Results 1 to 15 of 15

Thread: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

  1. #1
    FRISKY's Avatar
    FRISKY is offline Participating Member
    Join Date
    Oct 2007
    Total Posts
    2,402

    Default Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    REVEALED: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Exclusive Visa Stock Offering

    by Wynton Hall
    Former Speaker of the House–and current Minority Leader–Nancy Pelosi apparently bought $1 million to $5 million of Visa stock in one of the most sought-after and profitable initial public offerings (IPO) in American history, thwarted serious credit card reform for two years, and then watched her investment skyrocket 203%.

    The revelation appears in Throw Them All Out, the new book by investigative journalist and Breitbart editor Peter Schweizer, which was the focus of 60 Minutes on CBS this evening, and which is featured in this week’s issue of Newsweek.


    Schweizer’s investigation of Pelosi and other members of Congress–from both parties–raises a critical question: should it be legal for lawmakers to buy stocks in companies directly affected by their legislative efforts?

    In early 2008, Nancy Pelosi and her real estate developer husband, Paul, were given an opportunity to buy into a Visa IPO. It was a nearly impossible feat–one that average citizens almost certainly could never achieve. The vast majority of purchase opportunities went to institutional investors, large mutual funds, or pension funds.

    Despite Pelosi’s consistent railing against credit card companies, on March 18, 2008, the Pelosis bought between $1 million and $5 million (politicians do not have to report the exact amounts, only ranges) worth of Visa stock at the IPO price of $44 per share. Two days later, the stock price rocketed to $65 per share, yielding a 50% profit. The Pelosis then bought Visa twice more. By their third purchase on June 4, 2008, Visa was worth $85 per share.

    How did Nancy Pelosi snag one of the most coveted initial public offerings in history? The facts are still emerging. Yet according to Schweizer, corporations that wish to build congressional allies will sometimes hand-pick members of Congress to receive IPOs. Pelosi received her Visa IPO almost two weeks after a potentially damaging piece of legislation for Visa, the Credit Card Fair Fee Act, had been introduced in the House. If passed, the bill would have cut into Visa’s profits substantially by lowering so-called “interchange fees,” the 1% to 3% charge retailers pay Visa when customers use Visa cards for purchases. Interchange fees are a critical source of revenue for the four credit card companies–$48 billion in 2008, to be exact.

    If the Credit Card Fair Fee Act had been passed into effect, it would have amended antitrust laws to require credit card companies to enter negotiations with merchants over interchange fees, and it would have given the Justice Department and the Federal Trade Commission the power to arbitrate if the two sides failed to come to an agreement. For that reason, Visa and the other credit card companies strongly opposed the bill.

    The Credit Card Fair Fee Act was exactly the kind of bill one would think then-Speaker Pelosi would have backed. “She had been outspoken about antitrust problems posed by insurance, oil, and pharmaceutical companies,” Schweizer notes, “and she was vocal about the need for controlling interest rates individual banks charged to use their credit cards.”

    Initially, the Credit Card Fair Fee Act cleared the Judiciary Committee on a 19-16 vote, and the National Association of Convenience Stores began lobbying for a vote on the floor of the House. “It is imperative to tell your Representatives to request a vote on the House Floor from Nancy Pelosi,” the association urged its members. Still, with at least ten percent of the Pelosi family’s entire stock portfolio invested in a single stock, Nancy Pelosi clearly had a vested interest in ensuring that Visa’s profits were protected. And that is exactly what she accomplished. Despite broad public support for the bill—77% in one study—Pelosi saw to it that the bill never made it to the House floor.

    Shortly thereafter, a second bill limiting collusion by the credit card companies on interchange fees was proposed. The Credit Card Interchange Fee Act of 2008, while not as strong as the first bill, would have required greater transparency from credit card companies in informing customers how much they were paying in interchange fees. Yet again, reports Schweizer, “this second bill suffered the same fate as the first, never making it to the House floor.”

    By 2009, both bills had garnered even broader bipartisan support and were reintroduced. Under Speaker Pelosi, however, neither bill lived to see a vote on the House floor.

