Weakened Version of Congressional Insider Trading Ban Passes House

Feb 9, 2012 Issues: Financial Services
Press Contact: 
Joe Soldevere (212) 860-0606

Washington, D.C. – Today, U.S. Rep. Carolyn Maloney (D-Manhattan, Queens) spoke on the House floor regarding the Stop Trading on Congressional Knowledge (STOCK) Act, a measure cosponsored by Maloney and a bipartisan group of more than 270 House members.  Maloney voted for the measure, which passed the House by a vote of 417-2, but said that while the bill is “better than nothing,” it should not have been weakened behind closed doors by the Republican leadership.

“The need to ban insider trading by Members of Congress is obvious and I’m astonished it has taken so long for the House to act.  While this bill is better than nothing, the backroom dealing by House Republicans to weaken the bill is wrong and can only increase Americans’ frustration and cynicism about Congress,” Maloney said.  

“Allowing so-called ‘political intelligence’ insiders to not register as lobbyists leaves open a loophole that too many can continue to use to reap unfair profits.  This isn’t the legislation I co-sponsored, it isn’t the legislation the American public deserves, and the Majority’s version of this bill is a real missed opportunity.

“I hope and trust that once this bill reaches a House-Senate conference committee, it can be restored to its original strength.  Congress will be at a zero approval rating if the Republicans continue their refusal to do this right.”

The STOCK Act would prohibit Members of Congress and other federal employees from profiting on non-public information that they obtain through their official positions.  The Senate passed its version of the bill last week.  President Obama has said that he would sign the STOCK Act once it reaches his desk.