Congress is investigating the SEC

Congress has taken intensified interest in how the Securities and Exchange Commission should enforce the law, introducing several legislative proposals. Although quick passage of the bills is unlikely, they signal how much interest there is, at least among Democrats, about the agency’s work.

The legislation deals with insider trading, waivers from automatic bars imposed on companies that violate securities laws and the revolving door between the S.E.C. and private industry.

Enhancing the insider trading laws has become a hot topic after an appeals court reversed the convictions of two hedge fund managers in United States v. Newman, making it more difficult for the government to prove a violation in the conveyance of confidential information. In response, Representative Jim Himes, Democrat of Connecticut, last week submitted the “Insider Trading Prohibition Act,” the third bill introduced in Congress in the last month that would significantly expand the scope of the prohibition.

Source: NYTimes

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