Pelosi defends record after "60 Minutes" report

Former Speaker of the House Nancy Pelosi defended her record on credit card reform after a "60 Minutes" report raised questions about lawmakers potentially executing financial transactions based on insider information.

There is no law prohibiting members of Congress from using non-public information to form their own investment strategies, but the "60 Minutes" questioned several lawmakers about transactions that may have had at least the appearance of a conflict of interest.

Congress trading stock on inside information?
Questioning Pelosi: Steve Kroft heads to D.C.

One of them was Rep. Pelosi, who participated in a 2008 IPO from Visa, just as legislation that would have hurt the credit card companies began moving through the House. Pelosi bought 5,000 shares of Visa at $44 and the stock price rose to $64 just two days later. The credit card legislation never made it to the House floor.

Pelosi denied there was any conflict of interest when asked about the investment by "60 Minutes" correspondent Steve Kroft at a recent press conference. (See the exchange at left.)

Congresswoman Pelosi pointed out that the tough credit card legislation eventually passed, but it was two years later and was initiated in the Senate.

Following the report, Pelosi's office released a statement saying that "Congress has never done more for consumers nor has the Congress passed more critical reforms of the credit card industry than under the Speakership of Nancy Pelosi."

Spokesman Drew Hammill added in the statement that "it is very troubling that 60 Minutes would base their reporting off of an already-discredited conservative author who has made a career of out attacking Democrats."

The "60 Minutes" report used as its starting point Peter Schweizer's book on soft corruption .Schweizer is a fellow at the Hoover Institution, a conservative think tank at Stanford University. But "60 Minutes" independently verified the information and also highlighted transactions of Republicans - Speaker of the House John Boehner and Rep. Spencer Bachus - both of whom deny using non-public information improperly.

[CFlyJuice]

It would have been nice if they mentioned how disproportionate the Obamacare waivers were passed out in Crony Crook Nancy's district.

And how the union workers in her (husbands) canning factory in the American Samoa got shafted by her bill in the Congress when she was Speaker.

Crony capitalist Crook if there ever was one...

Of course that PALES in comparison to the Billions in kickbacks from CRONY CROOK IN CHIEF Obama.. Lightsquared... Solyndra... Siga Technologies Inc.. Goldman Sacks et.al.

[sara_h-2009]

What a great piece by 60 Minutes! You guys did such a good job bringing this topic to light. Did you know that a nonprofit org researched all the details awhikle back? There is so much info for other people looking to learn more about this: http://insidertrading.procon.org/

[Drake_Abbychicka]

that was to read "fox: news.."

[PBlackwell555]

Could CBS 60 Minutes please spell out exactly where in the law this so called "Congressional insider trading exemption" is? I can't find it in the 1934 Securities Act, although there is an exemption in Section 3(c) for certain agencies and "independent establishments."

If the argument is that the SEC doesn't have power to enforce against Congress because Congress is a separate branch of government, then does that mean no agency has power over Congress or its reps and employees? Just because the agency might not have jurisdiction, doesn't mean that the statute or the law doesn't apply to them, if you follow me. Can you get the specific language and argument on this please, and thank you.

[2PartyRule]

When will people realize Dems and GOP are out there to give you the illusion of choice. You don't. The Mega Banks: JPM, GS, Wells, BoA rules US. Not politician.

[kabage3000]

With me being the 25th comment, and many of the previous seem to think this is a a liberal problem. I can, with 99% certainty, say NOTHING will change. We all just keep voting like the results will be different this.. time.
America has done lost its effing mind... Ahh hell just reload, I'm sure that will help.

[popstom106]

Any who were in on this both sides dem or rup. throw them all out and take what was made on inside info.

[owlgal]

They have their own health care plan (not good old Obamacare), their own benefits, perks and more and exempt themselves from the same laws they vote for for their constituents. Wake up America and VOTE these long term crooks out of office

[augustus66]

Doesn't really matter. They're all mostly crooks & we let them get away with it. Also Nancy's answers are basically red herrings and do not answer the question (of course legislators rarely do). Kroft asked three specific questions: 1. "did you make financial transactions (IPO purchases) based on your knowledge/position. 2. "did that (IPO purchase) have any influence/effect on the legislation that was before you, when you were speaker". and 3. "isn't it (or do you think) a conflict of interest to be partaking in such activities while voting on laws that could have effects on outcomes your own personal financial gain or loss". She did not answer any one of these questions, and instead gave some answer on her "record" and then attacked Steve. I.e. business as usual on capitol hill.

The former congressman from Wash State said it best,...it's a no-brainer (paraphrase here)"lawmakers should not be allowed perform financial activities, while in a position to directly influence the outcome of those financial activities." It is unbelievable that it actually goes on and it is what it is,...a "soft/hard bribe or insider trading". The exact same thing Martha went to jail for...

These

[LoadedAndDangerous]

Nancy Pelosi is the biggest, most corrupt bitc_ that has ever been in Washington. On top of that, she's a Liberal. What's really sad is that these dumbas_ Liberals swallow everything she says and keep voting her back in office. Defend her record? What, a police record? GO LEMMINGS (LIBERALS)!!!!

[realist51]

funny you forgot to mention Bohner and Bachus both republicans. So were lemmings and the repubs aren't? Hmmmmm. What you seem to miss here is that both sides are doing this and it should be outlawed. but oh wait that would be a regulation and we know how the lemming repubs and tea party clowns feel about regulations.Now other than the party issue this was good investigative journalism and should be followed up on all of congress. this along with citizens united guarantee's. a bought and paid for congress. There wages and benefits should never exceed that of the national average. and or people need to run for office that would take a "Norquist" type of pledge to never indulge in the market while in office.