Ending Trading and Holdings in Congressional Stocks

Ending trading and holdings in congressional stocks is a complex issue that requires careful consideration of the facts.

Congressional stocks are valued at over $2 billion, with individual members holding significant amounts, such as Senator Burr's $1.2 million in stocks.

Many members of Congress have significant holdings in industries they regulate, creating potential conflicts of interest.

This is evident in the case of Senator Feinstein, who has over $6 million in tech stocks, including those of companies she regulates through her committee.

The public's trust in government is compromised when lawmakers profit from their positions.

According to the article, 56% of lawmakers own stocks in companies that benefit from their committee assignments.

A proposal to ban congressional stock trading has been put forth, which would increase the penalty for non-reporting to $500 and require all disclosures to be in a searchable public database.

Currently, lawmakers' disclosures have prompted financial services companies to create products that model their investments, which have consistently beaten the market.

This dynamic has led non-profit groups pushing for reforms to demonstrate that the public doesn't trust their elected officials.

Merkley, the sponsor of the proposal, acknowledges that it's unlikely to get a standalone vote, but is aiming to get it attached to another must-pass bill this year.

Members of Congress have shown concerns about the proposal, with some getting "twitchy" when it's suggested that their families will be affected too.

The current law's enforcement mechanism is weak, with lawmakers facing a $200 fine for failing to report trades within the required deadline. This is a problem, as many members of Congress admit they've failed to file reports on time, and some file weeks or even more than a year late.

The proposed Senate bill aims to strengthen penalties for failing to divest from stocks. Under this plan, a failure to divest would result in fines of either the value of lawmaker's monthly salary or 10% of the values of each asset that's in violation of the law - whichever is greater.

Lawmakers would need to alter their existing portfolios by March 31, 2027, and would have 120 days to divest all covered investments. This is a significant change, and one that would require careful planning and execution.

A recent report from an outside ethics group found that 7 House lawmakers didn't disclose their stock trades.

The current law allows lawmakers to file disclosures that have prompted financial services companies to create products that model their investments. Those funds have consistently beaten the market.

This has led non-profit groups pushing for reforms to argue that the public doesn't trust their elected officials.

Merkley is aiming to attach his proposal to another must-pass bill this year, but acknowledged that it's unlikely to get a standalone vote.

Members of Congress get very twitchy when it comes to laws impacting their financial portfolios, and even more so when their families are included, as Merkley admitted.

The proposed law would increase the penalty for non-reporting to $500 and require all disclosures to be in a searchable public database.

Current law has a weak enforcement mechanism, with a $200 fine for failing to report trades within the required deadline.

Members of both parties admit they've failed to file reports on time, with some filing weeks or even more than a year late.

The Senate proposal would expand penalties, with fines of either the value of a lawmaker's monthly salary or 10% of the value of each asset in violation, whichever is greater.

These fines would be assessed monthly, resulting in huge impacts for lawmakers in violation.

Under the new Senate proposal, all lawmakers and new members elected would have to alter existing portfolios by March 31, 2027, and would have 120 days to divest all covered investments.

Lawmakers would still be barred from investing in individual stocks for 90 days after leaving public service.

The proposal also includes a provision requiring a certificate of divestiture covering both the President and the vice president.

Stock traders often have a love-hate relationship with the market. They love the thrill of making a profit, but hate the uncertainty of when and if they'll make it.

The market can be unpredictable, as seen in the 2008 financial crisis, where a global economic downturn led to a sharp decline in stock prices.

Traders have to be prepared for sudden changes, like the 2010 flash crash, where the Dow Jones Industrial Average plummeted 9.3% in a matter of minutes.

It's not just about reacting to events; traders also need to have a solid understanding of market trends and patterns. They should be aware of the impact of events like earnings announcements, which can significantly affect stock prices.

In fact, a study found that earnings announcements account for about 60% of the daily trading volume in the S&P 500 index.

A blind trust provision that was part of an earlier version of the bill has been dropped. This solution was a proposal that had been floated in several other pieces of legislation.

Rep. Abigail Spanberger, a Virginia Democrat, has more than 70 co-sponsors in the House for her own proposal, including 17 Republicans. She has expressed her support for the "momentum" around the revamped Senate bill.

Members' stock market activity has been under scrutiny since the pandemic, when some lawmakers dumped stocks before COVID-19 hit global markets. The Justice Department investigated, but no charges were filed.

Former Speaker Nancy Pelosi vowed to bring legislation to the floor in 2022, but then reneged on her promise.

Stock trading in Congress has been a contentious issue for years, with many experts arguing that it creates a conflict of interest and erodes public trust in government. The current law has a weak enforcement mechanism, with lawmakers facing a $200 fine for failing to report trades within the required deadline.

Members of Congress have consistently failed to file reports on time, with some filing weeks or even more than a year late. This lack of accountability has led to widespread outrage and calls for reform.

The Senate proposal would expand penalties for failing to divest, with fines assessed at either the value of the lawmaker's monthly salary or 10% of the value of the asset in violation, whichever is greater. This would result in significant financial penalties, with lawmakers facing huge impacts very quickly.

Under the new Senate proposal, all lawmakers and new members elected would have to alter their existing portfolios by March 31, 2027. They would be given 120 days to divest all covered investments, and would be barred from investing in individual stocks for 90 days after the bill becomes law.

A bipartisan bill, the ETHICS Act, has passed a key Senate committee for the first time, aiming to ban members of Congress from trading individual stocks. If passed, violators of the law would be penalized in the amount of one month's salary or 10% of the value of the asset they had sold or purchased.

More than 85% of Democrats and Republicans support the ETHICS Act, according to Sen. Jeff Merkley. The law would also ban spouses and dependent children of Congress members from stock trading as of March 2027.

Here is a summary of the key provisions of the ETHICS Act:

A bipartisan bill has passed a key Senate committee for the first time, aiming to ban members of Congress from trading individual stocks. This marks a significant step towards ending the practice of congressional stock trading.

The Senate Committee on Homeland Security and Government Affairs approved the ETHICS Act, which would prohibit Congress members and their immediate family members from selling and buying stocks, commodities, or futures.

The law would penalize violators in the amount of one month's salary or 10% of the value of the asset they had sold or purchased.

If passed, Congress members would have to divest themselves of their holdings or place them in a qualified blind trust with a divestiture requirement 90 days after the bill becomes law.

A ban on selling and buying stocks would be in effect 90 days after the bill becomes law, allowing Congress members to divest themselves of their holdings or place them in a qualified blind trust with a divestiture requirement.

The ETHICS Act would also ban the spouses and dependent children of Congress members from stock trading as of March 2027.

Over 85% of Democrats and Republicans support the ETHICS Act, according to Sen. Jeff Merkley.