Obama signs STOCK Act
WASHINGTON - US President Barack Obama Wednesday signed a
new law reforming rules on insider trading for members of Congress,
saying it would help deal with a deficit of trust afflicting Washington.
Obama signed the Stop Trading on Congressional Knowledge Act into law,
and for once was surrounded by members of both the Republican and
Democratic parties, at a ceremony in the White House complex. “The STOCK
Act makes it clear that if members of Congress use non-public
information to gain an unfair advantage in the market then they are
breaking the law,” he said. “We were sent here to serve the American
people and look out for their interests and not to look out for our own
interests,” Obama said.
The new law forbids not only elected officials but also employees of Congress and the executive branch of government from buying some stock products if they have an insider’s knowledge about the performance of a given security.
Members of Congress and the president’s administration often get private briefings from top corporate executives.
Elected officials must also report any purchases they make on the stock exchange of more than $1,000 within 90 days.
The STOCK Act is an acronym for the phrase Stop Trading on Congressional Knowledge.
The new law forbids not only elected officials but also employees of Congress and the executive branch of government from buying some stock products if they have an insider’s knowledge about the performance of a given security.
Members of Congress and the president’s administration often get private briefings from top corporate executives.
Elected officials must also report any purchases they make on the stock exchange of more than $1,000 within 90 days.
The STOCK Act is an acronym for the phrase Stop Trading on Congressional Knowledge.
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