As Congress faces intensifying scrutiny over the stock trading activities of its members, bipartisan efforts are underway to tackle what has become a glaring ethics concern. The spotlight on stock trading profits and the ethics of such activities has spurred legislative initiatives aimed at restoring public trust in the integrity of elected officials.
The narrative is one of paradox and public disillusionment. Reports indicate that members of Congress and their spouses have garnered immense stock market gains, with some outperforming the market in eyebrow-raising fashion. Rep. Brian Higgins (D-NY) has boasted returns of 238%, while Rep. Mark Green (R-TN) has enjoyed gains of 122.2%. Former Speaker Nancy Pelosi, too, has seen a 65% return on her investments, dwarfing the S&P 500’s 24% gain. Amid these revelations, the public is increasingly clamoring for ethical reform, with a staggering86% supporting a ban on stock trading by Congress members.
The legislative response has been embodied in the proposed Ending Trading and Holdings in Congressional Stocks (ETHICS) Act. This comprehensive bill would prohibit members of Congress, along with their spouses and dependent children, from owning or trading in securities, commodities, or futures, thus eliminating any suspicion of financial gains stemming from privileged information or positions of power. Senator Sherrod Brown (D-OH), a champion of the ETHICS Act, frames the issue as one of service to the taxpayer over personal enrichment. He affirms, “Members of Congress should serve the taxpaying public, not their own bottom lines.”
The movement to constrain lawmakers’ stock market ventures is also echoed in the bipartisan Ban Stock Trading for Government Officials Act, introduced by Senators Kirsten Gillibrand (D-NY) and Josh Hawley (R-MO). With penalties amounting to at least 10% of the value of prohibited investments, this bill aims to ensure that those in power do not profit at the expense of the American public. Gillibrand emphasizes the critical need for the public to know that their elected leaders are prioritizing the public’s interest.
Despite the groundswell of support for such legislation, the STOCK Act of 2012, initially designed to curb the use of insider information, has been criticized for its lack of teeth, most notably for its nominal $200 fine which many view as insufficient to deter unethical behavior. This is compounded by reports of widespread non-compliance across government branches, with little consequence for those who flout the rules.
The National Taxpayers Union has lauded the ETHICS Act as a “No-Brainer,” highlighting the potential for these reforms to restore confidence in federal officials and assuage concerns over conflicts of interest. Moreover, the Act would curtail the prevalent practice of stock trading, which unites members across party lines but sows seeds of public distrust.
Relevant articles:
– Ban it already: Lawmakers made $1 billion from stock deals last year
– National Taxpayers Union Names Two of Brown’s Bills as “No Brainers,” Urges Congress to Pass the Legislation, Senator Sherrod Brown, Mon, 04 Dec 2023 08:00:00 GMT
– Even Congress thinks its members should stop playing the stock market, Vox.com, Fri, 21 Jul 2023 07:00:00 GMT
– Public Interest or Private Gain? Stock Trading Across the Federal Government, Campaign Legal Center, Wed, 03 May 2023 07:00:00 GMT