Senators are trying to ban members of Congress from buying stocks

Jul 12

Ray Bogan Political Correspondent

By Ray Bogan (Political Correspondent)

Democrats and Republicans in the Senate joined forces in an effort to ban members of Congress from stock trading. The newly introduced Ethics Act would ban members of Congress, the president and vice president from buying or selling securities, commodities, futures, options, trusts and other investments immediately.

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Members would have to divest from those same assets starting in 2027. The bill would also cover lawmakers’ spouses and dependent children starting in 2027.

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Sens. Jeff Merkley, D-Ore., Josh Hawley, R-Mo., Gary Peters, D-Mich., and Jon Ossoff, D-Ga., introduced the bill.

“Across the state of Georgia, Democrats, independents, Republicans overwhelmingly agree that members of Congress should not be playing the stock market while we legislate and while we have access to confidential and privileged information,” Ossoff said. “This is long overdue, this is necessary.”

According to a poll from the University of Maryland, 86% of registered voters favor prohibiting members of Congress from stock trading. That includes Republicans, Democrats and Independents. Voters also favor the same prohibition for the president, vice president and Supreme Court justices.

The lawmakers who wrote this proposal say the manner in which members trade stocks is “corrupt.” They also say members take their stock portfolios into account when they write legislation.

Violations of the Ethics Act would carry a stiff penalty. If a member fails to divest, they will be subject to a fine of their monthly salary or 10% of the value of covered assets, whichever is greater.

“Congress should not be here to make a buck,” Hawley said. “Congress should be here to serve the people. There is no reason why members of Congress ought to be profiting off of the information that only they get and the rest of the American people don’t get.”

According to the Motley Fool, these are the five members who conducted the most trades in 2023, although they did not necessarily make the most money.

Rep. Ro Khanna, D-Calif.: 4,200 trades, 94 million shares.
Rep. Michael McCaul, R-Texas: 1,800 trades, 287 million shares.
Rep. Daniel Goldman, D-N.Y.: 1,300 trades, 30 million shares.
Rep. Josh Gottheimer, D-N.J.: 620 trades, 93 million shares.
Sen. Tommy Tuberville, R-Al.: 404 trades, 11 million shares.

Tags: Commodity Futures Trading Commission, House of Representatives, Insider Trading, Jeff Merkley, Josh Hawley, Maryland, Stock Market, Stocks, Supreme Court, U.S. Congress, U.S. Senate

Ray Bogan: Democrats and Republicans in the Senate joined forces in an effort to ban members of Congress from stock trading.

The newly introduced Ethics Act would ban members of Congress, the President and Vice President from buying or selling securities, commodities, futures, options, trusts, and other investments immediately. Members would have to divest from those same assets starting in 2027. The bill would also cover lawmaker’s spouses and dependent children starting that same year.

The bill was introduced by Senators Jeff Merkely, Josh Hawley, Gary Peters and Jon Ossoff.

Sen. Jon Ossoff: “Across the state of Georgia, Democrats, Independents, Republicans overwhelmingly agree that members of Congress should not be playing the stock market while we legislate and while we have access to confidential and privileged information. This is long overdue, this is necessary.”

Ray Bogan: According to a poll from the University of Maryland, 86% of registered voters favor prohibiting members of Congress from stock trading. That includes Republicans, Democrats and Independents. Voters also favor a prohibition for the President, Vice President and Supreme Court Justices.

The lawmakers who wrote this proposal say the manner in which members trade stocks is “corrupt”. They also say members take their stock portfolios into account when they write legislation.

Violations of the Ethics Act would carry a stiff penalty. If a member fails to divest they will be subject to a fine of their monthly salary or 10 percent of the value of covered assets, whichever is greater.

Sen. Josh Hawley: “It’s a tough bill – real penalties, real closure of loop holes. And it’s going to get a vote, the first time ever that a Senate committee will vote on this legislation ever, and it’ll happen this month.”

Ray Bogan: According to the Motley Fool, these are the five members who conducted the most trades in 2023, although they didn’t necessarily make the most money.

Democratic Congressman Ro Khanna conducted 4,200 trades at a volume of 94 million shares.

Republican Congressman Michael McCaul conducted more than 1,800 trades at a volume of 287 million shares.

New York Congressman Daniel Goldman made 1,300 trades at a volume of 30 million.

New Jersey Representative Josh Gottheimer made 620 trades at a volume of 93 million.

Senator Tommy Tuberville conducted 404 trades at a volume of 11 million.

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