AOC And Matt Gaetz Team Up To Ban Stock Trading Among Lawmakers
Democratic and Republican legislators, including conservative firebrand Rep. Matt Gaetz(R-FL)and leftist rising star Rep. Alexandria Ocasio-Cortez(D-NY), have proposed a law that would prohibit members of Congress trading individual stocks.
In recent years, several prominent politicians have been accused of using their intimate information about upcoming regulations or economic turmoil to buy stocks at the right time and reduce losses through selling shares. The Bipartisan Restoring Trust in Government Act would prevent lawmakers, their spouses and dependents from buying individual stocks or derivatives.
In a statement, Rep. Brian Fitzpatrick, R-PA, another sponsor of this bill, stated that “the fact that members of both the Progressive Caucus and Freedom Caucus can find common ground in such a key issue should send a strong message to America.” We must work together on issues that unify us. This includes our belief that the government’s trust must be restored and that members, as well as their dependents, should not be allowed to trade stocks while serving in Congress or having access to sensitive inside information.
The federal pension system and qualified blind trusts, along with widely held investment funds or government securities would be allowed to continue holding assets by lawmakers.
This is just one of many legislative proposals that would ban lawmakers and their families from trading stocks. Sen. Josh Hawley, R-MO, introduced earlier this year the Preventing Eligible Leaders From Owning Securities and Investments (PELOSI) Act. Rep. Pramila Jayapal, D-WA, Rep. Matt Rosendale, R-MT, and Rep. Ken Buck, R-CO, introduced a similar measure two months ago.
“Members are Congress spend their time trading in futures rather than securing our fellow Americans’ future.” Gaetz stated that we cannot allow the Swamp’s priority to be investing in stocks rather than investing in our nation.
“We should not trade on classified information when members have access.” Ocasio Cortez stated that it’s as simple as that.
A number of politicians have executed stock trades in the last few weeks, amid the collapses of Silicon Valley Bank and Signature Bank. These three medium-sized banks imploded when account holders with deposits greater than the insured threshold tried to withdraw their money. According to a periodic report, Rep. Nicole Malliotakis, R-NY, purchased up to $15,000 of New York Community Bancorp stock, which acquired Signature Bank. This was just days after meeting with officials about the failure. According to a periodic transaction report, the wife of Rep. Earl Blumenauer of Oregon purchased up to $15,000 of Silicon Valley Bank and sold up to $15,000 of Bank of America or First Republic Bank.
According to an analysis by The New York Times published last year, 97 legislators or members of their immediate families bought or sold assets that were related to the work they did on legislative committees between 2019 and 2020. Paul Pelosi is an investor who was married to Nancy Pelosi. Elaine Chao served as Transportation Secretary for Mitch McConnell, the current Senate Minority leader.