In the weeks following an explosive 60 Minutes exposé on congressional insider trading, both chambers of Congress nearly unanimously passed the "Stop Trading on Congressional Knowledge" (STOCK) Act. But there is still no law. What's the holdup?
The ball is in Senate Majority Leader Harry Reid's (D-Nev.) court. And everyone is waiting for him to decide how to proceed.
It's not like the problem hasn't been well-documented. In congressional hearings, Robert Khuzami, director of enforcement for the Securities and Exchange Commission, acknowledged that the laws against insider trading have not been applied to Congress. "There does not appear to be any case law that addresses the duty of a member [of Congress] with respect to trading on the basis of information the member learns in an official capacity," Khuzami conceded. The same is true for congressional staff.
In addition, academic research showing that congressional lawmakers enjoy an extraordinarily high rate of return in the stock market has been well-publicized. That's why Congress fell over itself to pass a STOCK Act that would apply insider trading laws to itself. The problem is that the Senate and the House passed two different versions, leaving President Barack Obama's promise to sign the STOCK Act into law as soon as it reaches his desk unfulfilled.
The Senate approved a sweeping measure by a 96-3 vote that would specify that insider trading is illegal for Congress, that the cottage industry of lobbyists and Wall Street operatives who prowl the halls of Congress for insider information affecting the stock market fully disclose their clients and activities (known as the "political intelligence" provision), and that anti-corruption enforcement laws be repaired so that prosecutors can enforce these laws in the courts. The House of Representatives was ready to approve the same strong legislation - until House Majority Leader Eric Cantor (R-Va.) intervened, stripped the political intelligence and anti-corruption enforcement provisions from the bill and imposed a procedural rule under which the House could adopt only Cantor's weak substitute measure or none at all. The House reluctantly took the Cantor deal by a 417-2 vote. Now the differences must be worked out.
Now that the House has sent the stripped-down measure back to the Senate, Reid essentially has three choices: (1) adopt Cantor's weak version; (2) reinstate the political intelligence and enforcement provisions in some modified form and ping-pong the bill back to the House; or (3) send the bill to conference committee to work out the differences. (Reid could let the bill perish, but this is not a realistic option, given the public uproar over the issue.) Nothing has happened yet.
The first option is easiest but, like Cantor, Reid would appear to be caving in to Wall Street, which launched a massive lobbying campaign against the political intelligence provision. Also, Reid would then lose out on the very popular anti-corruption enforcement provision, which passed the Senate by voice vote. So this is unlikely. The second option would be fastest but the third option could work if Reid makes sure the end result is fair.
The ball in the Senate's court, and it is time once again for the Senate to insist on strong reform legislation - a STOCK Act that mandates Wall Street transparency and provides a viable means to enforce the law - and re-appeal to the large majority of House members to override Cantor. Proponents of the political-intel provision have already indicated the language can be narrowed somewhat while still preserving the intent. The anti-corruption enforcement provision is simply an imperative. If you agree, speak up now.
The clock is ticking. C'mon Senate, play smart ball. The president is expecting a strong STOCK Act on his desk, and the American public expects no less.
At the present time, lawmakers are *constitutionally* protected from certain legal actions by the speech or debate clause that shields them and their aides from facing legal problems over official duties. As a result, the SEC has never acted against members of Congress on allegations of insider-trading; the question of WHEN information becomes public knowledge and legal to trade has never been made clear. With a date-&-time-stamp this question is removed.
And if the SEC can't do anything about this, the INFORMED public can! All that is really needed is the present *senate* version of the STOCK Act plus the date & time stamp added.
Speak up by signing the petition above (already presented way back when it had only 46,000 signatures Feb. 27). http://action.citizen.org/p/dia/action/public/?action_KEY=9494
Write, call your senator, your representative, and the President. Or campaign donors, lobbyists, and consultants will be the only 'constituency' to affect (and profit from) legislation. DC should represent voters, which they'll do only if voters overwhelmingly demand it.
ProPublica's example of political intelligence http://www.propublica.org/special/taking-stock-of-the-stock-act-a-side-by-side-comparison . Make Congress do their job, despite fears for their campaign dollars, wealthy special interests, and their chance to get rich on political intelligence, once they themselves can become untraceable consultants, or secure work from them.
The Stock Act will not ensnare whistle blowers, stop angry populist name calling. Why the pressure to pass the House's sham Stock Act now, as is? Congress should do their job. Otherwise, it's time to buckle up your parachutes, because no one is flying this plane http://www.thedailyshow.com/watch/wed-february-15-2012/stockblockers---political-intelligence
Both of these bodies' leaders have allowed so much corruption to get a pass for so many years it's barely a speck of what the founders envisioned AND, the Supreme Court has been so corrupted by Roberts, Scalia, Alito, Thomas and, more often than not, Kennedy that it is more likely to assist in more corruption to benefit its' own than to do anything for the country or our future.
You're writing about the decision process of the 535 venal, craven, corrupt, coin-operated, corporatist kleoptocrats in Congress?
Wall Street pays better.
Wall Street wins.
Plutocrats and corporations pay better.
Congress is the very best government that corporations and plutocrats can buy.
If you have to ask (and presumably the author doesn't) then you don't really understand our political system as it currently stands.
the hour is late--
the strategy?
wait and wait
and wait and
wait