Finance

Senate Passes Lawmaker Insider Trading Ban

WASHINGTON (AP) — Sagging approval ratings brought Democrats and Republicans together Thursday, as the Senate passed a bill to explicitly prevent members of Congress, their top aides and administration officials from using non-public information for insider trading. New disclosure requirements will require public reports online within 30 days of buying and selling stock.

The 96-3 vote sent the bill to the House, where Majority Leader Eric Cantor said the legislation would be considered next week.

Senators in both parties acknowledged the purpose of the legislation was to help dig members of Congress out from poll approval ratings that have fallen to the teens after a year of excessive partisanship pervading almost every issue before Congress.

“When polls show low public confidence in Congress, there is a strong desire to address the concerns that underpin the public’s skepticism,” said Sen. Susan Collins, R-Maine, one of the bill’s managers.

President Barack Obama praised the Senate and said he’s ready to sign a bill known as the STOCK Act, which stands for Stop Trading on Congressional Knowledge.

“No one should be able to trade stocks based on nonpublic information gleaned on Capitol Hill,” the president said. “So I’m pleased the Senate took bipartisan action to pass the STOCK Act. I urge the House of Representatives to pass this bill, and I will sign it right away.”

Obama said still more ethics restrictions were needed, “like prohibiting elected officials from owning stocks in industries they impact.”

Several amendments were added to the bill before final passage.

Sen. Richard Shelby, R-Ala., won an amendment to include the 28,000 government workers in the executive branch in the bill, saying it would create a level playing field with the requirements for Congress. But the same amendment included conflicting language by Sen. Joseph Lieberman, I-Conn., that would apply to only 2,000 top policymakers – including the president, vice president and members of the Federal Reserve Board.

A House-Senate conference will have to reconcile those two measures.

Sen. Charles Grassley, R-Iowa, successfully added language that would require “political intelligence” operatives to register and disclose affiliations, the same as lobbyists. These individuals are hired by stock traders to obtain useful information from members of Congress and their staffs.

Sens. Barbara Boxer, D-Calif., chairwoman of the Senate’s ethics committee and senior committee Republican Johnny Isakson of Georgia, won an amendment that would force disclosure of all residential mortgages – by members of Congress, the president, the vice president and most Senate-confirmed appointees. Currently senators are not required to list all mortgages.

The Securities and Exchange Commission said laws prohibiting trading on inside, non-public information clearly cover members of Congress. In 2005, the SEC investigated then-Senate Majority Leader Bill Frist of Tennessee concerning his divestiture of stock in the family‘s hospital company days before its price fell on an analyst’s forecast. Frist was not charged with wrongdoing.

To a large extent, Congress is reacting to a segment on CBS’ “60 Minutes” that raised questions about stock trades by House Speaker John Boehner, the husband of House Democratic leader Nancy Pelosi and Rep. Spencer Bachus, R-Ala., chairman of the Financial Services Committee. All have denied wrongdoing and denounced the network’s story.

Republicans insisted on including top government officials outside the Congress in the bill even though they also are covered by insider trading and face tougher conflict-of-interest restrictions than members of Congress. In some cases, executive branch officials are required to divest themselves of stock holdings that pose a conflict. Lawmakers don’t have to do that and the Senate bill would not require it.

In addition to the 30-day online reporting requirement, the Senate would have to join the House in posting members’ annual financial disclosure statements online instead of making only paper copies available on request.

Sen. Rand Paul, R-Ky., proposed wiping out the entire bill and substituting a simple certification by senators each year that they did not participate in insider trading. It was defeated, with 37 senators voting “yes” and 61 opposed.

Voting against the bill were Sens. Jeff Bingaman, D-N.M. and two Republicans: Tom Coburn of Oklahoma and Richard Burr of North Carolina.

Comments (57)

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  • florida123
    Posted on February 3, 2012 at 7:23am

    Sounds good on paper but doubting it has teeth what so ever!!! The Wolves are Never the best choice to guard the Hen house……………

    Report Post » florida123  
    • smithclar3nc3
      Posted on February 3, 2012 at 8:07am

      No ones buying that crap they are now just going to funnel information to lobbist groups with guarantees of campaign finanaces .

