Eric Cantor Hit By Democrats For Potentially Profiting From U.S. Default
by Amanda Terkel
7/8/11
WASHINGTON -- House Democrats are circulating a resolution accusing House Majority Leader Eric Cantor (R-Va.) of having a conflict of interest in the debt ceiling debate, a move that could provide an akward C-SPAN moment for one of the lead Republicans in the budget negotiations.
The resolution goes after Cantor's investment in ProShares Trust Ultrashort 20+ Year Treasury EFT, a fund that "takes a short position in long-dated government bonds."
The fund is essentially a bet against U.S. government bonds. If the debt ceiling is not raised and the United States defaults on its debts, the value of Cantor's fund would likely increase.
The Democratic resolution, obtained by The Huffington Post from a Democratic source on the Hill, argues that Cantor "stands to profit from U.S. treasury default, which thereby raises the appearance of a conflict of interest," and that he "may be sabotaging [debt ceiling] negotiations for his own personal gain." It's not clear how widely the measure was being circulated, with a House Democratic aide saying they hadn't seen the resolution or heard it being discussed.
"Majority Leader Cantor has compromised the dignity and integrity of the Members of the House by raising the appearance of a conflict of interest in negotiations with the executive branch over raising the debt ceiling," adds the measure...
For the full article, go to:
http://www.huffingtonpost.com/2011/07/08/eric-cantor-conflict-interest-debt-limit_n_893354.html
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