The STOCK Act was a media-driven bill that politicians felt they could not resist after 60 Minutes ran a (somewhat flawed) exposé on the insider trading activities of members of Congress. Once a must-pass bill like that gets into circulation, it’s going to become an attractive target for messaging amendments where members try to hitch a ride with their pet issues. And because Congress is held in low public esteem, the best of these amendments would deal with the same kind of ethics issues.
That’s what happened on the STOCK Act debate in the Senate. The bill passed 96-3 yesterday but not before a series of amendments dealing with ethics were added. Far from a major reform effort, however, many of the measures that would actually be meaningful failed.
An amendment by Sens. Sherrod Brown (D-Ohio) and Jeff Merkley (D-Ore.) forcing divestiture of stock holdings unless they are placed in a blind trust failed, 26-73. And an amendment by Sen. Rand Paul (R-Ky.) forcing divestiture by many federal officials failed 48-51.
But the Senate agreed to extend the bill’s broader stock transaction reporting requirements to executive branch officials subject to Senate confirmation, a key demand of Republican lawmakers.
A permanent ban on earmarks failed after Appropriations Chairman Daniel Inouye (D-Hawaii) announced his panel would ban earmarks for another year.
And an amendment by Sen. Chuck Grassley (R-Iowa) requiring lobbyist disclosures for political intelligence activities was adopted 60-39. The amendment would require disclosure of political intelligence activities under the Lobbying Disclosure Act of 1995.
The Senate also adopted an amendment by Sens. Patrick Leahy (D-Vt.) and John Cornyn (R-Texas) tightening laws against public corruption, including a ban on gifts to public officials of more than $1,000 in value and restoring the “honest services fraud” statute that the Supreme Court restricted in 2010.
The big deal there is the restoration of “honest services fraud,” which the Supreme Court severely limited to the point of irrelevance in 2010. This harmed a lot of cases, including the case against Enron’s Jeffrey Skilling. Other amendments that passed limited bonuses for Fannie and Freddie, and forced disclosure of the mortgage holdings of lawmakers (a response to the Countrywide “VIP” scandal).
Just because the Senate passed this bill, however, doesn’t mean that this host of ethics reforms will become law. It now moves to the House, and Eric Cantor stands ready to kill the bill with a neat legislator’s trick. He will open it up so broadly that nobody will want to vote for it.
[Cantor's] now trying to extend the STOCK Act “so it includes land deals and other types of transactions and not just stock trades.” Classic taking a good idea too far. The problem is insider trading in stocks, not insider trading in land deals. Cantor obviously hopes that including a vast array of economic activity within the bill, exposing members of Congress to disclosure obligations and other restrictions, as well as increasing their liability exposure, will make the bill sufficiently unpopular so as to prevent its passage.
Actually, there is a problem with insider trading in land deals – Dennis Hastert, anyone? – but that’s not Cantor’s concern. He wants to make it impossible for anyone to vote for it.
And there are concerns about the base bill from some circles related to prosecutorial discretion, though I’m not sure I agree with them.
The President wants the bill passed right away and Cantor said he would schedule a vote next week. We’ll see if his gambit pays off.




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Actually, there is a problem with insider trading in land deals – Dennis Hastert, anyone? – but that’s not Cantor’s concern. He wants to make it impossible for anyone to vote for it.
Or Calif own D. Issa
I looked up “lowlife scumbag” in the dictionary and Cantor’s picture was posted right next to the definition of that term.
Ahhhhhh. The congress critters get to play another game of creative kabuki theater.
My copy too!!!!
You should see what they call him in the “unabridged” version. Would make sailors blush.
Time for Obama to bring this up in his weekly address!
Pass whatever POS Cantor comes up with and work it out in committee.
May I add no more lobbying by ex members of congress and their staff and no more taking retirement jobs with companies they took money from or gave to lobbyists they took money from. Plus no more military personal like generals going to take jobs with defense contractors.
This is a great issue the GOP knows they are vulnerable on it Obama should veto the bill until every idea the Left comes up with is satisfied that will keep the issue in the press longer.
