Lawmaker Faces Ethics Investigation Over Insider Trading

(Newsroom America) -- The Office of Congressional Ethics has launched an investigation into potential insider-trading violations by Rep. Spencer Bachus, according to a report published Friday.

The Washington Post said the investigation into Bachus, Alabama Republican, comes amid added scrutiny of lawmakers' stock trading habits, following earlier reports that some lawmakers may have fattened their stock portfolios in recent years, even as ordinary Americans lost billions from the economic downturn.

"The Office of Congressional Ethics has requested information and I welcome this opportunity to present the facts and set the record straight," said Bachus, in a statement issued by his spokesman, Tim Johnson.

Bachus is a frequent stock trader and holds one of the most influential positions in the House as chairman of the House Financial Services Committee, the Post said.

The investigation is the first of its kind against a member of Congress, and it comes on the heels of legislation passed by the House last week that would crack down on potential insider trading by lawmakers.

Ethics office officials declined to comment, the paper said.

Bachus has made a number of trades in recent years, some of the coinciding with major government policy decisions and industries under his congressional oversight, according to data analyzed by the Post.

"Most of his investments are for less than $10,000, and almost all involve options rather than stock purchases. The options allowed Bachus to buy or sell stocks at certain prices in the future — betting that the value of those stocks will rise or fall," the paper said.

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