Officially bans insider trading by Members of Congress

Washington, D.C.- Today Congressman Howard “Buck” McKeon voted to approve an amendment to S. 2038, the Stop Trading on Congressional Knowledge Act of 2012.  The legislation passed by an overwhelming bi-partisan vote of 417-2.  The bill would make clear that Members of Congress, Congressional employees, and executive and judicial branch employees are prohibited from using nonpublic information for private profit.  The bill also would amend the Congressional Accountability Act of 1995 and the Ethics in Government Act and would require the Senate and the House of Representatives to implement an electronic filing system for financial disclosure forms, as well as provide the public with on-line access to that information in a searchable database.  In addition, the legislation would require a more timely reporting of certain financial transactions by Members of Congress, Congressional employees, and executive and judicial branch officials and employees.  While insider trading is already prohibited by law, this bill further strengthens and codifies the regulations governing financial transactions made by government officials.

“The American people have grown weary of Washington because they have come to believe that Washington operates on a different set of rules than those of American families and businesses.  I believe that elected officials have a duty to make sure that they honor the office entrusted to them by their constituents and operate with the utmost fairness and transparency.  It is unacceptable for elected officials to ever gain personal or financial profit from information they obtain in their official capacity.  Elected officials and the federal government must operate under the same set of rules as the public.” 

The House amendment strengthens the Senate’s STOCK Act, expands the scope of the bill to require more financial disclosures by government employees, and ensures that the law is workable and meets the goal of preventing those who hold public office, and their staff, from profiting from insider information.