Washington D.C. (WKBW release) -- New York Senator Kirsten Gillibrand on Wednesday applauded President Obama’s signing of the STOCK Act into law.
According to a release from Gillibrand's office:
The bipartisan legislation passed the Senate almost unanimously and was led in the House of Representatives by fellow New Yorker Rep. Louise Slaughter. The new law is a common sense solution to make insider trading by members of Congress, their staff and their families clearly and expressly illegal. Senator Gillibrand has been a leading advocate for increasing the accountability and transparency of Congress. A news report in the Washington Post hailed the STOCK Act as the “most substantial debate on congressional ethics in nearly five years.”
“Today we have made it clear that nobody here is above the law and that members of Congress must play by the exact same set of rules as every other American. It is simply the right thing to do,” said Senator Gillibrand, who thanked President Obama in a phone call yesterday for his leadership in calling on Congress to pass the bill in his State of the Union address. “This law is a strong step forward to begin restoring our trust with the American people.”
The STOCK Act explicitly bars a member of Congress, their staff and all federal employees from engaging in insider trading or otherwise using nonpublic information gained through their work for their own personal benefit, and clarifies that this provision constitutes a sufficient basis for the Securities and Exchange Commission (SEC) to investigate and prosecute members of Congress engaging in insider trading - including the “tipping” of non-public information. By incorporating feedback from witnesses at the December 1 committee hearing, the legislation directly corrects the ambiguity in existing laws to ensure that members of Congress, their families and their staffs are fully covered by insider trading laws. The legislation is carefully crafted to not alter existing insider trading law, but to simply ensure that members of Congress, their families, their staff and federal employees are fully covered by it.
The bill would establish for the first time a clear, fiduciary responsibility to the American people, removing any doubt to whether the SEC and the Commodities Futures Trading Commission are empowered to investigate and prosecute cases involving trading of securities. For additional teeth, the legislation also directs the Congressional Ethics Committees to write rules to enforce this provision. As a result, the legislation would empower the Ethics Committees, as well as the SEC, to enforce rules against insider trading by members of Congress and Congressional staff, but would not require the 67 vote threshold required to directly amend Senate rules in mid-session.
For added transparency, the legislation further enhances disclosure requirements by requiring that members of Congress report stock and other major financial transactions within 45 days, dramatically less than the current annual reporting requirement, and reduced from the 90 days proposed in the original draft of the legislation. Under the legislation, these reports and other financial disclosures must be posted online.
President Obama, meanwhile, praised New York Rep. Louise Slaughter for her work on the bill.
In a statement, Obama said:
“I want to recognize Congresswoman Louise Slaughter and wish her a speedy recovery. She broke her leg yesterday so she can’t be here in person, but she’ll be okay. She first introduced the STOCK Act in 2006 and I know how proud she is to see this bill that she championed finally become law.”
“Today marks a milestone in this country’s long fight to become a more perfect union,” said Slaughter. “I am so proud that after six years of hard work and effort, we can finally assure the American people that we are not profiting from information we learn in our pursuit to represent them. They have placed their trust in the 535 of us who have the honor of serving as their representatives in Congress. Today with the STOCK Act becoming law, we made clear that we are not above the law. This was certainly a long and turbulent debate but, it becomes more and more clear to me that these are the fights worth taking on, even when no one else will.”