WASHINGTON, DC—Congressman Jim Himes (CT-4) today continued to push for passage of the Stop Trading on Congressional Knowledge (STOCK) Act with a statement on the floor of the United States House of Representatives this afternoon. Himes is a cosponsor of the legislation, which bans Members of Congress and their staffs from buying or selling securities, swaps, or commodity futures based on nonpublic information they obtain because of their work in Congress.
In his statement, Himes explained that, though he is a proud cosponsor of the legislation, he is embarrassed such a provision is necessary. He went on to say, “If we can't get this done, we will have earned the scorn of the American people.”
Watch a video of Himes’ complete floor statement on the STOCK Act here.
The STOCK Act is under consideration in the Senate this week. However, Majority Leader Eric Cantor has stalled the bill in the House. In December, he “indefinitely postponed” committee work on the bill. The Stock Act is supported by President Obama.
BACKGROUND
The STOCK Act (H.R. 1148) would require Members of Congress and employees to report the purchase, sale, or exchange of any stock, bond, or commodity future transaction worth more than $1,000 within 90 days of the transaction. They would also be prohibited from disclosing any non-public information about pending legislative action for investment purposes. Lastly, the bill requires “political intelligence” firms that obtain their information directly from Congress to register with the House and Senate, much like lobbying firms are now required to do.
A study released this year, “Abnormal Returns from the Common Stock Investments of Members of the U.S. House of Representatives,” found that the average stock portfolio held by a House member from 1985 to 2001 beat the market average by approximately six percent annually. In 2004, the average stock portfolio beat the market average by 10 percent.