Democrats have introduced legislation that would ban senior government officials from owning and trading stocks.
The bill, called the Combating Financial Conflicts of Interest in Government Act, is an attempt to limit conflict of interest for public office holders and their families when it comes to their investments.
The proposed bill is wide reaching. If it’s passed, several people who hold senior public positions won’t be allowed to own or trade securities, commodities, futures, crypto currencies or other digital assets.
It’s no surprise that politicians and senior officials are well-connected people and have the inside track on new legislation that might affect a company or an industry. And while it doesn’t make them clairvoyant, it’s certainly an advantage when it comes to the market.
And the public takes note.
Invest your spare change and turn your pennies into a productive portfolio
Mitt Romney says a billionaire tax will trigger demand for these two physical assets
You could be the landlord of Walmart, Whole Foods and Kroger
Legislation would limit investing options
The bill would prevent members of Congress, their spouses and dependent children, senior staffers in Congress, Supreme Court justices, federal judges, the president and the vice president, as well as members of the Federal Reserve System’s Board of Governors from taking part in active investing.
Senior officials and others affected by the bill will be required to either sell their holdings when they take their position or put them into a blind trust, where they would have no control over trades.
They would still be able to purchase diversified ETFs, diversified mutual funds, U.S. Treasury bills or bonds, state or municipal government bills or bonds and others.
Critics have been calling for such a bill for years, but the House and Senate have long resisted.
Bill comes on heels of Pelosi controversy
The introduction of the bill comes just weeks after Nancy Pelosi, the speaker of the House, faced harsh criticism when her husband, Paul, a venture capitalist, exercised his call options and purchased shares in Nvidia, a manufacturer of graphics cards.
The timing of his move was widely criticized. It happened soon before the Senate was expected to vote on a bipartisan bill that would see domestic chipmakers get a $52 billion subsidy.
The bill was passed in July and, amid the scrutiny, Paul Pelosi sold his holdings in the semiconductor manufacturer at a six-figure loss.
But months before that summer scandal, as calls for legislation to combat the issue mounted, Nancy Pelosi directed the House Administration Committee to draft a bill back in February.
Conflict bill is a long time coming
The feeling that the well-connected in Congress have a leg up on the market has been growing over the years.
A survey, commissioned by conservative advocacy group Convention of States Action earlier this year, showed that more than 75% of voters believe lawmakers have an unfair advantage when it comes to trading in the stock market.
And those feelings aren’t unfounded.
A recent report from Business Insider revealed that 72 members of Congress didn’t report their financial trades as they are mandated to do by the Stop Trading on Congressional Knowledge Act of 2012.
But it may be a while yet before Congress makes a decision on the bill. The House is in its final week of the legislative session before the midterm elections and lawmakers aren’t scheduled to return until after the elections in November.
What to read next
Biggest crash in world history’: Robert Kiyosaki issues another dire warning and now avoids ‘anything that can be printed’ — here are 3 hard assets he likes instead
If you want to be rich, use these 3 Warren Buffett techniques no one ever talks about
Billionaire Carl Icahn warns the ‘worst is yet to come’ — but when an audience member asked him for stock picks, he offered these 2 ‘cheap and viable’ names
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Gov. Ron DeSantis (R-FL) says President Biden granted a major disaster declaration for nine Florida counties.
While speaking at a press conference, Governor Ron DeSantis, a Republican from Florida, confirmed that President Biden granted major disaster declaration for nine Florida counties. This declaration by President Biden allows the individuals from the nine counties to seek individual assistance from the Federal Emergency Management Agency, also known as FEMA.
Prince Andrew might not want to peek his head out on Oct. 5 because Peacock has a new 90-minute documentary coming his way, Prince Andrew: Banished. And judging from the trailer alone, there are some pretty damning moments about his time in the royal family. The film not only discusses his Jeffrey Epstein association and […]
A Massachusetts woman accused of murdering her former landlord with a hammer and stealing tens of thousands of dollars through forged checks from his savings was arraigned on Wednesday. Xiu Fang Ke, 43, was accused of murdering Leonard Garber, 65, inside his Mount Vernon Terrace home in West Newton, Massachusetts. The man’s brother reported him missing on Monday, prompting the Newton Police Department to search for him at his address three times.
Major Jamie Lee Henry and Anna Gabrielian were indicted on conspiracy charges for attempting to transfer confidential military medical information to Russia.
Drought upriver has left the Mississippi River so low and slow that salt water is creeping farther than usual along the bottom toward New Orleans and threatening drinking water, the Army Corps of Engineers said Wednesday. The Corps plans an underwater levee to block the wedge of heavier salt water before it can get into two of the four water treatment plants in Plaquemines Parish, south of New Orleans, officials said in a news conference posted on YouTube.
Mila Kunis was left with no undergarments before ‘Kimmel’ appearance: ‘I am wearing children’s underwear’
Mila Kunis had to improvise when her bra, underwear and socks weren’t in her garment bag.