Today, Congressman Tim Walz attended the White House ceremony when President Obama signed his Stop Trading on Congressional Knowledge (STOCK) Act into law. The Walz bill, which passed the House and Senate with overwhelming bipartisan majorities, bans insider trading on Capitol Hill.
"After years of fighting for this commonsense and important reform, I was honored and humbled to see the President make it the law of the land," said Walz. "This law will work to hold Washington accountable and restore the American people's faith in democracy. Moving forward, Congress should embrace the bipartisan spirit embodied by the STOCK Act and come together to create jobs, grow our economy, and invest in American-made energy."
The original legislation was introduced in 2006 by former Rep. Brian Baird of Washington and Rep. Louise Slaughter of New York.
Walz became the bill's lead author following Mr. Baird's retirement and re-introduced the STOCK Act on March 17, 2011.
Walz has been praised by Members on both sides of the aisle for his leadership ushering the STOCK Act through Congress, including Republican Majority Leader Eric Cantor who said, "Congressman Walz has been a leader on the STOCK Act... and I particularly want to recognize his willingness to reach across the aisle and keep the lines of communications open as we work to make clear that elected officials abide by the same rules as the American people."
What the STOCK Act Does
Explicitly bans Members of Congress, their staff, executive branch and other federal employees from using information obtained through their jobs to profit on the stock market.
Requires Members of Congress, the president and vice president, and senior congressional and executive branch employees to report the purchase, sale or exchange of any stock, bond, or commodity future transaction in excess of $1,000 within 30-45 days.
Requires, for the first time ever in the Senate, the establishment of an online, searchable database that will house all financial disclosure reports for Members of Congress, senior congressional staff, and congressional candidates (the House of Representatives already has online reporting, the Senate does not).
Prohibits bonuses for executives at Fannie Mae and Freddie Mac.