Senate Passes Ban on Insider Trading
EmailThe ban on insider trading in Congress is moving along legislatively.
The Stop Trading on Congressional Knowledge (STOCK) Act passed has passed in the Senate this evening by a vote of 96-3.
Sens. Jeff Bingaman, D-N.M., Richard Burr, R-N.C., and Tom Coburn, R-Okla., voted against the bill. Sen. Mark Kirk, R-Ill., is still recovering from his stroke so did not vote.
The legislation turned into a much more expansive bill than when it was proposed, after a slew of amendments were debated all week and voted on today.
Most significantly the bill, which bans members of Congress from benefiting from insider stock trading, now covers the executive branch, as well, including the requirement that financial disclosure statements are now electronically filed to be available online and that the 30-day notice of stock or securities transactions also apply to a limited number of executive branch officials.
“If it affects us, it affect them, they have a tremendous amount of inside information and they should be held to the same standard that we are,” said Sen. Scott Brown, R-Mass.
But the expansion of the bill also had a few other inclusions, such as the requirement of disclosure of mortgages by members of Congress and limits to the bonuses of executives of Fannie Mae and Freddie Mac while they’re in a trusteeship.
At a time when public confidence in Congress is at an all time low, senators hope this legislation will restore some badly-needed confidence and trust from the American people.
“We sent a strong message by strengthening our laws that public office is not for private gain,” said Sen. Susan Collins, R-Maine. “The Senate came together in an overwhelming bipartisan fashion to correct the perception that insider trading is somehow going on in Washington, D.C. Whether or not members are engaging in insider trading, it is important that we respond to the perception that some members may be using their official position for private gain.”
The legislation will now be sent over to the House of Representatives. Senators hope President Obama can have a final bill ready for his signature by the end of the month.
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Wouldn’t you know that the coward and liar from Oklahoma, Tom Coburn, would vote against this legislation. Coburn who has lied, cheated and lined his pockets with insider money. He insults the state of Oklahoma and this nation. Oh yes, and I am from Oklahoma, raised in Tulsa.
Posted by: Bryan Cahen | February 2, 2012, 8:38 pm 8:38 pm
Wouldn’t you know that the coward and liar from New Mexico, Jeff Bingaman (D-NM), would vote against this legislation.This lawmakers’ big stakes in health care companies makes clear, Bingaman is not alone in having a personal financial interest in companies that he regularly makes multi-billion dollar decisions for and against.
Of course, Bingaman has done extremely well for himself while in Congress and is now ranked 40th richest of the 535 members of Congress. What can be done? First and foremost, it is time to strip Congress (and Washington in general) of much of its power and send it back to the states as the Constitution would have.
Posted by: newcountryman | February 2, 2012, 9:11 pm 9:11 pm
This is a step, but it isn’t the real source of corruption in DC. They would never let go of that so easily. Now lets focus on lobbyists (the real source of corruption in DC), campaign financing, and the Citizens United ruling.
Posted by: sameagain | February 2, 2012, 9:26 pm 9:26 pm
Interesting. I was under the impression that insider trading was ALREADY against the law. Isn’t that what the government attempted to prove Martha Stewart did a few years ago? Of course, they couldn’t prove it, but they still “got” her because they claimed she lied about it and were able to intimidate enough people to eventually send her to jail because of that so called lie (which of course was never proven — it was one person’s “recollection” that maybe she had mentioned knowing some information in advance.) Weren’t those government people who sent her to prison some of these very same guys … ?
Posted by: Joyce | February 2, 2012, 10:05 pm 10:05 pm
By the way, Jeff Bingaman (D-NM) from my 9:11 PM post is not running for re-election so things are looking up. And Joyce, no it was never against the law for congress if you can believe it. Martha was railroaded by someone.
Posted by: newcountryman | February 2, 2012, 10:17 pm 10:17 pm
I guess all this means now is that we get a little KY to lube things up instead of the DRY we been getting. DC is full of liars, cheats and thieves from the WH to the SC on over to Congress.
Posted by: FridayisNear | February 3, 2012, 12:04 am 12:04 am
Corporate Executives are required to notify the SEC within 2 days of trades involving their companies stock. Why do these legislators need a month? All stock investments should be placed in blind trusts. Disallow sweetheart IPOs. And the federal government should get out of the business of offering grants and tax-payer backed loans.
Posted by: free_2_choose | February 3, 2012, 1:19 am 1:19 am
Now if we could only get term limits. One term (~8 years??) and maybe our elected representatives would finally start to represent us instead of pandering to a political party to get re-elected.
Posted by: Bill | February 3, 2012, 3:14 am 3:14 am
The only reason congress is passing this bill is because a guy came out with a book “Throw the Bums Out” and it shows just who’s making money off inside trading in the government. The book shows Al Gore made over 34m on one transaction. The SEC are the ones who made the rules, blame them.
Posted by: Glenn Weyant | February 3, 2012, 5:25 am 5:25 am
“We sent a strong message by strengthening our laws that public office is not for private gain,” said Sen. Susan Collins, R-Maine. “The Senate came together in an overwhelming bipartisan fashion to correct the perception that insider trading is somehow going on in Washington, D.C. Whether or not members are engaging in insider trading, it is important that we respond to the perception that some members may be using their official position for private gain.” – HO, Ho, Ho, Hee,Hee, Hee. Give a thief the combination to a safe and what do you think will happen?
Posted by: john locke | February 3, 2012, 5:26 am 5:26 am
Ya gotta know it won’t make it though the House without a Tea Party whack job attaching a poison pill so they can cause some political controversy against something the President asked for. It will be a cold day in hell before Cantor and his crowd will allow a clean bill through congress.
Posted by: dan | February 3, 2012, 7:31 am 7:31 am
It will get hung up in the House, Boehner and the tea party will try to make sure the President doesn’t get anything he asked for in his State of the Union address. Also most of the insider trading occurred in the House. Daryl Isssa (the richest Representative) took full advantage.
Posted by: tmferretti | February 3, 2012, 8:31 am 8:31 am
I believe if the Senate passed it, it’s headed for the president’s desk. It shouldn’t get hung up in the House.
Posted by: newcountryman | February 3, 2012, 8:46 am 8:46 am
NEWCOUNTRYMAN
My mistake, I thought it had to go thru the House yet. Still Issa is a crook, one of many in the House, both democrat and republican.
Posted by: tmferretti | February 3, 2012, 8:55 am 8:55 am
Gee, since 60 minutes and the Daily show did a story on this, it moved ahead very quickly.
Posted by: JD | February 3, 2012, 11:10 am 11:10 am
Congress is covered under the SEC laws, but if you are controlled by a party, would you bite the hand that feeds you.
Posted by: Lizzie | February 3, 2012, 11:19 am 11:19 am
No one has immunity from the law, not even the President of the United States. There must be punishment of tose who profited from “Insider Trading” while members of trading, or our laws are meaninglewss and the criminal courts of the every State in the Union are violating the Fourt4eenth Amendment to the Constitution which provides, in section 1 thereof, “No State shall deny . . .any person within it jurisdiction the equal protection of the laws.” A member of Congress is there as a representative of the State of which the voters eklected him/her – and is therefore a part of that State while performing his/her comngressional duties. There must be punishment, even incarceration is the law requires it.
Posted by: LEE DIMIN | February 4, 2012, 9:44 am 9:44 am