Today, Explained Should Congress be able to trade stocks?
Apr 6, 2022
Dave Leventhal, Deputy Washington Bureau Chief of Insider, sheds light on Congress's controversial relationship with stock trading. The discussion highlights how lawmakers often outperform market indices, sparking ethical debates about insider trading. Leventhal examines the Stock Act's failures in enforcing accountability, revealing concerning cases of non-compliance. There are bipartisan calls for reform as public sentiment shifts against lawmakers profiting from stock trades, emphasizing a growing need for transparency and ethical governance in Congress.
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Burr's Stock Dump
- Senator Richard Burr sold $1.6 million in stock before the pandemic-related market crash.
- He allegedly tipped off his brother-in-law, leading to an insider trading investigation.
Pandemic Stock Trading
- Several senators, including Feinstein, Loeffler, and Perdue, faced scrutiny for stock trades during the pandemic.
- These cases highlight the lax enforcement of insider trading rules in Congress.
Proposed Reforms
- Proposed bills aim to reform Congressional stock trading.
- Some seek to ban individual stock ownership, while others suggest diversified investments like ETFs.