Rep. Carney co-sponsors bill to ban insider trading by Members of Congress
Press Release
U.S. Representative John Carney (D-DE) is co-sponsoring the STOCK Act (H.R. 1148) to prevent Members of Congress and their staff from buying or selling stocks based on nonpublic information they obtain because of their position.
"Elected officials should be held to a higher standard than the general public," said Congressman Carney. "We are elected by our constituents to serve their best interests -- not our own. This legislation would make it illegal for Members of Congress or their employees from trading stocks using nonpublic information. It's mind-boggling that there isn't a law in place to prevent this already."
Specifically, the STOCK Act:
* Prohibits Members and employees of Congress from buying or selling securities, swaps, security based swaps, or commodity futures based on nonpublic information they obtain because of their status;
* Prohibits Executive Branch employees from buying or selling securities, swaps, security based swaps, or commodity futures based on nonpublic information they obtain because of their status;
* Prohibits those outside Congress from buying or selling securities, swaps, security based swaps, or commodity futures based on nonpublic information obtained from within Congress or the Executive Branch;
* Prohibits Members and employees of Congress from disclosing any non-public information about any pending or prospective legislative action for investment purposes;
* Requires 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,
* Requires 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.
Source