Its about damn time! "Congressional stock god" will become history? Senators from both parties in the US Senate seek to ban members of Congress from trading stocks.
A new bill announced by members of both parties in the Senate proposed a new bill prohibiting members of the National Assembly, their spouses, and minor children from trading individual stocks. If passed, lawmakers will be forced to divest individual stock assets from 2027, and violators will be fined 10% of the value of each offending asset.
Former US House Speaker Pelosi's impressive stock trading results, known as the “Capitol Hill Stock God,” may become insurmountable history. Her party colleagues are seeking a law prohibiting members of Congress from trading stocks again.
On Wednesday, July 10, EST, several Democratic and Republican senators jointly announced a new bill called the “Ethics Act” (ETHICS Act), which prohibits congressmen, their spouses, and minor children from trading individual stocks. Michigan Democratic Senator Gary Peters, who participated in introducing the proposal, is currently the chairman of the Senate Committee on Homeland Security and Government Affairs. He promised that his team would review the bill within the Homeland Security and Government Affairs Committee later this month. According to media reports, the specific review date is July 24.
The media pointed out that the above proposal is the latest effort within the National Assembly to seek to pass regulations to restrict the trading of stocks by lawmakers over many years, and it is also the first time that a Senate committee has formally considered such a bill.
Current US law requires congressional lawmakers to disclose when they are trading individual stocks. Critics, on the other hand, believe that the relevant laws are not being implemented well, and that they are not strong enough. The US introduced the STOCK Act in 2012 to stop using the Congressional Informed Transactions Act, which requires members of Congress and their spouses to disclose any transaction over $1,000 within 45 days.
Currently, the Insider Trading Act also applies to members of the National Assembly, but after the 2009 financial crisis, it sparked calls for improving the investment transparency of lawmakers. Because before some big banks went out of business during the financial crisis, several lawmakers made huge profits by trading financial services stocks. These deals have made outsiders question whether those lawmakers are using the information they have learned in congressional committees to profit.
If the new bill announced this Wednesday is passed, it will require lawmakers to immediately stop buying any new individual shares, and require lawmakers to divest any individual's stock assets at the beginning of the next congressional period beginning in March 2027, and lawmakers' spouses and minor children will also be prohibited from trading stocks. Starting in 2027, the US President, Vice President, and members of Congress will all have to divest their stock investments. The bill's restrictions do not apply to congressional workers.
The new bill proposes that if they violate the above asset divestment regulations, lawmakers will be fined equivalent to their individual monthly salary or 10% of the value of each offending asset, whichever is higher of the two.
Some commentators say congressmen have been fighting an uphill battle to ban stock trading since at least the Biden administration came to power. Several senators were bombed, using the outbreak in confidential congressional briefings in the early days of the COVID-19 outbreak to threaten the US economy and warn the deal for profit. For this reason, the FBI investigated insider trading between the three senators, and finally ended the investigation without any charges.
The media pointed out that when she was Speaker of the House of Representatives, Pelosi viewed the trade ban as a misguided effort to prevent lawmakers from participating in the “free market economy.” Her husband Paul Pelosi (Paul Pelosi) is a well-known wealthy investor and often trades large amounts of profitable stocks.
Wall Street News also mentioned last week that in June of this year, Pelosi accurately stepped on the artificial intelligence (AI) boom and bought 0.01 million shares$NVIDIA (NVDA.US)$The stock was also purchased at an exercise price of 800 US dollars$Broadcom (AVGO.US)$Call options. Analysts believe that if Nvidia's stock price continues to perform well in the second half of the year, even if the increase is only half of the first half of the year, Pelosi's new 0.01 million shares will bring her a profit of about 1 million dollars, which is equivalent to more than five times her annual salary. However, Pelosi's$Tesla (TSLA.US)$The investment was a failure. Not only did it lose about 0.4 million US dollars, but it also completely short the recent surge after the sale.
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I love to study companies and Candle Stick formations. My goal is to become a full-time trader.
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