Virginia Democrat Abigail Spanberger and Texas Republican Representative Chip Roy are working together to ban members of Congress from individual stock trading.
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Virginia Democrat Abigail Spanberger and Texas Republican Representative Chip Roy are working together to ban members of Congress from individual stock trading.
Ting Shen for NPR
Leading Democrats are signaling Congress could soon vote on legislation that would ban lawmakers from trading individual stocks. The move comes amid pressure from both parties’ ranks and membership profiles arguing that voters overwhelmingly support the idea.
House Speaker Nancy Pelosi, D-Calif., does not personally trade individual stocks – her husband does. She said in December that she didn’t think a ban was necessary, but reversed course when members of her caucus pushed for the matter.
“It’s a matter of confidence and if that’s what the members want to do than that’s what we’re going to do,” Pelosi said. During her weekly press conference on Wednesday, she added House committees are working on a proposal and a bill could be introduced “fairly soon”.
Senate Majority Leader Chuck Schumer, DN.Y., also gestured support a ban. “I believe this is an important issue that Congress should address and one that has clearly captured the interest of both parties over the past few weeks,” Schumer said Wednesday.
Two House members from different parties push the bill
Texas Republicans Chip Roy and Abigail Spanberger of Virginia Democrats were elected in the same class in 2018. They don’t campaign on the same issues, but they know they share the same old school and favorite basketball team. , having a birthday party and drinking beer. know that there are a number of problems they can try to solve together.
The two sides enacted legislation in June 2020 to ban members of Congress from individual stock trading. They decided to tackle the issue after hearing news stories about several members of Congress being investigated for stock trades they had made following briefings in the early days of Congress. the coronavirus pandemic, before the impact on the US economy became apparent.
In interviews with both lawmakers, Roy emphasized a little when he said they were politically polar opposites.
“I mean, we don’t agree on a lot of things. But we also agree on a lot of things… There are some things where we’re trying to come together and it’s sort of sitting around drinking beer. – literally – and solve some problems.”
Rep. Roy and Representative Spanberger chat while strolling through the Longworth House office building on Capitol Hill.
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Rep. Roy and Representative Spanberger chat while strolling through the Longworth House office building on Capitol Hill.
Ting Shen for NPR
There’s a 10-year-old law already in the books, called the STOCKS Act, that requires lawmakers to disclose stock transactions within 45 days. But Spanberger says that approach doesn’t work.
“It’s not just enough to know what members are buying or selling, but also that they shouldn’t be buying or selling,” she said.
The Campaign Legal Center recently told NPR that In last year, about 50 members of Congress failed to disclose – or file a late report on – their stock transactions.
Roy said lawmakers have an inherent conflict of interest because they attend briefings and sit on committees that affect the company’s bottom line.
“If you’re buying calls on Google … how can Americans trust you to make truly objective policy decisions about the size and scope of Google’s counter questions? trustworthiness?” Roy asked.
Roy says lawmakers only have an inherent conflict of interest because they attend briefings and sit on committees that affect the company’s bottom line.
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Roy says lawmakers only have an inherent conflict of interest because they attend briefings and sit on committees that affect the company’s bottom line.
Ting Shen for NPR
Texas Republicans point to their own experience. He’s invested in a pipeline that runs through his county, but he’s opposed to what they’re doing and is part of the discussions to resolve it. He thought maybe he should sell his stock, but immediately realized that any trade would raise questions.
“But then I called Moral [committee] and I said, ‘wait a second, I’m beating them publicly, so if I take it off now it looks like I’m playing the game while I’m trying to beat him.’ So I ended up sitting on it, which I think is really bad for my finances, but that’s neither here nor there up to this point. My point is that we shouldn’t be in that box. “
Both Spanberger and Roy noted that their bill would not prevent lawmakers from investing.
“None of this stops you from being able to get into free enterprise, in the free market, being able to continue to keep your investments. All we’re saying is this. it Roy said.
