Spencer Bachus, House Financial Services Chair, Cleared Of Ethics Charges

Rep. Spencer Bachus (R-Ala.) has been cleared of ethics claims against him.

The Office of Congressional Ethics found no evidence of Rep. Spencer Bachus (R-Ala.) violating insider trading rules and has unanimously agreed to drop claims against the congressman.

Bachus, who chairs the House Financial Services Committee, came under investigation by the independent agency earlier this year after questions were raised about the congressman's stock option purchases.

In a statement released Monday, Bachus expressed relief that the "long, painful and frustrating experience" had come to a close.

"While their review and report should never have been necessary, I am pleased that they have helped clear my name," Bachus said.

Bachus' personal finances came into question after a November 2011 episode of "60 Minutes" suggested that he and other high-ranking members of Congress had used private information about the 2008 financial collapse to make profitable investments. HuffPost reported on the allegations in November:

On the evening of Sept. 18, 2008, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson met privately with congressional leaders from both parties, including Bachus. At the gathering, held in the office of then-Speaker Nancy Pelosi (D-Calif.), Bernanke and Paulson warned that a meltdown of the global financial system could be just days away and that immediate action was necessary.

The next day, Bachus purchased contract options on an index that multiplies investments when the Nasdaq goes down. Bachus sold the options four days later, after markets had taken a turn for the worse. According to financial disclosure forms for 2008, he made about $7,800 off the sale, nearly doubling his money.

While Bachus and his colleagues denied any misconduct, the Office of Congressional Ethics announced in February that it would investigate the allegations made against Bachus in the report, just one day after the House passed the STOCK Act, a bill banning insider trading.

The STOCK Act has since been signed into law by President Obama.

Also on HuffPost:

Comments

[Larry Drake]

03:15 PM on 05/08/2012

The ethics committee is made up of other insider tradering congressman. What else should we expect? A fair and unbiased review by an objective third party? Not!!!!

[HoustonWeHaveAProblem]

11:57 AM on 05/01/2012

No one in either party wanted this to go any further in an election year. Not to mention the system is devised not to find malfeasance or corruption.

If they wanted an impartial examination of the facts, they'd have a disinterested third party review the charges and evidence.

[montn2]

11:01 AM on 05/01/2012

The Ethics Committee is purposely stacked with weaklings......after all, they must protect their own.

[gibraltar]

09:56 AM on 05/01/2012

Merely a coincidence move on nothing to see here. No corruption in the legislature!

[Grannysue]

09:54 AM on 05/01/2012

But of course he was, all the GOPERS said he was innocent, wink wink.

[moby49]

09:53 AM on 05/01/2012

Can you imagine the war that would have started on this issue if he was found guilty? Neither side could afford opening that Pandora's box or half the congress would be up on charges.

[butter51nut]

09:40 AM on 05/01/2012

They had to clear him or they would have been investigaed

[Tribal Dancer]

09:12 AM on 05/01/2012

Well of course they dismissed it. GOPers sitting in judgement of other GOPers? The outcome was set prior to seating the committee. Another waste of money and time by congress.

[Kate Zeiss]

08:44 AM on 05/01/2012

As Gomer Pyle used to say . . . "well, surprize, surprize, surprize!

[ljc]

08:21 AM on 05/01/2012

Morally...he is guilty as sin...

[tracerhaha1]

07:57 AM on 05/01/2012

Where does congress get the power to exempt themselves from the law? Is it somewhere in the constitution and I missed or did the just grant themselves that power?

[wolf58]

05:32 AM on 05/01/2012

If that would have been you or I, we would be in jail right now. This nations lawmakers are FUBAR/

[Ravenlea]

01:06 AM on 05/01/2012

Foxes guarding the hen house find nothing untoward about the sudden mysterious disappearance of numerous chickens.

[Paul Abrams]

01:00 AM on 05/01/2012

it would be interesting to know what WOULD constitute a misuse of insider information! This seems fairly straightforward--he found out, he bought "puts", and he made money. What am I missing?

[oldpreacherman]

01:16 AM on 05/01/2012

Paul. No law against it at the time for members of Congress.

[Guscat]

06:39 AM on 05/01/2012

Fanned. I think you nailed it.

[Paulie21]

12:48 AM on 05/01/2012

Office of Congressional Ethics! There's an oxymoron for ya!