STOCK Act advances in the Senate

CBS/AP

In a move aimed at improving transparency and voter confidence in Congress, the Senate on Monday voted to advance a bill to stop so-called "congressional insider trading."

By a vote of 93 to 2, the Senate agreed to proceed with debate on the Stop Trading On Congressional Knowledge, or STOCK Act. The legislation specifically prohibits federal lawmakers from trading stocks based on nonpublic information they have obtained in the course of their congressional work.

"Members of Congress and their staffers have the duty to the American people," Senate Majority Leader Harry Reid said on the Senate floor today. "They may not use privileged information they get on the job to personally profit, but the perception remains that a few members of Congress are using their positions as public servants to serve themselves instead... The STOCK Act will clear up any perception that it's acceptable for members of Congress to profit from insider trading."

Senators Richard Burr, R-N.C., and Tom Coburn, R-Okla., voted against the motion. Five senators did not vote: Johnny Isakson, R-Ga., Mark Kirk, R-Ill., Mary Landrieu, D-La., Robert Menendez, D-N.J., and Roger Wicker, R-Miss.

Like everyone else, members of Congress are subject to current insider trading laws. However, some contend that current insider trading laws do not apply to nonpublic information about current or upcoming congressional activity, since members of Congress aren't technically obligated to keep that information confidential. So, for instance, if a lawmaker learns an upcoming bill will grant a company a large government contract, which could boost that company's stock, he or she is free to buy that stock ahead of the bill's public introduction.

The issue of "insider trading" in Congress came to the fore after a piece on CBS News' "60 Minutes" shed new light on the matter, and in his State of the Union address, President Obama called on members of Congress to send him "a bill that bans insider trading by members of Congress; I will sign it tomorrow."

Congress: Trading stock on inside information?
CBSNews.com Series: United States of Influence

A House Republican leadership aide told CBS News that lawmakers will take up their version of the STOCK Act by the end of February. House Republicans plan to expand the legislation beyond the Senate bill to include non-stock investments and also include executive branch officials and employees.

"Building upon the Senate bill, this common-sense proposal will not only deal with insider trading of stocks, but also prevent all federal officials and employees from using insider information for profit in other areas in a constitutionally sound way," Laena Fallon, a spokesperson for House Majority Leader Eric Cantor, told CBS News. "As Leader Cantor has said, he strongly supports increased disclosure to prevent any sense of impropriety and ensure the public's confidence and trust in our elected officials."

The legislation has won bipartisan support, though some members of Congress have complained that the focus on the issue is overblown and has become a "witch hunt."

Ahead of Monday's vote, the Obama administration put out a statement of support for the legislation, saying "it will help to limit the corrosive influence of money in politics and ensure that the Congress is playing by the same set of rules as everyone else, an important component of the President's Blueprint for an America Built to Last."

With reporting from CBS News Capitol Hill producers Jill Jackson and John Nolen.

Watch the "60 Minutes" report below:

[pennystocks]

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[noloyalisti]

I cannot find anyone who would be able to tell me one reason why they would vote for people like Bonehead. I don't understand how these people get into a position to run and "help" the American people. They are enemies of the state and all their actions back up that fact.

[occupy_cbs]

Boehner Must Resign

John Boehner has invested a lot of money in Canadian Oil Companies and is pushing to pass the Keystone XL Pipeline at any cost, including tying it to the next payroll tax cut extension. He has invested $365,000 in seven companies that would benefit from the Keystone Pipeline approval, setting himself up to reap great financial rewards from his investment. We are calling for his resignation.

http://signon.org/sign/boehner-must-resign?source=s.tw&r_by=2057429

[noloyalisti]

This is exactly the kind of corrupt insider trading that should be outlawed and which the STOCK Act is about.

[sdkersh]

I request that in each instance of reporting on a pending bill in the U. S. Congress the reporters include the bill number, either S____, or H____, or both. Citizens could then easily research the actual language using the congressional web site, Thomas. Failure for reporters to furnish this information is in my opinion, both unprofessional and a dereliction of their duty.

[noloyalisti]

I am totally disgusted with the out-of-control military-industrial-financial complex. It has put our country and it's people in imminent danger. It is unsustainable and it is time to change it forever. It will be ugly but we have to unite to do it very soon. Like this year.

[noloyalisti]

Get all corporate money out of politics. No more private financing of elections. Get the Top 1% out of Washington and out of the government. They are incompetent and incapable of running anything for the workers and the middle class. Enough is enough!

[MIO42]

members of Congress to profit from insider trading."

How could you have a Conscience and commit such a heinous act ?

[noloyalisti]

When you are part of the Top 1% you no longer have a conscience. Or compassion or common sense or allegiance to your people or your country. You start to crave money and power for it's own sake. It is a disease.

[euge005]

This should have been done 30 years ago when Ronnies people were preaching that greed was good. They better pass it now that the average congressman is much more corrupt if they ever want to get their 9% approlval rate into double digits.

[noloyalisti]

Empire, how do you go through life misleading yourself about out crooked, corrupt and failed capitalist system? How do you so readily accept fraudulent elections, paying so much of your money to the Top 1% and having them write the laws that legalize corruption and stealing? Not to mention them sending our people off to wars for their own greedy ends. Are you not even paying attention?

[MrDanjer]

Can Members of Congress smoke a little marijuana? Can they rape a few women or men a year? Can they hire a few illegal aliens to care for their kids and mow their laws?

No... so why would the proposed legislation allow them to insider trade on transactions under $1000? This is yet another example of Congress PRETENDING to care about a problem that US Voters find disgusting. If they are interested in "Transparency" and "Accountability" like they all seem to claim these days, then make it illegal to insider trade period.

Better yet, pass a law that make all laws applicable to the American people also applicable to Congress... do we actually have to pass a law that says Congress is not above the law? Yes we do apparently.

[secretsquare12]

It does not allow them to insider trade on transactions under $1000, it simply adds a requirement to the Ethics in Government Act for the members of Congress to file reports on trades, which they are already required to report, within 90 days. The law clearly states that inside trading without regard to amount is illegal.