Obama’s veto is likely to be sustained the Congress Dem and GOP won’t go for that. But Congress has horrible polling numbers it would be smart for Obama to run against Congress.
If Obama’s veto is overturned then a GOP congress house and senate get the blame in a year where Mitt already has problems with his stock picks at Bain Capital.
So a veto is what a smart pol would do. A veto is what an honest pol would do. Given that Mitt is running ahead of Obama in the pols Obama does need to do something to shake things up. The GOP will not let Obama create jobs or help homeowners and Obama never fought for those issues this very well might be Obama’s last big chance to shake things up. This could be his last chance to save his reelection.
Good I am sure that more stories of Congress doing insider trading will pop up all it takes is one ex employee of a congressman or a stock trading firm looking to make some money in a down economy and or to screw their ex employer willing to talk to a reporter who took work home with them because they are over worked and was smart enough to make copies.
A promise from a reporter not to reveal their name is all they need to hide them from prosecution. Hmmm we should add that contracts that forbid revealing a pol’s stock information are illegal.
You have some excellent points as always. Don’t know that I have the faith in congress OR in Obama to do what’s right for the country. Plus, you can pass all the laws you want but if nobody enforces them, what have a you got?
Lots of ways to “hide” all that crap anyway.
“all it takes is one ex employee of a congressman or a stock trading firm looking to make some money in a down economy and or to screw their ex employer willing to talk to a reporter.” Frankly, I’m amazed that more illegal and unethical behavior by politicians doesn’t come up. With the ex-employees you mention and “investigative reporters” around every corner, and ALL that does occur, lots of people get away with it. I’d bet we don’t catch 10% of the graft, dirty deals, insider trading, stock manipulation etc.
Actually, there is a problem with insider trading in land deals – Dennis Hastert, anyone?
Thats a big Chicago thing also selling land to private people for inflated prices people who gave him cash is what got Blago in trouble. Agreed it should be ended but the Illinois delegation Dem and GOP would scream I say let them. A pol has to be willing to betray his friends to get to power and if he betrays them and it serves the public good thats ok.
If a pol won’t then he puts wealth above power and will lose his power sure its amoral and Machiavelli like but I’m sure FDR had many rich friends who felt betrayed by him.
If Obama won’t screw his friends then he is a puppet of his rich friends just like Bush was. To effect change then we must look not at pressuring O but pressuring his friends that means consumer boycotts ask Arizona about the Hispanic boycott of their state, ask Glen Beck about boycotts, ask the ex CEO and founder of Whole Foods about boycotts.
You have some excellent points as always. Don’t know that I have the faith in congress OR in Obama to do what’s right for the country
I have no faith either I actually expected eCHAN to make that point. Still pointing out just how Obama could help himself and help us is necessary I feel if only for history to show just how Obama blew record high poll numbers when first elected for history’s sake.
I used to do the samething with Bush I never expected to do this with Obama.
Plus, you can pass all the laws you want but if nobody enforces them, what have a you got?
Obama’s justice Dept on banking proves that:( If O went after the bankers he would be beating Mitt in the pols and finding out details of Mitt’s Bain Capital financing corporate takeovers details that would sink MItt again by helping himself and others O could be helping himself hold power but wealth not power is O’s thing thus he is a puppet.
With the ex-employees you mention and “investigative reporters” around every corner, and ALL that does occur, lots of people get away with it. I’d bet we don’t catch 10% of the graft, dirty deals, insider trading, stock manipulation etc.
Payoffs to the ex employees and blackmail I think explains it we only find out stuff I think when revenge not blackmail is the motive. Or the employee is to scared to try blackmail needs cash and knows a reporter.
Gotta go good topic good talk bye:)
Does anyone actually believe that Congress will pass any meaningful legislation that will restrict them from fleecing the U.S. public and enriching their own pockets? A den of thieves all of them, with the exception of Bernie Sanders perhaps.
That’s a pretty good trick. *g*