Rick Berg on Government Reform

Ban stock trading based on Congressional insider knowledge.

Congressional Summary:Stop Trading on Congressional Knowledge Act (STOCK Act): Amends the Securities Exchange Act and the Commodity Exchange Act to prohibit purchase or sale of either securities or commodities by a person in possession of material nonpublic information regarding pending or prospective legislative action.

• Amends the Ethics in Government Act to require formal disclosure of certain securities and commodities futures transactions.
• Amends the Lobbying Disclosure Act to subject to its registration, reporting, and disclosure requirements all political intelligence activities, contacts, firms, and consultants.

Bill explanation (ProCon.org, "Insider Trading by Congress", Feb. 3, 2012):

• On Mar. 17, 2011, Tim Walz (D-MN) introduced the STOCK Act where it gained nine co-sponsors by Nov. 4, 2011.
• On Nov. 13, 2011, the TV show "60 Minutes" reported that several members of Congress allegedly used insider information for personal gain. The STOCK Act received 84 additional House co-sponsors in the five days following the report, and Scott Brown (R-MA) filed the STOCK Act in the Senate on Nov. 15, 2011. Kirsten Gillibrand (D-NY) also filed a variation of the STOCK Act in the Senate on Nov. 17, 2011.
• On Jan. 24, 2012, in his State of the Union Address, President Obama said "Send me a bill that bans insider trading by members of Congress, and I will sign it tomorrow."
• Immediately after the speech, Senate Majority Leader Harry Reid (D-NV) told reporters, "I think people should have enough sense not to do it [insider trading] without legislation, but I will support legislation."
• On Feb. 2, 2012, a revised version of the STOCK Act passed in the Senate by a vote of 96-3 with Senators Richard Burr (R-NC), Tom Coburn (R-OK), and Jeff Bingaman (D-NM) dissenting.

No recess appointments without Congressional approval.

Congressional Summary: Resolution Disapproving of the President's appointment of four officers during a period when no recess of the Congress for a period of more than three days and expressing that those appointments were made in violation of the Constitution.

Text of Resolution:

• Whereas the Constitution states, 'Neither House, during the Session of Congress, shall, without the Consent of the other, adjourn for more than three days';
• Whereas, on January 4, 2012, President Barack Obama appointed Richard Cordray to be the Director of the Bureau of Consumer Financial Protection and appointed Sharon Block, Terence Flynn, and Richard Griffin to the National Labor Relations Board; and
• Whereas these appointments broke the long-established precedent of Congress being in recess for more than three days before the President can make a recess appointment:
• Now, therefore, be it Resolved, That the House of Representatives disapproves of the President's appointment of four officers when no recess of the Congress for a period of more than three days was authorized.

OnTheIssues Notes:Pres. Obama attempted to appoint Elizabeth Warren to the Consumer Financial Protection Bureau in May 2011; House Republicans disapproved of Ms. Warren. House Speaker John Boehner disallowed the Senate's adjournment resolution, which meant the Senate was legally not adjourned and Pres. Obama could not make a "recess appointment" which would otherwise be allowed. This Resolution brings the issue to the fore again, for another set of Obama appointments for which House Republicans disapprove.