Spanberger added that the change should be part of the federal public service entry process. “Say we want to make it clear that the American people can trust us, in the decisions we’re making, and therefore we can’t own individual stocks, or we have to put it on a blind faith, that to me, is a choice you make when choosing to run for this office.”
Spanberger says the change should only be part of the federal public service entry process.
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Spanberger says the change should only be part of the federal public service entry process.
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Focus on how the ban affects families
As suggested by Spanberger and Roy, Trust in the Act of Congressprohibits both legislators and their immediate family members from picking individual stocks.
“I don’t mind the possibility that someone would say to the American people, ‘oh, no, no, no, no, my spouse makes all his own decisions.” Just because I’m at the COVID briefings – ignoring the fact that when the pandemic started, he bought stock and inserted the pharmaceutical company name, right? People will say, ‘you’re insulting my intelligence’, right? It’s bad if you do it, bad if they do it,” Spanberger told NPR.
Roy said if members have concerns, they are willing to adjust the law.
“We can solve this problem. This isn’t a cure for cancer, is it? I mean, we can sit down, find a solution that we think works, and then you can always modify it later.”
And both lament the fact that in the current political climate there is a tendency to avoid signing bills without 100% agreeing on every detail.
Different proposals are being debated in the House and Senate
In the Senate, there are efforts to find consensus in the Democratic caucus, as well as with GOP Senators, who have proposed bills, according to multiple sources familiar with the meetings. negotiate.
A proposal put forward years ago by Senator Jeff Merkle of Oregon, D-Ore., prohibited lawmakers and senior staff from buying and selling stocks individually. He is discussing the proposals with Sen. Mitt Romney, R-Utah, and informal negotiations that have been taking place in recent weeks. Senator Jon Ossoff, D-Ga. And Senator Mark Kelly, D-Az., introduced the Senate companion bill to Roy and Spanberger’s House bill. Senator Elizabeth Warren, D-Mass. And Senator Steve Daines, R-Mont., is working on a proposal, while Senator Ben Sasse, R-Ne., has introduced a broader ethics reform bill and Senator Josh Hawley, R-Mo., is promoting a bill to ban trading.
Pelosi declined to divulge details about which proposals would make it to the House, but said she wants to extend any reform to the federal judiciary.
Base calls for change
Both Spanberger and Roy say this is an issue on which voters of both parties agree.
Roy recalls how this theme resonated with different constituencies in the home country. “Of all the issues I talk about, this one gets one of the most positive reactions across the entire ideology. Whether I’m in downtown Austin or in hill country.. .” actually, why hasn’t that happened yet. done?'”
So does Spanberger. “This is the part of the law where people come to me and say, ‘oh my god, I read about that bill.’ That for me is really remarkable.”
They say that implementing this reform is an easy way to do it completely It is clear that legislators make decisions without any ulterior financial motive.
Spanberger showed Roy a framed picture in her office. Both lawmakers warned that in the current political climate, there is a tendency to avoid signing bills without 100% agreement on every detail.
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Spanberger showed Roy a framed picture in her office. Both lawmakers warned that in the current political climate, there is a tendency to avoid signing bills without 100% agreement on every detail.
Ting Shen for NPR
“It’s an opportunity for us to say … when I’m working on legislation, when I’m in a vote, when I’m in a briefing, I don’t think oh, let me be on my own asked how this could benefit me financially. I was thinking about how to serve my constituents?” Spanberger explained. “People deserve to know that we are working for them first, not our own financial securities portfolio.”
Roy agrees, “I think this would be a very simple statement, you know, that you can’t get rich just from the work you’re doing on behalf of the people you represent.”
One point Roy and Spanberger made was that the process they used to develop the bill – talking through the aisle and being open to changes – was the same process they thought needed to be more frequent in Washington. .
Merkley, who was forced to ban trading when Congress was debating the STOCK Act a decade ago, said in a written statement that the update to the ethics law is long overdue.
“We see a growing interest on both sides in resolving this matter, and I hope that this is the time when we can finally take this matter to the floor and get it through. It’s come. at the end of the conflicting transaction and for all.”
