican House Majority Leader Eric Cantor, according to a Washington Post
      > alert today, "nixed a provision that would have required a burgeoning K
      > Street industry of consultants who glean inside information about
      > legislative proposals then alert their clients - hedge funds and other
      > investment houses - about the likely outcome so they can buy or sell their
      > stakes in advance. Unlike federally registered lobbyists the political
      > intelligence industry has operated below the radar."
      >
      > _______________
      >
      > S 2038, the "Stop Trading on Congressional Knowledge Act of 2012" or "STOCK
      > Act" by Senator Joseph Lieberman [I-CT] passed the Senate by a 93-3 vote. It
      > is a 58-page bill which ISPLA has reviewed. I direct your attention to item
      > #3 below which will affect some of our members involved with gathering
      > "political intelligence" aspects of financial due diligence and to the exact
      > provisions of Section 7 entitled "Report on Political Intelligence
      > Activities." This bill now comes before the House, possibly for a vote quite
      > soon, most likely with some additional amendments. The Senate version, in
      > part, in its current form calls for -- --
      >
      > #1 Making insider trading illegal: It will be a federal crime to use
      > congressional inside information to trade on stocks to gain an informational
      > advantage with penalties for members of Congress and also for staff
      > members.
      >
      > #2 Changing financial reporting requirements: In addition to the present
      > requirements of only having to report annually their finances showing their
      > assets and their trades, they will now be required to report such activity
      > every 90 days.
      >
      > #3 Regulating political intelligence: This section would regulate those
      > individuals who collect "political intelligence" and then sell it to the
      > financial community. It also contains a provision introduced by Senator
      > Charles Grassley [R-IA] requiring those who collect political intelligence
      > to register in a manner similar to lobbyists. Sec. 7 of the "STOCK ACT"
      > directs the Comptroller General to report to specified congressional
      > committees on the role of political intelligence in the financial markets as
      > follows:
      >
      > SEC. 7. Report on political intelligence activities.
      >
      > (a) Report.-
      >
      > (1) IN GENERAL.-Not later than 12 months after the date of enactment of this
      > Act, the Comptroller General of the United States, in consultation with the
      > Congressional Research Service, shall submit to the Committee on Homeland
      > Security and Governmental Affairs of the Senate and the Committee on
      > Oversight and Government Reform and the Committee on the Judiciary of the
      > House of Representatives a report on the role of political intelligence in
      > the financial markets.
      >
      > (2) CONTENTS.-The report required by this section shall include a discussion
      > of-
      >
      > (A) what is known about the prevalence of the sale of political intelligence
      > and the extent to which investors rely on such information;
      >
      > (B) what is known about the effect that the sale of political intelligence
      > may have on the financial markets;
      >
      > (C) the extent to which information which is being sold would be considered
      > non-public information;
      >
      > (D) the legal and ethical issues that may be raised by the sale of political
      > intelligence;
      >
      > (E) any benefits from imposing disclosure requirements on those who engage
      > in political intelligence activities; and
      >
      > (F) any legal and practical issues that may be raised by the imposition of
      > disclosure requirements on those who engage in political intelligence
      > activities.
      >
      > (b) Definition.-For purposes of this section, the term "political
      > intelligence" shall mean information that is-
      >
      > (1) derived by a person from direct communications with an executive branch
      > employee, a Member of Congress, or an employee of Congress; and
      >
      > (2) provided in exchange for financial compensation to a client who intends,
      > and who is known to intend, to use the information to inform investment
      > decisions.
      >
      > This legislation amends the Congressional Accountability Act of 1995
      > prohibiting members of Congress and congressional employees from using any
      > nonpublic information derived from their positions as members or
      > congressional employees, or gained from performance of the individual's
      > duties, for personal benefit. It directs the Congressional ethics committees
      > to issue rules or regulations to carry out the purposes of this prohibition.
      > It declares that such members and employees are not exempt from the insider
      > trading prohibitions of the Securities Exchange Act of 1934 and Rule 10b-5.
      > It subjects violators of these prohibitions to appropriate punitive,
      > disciplinary, and other remedial actions. It adds a provision for judicial
      > proceedings to enforce the prohibition under this Act to the existing
      > disclaimer that the authorization to bring certain judicial proceedings
      > shall not constitute a waiver of sovereign immunity for any other purpose,
      > or of the privileges of any member of Congress under the U.S. Constitution,
      > or a waiver of any power of either chamber, or under the rules of either
      > chamber relating to records and information within its jurisdiction. It
      > amends the Commodity Exchange Act to apply to members and Congressional
      > employees its prohibitions against certain transactions involving the
      > purchase or sale of any commodity in interstate commerce, or for future
      > delivery, or any swap. It amends the Ethics in Government Act to require
      > members, Congressional officers, and Congressional employees to file reports
      > on financial transactions.
      >
      > In calendar year 2012 and in subsequent years records must be made available
      > to the public on the respective official Senate and House websites within 30
      > days after filing. A system must be developed to enable the electronic
      > filing of such reports, as well ensure their on-line public availability.
      >
      > It amends the Ethics in Government Act to revise the retention period for
      > mandatory public availability of financial disclosure reports. It requires
      > retention and public availability of the financial disclosure reports of a
      > member of Congress until six years after the date the individual ceases to
      > be a member (currently, six years after receipt of the report).
      >
      > The bill would prohibit federal employees from using for personal benefit
      > any nonpublic information derived from their positions as federal employees,
      > or gained from performance of their duties. It applies to them the insider
      > trading prohibitions of the Securities Exchange Act of 1934 and Rule 10b-5,
      > and subjects federal employees who violate these prohibitions to appropriate
      > punitive, disciplinary, and other remedial actions.
      >
      > However the bill does not cover options trading, IPO deals, real estate,
      > land deals, or other forms of enrichment. President Obama will sign this
      > bill in a "New York minute" once it passes both Houses. In addition to
      > members of Congress and their employees, the bill will also apply to the
      > President, Vice President, U.S. Postal Service officers and Postal
      > Regulatory Commission.
      >
      >
      >
      > Bruce Hulme
      >
      > ISPLA Director of Government Affairs
      >
      > <http://www.ispla.org/> www.ISPLA.org
      >
      >
      >
      > [Non-text portions of this message have been removed]
      >









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