Pelosi Says Congress Stock Trading Bill Could Go To Floor This Month

Topline

House Speaker Nancy Pelosi (D-Calif.) said Wednesday that a bill banning Congress members from trading individual stocks may go to a vote as soon as this month, setting the stage for the long-awaited legislation to take effect after dozens of legislators, including Pelosi, have been accused of benefiting from insider knowledge.

Nancy Pelosi answers questions during her weekly news conference at the Capitol on Wednesday.

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Key Facts

Pelosi said at a press conference she believes there will be a “product that we can bring to the floor this month,” calling the legislation “very strong.”

Pelosi’s answer was in response to a reporter’s question about an analysis released by the New York Times Tuesday that revealed 97 Congress members traded stocks impacted by the work of legislative committees they sit on, either personally or by close relatives.

The Times report did not include Pelosi as one of the offending lawmakers, though the trading activity of her husband has long been scrutinized.

Key Background

It remains to be seen exactly what the restrictions may be, but a bipartisan bill introduced in February by six bipartisan representatives and senators called for a ban on Congress members and their families from owning any individual securities, including stocks, bonds and commodities. The proposal did allow for lawmakers to own mutual funds and ETFs and suggested a $50,000 penalty for violations. There has been a spike in interest for the trading habits of lawmakers in recent years, and a “Nancy Pelosi Stock Tracker” Twitter account has more than 158,000 followers. There are few trading restrictions on Congress members, and, though insider trading is obviously still illegal for the group, critics have pointed to lawmakers and their relatives’ ability to spot obscure upcoming legislation affecting public companies.

Surprising Fact

Public support for the trading ban spans party lines. A January Morning Consult poll found 63% of Americans believe Congress members should not be allowed to trade stocks, including 58% of Republicans and 69% of Democrats.

Tangent

Pelosi’s husband Paul Pelosi sold $4.1 million in shares of chip maker Nvidia at a loss in July, one day before the Senate passed legislation that caused the company’s stock to surge. The head scratching trade was intentional, according to Drew Hammill, Nancy Pelosi’s deputy chief of staff, who wrote in a statement to Forbes at the time: “Mr. Pelosi decided to sell the shares at a loss rather than allow the misinformation in the press regarding this trade to continue.”

Chief Critic

Though most lawmakers on both sides of the aisle have largely supported restrictions, a handful have spoken out against any sort of bill, including Sen. Tommy Tuberville (R-Ala.), who said in February about the proposal, “This is a free country, last time I heard.” A Times investigation found Tuberville has made several trades representing conflicts of interest while in office.