Bill Against Congressional Insider Trading Is Now Law
Matt | On 05, Apr 2012
President Obama recently signed a bill that will keep members of Congress and their staffs from fattening their pockets with secret information.
The Stop Trading on Congressional Knowledge Act, or STOCK, was signed into law on Wednesday after passage in the House and Senate in February and March, respectively. The law will bring parity between Congress and ordinary citizens.
Congressional representatives have access to troves of information containing details that affect stock prices of large and small companies. In any given day, they meet with constituents, lobbyists, government officials, and the like who can share sensitive information.
Now, Congressional representatives will be expressly forbidden from using that knowledge to buy/sell stock for their personal gain. Think about what sent media mogul Martha Stewart to jail back in 2004. It makes perfect sense. I’m surprised it’s just now a law.
The STOCK Act is scheduled to take effect in July.
ANSWER IN THE COMMENTS SECTION BELOW:
What do you think about the new STOCK Act to monitor the stock transactions of members of Congress?