      Report Post »  
    • MCDAVE
      Posted on February 3, 2012 at 8:01pm

      When are they going to put themselves in jail? insider trading has always been illegal even for them….What about the honest people who have been damaged by there illegal activities…I despise these people in congress,they don’t care about us..They have sold our country down the drain

      Report Post »  
    • MCDAVE
      Posted on February 3, 2012 at 8:11pm

      For all North Carolina voters Kay Hagen doesn’t care About our businesses struggling to survive…She just occupies a seat in congress to vote yes for anything Obummer wants…Her voting record is disgusting

      Report Post »  
  • Baddoggy
    Posted on February 3, 2012 at 5:13am

    Here Kiddies is your funny line for today…
    “Government ethics committee”

    Report Post » Baddoggy  
  • Matt
    Posted on February 3, 2012 at 2:04am

    HANG ON!!! This is some ********! A law like this didnt already exist? You mean businessmen like me have been putting up with these stupid insider trading laws that dont prevent anything and, in fact, create a great deal more instability and risk in the market for YEARS and Congress has been going on its merry way doing this **** all the time????? WOW!!! I think the next law we should pass is to make it illegal to be a politician. Penalty, we send you to Somalia permanently…except for Ron Paul…well keep him. But the rest of you, Walk the plank you dogs!!!!

    Report Post »  
    • tmbell87
      Posted on February 3, 2012 at 9:35am

      @Matt, I’m glad you decided to stop taking the blue pill.

      Report Post »  
  • Lambo
    Posted on February 3, 2012 at 1:25am

    oh goodie!! What is next? Are they going to pass a law saying that it is against the law to break the law? That one might be worth floor time. Also who are the 3 idiots that didn’t vote “Yes” for this…why would they be against it?? maybe we should look into their investments. haha

    Report Post »  
    • reform
      Posted on February 3, 2012 at 5:08am

      Notice all the amendments should be a simple Bill no inside trading by anybody no exclusions period!!

      Report Post »  
  • abbygirl1994
    Posted on February 2, 2012 at 11:21pm

    Smoke and mirrors, Frankly I don’t believe a word either side says. We must be ever vigilant and still vote all these twits out!

    Report Post » abbygirl1994  
    • richard the lion-hearted
      Posted on February 3, 2012 at 1:27am

      I‘d like to see just how many ’quick’ deals were made before that vote, they’ve already sliced up the pie anyhow sooo, too little too late, or did they forget it’s because of their evil and greed that the country is already ruined…

      Report Post » richard the lion-hearted  
  • barbiegirl ny
    Posted on February 2, 2012 at 11:18pm

    Allow me to indulge for a moment….can a ban on voting for their own raises be far behind? How ’bout a vote for term limits? Nah, didn’t think so. The most corrupt in this country are not in our prison system, but running this government. Creating another law will only mean one more law to be broken with no accountability. I’m still waiting for the Maxine Waters trial; and still reeling from that awful bitch-slapping they gave Charlie Rangel for writing the very tax code that got him in “trouble” (wink, wink).

    Report Post »  
    • oldguy49
      Posted on February 2, 2012 at 11:25pm

      how about this……….just follow the same laws like the rest of us do!!!!!!!

      Report Post »  
    • JohnofOregon
      Posted on February 3, 2012 at 1:12am

      I just read the bill. I am quite proficiant in politicoese. This bill is a F——- joke. It does not restrict spouse, buisness parters, investment partners, relations to staff, contract employees, children, domestic partners, invest accounts ect, ect………you know, all the rules that normal americans follow. yes folks did absolutely f——- nothing. the penelties that they will get is ……….drum roll………..

      what ever the ethics comittee does behind closed doors.

      Oh and I forgot. YOUR BLIND TRUST IS NON REVIEWABLE and EXEMPT

      democans and republicrats have united against stupid ass surfs

      Report Post »  
  • lel2007
    Posted on February 2, 2012 at 11:17pm

    So now our government representatives are no longer exempted from insider trading laws that apply to everyone else?

    Report Post » lel2007  
    • JohnofOregon
      Posted on February 3, 2012 at 1:15am

      they will still be exempt. this is smoke and mirrors. tonight those ass ****s are drinking at the club by the canon building with the press laughing at us stupid americans.

      Report Post »  
  • Delores at CH WV
    Posted on February 2, 2012 at 10:20pm

    Holy Batman, I am shaking my head on this one. Harry Reid passing a bill in the Senate before the House votes on their bill. Why? There is something hidden in this bill that we haven’t been told. Obama is ready to get his pen ready for this one. Why? For some reason, I think this bill has a hidden agenda and we are only getting to see the good parts to read about tonight. Then, we will ignore the bill; and, we will only find out the bad stuff when the Ink has dried. It’s like this with me, “Old dogs don’t change their tricks!”