    Pelosi eventually supported something called the Credit Card Reform Act. Curiously, the all-important interchange fees went untouched by that legislation. Instead, the bill stated that the interchange fee issue should simply be “studied.” The bill’s other measures would not affect Visa but rather its client banks. In short, the Credit Card Reform Act ensured that Visa and the other credit card companies dodged a potentially costly bullet.

    None of that, however, prevented Pelosi from grandstanding. She publicly declared that the Credit Card Reform Act sent a “strong and clear message to credit card companies” that they would be held to account for their “anti-consumer practices.”

    In the wake of the bill’s passage, the Pelosis’ shares of Visa stock rose. Indeed, according to Throw Them All Out, “the IPO shares they had purchased soared by 203% from where they began, while the stock market as a whole was down 15% during the same period.”

    Nancy Pelosi is hardly the only member of Congress to be given IPOs, but Pelosi has been especially “lucky” at landing them. She and her husband have participated in at least 10 lucrative IPOs throughout her career. In 1993, Pelosi purchased IPO shares in a high-tech company named Gupta, watched the stock price leap 88% in 24 hours, then seized the profits by selling the stock the next day. The Pelosis did the same thing with Netscape and UUNet, resulting in a one-day doubling of their initial investment. Other fast and lucrative IPO flips included Remedy Corporation, Opal, Legato Systems, and Act Networks.

    Schweizer says Nancy Pelosi’s financial disclosure forms typically mask the precise dates of her stock buys. He cites the Pelosis’ December 1999 stock purchase of between $250,000 and $500,000 in shares from high-tech company OnDisplay. A few months later, OnDisplay was bought by Vignette, which resulted in up to $1 million in capital gains for the Pelosis. What was unusual about the transaction is that Vignette’s IPO was underwritten by a major campaign contributor and longtime friend of Nancy Pelosi, William Hambrecht.

    Throw Them All Out also chronicles the Pelosis’ $100,000 IPO purchase of Clean Energy Fuels at roughly $12 a share. Schweizer alleges that as Speaker of the House, Pelosi pushed several bills beneficial to the company.

    Similarly, in November 2007, Pelosi bought $500,000 in the IPO for Quest Energy Partners before proceeding to champion the natural gas-related legislation that stood to significantly benefit the company. When Tom Brokaw asked her whether her significant personal investments in natural gas represented a conflict of interest, Pelosi shrugged off the question by hiding behind the crony capitalist’s false credo: “That’s the marketplace.”

    MORE: http://biggovernment.com/whall/2011/...tock-offering/

  2. #2
    RadicalModerate is offline Participating Member
    Join Date
    Jun 2011
    Total Posts
    8,200
    Blog Entries
    4

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock



    Shocking!
    (It was really my evil twin . . . The non-hypocritical one.)

  3. #3
    TaoMaas's Avatar
    TaoMaas is offline Participating Member
    Join Date
    Aug 2008
    Total Posts
    1,813

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    That's odd...CBS included folks from both parties in their report. Who knew that CBS was more accurate and impartial than Frisky and Andrew Breitbart's site?

  4. #4
    Jersey Boss's Avatar
    Jersey Boss is offline Participating Member
    Join Date
    Aug 2008
    Total Posts
    1,917

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    +1

  5. #5
    skyrick's Avatar
    skyrick is offline Participating Member
    Join Date
    Aug 2009
    Total Posts
    1,403

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Quote Originally Posted by TaoMaas View Post
    That's odd...CBS included folks from both parties in their report. Who knew that CBS was more accurate and impartial than Frisky and Andrew Breitbart's site?
    What?! You mean the Emperor is NOT wearing clothes?

  6. #6
    Edmond_Outsider is offline Participating Member
    Join Date
    Mar 2007
    Total Posts
    2,880

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Breitbart not honest? That is truly shocking.

    It is interesting all the names left out of the OP:

    Boehner
    Bachus
    Hastert
    Judd Gregg

  7. #7
    Jersey Boss's Avatar
    Jersey Boss is offline Participating Member
    Join Date
    Aug 2008
    Total Posts
    1,917

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    THE REST OF THE STORY....

