Senate Passes Weakened Version Of Bill To Prevent Lawmakers From Insider Trading

It’s been a few months since we last heard much about the STOCK Act, the legislation intended to close the loophole that has allowed lawmakers (and their aides) to profit from insider trading. Well, it’s finally worked its way through the Senate, but not without losing a few teeth.

The bill requires lawmakers to disclose the purchase or sale of stocks, bonds, commodities futures and other securities within 45 days of transactions. They must also disclose the terms on their home mortgages.

However, the version of the bill that will now go to the White House no longer includes any regulation of firms that trade in “political intelligence,” information about government activities that is of potentially profitable interest to Wall Street investors.

Senator Charles Grassley of Iowa called the removal of this provision, “a victory for Wall Street and a defeat for the American people — a victory for the hedge funds and big banks that like the secrecy of the status quo.”

Insider Trading Ban for Lawmakers Clears Congress [NY Times]

Thanks to Random Talker for the tip!