The calendar cycles, the faces change, the details get fudged around, but the song remains the same.
Another bipartisan group of lawmakers is trying, once more, to end stock trading by members of Congress, a practice that has made some of them (I'm looking at you, Nancy Pelosi) monstrously rich. But we've been down this road before, and it always seems to end in disappointment; it seems to be too big an ask to expect Congress to vote themselves out of personal fortunes.
The Restore Trust in Congress Act, which is being backed by some of the most conservative and liberal members of the House, combines several past proposals that have attempted to stop members of Congress from trading stocks.
Rep. Chip Roy (R-Texas) said the bill’s 16 co-sponsors took the “best elements” of previous proposals to craft the latest iteration.
“We’re united and it has the best elements of each of the bills,” he said. “It is time for Congress to act.”
“If you want a day trade, leave Congress. It’s that simple,” Roy added.
If only it were that simple. Here's how it would work:
Under the drafted legislation, lawmakers found to have violated the proposal, if it becomes law, would face financial penalties equal to 10 percent of the value of their investment and would be forced to relinquish any earnings from the violation.
Current members would have 180 days from enactment to divest their holdings or put them into a blind trust. Newly elected members would have 90 days to come into compliance. It would apply to members, their spouses and any dependent children.
The bill would have to pass the House and win approval from the Senate and White House before it could go into effect.
The bit about spouses and children is a nice touch, since in the case of the Pelosi family, it was actually Nancy's husband, Paul Pelosi, who was the mysteriously prodigal stock trader, no doubt because of tips passed on by Nancy. Oh, and if you want to have nightmares for the next six months, try imagining what the Pelosi's pillow talk must be like.
As noted, this has been tried before, with some seriously odd bedfellows (in the figurative sense) involved. In 2023, the odd couple of Matt Gaetz and AOC were involved in a similar bill, and boy, howdy, I'll bet that led to some tense strategy discussions.
Read More: Matt Gaetz, AOC, Stocks and Strange Bedfellows
The Pelosis: Stock Traders Extraordinaire, or Just Crooks?
And the results always seem to be the same; Congress declines to vote out of the endless stream of cash. The whole thing is beginning to have a familiar ring to it.
I suppose I may be being excessively cynical and pessimistic, but the history of these efforts makes any other outlook rather Pollyannaish. It's going to be too hard to find majorities in the House and Senate willing to cut off the graft. Of course, even if this bill passed, it's just as likely there would arise a whole new cottage industry of investment managers catering to Congress members, who would, of course, deny passing along any tips to the green eyeshade-types who are managing their portfolios.
This is something that ought to be done. But will it? Probably not. It may be a futile effort. But then, the world has no shortage of windmills to tilt at.
Editor’s Note: Help us continue to report the truth about corrupt politicians like Nancy Pelosi and her insider-trading pals.
Join RedState VIP and use promo code FIGHT to get 60% off your membership.
Join the conversation as a VIP Member