The Washington Post reports that members of Congress are trading stocks like never before. And with Congress intervening more and more in the private sector, they are also in a position to affect their own personal wealth like never before. If you think about it, even a well-placed legislative rumor could help a member of Congress who is in-the-know reap huge profits.
The Sunlight Foundation notes one solution:
Rep. Brian Baird sponsored a bill that would begin to move the disclosure train in the right direction. The Stop Trading on Congress Knowledge Act (H.R. 682) — please forgive the mortifying acronym — would require lawmakers to disclose to either the Clerk of the House or Secretary of the Senate all stock activity within 90 days of taking action. The bill would also require those trading intelligence to lawmakers on financial matters to register and disclose their activities under the Lobbying Disclosure Act of 1995.
A better solution would be to stop Congress from intervening so much that it makes breaks everyone’s investments. But transparency is a start.
