Democrats plan to end stock trading for lawmakers in Congress

Democratic officials plan to introduce a bill that will bar congressional lawmakers, their spouses and their executives from trading stocks.

The plan, which is set to be released in August and enacted by September, would require parties involved to either invest their money in a blind trust or divest themselves of all of their investment portfolios.

Bipartisan concerns about stock trading among congressional lawmakers were called into question after the COVID-19 pandemic hit the United States, and Sen. Richard Burr (RN.C.) became the focus of an investigation when he stocks in February sold year based on information about the virus not yet known to the public.

“We’re almost ready to move forward with that,” House Administration Committee chair Rep. Zoe Lofgren (D-Calif.) told Punchbowl News.

The legislation would allow lawmakers to continue holding mutual funds.

However, there was resistance to the bill. House Speaker Nancy Pelosi (D-Calif.) previously opposed it, but urged the committee to consider a stock trading ban earlier this year.

Rep. Rodney Davis (R-Ill.) also questioned the idea of ​​a blind trust because lawmakers need to hire more staff and it’s more expensive to set up and maintain. During an April hearing before the administrative committee, Davis expressed concerns that it would hurt less affluent lawmakers.

“The choices for those who are not independently wealthy will be limited compared to those who are wealthy and can afford qualified blind trust,” Davis said at the time, according to The Hill.

This bill also mirrors a Senate bill entitled the Ban Congressional Stock Trading Act. Members of Congress, along with their spouses and children, would have to opt out within 120 days of the bill going into effect.


New York Stock Exchange (NYSE) building after the start of Thursday's trading session in New York
The hand of a sculpture of former US President George Washington is attached to the facade of the New York Stock Exchange (NYSE) in Manhattan in New York City, New York, the United States, April 28, 2017.
Photo: Reuters/Mike Segar

https://www.ibtimes.com.au/democrats-plan-end-stock-trading-congressional-lawmakers-1835990?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Democrats plan to end stock trading for lawmakers in Congress

Fry Electronics Team

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