The US Senate has voted overwhelmingly to send President Barack Obama’s legislation imposing new curbs on insider trading by members of Congress, even though the measure was weaker than a version it passed in February.
Obama has promised to swiftly sign into law the measure aimed at ensuring that lawmakers do not profit from non-public knowledge they gain through their positions.
Senators yesterday voted 96-3 for a motion that allowed voice-vote passage of the Stop Trading On Congressional Knowledge Act, the most extensive effort to clamp down on Congress’ personal dealings in years.
The approval margin was identical to a February 9 vote on the measure that included two key provisions that were dropped from the final version: one creating new legal tools for prosecutors to pursue public corruption cases and another that would require so-called political intelligence operatives to register under lobbying laws.
The legislation, once seen as a feel-good Bill destined for swift passage, ran into problems when the House of Representatives passed a version of it without those provisions.
Insider trading legislation had languished in Congress for years, but got a massive boost from a CBS expose of questionable stock transactions by several members of Congress, including House Speaker John Boehner and House Democratic leader Nancy Pelosi.
With White House prodding, lawmakers seized upon the effort amid public opinion polls during the past year that put Congress' approval rating at a record low of about 9 per cent.
House Republican leaders argued that the political intelligence provision, which targetted former Capitol Hill insiders who use their contacts to gather information on pending legislation and sell it to Wall Street investors, could tread on First Amendment free speech rights. The final version orders a study of what to do about that increasingly widespread practice.
Senate Majority Leader Harry Reid attempted to convene a conference with House members to try to bring the final Bill closer to the Senate’s first version, but gave up this week and agreed to put the House Bill to a vote.
The Senate Bill’s sponsors chose to focus on what they did get in the final version — namely provisions to make it clear that Securities and Exchange Commission prohibitions against trading on insider information applies to lawmakers and their staffs.
“You can rarely get 100 per cent of what you want, so you have to settle for less,” said Senator Joe Lieberman, an Independent who shepherded the Bill as the head of the Homeland Security and Governmental Affairs Committee.
