JONES VOTES TO STOP INSIDER TRADING IN CONGRESS

WASHINGTON, D.C. – This week Congressman Walter B. Jones (NC-3) voted for S. 2038, the Senate version of the Stop Trading on Congressional Knowledge (STOCK) Act.   The STOCK ACT would prohibit Members and employees of Congress from using non-public information gained as a result of their government positions for their own private profit.

Congressman Jones was the first Republican to cosponsor the House version of the STOCK Act (H.R. 1148), and is a strong supporter of the bill.  As a member of the House Financial Services Committee, Jones testified in favor of the House bill back in December, 2011.  The bill passed the House yesterday by a vote of 417-2. 

“As members of Congress, it is our job to follow a strong honor code and to hold those accountable who are wrongly profiting from their positions of power,” said Jones.  “We Americans should never have to worry that members of Congress are using the office to pad their own pockets.”

Senate Majority Leader Harry Reid (D-NV) will decide what happens next.  Since both the House and Senate have passed different versions of the bill, he could call for a conference committee of House and Senate members to resolve the differences between the two versions.  Another option for him would be for the Senate to take up the House version of the bill.   A decision is expected shortly. 

The STOCK Act would:

·         clarify that members and employees of Congress, the executive and judicial branches are not exempt from insider-trading prohibitions, and are subject to the prohibition on trading based on non-public knowledge gained as a result of their federal positions;

·         prohibit members and senior legislative, executive and judicial branch staff from participating in initial public offerings (IPO) of stock;

·         require lawmakers and senior employees of the legislative branch, the executive branch, and some employees of the U.S. Postal Service and the Postal Regulatory Commission to report within 45 days any transaction of stocks or securities;

·         require lawmakers, senior congressional and executive branch employees, judges and senior judicial branch employees to publicly disclose the terms of their home mortgages; and,

·         prohibit the payment of bonuses to executives of Fannie Mae and Freddie Mac.