Senate Mulls Insider Trading Laws For Politicians

The Senate Committee on Homeland Security and Governmental Affairs held a hearing today to discuss the adequacy of the laws that prevent members of Congress from engaging in insider trading.

Senator Kristen Gillibrand (D-NY) testified before the committee saying that the Stock Act would ensure that members of Congress, their staff or their family members from trading security based on information they receive from their Congressional Services.

Executive Director of Citizens for Responsibility and Ethic in Washington Melanie Sloan, says that the current laws don’t do enough and members have abused their power. She added that no members of Congress have been prosecuted for insider trading.

“We’ve seen and complained of numerous legislators abusing their positions to earmarks projects to increase the value of their personal real estate holdings, buy into companies that soon thereafter surged in value, urging agencies to actions to financially benefit themselves or other family members, and pushing through legislation in apparent exchange for campaign contributions. And finally even trading on insider information,” Sloan said.

To increase transparency Sen. Scott Brown (R-MA), who is the co-sponsor of Sen. Gilliabrand’s legislation,  advocated for a statue that would require members of Congress  to disclose documents regarding their investment portfolio.

Republican Presidential  hopeful Gov. Rick Perry (R-TX) issued a statement blasting Sen. Gillibrand’s effort to stop insider trading in Congress. 

“Senator Gillibrand’s bill pretends to address the problem but instead guts efforts to outlaw the abhorrent practice of congressional insider trading”, Perry said.