Foster: End Insider Trading in Congress

Bill Foster calls on Rep. Judy Biggert and Republicans in Congress to ban insider trading practices by members of Congress

Naperville, IL –Bill Foster today called on Congresswoman Judy Biggert (R-IL) to support H.R.1148, the Stop Trading on Congressional Knowledge (STOCK) Act, which would ban insider trading practices by members of Congress. Last week, 60 Minutes showcased a report on potential insider trading by members of Congress. Following this report, a bipartisan coalition of more than 200 members of Congress has co-sponsored this legislation.

“Folks in Illinois are fed up with Congress, and Washington isn’t playing by the same rules as everyone else,” said Bill Foster, “We need to increase transparency, whether it’s for Wall Street or Congress, because using government information for personal gain is as offensive as it is wrong. This is especially important for senior members of the Financial Services Committee like Chairman Bachus and Chairwoman Biggert, who regularly have access to detailed non-public information of large financial firms.”

Background:

STOCK Act would put an end to insider trading in Congress: Amends the Securities Exchange Act of 1934 and the Commodity Exchange Act to direct both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to prohibit purchase or sale of either securities, security-based swaps, or commodities for future delivery or swap by a person in possession of material nonpublic information regarding pending or prospective legislative action if the information was obtained: (1) knowingly from a Member or employee of Congress, (2) by reason of being a Member or employee of Congress, and (3) other federal employees. (CRS Summary, accessed 12/8/2011)

STOCK Act has more than 200 co-sponsors in Congress: The bi-partisan coalition includes at least 10 members of the Illinois Congressional Delegation (CRS co-sponsor listing, accessed 12/8/2011)

Rep. Judy Biggert calls STOCK Act an “overreaction” (STOCK Act moves toward House floor – Buffalo News): A House committee chairman targeted in a “60 Minutes” report on insider trading among members of Congress agreed Tuesday to begin moving Rep. Louise M. Slaughter’s bill banning that practice toward the floor of the House. At a hearing on Slaughter’s STOCK Act, Rep. Spencer Bachus said the House Financial Services Committee—which he heads — would hold a mark-up and committee votes on the bill… “I hope we don’t overreact here” and pass legislation with overly onerous requirements for the reporting of financial trades, said Rep. Judy Biggert, (R-Ill). < http://www.buffalonews.com/city/capital-connection/washington/article663248.ece>

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