CARDIN VOTES FOR FINAL PASSAGE OF BILL TO MAKE CONGRESSIONAL INSIDER TRADING ILLEGAL
Bill Prohibits Insider Trading by Members of Congress, Executive Branch, and Judicial Branch Officials
WASHINGTON -- U.S. Senator Ben Cardin (D-MD) today praised final Senate passage of Stop Trading on Congressional Knowledge Act (STOCK Act), S. 2038. In November, Senator Cardin co-sponsored an initial version of the legislation, which prohibits federal lawmakers and their staff from trading stocks based on nonpublic information they have obtained in the course of their congressional work as a means for making a private profit. President Obama has said he will sign the bill.
The legislation the Senate passed today, which the House has also passed, would prohibit Members of Congress, their staff, and executive and judicial branch employees from using information obtained through the course of their official duties as the basis for buying and selling stocks. It would amend existing financial disclosure rules to require Members and staff to report the purchase or sale of stocks, bonds, commodities and other investments within 30 days of the transactions. It also would direct the Ethics Committees of both chambers to issue guidance clarifying that lawmakers and staffers may not use non-public information gained in their positions to make “private profits.”
“This law makes clear that trading on ‘insider information’ will not be tolerated,” said Senator Cardin. “I welcome final passage of this bill. The American people must have confidence that members of Congress and public servants will not use their positions of trust for personal financial gain.”