• Home
  • About
  • Webcasts
  • ‘Enforcement 40’ for 2020
  • Enforcement Hall of Fame
  • Contact
Securities Docket
Securities-Docket-Leaderboard_9Sec
  • Class Actions
  • Criminal
  • Global
  • People
  • SD Insider
  • SEC
  • Video
  • Subscribe by email
  • Subscribe
Browse: Home / 2008 / September / 23 / Rep. Spencer Bachus (R-Ala.) Criticized for Stock Options Trading

Rep. Spencer Bachus (R-Ala.) Criticized for Stock Options Trading

By Securities Docket on September 23, 2008, 4:30 pm

Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee, is under criticism for his active trading of stock options in 2007, including a single transaction on Dec. 10 in which he made approximately $15,000.  He’d held that particular investment for just two weeks, and sold it on the same day that the company, Focus Media Holding Ltd., surged following its announcement that it would acquire a competitor, according to the Associated Press.

Bachus reportedly made dozens of trades in 2007, sometimes making several several trades in the same week.  His trading allowed him to supplement his $165,200 annual congressional salary with up to $160,000 for the year.

Legal experts were troubled by Bachus’ trading.  Mercer Bullard, a securities law professor at the University of Mississippi and a former attorney with the SEC was quoted as saying:  “Is he working for the American people or working on his securities accounts? …. I think it’s totally inappropriate … you cannot as a member of the House Financial Services Committee provide a truly unconflicted point of view if you are actively trading in the markets.”

Duke law professor James Cox agreed, stating that “The problem is that the temptations are just too great….  We get very upset about baseball players and other sports players who gamble … because we’re worried about the temptation that they might bet on their own games. I think this is the same problem.”  Cox added, “If he were my representative in Congress, I would be irritated that he has the time to do this.”

Most of Bachus’ trades in 2007 were reportedly were short-term puts or calls.

Read the AP article

Blog Widget by LinkWithin

Posted in SD Insider | Tagged Features, US Congress

« Previous Next »

‘Enforcement 40’ for 2020

Ankura 260x250

Our Sponsors

Securities-Docket_260x125_14Sec Ankura 260x125

Join Us On LinkedIn

Join the Securities Litigation and Enforcement Group on LinkedIn

Archives

Copyright © 2021 Securities Docket.

Powered by WordPress and Hybrid.