Today, Congressman Joe Donnelly added his name to The Stop Trading on Congressional Knowledge (STOCK) Act, H.R. 1148, which would prohibit insider trading by Members of Congress, Congressional employees, or other federal employees.
"Members of Congress and their staffs should be prohibited from using any nonpublic information received in the course of their work for financial gain," said Donnelly. "This straightforward legislation would update existing law to ensure that this sort of behavior is made illegal and would update Congressional rules to classify these acts as unethical. I'm proud to sign onto this bipartisan bill because no Member of Congress should use their position for personal financial benefit."
The STOCK Act would do the following:
* Prohibit Members and employees of Congress and other federal employees from buying or selling securities, swaps, security based swaps, or commodity futures based on nonpublic information they obtain because of their status;
* Prohibit those outside Congress from buying or selling securities, swaps, security based swaps, or commodity futures based on nonpublic knowledge obtained from within Congress or the Executive Branch;
* Prohibit Members and employees of Congress from disclosing any nonpublic information about any pending or prospective legislative action for investment purposes;
* Require Members and employees of Congress to report the purchase, sale, or exchange of any stock, bond, or commodity future transaction in excess of $1,000 within 90 days. Members and employees who choose to place their stock in holdings in blind trusts or mutual funds would be exempt from the reporting requirement; and,
* Require firms that specialize in "political intelligence" and that obtain their information directly from Congress to register with the House and Senate, much like lobbying firms are now required to do.