    Report Post »  
    • cnsrvtvj
      Posted on February 2, 2012 at 11:21pm

      It’s actually not even hidden. The bill allows for the spouses, friends, and family members of the politician to still benefit from the inside information. The only change is that it can’t be in the politicians own name. This is how bold these people have gotten.
      http://www.youtube.com/watch?v=kzy7c0JUWEA

      Report Post » cnsrvtvj  
    • oldguy49
      Posted on February 2, 2012 at 11:25pm

      election year

      Report Post »  
  • kindling
    Posted on February 2, 2012 at 10:17pm

    I can’t wait to learn what Nancy does about this. How is she going to keep making so much money if she can’t buy and sell stock on insider information. It would be much better if they made all of them give back what they got illegally, at least for the rest of us.

    Report Post » kindling  
    • Gonzo
      Posted on February 3, 2012 at 7:47am

      This won’t change a thing. They will have all figured out a way around it in about a week.

      Report Post » Gonzo  
    • LadyLibertykicksASS
      Posted on February 3, 2012 at 12:03pm

      Poor Nancy, How will she ever be able to afford to have her face lifted, again. She might have to stay at the Howard Johnson’s Hotel in Hawaii…….oh, the Pain !!!

      Report Post »  
  • smalldog
    Posted on February 2, 2012 at 10:07pm

    “Dark Pools: The Menace Of Rising Opacity In Financial Markets”

    “Dark pools are a private or alternative trading system that allows participants to transact without displaying quotes publicly. Orders are anonymously matched and not reported to any entity, even the regulators (Younglai and Spicer 2009). Thus, the mainstream exchange-traded market does not have any clue about the volume of transactions happening in this parallel market or the prices at which they are being executed. Obviously, price discovery on the mainstream market, without dark pools information, becomes inefficient. Moreover, transactions carried out in dark pools effectively become over-the-counter in nature as the prices are not reported and financial risks not effectively managed. More critically, these risks can spread like wild fire as we saw in collateralised debt obligations and credit default swaps markets.”
    http://www.forbes.com/sites/davos/2010/05/22/dark-pools-the-menace-of-rising-opacity-in-financial-markets/

    Report Post »  
  • smalldog
    Posted on February 2, 2012 at 10:05pm

    Laughable? A diversion?

    What of the ‘dark pool’ trades? All those trades that are never reported? Anonymous?

    I recall that the public trading is just the tip of the iceberg and that it doesn’t seem to follow the hidden trading by large hedge funds and other trading entities.

    Report Post »  
  • Jenny Lind
    Posted on February 2, 2012 at 10:02pm

    Day late, doller short, Should never have legal in the first place. Now on to health care, what we get, they get.

    Report Post »  
  • Mateytwo Barreett
    Posted on February 2, 2012 at 10:01pm

    Way to Go! Great acheivment! Good deal! Not about this subsection that excludes responsibility for transferig such insideinformation to their chief-of-staff, broker, business partner. Oh, I understand, thats just your standard disclaimer to avoid personal prosecution in case, for some strange coincidence there is still an indirect gain by you or your immediate family. Nuthin’ to worry about, just legalese. . . Lyin’ Bagstards!

    Report Post » Mateytwo Barreett  
  • Ronko
    Posted on February 2, 2012 at 9:57pm

    The Rand Paul vote is so telling, it’s laughable. These Senators don’t care, they are just doing this to save face but I’m not falling for it.

    Report Post »  
  • sbenard
    Posted on February 2, 2012 at 9:53pm

    This will impoverish the whole lot of ‘em! Perhaps this will persuade them to go back home and stay there!

    Report Post » sbenard  
  • gemmeri
    Posted on February 2, 2012 at 9:34pm

    Personally, I think it‘s too late for that move because they’ve already trashed the economy. What about the other ‘inside deals’ ? How about the people approve any expenditures, including government salaries? As far as I can see, they have no more money so they need to go home now without pay or benefits. Of course, all those countries they borrowed money from are going to want those funds back & I think we should tell all their secret police where all these politicians live so they can go collect in person. After all, we want to appear cooperative with the rest of the world when they ask for an accounting, don’t we?

