Bipartisan senators unveiling measure to ban stock ownership by lawmakers, administration officials
A bipartisan pair of senators unveiled a bill Wednesday to ban stock ownership by lawmakers and administration officials, in what they are calling the “most substantial bipartisan effort to ban stock trading.”
The bill, introduced by Sens. Kirsten Gillibrand (D-N.Y.) and Josh Hawley, (R-M.O. would establish firmer stock trading bans and disclosure requirements for lawmakers, senior executive branch officials and their spouses and dependents.
The Bank Stock Trading for Government Officials Act is the latest bipartisan effort to enact a stock trading ban for members of Congress, an issue that has been pushed for in the past few cycles of Congress.
The Wall Street Journal was the first to report the legislation introduced by Gillibrand and Hawley.
“It is critical that the American people know that their elected leaders are putting the public first – not looking for ways to line their own pockets,” said Gillibrand in a statement.
The bill would ban Congressional members, the president, vice president, senior executive branch members, and their spouses and dependents from holding or trading stocks, with no exception to blind trusts. Congressional members who violate this ban would be required to pay at least 10 percent of the banned investments.
“Politicians and civil servants shouldn’t spend their time day-trading and trying to make a profit at the expense of the American public, but that’s exactly what so many are doing,” Hawley said.
The legislation also establishes harsh penalties for executive branch stock trading, requiring executive branch officials to give up profits from covered finance interests to the Department of Treasury, while also facing a fine from the Automatic Special Counsel.
Congressional members, senior Congressional staff, and senior executive branch employees would also be required to report if they, a spouse or a dependent applies for or receives a “benefit of value” from the federal government, including loans, contracts, grants, agreements, and payments. If they fail to file, they will face a $500 penalty.
The bill aims to increase transparency, requiring public databases of personal financial disclosures and financial transaction filings required by the STOCK Act, which prohibits members of Congress from using insider information when buying and selling stocks. The penalty for the failing to file STOCK Act transaction reports would also increase from $200 to $500.
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