Congress Must Pass a Stock Trading Ban - The New York Times

This rationale does not pass the sniff test. Members of Congress have access to a steady stream of information that regular Americans do not. They already exist in a different, more privileged situation.

The common argument that a trading ban would pose a hardship for lawmakers is no more compelling. Most of the proposals under consideration do not call for members of Congress to sell all their stock holdings. They would merely prohibit lawmakers from trading stocks in individual companies. Assets could still be held in vehicles such as index funds or blind trusts.

It also bears noting that only a sliver of American families, about 15 percent, directly hold stock in individual companies, as opposed to indirectly through mutual funds and the like. A stock trading ban would put lawmakers more in sync with the 85 percent of Americans who own no individual stock, rather than align their interests with the 15 percent who do.

A ban on congressional trading enjoys a bipartisan appeal that is rare in this polarized age. A January poll found that 63 percent of American voters are at least somewhat in favor of such a move — with strong backing among Democrats, Republicans and independents alike.

With the support for reform growing, Ms. Pelosi adjusted course this month, saying she was open to a ban and announcing that the House Administration Committee would look into the situation. The committee chairwoman, Zoe Lofgren of California, has said her team is analyzing the existing bills and would put together a broad-based consensus proposal.

The speaker’s public shift was vital to keeping the push alive, but there is a difference between grudging acceptance and vigorous support. Proponents of reform need to keep the pressure on to ensure that this effort does not get slow-walked or bogged down in the devilish details. Ms. Pelosi, for instance, insisted that reform legislation should apply not only to Congress but also to the judiciary, including the Supreme Court. “It has to be governmentwide,” she asserted.

The judicial branch certainly could use some ethical shoring up. An investigation last year by The Wall Street Journal found that from 2010 to 2018, 131 federal judges “unlawfully ruled in cases involving companies in which they or their families held shares.” People involved in close to 800 lawsuits have since been notified that their cases are eligible to be reopened because of these conflicts.