    Report Post »  
    • GeorgieJo
      Posted on February 2, 2012 at 9:38pm

      Oh Goody Congress DID SOMETHING
      Right after they MADE ALL their MONEY

      Pathetic!!!!
      As We drown in debt and regulations—-they eat stock/MONEY cake

      OMG in 2012

      Report Post »  
    • cnsrvtvj
      Posted on February 2, 2012 at 9:51pm

      Not to mention that this law really does absolutely nothing to stop the process. It doesn’t apply to spouses, friends, or family memebers of the poilitician. This is the biggest snow job in history.
      http://www.youtube.com/watch?v=kzy7c0JUWEA

      Report Post » cnsrvtvj  
  • theninthplanet
    Posted on February 2, 2012 at 9:29pm

    Yeah! We’re going to make these misdemeanors!

    Like a congressperson gives a rats a$s about a misdemeanor, the Constitution they respect so much protects them from that.

    Report Post » theninthplanet  
    • Teaparty-grammy
      Posted on February 2, 2012 at 9:40pm

      Yeah, well, the Constitution never told them to vote themselves exemption from the laws they pass to affect the rest of us. They have put themselves above the law–a ruling aristocracy, not subject to the same rules as the common rabble. There are people sitting in jail at this moment for doing what these people do on a daily basis–enriching themselves by trading on insider information. This corruption and perversion of our government by these ehtically-challenged weasels needs to stop! Does ANYBODY believe this bill would have even seen the light of day, if this were not an election year?

      Report Post » Teaparty-grammy  
  • JJBlazeReader
    Posted on February 2, 2012 at 9:24pm

    ..
    This does not solve the problem. How about the land deals they enrich themselves with, what about crony capitalism? How do you think George Soros and Warren Buffet made their money, through insider information

    Everyone should read the book “Throw Them All Out” by Peter Schweizer.
    ..

    Report Post » JJBlazeReader  
  • vtxphantom
    Posted on February 2, 2012 at 9:09pm

    Where is the budget? It’s been over a thousand days, slackers!

    Report Post »  
    • TXPilot
      Posted on February 2, 2012 at 9:13pm

      Does anyone out there really think this is going to stop our greedy, treasonous politicians from lining their pockets?…..I think not.

      Report Post » TXPilot  
    • booger71
      Posted on February 2, 2012 at 9:35pm

      Like all bills they have written for them by lobbyists no less, it will be full of loopholes for themselves.

      Report Post » booger71  
  • NOBALONEY
    Posted on February 2, 2012 at 9:09pm

    To bad it isn’t retroactive.

    Report Post » NOBALONEY  
  • dealer@678
    Posted on February 2, 2012 at 9:06pm

    They’ll get around the law by passing information to family members

    Report Post »  
  • Razorhunters
    Posted on February 2, 2012 at 9:04pm

    So;…

    What about pelosi and the rest of the Criminal sobs that have profited from insider trading in the past…?
    We all know who …If not we can find out dam quick.

    Be happy to bring a rope…

    Report Post » Razorhunters  
    • MCDAVE
      Posted on February 3, 2012 at 8:28pm

      Spot on…We can’t have our country until the criminal politicians are bought to justice..I have seen the damage they have done…They are living like kings while millions suffer the consequences of there crimes..

      Report Post »  
  • godhatesacoward
    Posted on February 2, 2012 at 9:04pm

    If we can‘t they can’t. Simple as that.

    Report Post » godhatesacoward  
  • nobull14
    Posted on February 2, 2012 at 9:03pm

    Too little too late!!!!!!!!!

    Report Post »  
  • Bonnieblue2A
    Posted on February 2, 2012 at 9:02pm

    It would seem much easier to simply state: Congress may not exempt itself, any members of the executive or judicial branches, nor any employees of the federal government, from any of the laws it passes, nor may the President through use of Executive Orders.

    Report Post »  
    • Razorhunters
      Posted on February 2, 2012 at 9:05pm

      Right on the Money…

      Report Post » Razorhunters  
    • Mr Sanders
      Posted on February 2, 2012 at 9:18pm

      Simple. To the point. Completely understandable and know the boundaries thereof.

      Somebody in Congress – catch a clue – give this person a job!!

      It is a little too late though – the Treasury has been raided & the money/investment (Porkulus) has already been dolled out.

      Report Post » Mr Sanders  
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