Rep. Gottheimer: Lawmakers shouldn't be directly involved in stock trading

Описание: U.S. Rep. Josh Gottheimer (D-N.J.) joins CNBC's 'Squawk Box' to discuss whether lawmakers on Capitol Hill should be allowed to trade stocks while in office. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi 

Congress often talks tough about reining in Wall Street. But now there’s growing pressure on Capitol Hill to curb lawmakers’ own trading.

Sen. Jon Ossoff, D-Ga., who has emerged as a leading voice on the issue, plans to introduce legislation by the end of the week that would require members of Congress – along with their spouses and dependents – to put their assets in a blind trust. But he’s not alone. There’s some bipartisan support in Congress for limiting members’ trading activity.

The push comes after several lawmakers generated controversy over financial transactions conducted as Covid-19 was sweeping the country, including Sens. Dianne Feinstein, D-Calif., and Jim Inhofe, R-Okla. The Securities and Exchange Commission is investigating whether stock sales made by GOP Sen. Richard Burr of North Carolina just before the lockdowns began in 2020 amounted to insider trading. The Justice Department dropped its probes into Burr, Feinstein and Inhofe.

According to Capitol Trades, which tracks lawmakers’ disclosures, members of Congress and their immediate family bought and sold $515 million in stocks and other assets over the past year. Analysis by Capitol Trades showed the most active sectors were tech, energy, telecom and media. Lawmakers with the most activity included Reps. Josh Gottheimer, D-N.J., Ro Khanna, D-Calif., and Scott Franklin, R-Fla.

Many of Gottheimer’s holdings were listed as joint assets. He told CNBC’s “Squawk Box” on Thursday that lawmakers shouldn’t ben directly involved in trading stocks. A spokeswoman for Khanna said the stocks belong to his wife, and he does not own or trade individual assets. Franklin’s trades also include some joint transactions.

Ossoff’s bill would carry penalties for lawmakers who don’t comply with the rules. A person familiar with the proposal said Ossoff is seeking a GOP senator to co-sponsor the bill.

“I’m an advocate for banning stock trading by members of Congress who make policy, who have access to information and economic forecasting,” Ossoff said Tuesday during a Senate hearing.

Ossoff, who formerly ran a documentary film studio, has estimated his net worth to be several million dollars. In March, he put his own assets into a blind trust, fulfilling a 2020 campaign promise made amid accusations that Georgia’s then-senators, Republicans David Perdue and Kelly Loeffler, profiteered from the pandemic. Ossoff defeated Perdue in their election, while fellow Democrat Raphael Warnock unseated Loeffler, whose husband is chairman of the New York Stock Exchange. Perdue and Loeffler denied wrongdoing, and the DOJ dropped a probe of Loeffler’s activity.

Democratic Rep. Abigail Spanberger of Virginia said she was dismayed by the allegations of insider trading on the Hill. She vented her frustration alongside Rep. Chip Roy, R-Texas, while on the House floor. They decided to start working together on a proposal that would also require lawmakers, spouses and dependents to use a blind trust while in office.

Spanberger and Roy initially introduced the Trust in Congress Act in June 2020. It was reintroduced for this session of Congress, and 14 other lawmakers – Republicans and Democrats – have co-sponsored it.

“It’s about accountability, but it’s also about ensuring that the perception, and the ability of our constituents to trust us is much easier because they don’t have to wonder about our motivations,” Spanberger told CNBC in an interview Tuesday. “We’ve removed that room for doubt.”

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n...
 
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook:
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-cred...

#CNBC
#CNBCTV