President Barack Obama on Wednesday signed into law a ban on insider trading by members of Congress and their staff.
The law, the Stop Trading on Congressional Knowledge Act, explicitly says that members of Congress and their staffs are not exempt from the prohibition of insider trading placed on everyone else.
“We were sent here to serve the American people and look out for their interests—not to look out for our own interests,” Obama said when signing the legislation.
The law mandates that government employees and members of Congress report investment transactions within 45 days of making a trade, instead of the annual basis under the old law. Information in public financial disclosure reports must be made available on agency websites under the law, according to a fact sheet issued by the White House.
Good move. This needed to be done.