Politician seeks to ban insider trading within Congress, newspaper report reveals

14 October 2010

A US politician is looking to prevent staff at Congress trading in stocks and shares in companies belonging to managers and senior officials, a news report has revealed.

According to the Wall Street Journal, Republican Brian Baird has called on more support for legislation preventing this form of insider trading.

Members of Congress and other staff members within the organisation commonly use information, which has not been made public, to inform their trades in securities, the politician has claimed.

Mr Baird has unsuccessfully attempted to introduce legislation to the house which would prevent this sort of trading from taking place.

However, his Stop Trading on Congressional Knowledge Act had few supporters when he attempted to implement the rule in the past.

Mr Baird told the news provider: “Members of Congress and their staffs have access to information worth millions of dollars if used for personal gain.

“The public expects us to adhere to at least as high a standard as we impose on other people, and we don't in this case.”

No similar legislation to prevent this form of insider trading currently exists in the Senate.

By Jim Ottewill

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