Senate Votes To Ban Lawmakers From Insider Trading
President Obama urged Congress to pass the legislation in his State of the Union address last week. He said in a statement he is “pleased the Senate took bipartisan action” to pass the bill and he “will pass it right away” when it reaches his desk.
But first, the House is expected to vote on the measure next week.
The STOCK Act would prevent members of Congress from buying stocks with nonpublic information they gained while doing congressional work.
In a video statement, co-author of the bill, Sen. Scott Brown (R-MA) said, “The truth is, members of Congress have access to all kinds of sensitive information, and it has to be clear that the information is being used to serve our country—not to make a personal profit.”
From Roll Call:
“The bill, which clarifies that Members of Congress are subject to bans on insider trading, engendered a broader debate over public ethics, including issues such as whether lawmakers should own stocks at all, given their ability to affect individual companies.”
Obama said he would like the bill to go even further.
“While this is an important step to rebuild the trust between Washington and the American people, there is much more work to be done, like prohibiting elected officials from owning stocks in industries they impact, and prohibiting people who bundle campaign contributions for Congress from lobbying Congress, an idea that has bipartisan support outside of Washington,” the president said. “These are straightforward proposals that will help eliminate the corrosive influence of money in politics.”
While the President and Senate are pushing the House of Representatives to pass the legislation, one critic has spoken.
House Majority Leader Eric Cantor (R-MA) said in a statement that he was “pleased” with the Senate’s bill, there are “still areas where it can be strengthened.”
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