Post by addisona on Feb 15, 2022 17:21:23 GMT
Congressional Leaders Warm to Ban on Stock-Trading by Lawmakers
Congressional leaders – in both parties and in both chambers – are quickly warming to the idea of banning lawmakers from buying and trading stocks while in office, another bipartisan effort with a recent burst of momentum that aims to tamp down conflicts of interest among members.
The issue came to the forefront in 2020 after allegations surfaced against some members of trading stocks after attending a classified briefing in the early days of the COVID-19 pandemic. And the push for a ban caught fire again last December after Business Insider published a report detailing every lawmakers’ financial transactions, including any stock violations.
House Speaker Nancy Pelosi of California became the latest in leadership to open the door to supporting a ban. At her Wednesday press conference, she said the House Administration Committee is reviewing and developing legislation based on the options proposed by a number of members. Pelosi has evolved on the issue in recent weeks, initially opposing a ban late last year and later reversing to say she’ll defer to her own caucus.
Pelosi said the approach to disclosures should be “government-wide” since those who work in the federal judiciary aren’t required to report stock transactions unlike members of Congress. She also said she wanted to “tighten the fines” for those who violate the STOCK Act, the law that prohibits members from using non-public information they learn on the job to trade stocks.
“The third branch of government, the judiciary, has no reporting,” Pelosi said. “The Supreme Court … has no reporting of stock transactions and it makes important decisions every day.”
“It is a confidence issue, and if that’s what the members want to do, then that’s what we will do,” Pelosi added. “It’s complicated but members will figure it out.”
The issue is winning buy-in from all corners of Congress and already being touted by members and candidates facing tough elections in the November midterms. A number of proposals are in the works in the House and Senate, so it’s unclear what the final product will look like. But a common theme is that the bills focus on individual stocks and many leave out those that are part of a mutual fund.
One House bill reintroduced by Democrat Abigail Spanberger of Virginia and Republican Chip Roy of Texas proposes lawmakers – plus their spouses and dependent children – put certain assets into a blind trust while they serve. There’s a similar proposal from Senate Democrats Jon Ossoff of Georgia, who campaigned on the issue in his 2020 race, and Mark Kelly of Arizona.
Another bill in the Senate from Republican Steve Daines of Montana and Democrat Elizabeth Warren of Massachusetts goes further and prohibits all members from owning or trading individual stocks.
“They said that it would face relentless opposition at all levels. And it's true that it ruffled some feathers, and it's ruffled some feathers in both parties,” Ossoff told reporters on Wednesday. “It's also true that we've now built huge momentum. ... We have not just active engagement but active engagement and expressions of support from leadership in both houses of Congress.”
Senate Majority Leader Chuck Schumer of New York gave an even stronger endorsement of the effort on Tuesday. And among GOP leadership, Senate Minority Leader Mitch McConnell of Kentucky and House Minority Leader Kevin McCarthy of California say they’re both open to it.
McConnell, who noted that he doesn’t trade individual stocks, said Tuesday he’d “take a look at that kind of legislation and see what may be appropriate.”
Like Pelosi, Schumer is calling on his own members to craft a single bill alongside their Republican colleagues that can move forward in the Senate.
“I believe this is an important issue that Congress should address. And it’s something that has clearly raised interest from both sides of the aisle over the past few weeks,” Schumer said, reiterating his support in a Wednesday floor speech. “I hope we can pass something, and I want to encourage my colleagues on the Democratic side to reach out across the aisle.”
www.usnews.com/news/politics/articles/2022-02-09/congressional-leaders-warm-to-ban-on-stock-trading-by-lawmakers
Congressional leaders – in both parties and in both chambers – are quickly warming to the idea of banning lawmakers from buying and trading stocks while in office, another bipartisan effort with a recent burst of momentum that aims to tamp down conflicts of interest among members.
The issue came to the forefront in 2020 after allegations surfaced against some members of trading stocks after attending a classified briefing in the early days of the COVID-19 pandemic. And the push for a ban caught fire again last December after Business Insider published a report detailing every lawmakers’ financial transactions, including any stock violations.
House Speaker Nancy Pelosi of California became the latest in leadership to open the door to supporting a ban. At her Wednesday press conference, she said the House Administration Committee is reviewing and developing legislation based on the options proposed by a number of members. Pelosi has evolved on the issue in recent weeks, initially opposing a ban late last year and later reversing to say she’ll defer to her own caucus.
Pelosi said the approach to disclosures should be “government-wide” since those who work in the federal judiciary aren’t required to report stock transactions unlike members of Congress. She also said she wanted to “tighten the fines” for those who violate the STOCK Act, the law that prohibits members from using non-public information they learn on the job to trade stocks.
“The third branch of government, the judiciary, has no reporting,” Pelosi said. “The Supreme Court … has no reporting of stock transactions and it makes important decisions every day.”
“It is a confidence issue, and if that’s what the members want to do, then that’s what we will do,” Pelosi added. “It’s complicated but members will figure it out.”
The issue is winning buy-in from all corners of Congress and already being touted by members and candidates facing tough elections in the November midterms. A number of proposals are in the works in the House and Senate, so it’s unclear what the final product will look like. But a common theme is that the bills focus on individual stocks and many leave out those that are part of a mutual fund.
One House bill reintroduced by Democrat Abigail Spanberger of Virginia and Republican Chip Roy of Texas proposes lawmakers – plus their spouses and dependent children – put certain assets into a blind trust while they serve. There’s a similar proposal from Senate Democrats Jon Ossoff of Georgia, who campaigned on the issue in his 2020 race, and Mark Kelly of Arizona.
Another bill in the Senate from Republican Steve Daines of Montana and Democrat Elizabeth Warren of Massachusetts goes further and prohibits all members from owning or trading individual stocks.
“They said that it would face relentless opposition at all levels. And it's true that it ruffled some feathers, and it's ruffled some feathers in both parties,” Ossoff told reporters on Wednesday. “It's also true that we've now built huge momentum. ... We have not just active engagement but active engagement and expressions of support from leadership in both houses of Congress.”
Senate Majority Leader Chuck Schumer of New York gave an even stronger endorsement of the effort on Tuesday. And among GOP leadership, Senate Minority Leader Mitch McConnell of Kentucky and House Minority Leader Kevin McCarthy of California say they’re both open to it.
McConnell, who noted that he doesn’t trade individual stocks, said Tuesday he’d “take a look at that kind of legislation and see what may be appropriate.”
Like Pelosi, Schumer is calling on his own members to craft a single bill alongside their Republican colleagues that can move forward in the Senate.
“I believe this is an important issue that Congress should address. And it’s something that has clearly raised interest from both sides of the aisle over the past few weeks,” Schumer said, reiterating his support in a Wednesday floor speech. “I hope we can pass something, and I want to encourage my colleagues on the Democratic side to reach out across the aisle.”
www.usnews.com/news/politics/articles/2022-02-09/congressional-leaders-warm-to-ban-on-stock-trading-by-lawmakers