Congress closes loophole after CNN report
House Republicans have been forced to close a potential loophole on their much-touted insider trading law - a loophole CNN uncovered and reported about last month.
Because of CNN's report, the Senate and House passed new legislation Thursday to close the loophole that could have allowed family members of some lawmakers to profit from inside information.
Senators who were critical of the loophole after it was unearthed applauded the fix.
The STOCK Act, one of the rare bipartisan bills passed this year, was signed by President Barack Obama in April.
Lawmakers proclaimed that the bill, officially called the Stop Trading on Congressional Knowledge Act, would restore trust in government. It also applied new rules to some employees of the executive branch.
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Post by: Dana Bash, Deirdre Walsh Filed under: Congress |
CNN exclusive: Possible Congressional insider trading loophole
It was a rare show of bipartisanship - President Barack Obama, flanked by Democrats and Republicans in April, signing into law a bill that would ban insider trading on Capitol Hill. The measure, known as the STOCK Act, had passed the House and Senate in warp speed.
"The powerful shouldn't get to create one set of rules for themselves and another set of rules for everybody else," the president said at the time.
Lawmakers proclaimed that the bill, officially called the Stop Trading on Congressional Knowledge Act, would restore trust in government. It also applied new rules to some employees of the executive branch.
But CNN uncovered that the law that members of Congress thought they voted for earlier this year isn't exactly as advertised. A loophole could still allow family members of some lawmakers to profit from inside information.
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Post by: Dana Bash, Deirdre Walsh Filed under: Congress • Keeping Them Honest |
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