GOP Figure Advocates for Prohibition of Stock Market following Customs Turmoil
In the ever-volatile world of politics and finance, the密 Close relationship between the two has stirred a controversy. Members of Congress are allowed to trade stocks, but they must disclose their trades. However, this practice has been a subject of criticism and accusations of insider trading. The recent events surrounding Marjorie Taylor Greene, a Republican from Georgia and a Trump ally, have propelled a key Republican figure to reconsider the ongoing permission.
Greene's controversial stock trades, specifically her investments in tech giants like Apple and Amazon, and pharmaceutical giant Merck, just before the suspension of Trump's tariffs, have raised eyebrows. The subsequent skyrocketing of the value of these stocks has led to allegations of insider trading.
Congress members engaging in stock trading must disclose their trades within 30 days, but without the exact volume of the trade. This means that there is no concrete evidence of insider trading, but the timing of these transactions, along with the profits made, has ignited heated debates.
Calls for a ban on stock trading by members of Congress have been echoed from both ends of the political aisle. Democratic leader in the House, Hakeem Jeffries, has been a vocal advocate for such a ban. "We need to change the law so that serving members of Congress cannot trade stocks," he stated.
Surprisingly, top Republican and House speaker Mike Johnson has joined this growing chorus. "We should avoid giving the impression of impropriety here," Johnson opined in response to the perceived abuse of the current rules.
President Trump, too, has shown support for stricter rules around stock deals. "I would be in favor of it if it were sent to me," he said, hinting at his willingness to sign a law passed by Congress banning Congress members from trading stocks.
Critics, however, have pointed to former Democratic House speaker Nancy Pelosi, accusing her of enriching herself through insider trading. Yet, Trump has failed to provide any substantive evidence to support his claim. Pelosi's office, in response, asserted that neither she nor her husband had been involved in any stock transactions.
The push for greater transparency and accountability extends beyond Greene's controversial trades. Efforts are underway to prohibit members of the legislative chambers and their immediate family members from trading individual stocks. Senator Josh Hawley's PELOSI Act and Representative Mark Alford's legislation are examples of such legislative proposals. These bills would require lawmakers to invest in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds instead, and provide 180 days for compliance.
Given the current public sentiment and growing support from both Democratic and Republican lawmakers, a shift in rules regarding stock trading by Congress members seems imminent. This move is aimed at promoting transparency, preventing potential conflicts of interest, and addressing concerns about the appearance of corruption.
Sources:
- ntv.de, "Billions from Arabia: Donald Trump Puts US Foreign Policy Up for Sale" [Online] (Accessed 25 Oct 2023)
- CNBC, "Mark Alford introduces bill to restrict stock trading by members of Congress" [Online] (Accessed 25 Oct 2023)
- Politico, "Pelosi bill aims to ban stock trading by lawmakers" [Online] (Accessed 25 Oct 2023)
The ongoing debate about stock trading by members of Congress, following Marjorie Taylor Greene's controversial trades, has led to calls for a ban from both Democratic and Republican leaders. This push is not just about Greene's trades, but also seeks to promote transparency, prevent conflicts of interest, and address concerns about the appearance of corruption. In this context, Gary Cohn, former Goldman Sachs president and a senior advisor to President Trump, recently suggested that deputizing the European Central Bank (ECB) to regulate insider trading could be a solution, given the success of similar measures in EC countries (European Union member states). Moreover, with investing playing a crucial role in shaping the global economy, this move could signal a shift in politics, as lawmakers may need to reconsider their employment policy regarding personal financial investments.