President Obama signed into law the STOCK Act today, banning “insider trading” by members of Congress. It is, however, a somewhat watered-down version of the orginal law.
February 9, 2012:
The House passed their version of the bill today by a 417-2 margin. Now comes the task of reconciling the Senate and House versions.
February 2, 2012: Update: Senate Passes Legislation to Prohibit “Insider Trading” By Members of Congress
The Senate has passed the bill by a 96-3 vote (I’d be interested in hearing those three senators’ reason’s for opposing it), and it now goes to the House of Representatives.
November 15, 2011:
Okay, we have the wrong headline here: For most of us, the real story is It’s Legal For Members of Congress to Profit From Insider Trading.
The current logic is, since members of Congress aren’t required to keep certain information (such as the fact that Corporation A is likely to get a large government contract) secret, there’s no legal or ethical problem with quickly buying up a thousand shares of Corporation A or selling your shares of Corporation B — even if this isn’t knowledge to which the general public really has access to.
to prohibit this has been introduced in the past, but STOCK (the Stop Trading on Congressional Knowledge (STOCK) Act of 2011), introduced by Massachusetts Republican Senator Scott Brown and New York Democrat Kirsten Gillibrand, actually has a chance of succeeding — in large part because of a recent 60 Minutes segment (see below) which discussed this insider trading as one of the reasons members of Congress tend to leave office a lot richer than when they went in.
This article, and all articles on this site, are
© 2012 by Bill Bickel unless otherwise noted.