“This bipartisan legislation will ensure that members of Congress will be prosecuted if they abuse the public trust to gain financial advantage. Elected officials should play by the same rules as everyone else, and they should never use insider information to enrich themselves.

“This measure is a critical step toward restoring Americans’ faith in Congress, but we need to do more. We need to show Americans we can put partisan politics aside and solve our nation’s challenges together. We need to rebuild our economy, and find common-sense solutions that put Americans back to work. We need to bring fairness to our tax code, and ensure it is not rigged to let millionaires pay lower rates than their secretaries. Today’s bill was an important step in the right direction, and I hope we can continue moving forward in the months ahead.”

Legislation Set to Receive Key Vote This Evening in U.S. Senate  

Washington, DC—Today, U.S. Senators Kirsten Gillibrand (D-NY), Debbie Stabenow (D-MI), and Jon Tester (D-MT) urged support for the STOCK Act, which is set to receive a vote in the Senate this evening.  The STOCK Act bars insider trading by members of Congress and their staff.

“We need to take this common sense step to begin restoring the trust that’s been lost in our government,” said Senator Gillibrand, the first member of Congress to post her official daily schedule, all earmark requests and personal financial disclosure online. “The American people need to know that their elected leaders play by the exact same rules that they play by. They also deserve the right to know their lawmakers’ only interest is what’s best for the country, not their own financial interests. Members of Congress, their families and staff shouldn’t be able to gain personal profits from information they have access to that everyday middle class families don’t. It’s simply not right  — nobody should be above the rules.”

“This law makes crystal clear that Members of Congress must not be exempt from laws everyone else has to follow,” said Senator Stabenow. “Any Member of Congress abusing his or her position for personal financial gain must be held accountable. The Senate should overwhelmingly approve this bill this week, and the House should follow suit immediately.”

“The STOCK Act brings much-needed accountability to Congress and should be an easy lift,” said Senator Tester.  “I don’t care if you work on Wall Street or in Congress – you should not be using privileged information to enrich yourself.”

Fact Sheet: Stop Trading On Congressional Knowledge Act (STOCK Act)

The American people deserve to know their lawmakers’ only have one interest in mind: doing what’s best for the country, not their own financial interests. The STOCK Act is a common sense, bipartisan measure that clearly and explicitly prohibits insiders trading by members of Congress and their staff.  In addition, the bill strengthens disclosure laws so that members of Congress must report within 30 days when they buy or sell stocks, bonds or other securities, and must make that information available online for their constituents to see. 

The STOCK Act Clearly Prohibits Insider Trading in Congress.  Under the STOCK Act, members of Congress and their staff will explicitly be barred from buying or selling securities on the basis of non-public knowledge gained through their Congressional service – or from using that knowledge to tip off anyone else.  It is not true that Congress has exempted itself from insider trading laws.  However, some legal experts have questioned whether an insider trading case could be brought successfully against a Member because, they argue, it is not clear that members owe anyone a duty not to trade  material non-public information, in the same way that, for example, a corporate executive has a duty to the company’s shareholders.  The STOCK Act makes it clear that trading on non-public information would violate the duty of trust members of Congress and their staff owe their constituents by establishing a clear fiduciary responsibility. [Homeland Security and Government Affairs Committee, January 2012]

The STOCK Act Significantly Strengthens Disclosure Requirements. Currently, members of Congress annually disclose the purchase or sale of securities and commodities. The STOCK Act not only imposes a tough 30 day disclosure requirement, but also requires that the information is published online to ensure complete transparency and easy public access to the information. [Homeland Security and Government Affairs Committee, January 2012]

The STOCK Act Requires GAO To Investigate Role Of “Political Intelligence” Firms.  The STOCK Act requires the Government Accountability Office to investigate the role of “political intelligence” firms, which try to learn inside information from lawmakers and their staffs and sell that information along to private clients. [Homeland Security and Government Affairs Committee, January 2012]

House Republican Leaders Blocked the STOCK Act. Majority Leader Eric Cantor ordered Financial Services Committee Chairman Spencer Bachus to cancel a publicly announced mark-up of the STOCK Act in December. “Cantor delivered the cease-and-desist order on behalf of GOP leaders, other chairmen and rank-and-file lawmakers on both sides of the aisle who were concerned that Bachus could help give the bill life by having the committee approve it.” [Politico, 12/8/11; CNBC, 12/9/11]

Americans believe Congress is broken. And it’s no mystery why.

Political divisions in this chamber are so great they often prevent the Senate from performing even its most fundamental duties.

The divisions are so great they have prevented this body from confirming presidential nominees – our constitutional obligation.

These days, it’s no longer enough to be a qualified nominee.

It’s no longer enough to have bipartisan support.

And in the case of judicial nominees, it’s no longer enough to be reported unanimously out of committee.

Last year, my Republican colleagues blocked or delayed scores of outstanding nominees. Why? Because they want to defeat President Obama, who made those nominations. That’s their number one goal.

And at the end of last year, Republicans refused to allow votes on 16 judicial nominees who were reported out of committee unanimously.

Unfortunately, this year may bring more of the same. Already this year, some Republicans have gone to the floor and threatened to drag out the confirmation process for every nominee for the rest of the year.

This Republican obstructionism is supposedly retribution for President Obama’s recess appointment of Richard Cordray – an eminently qualified nominee – to head the Consumer Financial Protection Bureau.

With a qualified leader at the helm, the Bureau will be able to effectively protect middle class families from the greed and excess of big Wall Street banks.

It will not impact smaller financial services firms that help Americans who don’t use banks. And it will not impact banks that deal fairly with consumers.

But it will serve as a watchdog against the kinds of abuses that nearly collapsed our financial system in 2008.

President Obama’s right to recess appoint Mr. Cordray is protected in the Constitution.

President Bush had the same right to make recess appointments – even though Democrats kept the Senate in pro forma session.

Bush didn’t exercise that right – or challenge the pro forma sessions in court – because Democrats worked with him to confirm hundreds of his nominees.

Unfortunately, Republicans have refused to work with President Obama as Democrats worked with President Bush.

Instead they are threatening political payback and more delays.

This brand of obstructionism is the reason Americans are disillusioned with Congress. They believe Congress can’t get anything done.

It will take collaboration between Democrats and Republicans to turn that perception around.

We should show the American people that with cooperation between our two parties, this body can accomplish great things.

I am glad to see that spirit of cooperation is alive as we move forward with the STOCK Act.

Members of Congress and their staffers have a duty to the American people. They may not use privileged information they get on the job to personally profit.

But the perception remains that members of Congress are using their positions as public servants to serve themselves instead.

Insider trading laws were created to level the playing field. And members of Congress are not above the law.

We must play by the same rules every other American plays by.

The STOCK Act will clear up any perception that it is acceptable for members of Congress to profit from insider trading. And it will end any confusion over whether members of Congress can be prosecuted for this serious crime – they can be.

Colleagues from both parties have expressed support for this common-sense proposal. So I am disappointed that Republicans chose to filibuster this legislation, which should be passed without delay.