If Cantor were shorting a publicly traded company he had this much control over

House Minority Leader Eric Cantor made it known today that tax loopholes would now be allowed consideration in the debt ceiling negotiations. According to the Associated Press, the statement was a break from his former position that they only be considered in an exhaustive overhaul of the tax code. It is a slight break in what has become a deeply entrenched partisan-specific debate. But Rep. Cantor has a problem with conflict of interest with regard to the negotiations, something that was made public a week ago. So why hasn't he recused himself not only from the negotiations but from having anything to do with the debt ceiling talks and/or its subsequent vote?

Last week, Salon.com ran an article revealing that Rep. Cantor had up to about a $15,000 investment in ProShares Trust Ultrashort 20+ Year Treasury EFT, a fund that deals in "shorting" U.S. Treasury bonds. To explain: a "short" increases in worth when something fails. In this case: U.S. Treasury bonds. If the debt ceiling is not raised and the United States defaults on its loans, treasury bonds are likely to see increased market volatility and an assured drop in worth. If that were to happen, Cantor stands to make a lot of money on his investment.

Yet, the congressman is in negotiations with Vice President Joe Biden and others in what is supposed to be attempts at resolving the debt ceiling issue and keeping the government from shutting down, which could occur should a compromise not be reached by Aug. 2, the last day Treasury Secretary Timothy Geithner maintains he can keep juggling the government's bills in order to keep it running smoothly without defaulting on at least some of its debts.

US Congressional Ethics Rules on Insider Trading
Compared to 975 Other Government Agencies' Rules and Laws

Some government officials--by virtue of their position to regulate industries, enact legislation, or render court decisions affecting businesses--have access to nonpublic, market-moving information that can give them an advantage in the stock market. A 2004 Georgia State study revealed that US Senators' stocks on average beat the market average by 12.3% annually.

Under current insider trading law, it is unclear whether government officials trading securities based on material, nonpublic government information are liable for insider trading. The executive branch has established laws with criminal or civil penalties against the use of nonpublic information gained on the job for personal financial gain.

The legislative and federal judiciary branches, however, have codes of conduct (from hereon categorized as "rules,” which are not legally binding) or no rules at all addressing the use of material, nonpublic legislative or judicial information for personal financial gain.