Stop Trading on Congressional Knowledge Act of 2012
Floor Speech
BREAK IN TRANSCRIPT
Mrs. GILLIBRAND. Mr. President, we have an incredibly important opportunity to do something so basic, so commonsense to begin restoring the faith and trust that the American people have in this institution. We have a responsibility to do it right, to show without question, without any ambiguity, that all Members of Congress, their staffs, and Federal employees play by the exact same rules as everyday Americans.
The American people deserve to know their lawmakers' only interest is in what is best for the country, not their financial interest. Members of Congress, their families, their staffs, and Federal employees should not be able to gain any personal profit from information they have access to that ordinary Americans do not--whether it is trading stock or making inside real estate deals. It is simply not right. Nobody should be above the rules.
The commonsense bill before us would finally codify this principle into law, as it should be. Chairman Lieberman, Ranking Member Collins, Senator Brown of Massachusetts, and their committee members and staffs have crafted a very strong bipartisan bill with teeth that is narrowly tailored and targeted to ensure that we achieve this very common goal. Because of this bipartisan work, last night this Chamber came together in what has become nearly an unprecedented fashion these days and voted almost unanimously to begin debate on this sorely needed legislation. As we continue to debate, I urge my colleagues to focus on the specific task at hand. Let's show the American people we can come together and get this done to begin to restore their trust in us.
If there are ideas to make the bill stronger, let's debate them. But let's not get bogged down in the politics as usual, with nongermane side issues that will prevent us from swiftly moving on an up-or-down vote the American people expect of us. We are already starting in a strong position with our colleagues in the House.
This STOCK Act legislation is very similar to legislation introduced by my colleague in the New York delegation, Congresswoman Louise Slaughter, and Congressman Tim Walz. I thank them for their longstanding advocacy and focus and leadership on this important issue.
Our bill, which has received the support of at least seven good government groups, covers several very important principles. First, Members of Congress, their families, their staffs, and Federal employees should be barred from gaining any personal profit on the basis of knowledge gained through their congressional service or from using knowledge to tip off anyone else.
This bill will, for the first time, establish a clear fiduciary responsibility to the people we serve. This simple step removes any present doubts as to whether the SEC and the CFTC are empowered to investigate and prosecute cases involving insider trading of securities from using this nonpublic information. It also provides additional teeth. Such acts would also be in violation of Congress's own rules, to make it clear that this activity is inappropriate and subjects Members to additional disciplinary measures by this very body.
Second, Members should be required to disclose major transactions within 30 days to make this information available online for their constituents to see, providing dramatically improved oversight and accountability. We should be able to agree that these reports should be available in the light of day and not stored in some dusty back room.
The committee heard experts testifying during a Senate hearing that reducing this new reporting requirement to 90 days was not good enough. The committee listened to these experts carefully, and the bill has been strengthened and currently has a 30-day proposal, a sea change of improvement from the current reporting requirement of a yearly reporting requirement on a paper document.
Some critics say this bill is unnecessary and is already covered under current statutes. I have spoken with experts tasked in the past with investigations of this nature, and they strongly disagree. We must make it clear as day and unambiguous that this kind of behavior is illegal.
President Obama told us in the State of the Union to send him a bill, and he will sign it right away. We should not delay. This is the time to act. Let's show people who send us here that we can come together and do the right thing. Let's show them we know they deserve a government that is worthy of them. We have an opportunity to take a step toward restoring some of the faith that has been lost in Washington and in this institution. I urge my colleagues to seize this opportunity.
I yield the floor, and I suggest the absence of a quorum.
BREAK IN TRANSCRIPT
Source