Rehberg Co-sponsors Bipartisan Legislation To Stop Congressional Insider Trading

Press Release

Montana's Congressman, Denny Rehberg, today co-sponsored the Stop Trading on Congressional Knowledge (STOCK) Act to expand reporting requirements for Congressional Members and staff relating to securities and commodities trading, and to further educate members of Congress and their staff about proper financial conduct. The legislation introduced by Rep. Tim Walz (D-MN), is aimed at stopping insider trading by Member of Congress or their staff.

"Members of Congress should not be looking to cash in on the honor of public service," said Rehberg. "This bill helps make sure that won't happen."

Rehberg's sponsorships follows a Wall Street Journal investigation that revealed 72 instances of potential insider trading among Congressional aides on both sides of the aisle. This sort of insider trading is illegal on Wall Street and in private business, but there is no regulation to prevent Congressional Representatives or their staff from leveraging the privileged information access they enjoy for personal gain.

Among its provisions, the STOCK Act:

* Prohibits Members of Congress and their staff and Executive Branch employees from buying or selling securities, swaps, security based swaps, or commodity futures based on information not available to the public that is obtained 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.

"I hope the House will act decisively to pass this legislation and get to work building a pro-job environment to get our economy back on track," said Rehberg.

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