President Obama signed the Stop Trading on Congressional Knowledge (STOCK) Act earlier this month, which was passed after a 60 Minutes investigation revealed that members of Congress were profiting from information they received in their official capacity. House Financial Services Chairman Spencer Bachus (R-AL), for instance, made nearly $30,000 trading on information he received during private briefings during the 2008 financial crisis.
The original version of the STOCK Act that passed out of the Senate included a provision that would have required Washington insiders who sell intelligence to corporate America to register as lobbyists. However, that provision was ultimately stripped from the bill by House Republicans. And according to an analysis by The Hill, it was Wall Street lobbying that proved the catalyst
Wall Street Lobbied Hard To Water Down Law On Congressional Insider Trading