A new act was introduced by Sen. Josh Hawley in Congress called the Pelosi Act to stop insider trading, under which members who refuse to do so would be liable to surrender their stock to the US Treasury.
Sen. Josh Hawley (R-MO) presented legislation on Tuesday that would prohibit members of Congress from trading individual stocks in order to stop insider trading.
The Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act would compel legislators and members of their immediate families to invest through qualified blind trusts, a technique for avoiding real or perceived conflicts of interest in which an independent manager purchases and sells assets without the owner’s knowledge or consent.
Members who refuse to do so would be liable to surrender their stock to the US Treasury under Hawley’s act.
“For too long, politicians in Washington have taken advantage of the economic system they write the rules for, turning profits for themselves at the expense of the American people,” Hawley said in a statement. “As members of Congress, both Senators and Representatives are tasked with providing oversight of the same companies they invest in, yet they continually buy and sell stocks, outperforming the market time and again.”
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Richard Fisher, a former president of the Dallas Federal Reserve, attacked Nancy Pelosi (D-CA), the speaker of the House at the time, and her husband Paul last July over claims of insider trading.
In response to a report from Punchbowl News, Fisher told CNBC, “Clearly people have taken advantage of inside information forever. I’m sorry to see that Paul Pelosi and Nancy Pelosi and others appear to have taken advantage of inside information.”
The Pelosis have faced backlash for their trades that looked to be based on secret information time and time again.
Less than two weeks before the tech giant received a $22 billion contract to provide augmented reality headsets to US Army combat troops, the Pelosis made $1.95 million on Microsoft call options in March 2021. In the same month, Paul Pelosi purchased up to $1 million in Tesla call options before the Biden administration announced plans to promote electric vehicles.
Pelosi made a point of opposing stock trade bans in the 117th Congress.
Although some Democrats, including Virginia Rep. Abigail Spanberger and Oregon Sen. Jeff Merkley, supported a ban on trading in the 117th Congress, Democrats ultimately postponed voting on a package and did not pass legislation. Then-House Minority Leader Kevin McCarthy promised the issue would be a priority for the GOP in the 118th Congress. -Daily Caller
Of course, the former Speaker has denied all of it.