Buchanan Lauds House Passage of STOCK Act

February 9, 2012

WASHINGTON, DC – U.S. Rep. Vern Buchanan, R-FL, voted today for passage of the STOCK Act, legislation to ban congressional lawmakers and seniors aides from securities trading based on non-public information.  The measure, which also applies to executive and judicial branch officials, passed by a vote of 417-2 and returns to the Senate for consideration. 

“It’s imperative that Congress and the Executive Branch take every step possible to regain the trust of the American people,” said Buchanan, a co-sponsor of the bill.  “No elected or government official should be profiting from private information obtained through their job.  Serving the public is a privilege and an honor, not an opportunity for personal gain.” 

Specifically, the STOCK Act (Stop Trading on Congressional Knowledge Act) would:

·        Prohibit Members and employees of Congress from buying or selling securities, swaps, security based swaps, or commodity futures based on non-public information they obtain because of their status;

·        Hold executive and judicial branch officials to the same prohibitions as Congress against buying or selling stocks or other securities based on non-public information.

·        Require prompt reporting of financial transactions within 45 days following execution of a trade;

·        Restrict members of the executive, legislative, and judicial branches from participating in IPOs not available to the general public.

“Our leaders need to be held to the highest standard – and that means obeying the same laws as everybody else,” said Buchanan.  “I urge the Senate to approve this bill as quickly as possible and send to the President’s desk for signature.” 

Last week, the Senate passed a similar version of the insider trading bill, 96-3.