Creating an Effective Vaccine to Prevent Congressional Insider Trading: Legislation is Needed to Cure Deficiencies of the STOCK Act
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Authors
Kelbon, Kristen
Issue Date
2022
Type
Journal Article
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Abstract
INTRODUCTION|The recent insider trading scandal surrounding COVID-19 illustrates that the STOCK Act and preexisting insider trading statutes are not sufficient to prevent corruption and financial conflicts of interest. Given the fact that enforcement of the STOCK Act can be difficult, tighter guidelines are needed to determine which assets public officials should be permitted to own and trade while in office on Capitol Hill. This Article proceeds in six parts. Part II explains the legal backdrop of insider trading laws, the implementation of the STOCK Act, and the subsequent use (or lack thereof) of the STOCK Act. Part III examines the questionable trading activity that renewed concerns about congressional insider trading under the STOCK Act. Part IV critically analyzes the effectiveness of the STOCK Act and demonstrates the arbitrage opportunity created by the various evidentiary roadblocks. Part V demonstrates the need for tighter regulation, while Part VI proposes a long overdue solution to address the inefficiencies of the Act. To rectify such concerns, members of Congress,
their spouses, and dependent children should be required to place certain qualified assets into blind trusts while in office, relinquishing control over the assets for their full tenure.
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Publisher
Creighton University School of Law