WASHINGTON – Sen. Mike Johanns (R-Neb.) today cosponsored legislation to prevent insider trading in Congress, which moved forward in the Senate by a vote of 93-2. The Stop Trading on Congressional Knowledge (STOCK) Act bars members of Congress, the executive branch and their staff from buying or selling stocks, bonds or commodities futures based on non-public information and adds more frequent reporting requirements.
“Public officials are trusted with the enormous responsibility of serving our citizens and doing what’s best for our country, and they ought to be held to the highest standards,” Johanns said. “This legislation makes it crystal clear that those who serve in the federal government are subject to insider trading restrictions and increases reporting requirements to add transparency.”
The STOCK Act prevents members of Congress from using insider information for personal benefit and requires them to more frequently report the purchase or sale of any stock or commodity over $1000. It also directs the Government Accountability Office to report on the role of Washington firms which do business in this area.