The U.S. Senate will send a congressional insider trading bill called the STOCK Act to the House after a 96-3 vote Friday.
The STOCK Act is a bill introduced by Senator Scott Brown, a Massachusetts Republican, designed to make it illegal for members of Congress to use nonpublic information for the purpose of making investments on the open stock market.
“Back in November, ‘60 Minutes’ on CBS ran a report about how Members of Congress could be getting away with insider trading. Like many of you, I was shocked by what I saw,” said Mr. Brown in a press release Friday.“So, a few days after the report, I became the first Senator to address the problem and introduce the STOCK Act.”
The bill acquired bipartisan support in the Senate in recent months, which is likely the result of a single digit job approval rating for Congress throughout the majority of 2011.
In November, the “60 Minutes” special that Mr. Brown refers to, prompted heightened media scrutiny of members of Congress, as it gave the perception that members of Congress were voting for legislation for personal gain.
President Barack Obama called upon members of Congress to pass congressional insider trading legislation during his State of the Union speech. After the SOTU speech, the president was caught on camera in a more casual moment with Senator Brown. Mr. Brown was heard asking the president to tell Senate Majority Leader Harry Reid, a Nevada Democrat, to call for a vote on the STOCK act.
Earlier this week, Mr. Obama’s campaign team sent out an email urging supporters to sign an online petition in favor of passing the STOCK act. The email told supporters to submit their names, so that the president could show them to “House Republicans,” in order to get them to move quickly on the bill, USA Today reports.
“I’m pleased the Senate took bipartisan action to pass the STOCK Act. I urge the House of Representatives to pass this bill, and I will sign it right away,” said President Obama in a statement Friday.
The STOCK Act would require members of Congress to file public online reports within 30 days of buying or selling stock. House Majority Leader Eric Cantor, a Virginia Republican, is stating that the House will consider what action to take on the bill next week.
Members of both parties appear to be in strong support of the bill.
“When polls show low public confidence in Congress, there is a strong desire to address the concerns that underpin the public’s skepticism,” said Susan Collins, a Maine Republican. Ms. Collins was a co-sponsor of the bill.
The Senate moved swiftly on the bill, as Senator Brown introduced it in mid November, and it passed less than three months later.
“The #STOCKAct, approved today by the #Senate, ensures members of #Congress never abuse the public trust to gain financial (advantage),” tweeted Senator Harry Reid Friday, in reaction to the vote.
