CONGRESSMAN JOE MORELLE LEADS EFFORT TO BAN STOCK TRADING IN THE FEDERAL GOVERNMENT

(Washington, D.C.)—Today, Congressman Joe Morelle, top Democrat on the Committee on House Administration, called out House Republicans for failing to adequately address corruption in our government. During a hearing of the Committee on Wednesday, Morelle denounced House Republicans’ new legislation that claims to curb insider trading but still allows Members of Congress, their families, and other top officials to profit from individual stock trading while in office.

“I strongly support a ban on federal officers—including Members of Congress, the President, the Vice President, and judges and justices of the federal judiciary—trading individual stocks. Sadly, this legislation does nothing of the sort,” said Congressman Joe Morelle. “When politicians trade individual stocks, it sends a clear message to the public that Washington is looking out for itself, not for them. At a time when families are struggling with rising costs, Congress should not be protecting a system that lets elected officials get richer while everyday Americans fall behind.”

The legislation put forward by House Republicans does not ban stock trading by federal officials. Instead, it preserves loopholes that allow politicians and their families to continue benefiting financially while in power.

Some problems with House Republicans’ proposed legislation include:

• Members of Congress can keep all the stocks they currently own, continue collecting dividends, and use those dividends to buy more stock.
• Lawmakers can sell their stock holdings at any time while in office, potentially cashing in on years of gains.
• Spouses and family members are still allowed to trade stocks on behalf of relatives, creating a major workaround that undermines the bill’s intent.
• The bill does not stop the President, the Vice President, or other executive branch officials from trading securities for personal gain.
• Judges and Supreme Court justices would still be allowed to own and trade stock in companies with cases before their courts.

During the hearing, Congressman Morelle and his Democratic colleagues offered amendments to close these loopholes and strengthen the bill, pushing for a real ban on stock trading by Members of Congress, the President, and the Supreme Court. Sadly, House Republicans voted them all down in Committee.

Video footage of Congressman Morelle’s opening remarks from the hearing are available here. The full hearing can be found here.

More information on Congressman Morelle’s work on ethics and government accountability can be found on the Committee on House Administration’s website here.

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