Lawmakers consider stock trading ban for senior officials at federal agencies

SIMONE DEL ROSARIO: FIRST – IT WAS MEMBERS OF CONGRESS.

NOW – SENATOR JOSH HAWLEY WANTS TO BAN SENIOR FEDERAL GOVERNMENT EMPLOYEES FROM OWNING OR TRADING INDIVIDUAL STOCKS.

THE MISSOURI REPUBLICAN INTRODUCED LEGISLATION MONDAY THAT WOULD BAR SENIOR MEMBERS OF THE EXECUTIVE BRANCH, TELLING THE WALL STREET JOURNAL: THOSE WHO HAVE ACCESS TO PRIVILEGED INFORMATION SHOULDN’T BE USING IT TO GET RICH. ADDING WHILE PROHIBITIONS ALREADY EXIST IN FEDERAL LAW TO PREVENT CONFLICTS OF INTEREST, THESE LAWS ARE DIFFICULT TO ENFORCE AND FRANKLY, INSUFFICIENT.

THE SPOTLIGHT ON STOCK-TRADING GOVERNMENT EMPLOYEES FOLLOWS A WALL STREET JOURNAL INVESTIGATION FROM OCTOBER – REVEALING THAT MORE THAN 26-HUNDRED OFFICIALS ACROSS THE EXECUTIVE BRANCH REPORTED OWNING OR TRADING STOCKS THAT ARE INFLUENCED BY DECISIONS THEIR AGENCIES MAKE.

FOR INSTANCE, A DEFENSE DEPARTMENT DIRECTOR WHO BOUGHT LOCKHEED MARTIN STOCK FIVE TIMES IN THE WEEKS LEADING UP TO THE COMPANY SECURING A $1 BILLION DOLLAR CONTRACT TO DELIVER MORE F-35 COMBAT JETS.

THE EMPLOYEE SAID HE WASN’T INVOLVED IN AND HAD NO INSIDE KNOWLEDGE AHEAD OF THE CONTRACT AND THAT ETHICS OFFICIALS DIDN’T RAISE ANY CONCERNS ABOUT HIS TRADES.

IN JANUARY, THE JOURNAL REVEALED THAT IN RECENT YEARS ETHICS OFFICIALS HAVE WARNED ONE-THIRD OF SENIOR ENERGY DEPARTMENT EMPLOYEES ABOUT STOCKS THEY OR THEIR FAMILIES HOLD, REMINDING THEM OF CONFLICT OF INTEREST RULES. 

U-S LAW ALREADY PROHIBITS FEDERAL OFFICIALS FROM WORKING ON MATTERS WHERE THEY OR THEIR FAMILY HOLD SIGNIFICANT FINANCIAL STAKE. 

AND REPUBLICANS LIKE HAWLEY AREN’T THE ONLY ONES RAISING THE ALARM OVER WHETHER THIS IS SUFFICIENT.

THIS PAST WEEK DEMOCRATIC LAWMAKERS ELIZABETH WARREN AND PRAMILA JAYAPAL SENT LETTERS TO INVESTIGATORS AT EIGHT DIFFERENT FEDERAL AGENCIES, ASKING THEM TO REVIEW WHETHER THEIR ETHICS RULES ARE EFFECTIVE ENOUGH.

BOTH HAVE PREVIOUSLY INTRODUCED BILLS TO BAN MEMBERS OF CONGRESS AND THEIR SPOUSES FROM OWNING AND TRADING STOCK, AS HAS SENATOR HAWLEY.

THOSE PROPOSALS HAVE MADE LITTLE PROGRESS SO FAR.

THOSE AGAINST BANNING FEDERAL OFFICIALS FROM TRADING STOCKS HAVE ARGUED IT COULD DETER PEOPLE FROM GOING INTO PUBLIC SERVICE IN THE FIRST PLACE.

I’M SIMONE DEL ROSARIO IN NEW YORK IT’S JUST BUSINESS.