Watered-Down Insider Trading Bill Set to Pass House

Eric Cantor takes out provisions that Senate passed unanimously
By Kevin Spak,  Newser Staff
Posted Feb 9, 2012 8:50 AM CST
Eric Cantor talks to reporters in this file photo.   (AP Photo/J. Scott Applewhite)
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(Newser) – House legislators are almost sure to pass a bill officially banning them from insider trading today, but it will be missing a few teeth compared to its Senate counterpart. Eric Cantor has pulled out a provision that would have required K Street consultants who sell Congress' inside tips to Wall Street to disclose their activities like lobbyists do, the Washington Post reports. He also pulled out an amendment restoring parts of an anti-corruption law that the Supreme Court voided last year—even though it passed the Senate unanimously.

The "honest services" provision would have allowed for the prosecution of corrupt lawmakers and lobbyists. Cantor did add something, however: a measure banning lawmakers from buying into IPOs, which aides termed the "Pelosi provision," alluding to Nancy Pelosi's purchase of 5,000 Visa IPO shares in 2008. Cantor has put the bill on a fast-track that prevents lawmakers from adding any other amendments, but requires a two-thirds majority to pass. With leadership from both parties backing it—including Pelosi—it should clear that bar easily. (Read more Eric Cantor stories.)

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