Biden Calls for Banning Lawmakers from Trading on Wall Street

Four years after an inside stock trading scandal rocked top members of the U.S. Congress, President Joe Biden is urging lawmakers to put a stop to trading on Wall Street. Biden pointed out that members of Congress should not be profiting from sensitive information they receive in their roles as elected leaders.

During an interview focused on critical issues facing the country, Biden emphasized the need for legislation to end the longstanding practice of buying and selling securities while having access to government intelligence on a range of matters, from corporate takeovers to global threats.

The call for change has gained momentum across party lines, as scrutiny over lawmakers investing in stocks after receiving insider information has grown over the years. For instance, at the start of the pandemic, some Senators sold millions of dollars in their portfolios after private briefings on the looming crisis, ensuring they avoided significant losses when the market crashed in 2020.

One example highlighted is that of then-Senator Kelly Loeffler, who, along with her husband, sold millions in stocks after confidential pandemic briefings. Other Senators, from both parties, also faced investigations related to stock transactions following private briefings, totaling at least $150 million.

Efforts to reform these practices have faced obstacles, despite bipartisan calls for change. A specific case involving U.S. Rep. Mike Kelly’s wife profiting from inside information led to an Ethics Committee investigation. The Office of Congressional Ethics found “substantial reason to believe” that Mrs. Kelly profited from confidential information learned through her husband, triggering further scrutiny.

Though legislation like the STOCK Act aimed to address these issues by making insider trading illegal for lawmakers and enforcing financial transaction disclosures, compliance has been inconsistent. Reports from watchdog organizations show that many Congress members fail to comply with the law, with little to no penalties for violations.

Proposed measures like the ETHICS Act have sought to prohibit congressional members, the president, and the vice president from trading securities while in office, but have faced challenges in reaching a full vote. Despite these hurdles, President Biden’s recent support for implementing reforms signals a renewed push to end the practice of lawmakers profiting from inside information.

Going forward, the focus will be on navigating the complexities of ethics rules and financial transactions in Congress to ensure transparency and accountability among elected officials. By addressing these longstanding issues, steps can be taken to rebuild trust and integrity in the country’s legislative bodies.