There is no currently pending legislation regarding political intelligence regulation or disclosure. Although they have not yet proposed new legislation in this Congress concerning political intelligence, both Senator Grassley and Congresswoman Slaughter have been active in undertaking inquiries into political intelligence activities.
On April 25, 2013, Congresswoman Slaughter sent a letter to the Greenberg Traurig law firm requesting information regarding its relationships within the political intelligence industry. In her letter, Congresswoman Slaughter stated: “On April 1, 2013, shares in health-care companies surged by more than $660 million on a tip from the political intelligence firm Height Analytics LLC. According to press reports, as a result of providing market-moving political intelligence information to Height Analytics LLC, Greenberg Traurig has lost Humana Inc. as a client, its relationship with Height Analytics LLC has been terminated, and a preliminary investigation by the Securities and Exchange Commission . . . is now underway.” According to other press reports, Greenberg Traurig has determined that it will no longer provide government relations services to firms in the political intelligence industry.
On April 4, 2013, Senator Grassley commenced the congressional focus on the political intelligence activities of Height Securities and on allegedly related market activity regarding health care firms. On that date, in his capacity as Ranking Member of the Senate Committee on the Judiciary, Senator Grassley wrote to Marilyn Tavenner, Acting Administrator of the Centers for Medicare and Medicaid Services (CMS), requesting information to determine if Height Securities improperly obtained political intelligence from CMS that allowed Height to issue an advisory correctly stating that “a deal has been hatched to protect Medicare Advantage rates . . . .” In his letter to Acting Administrator Tavenner, Senator Grassley stated that after this prediction by Height Securities, “volume for affected companies jumped to a total of $662.8 million in the final minutes of trading and stocks rose as much as six percent . . . .” In a statement issued on April 23, 2013, Senator Grassley said that Acting Administrator Tavenner “has been responsive to [his] inquiries on this issue” and that he intended “to support her nomination and continue to work with her to get to the bottom of what led to the early release of information about the Medicare Advantage decision.”
Congressional oversight and legislative activity regarding political intelligence will likely increase throughout this Congress.