U.S. Senator Young: Ban Congress from trading stocks

U.S. Senator Todd Young (R-Ind.) spoke on the Senate floor in support of two bills that would ban Members of Congress from trading stocks.

To watch Young’s full floor speech, click here.

Senator Young’s full remarks are below:

Americans don’t appear to agree on much these days. 

But there is at least one thing on which the American people can agree. 

It’s this thing that brings the American people together: 

Our citizens, no matter their politics, don’t trust their leaders. 

The list of institutions that Americans have lost faith in is long. We know this. 

We also know that Congress is at the bottom. 

In fact, over eighty percent of Americans disapprove of the job we are doing in this building. 

Mr. President, the legislative branch is the foundation of representative government. 

It’s urgent, it’s essential that we earn the trust of the American people back. 

You see, we are charged with putting the interests of our constituents over our own interests. We are their voice. 

And yet many of the people we represent believe we are failing to honor that basic commitment. 

It’s no wonder many are losing faith, losing trust. We’re their voice. 

As faith in government has eroded over decades, there are many causes – many fingers could be pointed. There’s plenty of blame to go around. 

And we know that the task of restoring trust is going to be a long-term project.

But I’m here today to argue that there is an immediate step that we need to take to restore a measure of trust in this institution, and it is eminently achievable.

We can prevent its members from using their positions of public trust to enrich themselves, to enrich their families by banning stock trading among members of Congress. 

You see, as lawmakers, Mr. President, we write and pass bills that significantly impact the market. We do it on a daily basis. 

We sit on committees of jurisdiction that oversee entire sectors of America’s economy. 

We have access to briefings and updates on a regular basis that provide nonpublic market information. 

There is little to prohibit members of Congress from using such privileged information to guide their personal selection of stocks. 

In fact, in the last two decades, members have made trades conspicuously timed around market-moving events—events shaped by information they had access to or legislation they helped advance.

Of course, this creates a direct conflict between public duty and personal financial interest. 

And, it’s also a troubling double standard: 

Most people say, “isn’t insider trading is a federal crime for all Americans?” 

It is. But when it comes to members of Congress trading on information gained through public service, enforcement is quite rare and very difficult to police. 

So, Mr. President, it’s no wonder many Americans are convinced that the market is rigged for a privileged set of citizens who can manipulate it for their gain.

Now, to be fair, in 2012, Congress made some headway in addressing this unfairness. They passed the STOCK Act.

This law mandates that lawmakers report stock trades over $1,000 within 30 days of the transaction  

But the enforcement mechanism – an initial fine of a mere $200 – is virtually toothless. 

So, Mr. President, the underlying problem remains, and it should not. 

Today, roughly 200 members of Congress own shares in publicly traded companies. 

Many of them – most of them are good people, are ethical people. They came here for all the rights reasons, and many have not lost their way. 

And among those 200 members, many sit on committees that craft policy for and conduct oversight on the very industries in which they invest. 

In an era of deep partisanship, most Americans, no matter their political beliefs, their party, their underlying ideology, the geography in which they live, their gender, their age – they see this is a problem. 

How much of a problem? 

Well, according to a survey conducted by the University of Maryland’s School of Public Policy, Mr. President, 86 percent our population supports a prohibition on congressional stock trading. 

There aren’t many issues like this. In a divided America, this could unify America. Our Congress could be unified by exercising the will of the American people and banning members of Congress from trading stocks.

What do republicans say? 87% of republicans think this is a problem – think we should ban members of Congress from trading stocks.

You go across the country; that’s almost 9 out of 10 republicans you talk to will say we should do it. 

And why have we not? 

What about democrats? 88% of democrats, almost 9 out of 10. 

Independents – 81%. 

So, listen, there are two bills that we already have. I don’t need to draft a new bill. Let’s recognize our colleagues handy work and get something important done. 

Two bills that would accomplish this in the United States Senate: 

The first bill, The Stop Insider Trading Act, would prevent members of Congress, their spouses, and their dependent children from trading individual stocks, and it would strengthen disclosure and enforcement requirements. 

And, unlike current law, the bill would impose meaningful financial penalties for violations. 

Under this bill, lawmakers who fail to comply with the law’s mandates would be fined the greater of $2,000 – probably still not enough but enough to maybe get it passed through the Senate. We can increase it later –

Be fined the greater of $2000 or 10 percent of the investment value, plus the forfeiture of any net gain realized from the sale. 

The second bill, The Restore Trust in Congress Act, would prohibit members of Congress from trading individual stock. 

It would establish guidelines for members to divest existing holdings within a defined period.

And it would also empower congressional ethics offices to enforce compliance through meaningful penalties.

Now, loo, Mr. President, there is no easy or quick way to restore complete trust in Congress, faith in this essential institution of democratic government. 

But prohibiting members of Congress from leveraging their positions of public trust for personal enrichment would go a long way.

I think most Americans would acknowledge it would be a meaningful step towards that goal. 

Passing these bills will ensure stock trading comes to an end in Congress and help restore trust in us, those who serve.

I would even call it, as a personal matter – it would be a gesture of self-respect for politicians to embrace this reform.