Breaking News

Insider Trading Ban Soon to Be Approved
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

After some redrafting, the Senate has sent a Bill to the President that will ban government officials from inside trading. Obama has already said he would sign it.

Obama called for such a bill during his State of the Union address two months ago. After difficulties with a bill drafted by the Senate, which didn’t garner enough votes, Majority Leader Harry Reid accepted the weaker bill written by the House. The senate approved it in a vote of 96 to 3, after the House had approved it last month with a vote of 417 to 3.

The bill, called the Stop Trading on Congressional Knowledge Act, or STOCK Act, is meant to redress possible abuses by congressman and other government officials who could use privileged information gained by their government position to anticipate the market to create hedge funds, mutual funds, and other such investments.

  
What
Where


Rep. Spence Bachus, R-Ala., for instance, is being investigated for making three dozen trades just prior to the 2008 financial collapse and the $700 billion economic bailout passed by congress. Bachus denies using inside information, and has in fact lost $19,490 through his trading.

Senator Joseph Lieberman called the bill “the most significant Congressional ethics legislation we’ve seen adopted in at least five years.”

Critics note that the bill was approved only after being somewhat crippled from its original form, and just in time for congressional reelections. Their public approval ratings are exceptionally low lately, ranging from 12 to 19 per cent.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The bill will orchestrate a regular look at the financial transactions of government officials, and requires congress to post online notification after 30 days of a transaction. The bill also prohibits members of congress from trading stock and other securities using inside information.

Senator Susan Collins, R-Maine, who helped draft the bill, explains that “At a time when public confidence is at an all-time low, we must remove any doubt that the law and rules against insider trading apply to members of Congress.”





 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Insurance Defense Trial Attorney/ Senior Counsel

USA-CA-San Francisco

Job description Trial Attorney - Personal Injury Defense Full Job Description Hickey Smith ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top