Senators have officially introduced a new bipartisan bill to ban Congress from trading stocks.
The bill aims would affect senior executive branch officials, their spouses, as well as their dependents.
The Ban Stock Trading for Government Officials Act bans stock trading, stock ownership, blind trusts, imposes heavy penalties for executive branch stock trading; requires reporting of federal benefits; creates additional transparency in financial disclosure reports; and increases transaction report penalties under the original STOCK Act.
The bill represents the most substantive bipartisan effort to date to ban stock trading by members of Congress, said the press release on Wednesday.
“Sunlight is the best disinfectant. 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 Senator Gillibrand.
“The landmark Ban Stock Trading for Government Officials Act bars members of Congress, executive branch officials and their families from holding or trading stocks, increases disclosure requirements and imposes harsh penalties on violators.
This bill is the most substantive bipartisan effort to date and I’m going to work hard alongside Senator Hawley to get it signed into law.”
“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,” said Senator Hawley.
“My bill with Senator Gillibrand is common sense: ban elected and executive branch officials from trading or holding stocks, and put the American public first.”
Here is how the bill is being broken down:
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Bans Stock Trading and Blind Trusts
- Prohibits members of Congress, the president, vice president, senior executive branch members, and their spouses and dependents from holding or trading stocks.
- There is no exception for blind trusts.
- For members of Congress, failure to comply means a heavy penalty of at least 10 percent of the value of the prohibited investments.
Imposes heavy penalties for executive branch stock trading
- Executive branch officials must disgorge profits from covered financial interests to Treasury.
- Automatic Special Counsel fine of not less than the value of the covered investment that was purchased or sold in violation of the ban or up to $10,000, whichever is more.
- The Office of Special Counsel may refer the case to the attorney general and recommend additional civil action if the case is “comparatively substantial in monetary value or extraordinary in nature.”
Requires reporting of federal benefits
- Requires members of Congress, senior congressional staff, the president, vice president, and senior executive branch employees to report any time they, a spouse, or a dependent applies for or receives a benefit of value from the federal government.
- This includes loans, agreements, contracts, grants, and payments. It does not include salary, compensation or tax refunds.
- It would require reporting that includes payment type, recipient name, date and amount.
- A penalty of $500 would be imposed for failure to file.
Creates transparency in financial disclosure reports
- Requires public, searchable databases of personal financial disclosure reports and filings reporting of any financial transactions as required by the STOCK Act.
Increases STOCK Act transaction report penalties
- Increases penalty ($200 to $500) for failing to file STOCK Act transaction reports.
“Senator Hawley has introduced multiple pieces of legislation aimed at transparency and accountability for elected officials and civil servants.
In January, Senator Hawley re-introduced his bill to ban lawmakers from stock trading.
In March, he introduced legislation to ban senior executive branch officials from trading or holding individuals stocks – which Biden Energy Secretary Granholm later expressed support for.”
But I’m curious to know what you think about this – leave your thoughts in the comment section down below.
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