Cohen Cosponsors STOCK Act
WASHINGTON, D.C. – Congressman Steve Cohen (D-TN-9) recently cosponsored the bipartisan Stop Trading on Congressional Knowledge (STOCK) Act (H.R. 1148), which would prohibit commodities and securities trading based on nonpublic information relating to Congress and require additional reporting by members and employees of Congress of securities transactions. This week, ‘60 Minutes’ aired a report saying some lawmakers – including House Speaker John Boehner -- purchased stock in companies while involved in debates on Capitol Hill about bills that would affect those companies.
“Members of Congress should not benefit from inside information on trading,” said Congressman Cohen, who was the eighth member to sign onto the measure. “Taking advantage of inside information is a deplorable betrayal of the public trust. The STOCK Act would restore the public’s trust in Congress and prevent any member of Congress or their staff from insider trading.”
The Stop Trading on Congressional Knowledge Act amends the Securities Exchange Act of 1934 and the Commodity Exchange Act to direct both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to prohibit purchase or sale of either securities, security-based swaps, or commodities for future delivery or swap by a person in possession of material nonpublic information regarding pending or prospective legislative action if the information was obtained: (1) knowingly from a Member or employee of Congress, (2) by reason of being a Member or employee of Congress, and (3) other federal employees.
The measure amends the Code of Official Conduct of the Rules of the House of Representatives to prohibit certain House personnel from disclosing material nonpublic information relating to any pending or prospective legislative action relating to either securities of a publicly-traded company or a commodity if such personnel has reason to believe that the information will be used to buy or sell the securities or commodity based on such information.
The bill also directs both the Committee on Agriculture and the Committee on Financial Services of the House of Representatives to hold hearings on the implementation by the CFTC and the SEC of such financial transaction prohibitions and amends the Ethics in Government Act of 1978 to require formal disclosure of certain securities and commodities futures transactions to either the Clerk of the House of Representatives or the Secretary of the Senate.
Finally, the STOCK Act amends the Lobbying Disclosure Act of 1995 to subject to its registration, reporting, and disclosure requirements, as well as requirements for identification of clients and covered legislative and executive officials, all political intelligence activities, contacts, firms, and consultants and requires the Comptroller General to include political intelligence activities, contacts, firms, and consultants in its annual compliance audits and reports.
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