Will Congress Ban Itself From Insider Trading?

_WHAT’S HAPPENING_

After years of delays, efforts are intensifying in Congress to ban the practice of congressional stock trading.

Multiple bills have been introduced in both the House and Senate to prohibit what some consider to be blatant insider trading by members of Congress. With support from both Republicans and Democrats — and possibly even President Trump — it’s possible this legislation may get a second wind.

_THE FACTS_

Viral social media accounts like Nancy Pelosi Stock Tracker spotlight perfectly timed trades by Rep. Nancy Pelosi (D-CA) — often made just before major news breaks.
Pelosi’s trades have become so notorious that news sites are now listing her purchases and sales as recommended actions for their readers.
Multiple bills have been introduced in both the Senate and the House of Representatives to ban the practice of trading individual stocks by representatives, their spouses, and children.
Congress passed the STOCK Act, a bill aimed at addressing this problem, over a decade ago.
While that bill penalized representatives for insider trading, the penalty is a remarkably small $200, and even that can be waived.
Newer bills, like the No Corruption in Government Act or the TRUST in Congress Act, would ban trades outright.
This week, Hawley vowed to re-introduce his own legislation this congressional session; his bill would also ban the president and vice president from trading individual stocks.
White House Spokeswoman Karoline Leavitt said President Trump could “be interested” in the idea of backing such legislation.
Rep. Dan Crenshaw (R-TX), who opposes stock trade bans, remarked last year, “So sure, why not? Don't let us trade stocks … How about we don't make any money either? Let's just cut our paycheck. We haven't got a pay raise since 2008.”

_INSIGHTS_

Insider trading in Congress may be one reason why Americans’ approval of Congress is sitting at just 31 percent. Ending the practice in Congress could help restore public confidence.

There are doubts the effort will succeed, as critics like Rep. Dan Crenshaw (R-TX) argue that trading helps non-wealthy members afford the high costs of holding office. Even Rep. Alexandria Ocasio-Cortez (D-NY) has suggested raising congressional salaries for that reason.

Even with Trump’s endorsement, a stock trading ban may stall, just like it did with Biden’s endorsement last year.

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sharon smith1 year ago

Martha Stewart spent some time in prison for a one-time excursion into insider trading! How come our Congress members can get away with it with no time served? The American people want to know and want this fixed!

Bonnie Hissom1 year ago

Good question.

Paul Fitch1 year ago

Take spome of those unused government buildings and convert them to luxury living quearters for our representatives and Senators. Then pay them just a per-diem for the days spent in DC. Election to Congress was originally a "sacrifice" to your fellow citizens to keep our government running, not a career and a way to untold riches.

L. C.1 year ago

Raise their paychecks a little, like the private sector. Install term limits so they can get back to their private jobs sooner. Remove the risk of insider trading and restore some trust in our political leaders. No whining by politicians who have far more than most of the people they serve.

Gail Custer1 year ago

Congress hasn't had a raise since 2008,BS, how many people do you know have a starting salary of $174,000 and the best health care and how many Congressman and women and Senators leave office as millionaires on the American taxpayers dollar along with all the perks from lobbyists and Pacs offer, they don't need the additional advantage of selling and buying stocks!

Larry Hemmert1 year ago

Congress and the senate need a 2 term limit. Birthright citizenship mandate. SCOTUS 8 years max. No libs. No dysphorics.

Maria Oxford 1 year ago

Yes Article 5! Convention of States is trying to get this passed! 1) term limits 2) limited federal government 3) balanced budget. 19bstates have signed on. We just need 34 States to call the Convention.

Jim Harmon1 year ago

One of the reasons term limits are reasonable is that the founders didn't envision congress would have jobs for life. Our congress is full of "professional" politicians with the expectation of life-time employment. It was never intended to be a role in which one could become millionaires despite a modest salary. Is it possible that congress hasn't had pay raise since 2008 is because none are having a hard time feeding their families like many of their constituents do? Not giving congress a pay raise is intended to make us grateful that they are working hard for little personal gain. I could support a pay raise for them if it wouldn't be a life-long benefit. TERM LIMITS! That could solve a lot of Congress's favorability.

Bonnie Hissom1 year ago

It makes more sense to give them a raise and end stock trading by elected officials. If it’s illegal for us, why not them? They deserve a raise. They do not deserve to leave office as multi millionaires.

Rich Henke1 year ago

Senator Crenshaw complained that they haven’t had a pay raise since 2008. I would suggest that they have not done anything in this century that would merit a pay raise.

Laney B1 year ago

Somebody needs to tell ole Nancy that there'll be no trailer hitch on her hearse.