THE CONGRESSIONAL KNOWLEDGE (STOCK) ACT, H.R. 1148, A STRONG STEP TO HOLD MEMBEERS OF CONGRESS ACCOUNTABLE

WASHINGTON, DEC. 6, 2011 – “Under current law, Members of Congress and their staff are not held legally accountable for any personal investment decisions made based on nonpublic information they obtain through their official positions,” said Rep. Cliff Stearns (R-Sixth).  “I believe that we should operate under the same rules as everyone else, and this bill prohibits insider trading by members and their staffs.”   

Stearns has joined in offering H.R. 1148, the STOCK Act, which would prohibit Members of Congress and federal employees from profiting from nonpublic information they receive.  In addition, it would require greater oversight of the growing “political intelligence” industry that can use nonpublic information to make financial transactions.

Added Stearns, “Members of Congress and their staff routinely receive information that could impact the financial markets negatively and positively in their official duties, including through TARP, the stimulus package, oversight and investigations procedures, continuing resolutions and budget resolutions, and even press conferences.  What would appear a normal procedure for Members of Congress often involves sensitive and discreet information.  Members of Congress and their staff must have a heightened awareness that this information is not to be used for their own financial gain.  Not only is it a conflict of interest and unethical, it would reflect poorly on Congress as an institution.”