    WASHINGTON -- A "60 Minutes" investigation of stock trading by members of Congress singled out House Speaker John Boehner and former Speaker Nancy Pelosi as having personally profited from investments into companies whose interests were before Congress. The investigation makes a strong case that members of Congress have the ability to profit in the market from non-public information, but in the cases of Boehner and Pelosi the claims made by "60 Minutes" fall short under scrutiny.

    Honest graft, as "60 Minutes" calls it, is a serious problem in Washington, with a massive industry called "political intelligence" devoted to digging up inside regulatory and congressional information so traders and companies can take advantage of it.

    But by swinging and missing at Boehner and Pelosi, "60 Minutes" undermined its case.

    The CBS News program flagged Boehner (R-Ohio) for buying health insurance stocks shortly before the public health insurance option was killed as part of health care reform. Boehner, of course, strongly opposed the public option as a matter of ideology, as did the entire House GOP.

    The public option wasn't killed by Boehner, who had no real power in the previous Congress; it was done in by Blue Dog Democrats and a White House that didn't push for it. The public option returned from the dead repeatedly before finally being laid to rest -- and there's no reason to think that Boehner had any better insight into what was happening within the House Democratic caucus than anybody else reading news reports at the time.

    And as Boehner says in the "60 Minutes" segment, the trade was decided upon and carried out by Boehner's longtime broker without any input from him. In context, it seems even less suspicious: Around the same time, Boehner broker purchased a range of other blue chip stocks, not just health care companies, a defense that a Boehner spokesman reiterated to the Huffington Post.

    "The idea that the Republican Leader in the House opposed the 'public option' -- policy favored by the left of the left -- for personal profit is, frankly, stupid," a GOP aide, who didn't want to be quoted criticizing CBS, said.

    Similarly, the knock on Pelosi (D-Calif.) leaves out critical details. "60 Minutes" charges Pelosi with purchasing 5,000 shares of Visa stock as part of an exclusive initial public offering and implies that her financial connection to the credit card industry had something to do with the halting of credit card industry reform.

    "Former House Speaker Nancy Pelosi and her husband have participated in at least eight IPOs. One of those came in 2008, from Visa, just as a troublesome piece of legislation that would have hurt credit card companies began making its way through the House. Undisturbed by a potential conflict of interest, the Pelosis purchased 5,000 shares of Visa at the initial price of 44 dollars. Two days later it was trading at $64. The credit card legislation never made it to the floor of the House," CBS reports.

    But CBS leaves out that fact that the bill passed out of committee at the very end of the legislative session, as Congress was dealing with the Wall Street implosion and bailout, and that the chamber then adjourned until the election. More importantly, Democrats didn't have the votes for it in the Senate and the notion that President Bush would have signed it if they did is far-fetched.

    CBS goes on to report: "Congresswoman Pelosi pointed out that the tough credit card legislation eventually passed, but it was two years later and was initiated in the Senate."

    The implication is, apparently, that the Senate forced Pelosi's hand. Throughout 2009 and 2010, the House consistently passed stronger and more progressive legislation than the Senate, but in the scenario laid down by CBS, it was the other way around when it came to credit card reform. But in 2008, before the stock transaction, the House had already passed the Credit Cardholders' Bill of Rights over the objections of industry lobbyists.

    "Tonight's report failed to note that the legislation in question in this story was reported out of the Judiciary Committee on October 3, 2008 -- the day the House was consumed in passing TARP and also the last day the House was in session before the November election," Pelosi spokesman Drew Hammill said. "It failed to note than in September 2008, the House passed the Credit Cardholders’ Bill of Rights. In the next Congress, the House and Senate passed and President Obama signed the Credit Cardholders' Bill of Rights and the Dodd-Frank legislation, which included a stronger, more direct approach to addressing swipe fees."

    Pelosi's office also noted that there was no preferential treatment. Her husband purchased the shares, participating in the largest IPO in history, which raised $17.9 billion. He continued to buy shares on the open market as the price continued to rise.

    Operatives on both sides of the aisle, meanwhile, pointed out to The Huffington Post that Majority Leader Cantor (R-Va.) had dodged the "60 Minutes" bullet. The segment did not mention Cantor, who made several trades in 2005 that have come under scrutiny.

