Congressional Leaders Warm to Ban on Stock-Trading by Lawmakers
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.
“[T]he 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.
