Skip to content

The STOCK Act Passes in the Senate

The STOCK Act (Stop Trading on Congressional Knowledge) – legislation to bar members of Congress from trading stocks based on nonpublic information they have obtained in the course of their congressional work – passed the Senate Thursday in a 96 to 3 vote.

The legislation still needs to pass the House. President Obama, who said in a statement he was “pleased” by the Senate vote, has vowed to quickly sign the bill if it reaches his desk.

Members of Congress are already subject to insider trading laws. But it is currently within the law for a lawmaker to buy a company’s stock after learning, for example, that an upcoming bill will grant that company a large government contract.

The ultimate fate of the STOCK (Stop Trading On Congressional Knowledge) Act, which comes in the wake of a “60 Minutes” story on potential congressional insider trading, remains unclear – though its prospects are relatively good. Passage in the Senate was complicated by a flurry of amendments added to the legislation, including a proposal that senators be prevented from owning individual stocks unless they are in a blind trust, and another that senators who become lobbyists lose their pensions. Some lawmakers expressed skittishness at the efforts to broaden the scope of the legislation.

7 Comments »

  1. The executive branch was also included in the prohibitions I believe. I thought the “lobby/pension” ammendment had been killed.
    Also, it still needs to pass the house, where there is some talk of delaying the bill while it’s “studied”…

    • I’m not sure if the Exec branch was included or not. I know there was debate about it but not sure of the version that passed. I have not had a chance to read through it yet. And I fully expect it to be “studied” and wouldn’t be surprised to see more opposition from the House.

Go ahead... I can hear your thoughts. Please share with the rest!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: