Friday, February 10, 2012
Luján Votes to Reform Washington by Strengthening Rules Against Insider Trading
Congressman Ben Ray Luján of New Mexico’s Third District voted today in support of legislation to strengthen rules against insider trading by Members of Congress, congressional staff, executive branch officials, and judicial officers.
“This commonsense legislation makes it clear that Members of Congress and their staff must play by the same rules as everyone else,” Congressman Luján said. “The American people need to know that their elected official will be looking out for the interests of our country and our communities, not their own bottom line. Unfortunately, House Republican leaders took out bipartisan provisions that were added by the U.S. Senate to help prosecute criminal conduct by public officials. I am hopeful that when the differences between the House and Senate versions are worked out, this important provision will make it in the final bill.”
The Stop Trading on Congressional Knowledge (STOCK) Act prohibits members of Congress from trading stocks and other securities on the basis of confidential information they obtain as lawmakers. It makes it clear that they are not exempt from the federal law and regulations that ban such insider trading. Members of Congress will be required to disclose the purchase or sale of stocks, bonds, commodities futures, and other securities within 30 days of notification of the transaction. Similar disclosure requirements would also apply to many federal employees in the legislative, judicial, and executive branches, including the White House, cabinet departments, and independent agencies.
House Republican leaders dropped a provision from the Senate version of the STOCK Act and one that passed unanimously by the House Judiciary Committee that would give prosecutors tools to identify, investigate, and prosecute criminal conduct by public officials. The bill now moves to a conference committee to work out differences between the House and Senate versions.