Working Together to Stop Insider Trading

Several Americans feel that most government officials are corrupt and abuse their powers and privileges. Almost all United States citizens can argue that partisan politics get in the way of creating real change within our government. Well, for a refreshing change in Washington, Republicans and Democrats are working together on a bipartisan bill! Yes, you heard it correctly; the right and left are finally collaborating to stop insider trading, which will ultimately ensure that officials are not taking advantage of their political influence for unjust capital gains.

The Republican-proposed bill to stop insider trading is fittingly called the STOCK (Stop Trading on Congressional Knowledge) Act, and on Monday January 30, 2012 the US Senate Committee voted on it, and the full vote is closely approaching.

Basically, this bill would prevent Congressional officials (members of Congress, their spouse, and their staff) from using nonpublic information (knowledge that they have acquired behind closed doors) for personal benefit. It would require all members of Congress to file and disclose all of their financial transactions of stocks, bonds, commodities, and securities within 30 days on their online website.

Republicans and Democrats alike are pushing for the act to go even further—to apply the act to the Executive branch as well!  Our government was founded on checks and balances, and not only will this bill “check” the Senate and the House of Representatives, it should apply to the President and Vice President too in order to keep the powers of the branches balanced.

One Democrat, Sherrod Brown, wants it to be completely illegal for members of Congress to hold stocks. I personally think that this is too extreme, as government officials should have the right to hold stocks like the rest of America, however, they should not be allowed to use insider information.

In President Obama’s State of the Union Address, he claimed he would sign a bill that bans insider trading, hopefully, STOCK will be passed by both the House and Senate and signed by the President himself.

If a law, STOCK would help restore America’s faith in their government, add legitimacy to the “rules of the game”, rejuvenate the belief that politicians are on the same level playing field when it comes to Wall Street, and would instill the pertinent message the politics is the business of public service—not profit.

All of this is well and good, but even if passed, how do the people know that Congress is not getting unfair tips and knowledge about the market? I propose that a committee be formed to enforce the law (when it comes into action which will most likely occur) and investigate in such matters. After all, this is a government of the people, by the people, and for the people and we should not let the pursuit of happiness and profit of some corrupt politicians tarnish the legitimacy of American politics.