    In March 2005, he bought stock in Merck and Encore Medical Corporation. In July, the GOP House passed medical liability reform, which Democrats at the time charged was a gift to Merck, which was under fire for its drug Vioxx, as well as other device makers.

    CBS may have pulled its punch because producers worried about access: "60 Minutes" is working on a profile of the Virginia Republican and was with him over the past weekend, and Lesley Stahl will visit him Monday on the Hill, according to a source familiar with the arrangements.

    CBS did not respond to requests for comment.

    (Ryan Grim)

  8. #8
    bretthexum is offline Participating Member
    Join Date
    Jul 2007
    Total Posts
    2,103

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Swing and a miss. Once again....

  9. #9
    Bellaboo's Avatar
    Bellaboo is offline Gold Member
    Join Date
    May 2010
    Total Posts
    3,142

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    I've been saying it for quite a while, we need to fire everyone of them, regardless of party and start all over, just to send a message.

  10. #10
    Bunty's Avatar
    Bunty is offline Participating Member
    Join Date
    May 2008
    Total Posts
    8,873

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    But since most conservatives wouldn't want to vote for a Democrat in a million years, the parties themselves need to find someone good to replace their incumbents in Congress.

  11. #11
    FRISKY's Avatar
    FRISKY is offline Participating Member
    Join Date
    Oct 2007
    Total Posts
    2,402

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Quote Originally Posted by Bellaboo View Post
    I've been saying it for quite a while, we need to fire everyone of them, regardless of party and start all over, just to send a message.
    While I agree somewhat with your opinion to fire all the politicians, there would be many more entities that would also need to be "fired." The politicians are only the tip of the iceberg. It would still leave thousands of lobbyist and political 'string pullers' in Washington to make sure the new group of politicians learned how to make a profit from underhanded deals without running afoul of the law, or in some cases, show them ways to circumvent corruption and graft laws.

  12. #12
    MDot's Avatar
    MDot is offline Participating Member
    Join Date
    May 2011
    Total Posts
    2,416

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Quote Originally Posted by Bunty View Post
    But since most conservatives wouldn't want to vote for a Democrat in a million years, the parties themselves need to find someone good to replace their incumbents in Congress.
    For the record, there is one conservative out there (me) that will vote for a Democrat. IMO, the person who best fits the job is who should be elected, not based on the R or D by their name.

  13. #13
    rcjunkie is offline Participating Member
    Join Date
    Nov 2009
    Total Posts
    4,173

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Quote Originally Posted by MDot View Post
    For the record, there is one conservative out there (me) that will vote for a Democrat. IMO, the person who best fits the job is who should be elected, not based on the R or D by their name.
    So then you wouldn't vote for a Democrat!

  14. #14
    MDot's Avatar
    MDot is offline Participating Member
    Join Date
    May 2011
    Total Posts
    2,416

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Quote Originally Posted by rcjunkie View Post
    So then you wouldn't vote for a Democrat!

  15. #15
    FRISKY's Avatar
    FRISKY is offline Participating Member
    Join Date
    Oct 2007
    Total Posts
    2,402

    Default Re: Nancy Pelosi Blocked Credit Card Reform While Investing Millions in Visa Stock

    Quote Originally Posted by MDot View Post
    For the record, there is one conservative out there (me) that will vote for a Democrat. IMO, the person who best fits the job is who should be elected, not based on the R or D by their name.
    Same here. Although I will add that at this time the choice of first-rate Pubs is meager...and the choice of good Dems is nonexistent.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Just found out I'm a victim of credit card fraud but my card wasn't lost or stolen
    By earlywinegareth in forum Current Events & Open Topic
    Replies: 36
    Last Post: 01-08-2011, 12:57 AM
  2. Stop credit card offers by mail
    By Lauri101 in forum Current Events & Open Topic
    Replies: 2
    Last Post: 03-04-2007, 10:12 PM
  3. Credit card fraud stories
    By Patrick in forum Current Events & Open Topic
    Replies: 8
    Last Post: 01-25-2007, 03:10 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

SEO by vBSEO 3.6.1