this post was submitted on 05 Jun 2024
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[–] [email protected] 76 points 5 months ago* (last edited 5 months ago) (2 children)

The standard fine for violating the STOCK Act is $200, but frequently the House Committee on Ethics and the Senate Select Committee on Ethics waive the fee.

Craig Holman, a Capitol Hill lobbyist on ethics and campaign finance rules for nonprofit Public Citizen, said the fee is one of two reasons why the STOCK Act is frequently violated.

“The penalty is so minimal that these millionaire members of Congress really don't care about it," Holman told Raw Story. “The second provision is the ethics committees are not really enforcing it or taking it seriously.”

So basically this "law" is just a suggestion.

[–] [email protected] 39 points 5 months ago (2 children)

So the penalty for insider trading is $200. That's just a Pay to Play fee for illegal market trading. Let's put some jailtime on that act, FFS.

[–] [email protected] 15 points 5 months ago (1 children)

Remember, that law was written by those who it will affect most. They'll never make it more than a slap on the wrist.

[–] [email protected] 3 points 5 months ago* (last edited 5 months ago)

Some background information for those interested: the top traders in congress this year are 50:50 DNC and GOP, top trader was DNC Brian Higgins until he left office this year. Generally GOP do place higher but former speaker of the house Nancy Pelosi also often makes the top ten given she married the owner of an investment firm when they were both in college, 25 years before she entered congress, and they have joint assets.

The law, 2011-2012 S.2038 - STOCK Act, was introduced by Independent Democrat Senator Joseph I. Lieberman. It had 1 roll call in the house, 417 to 2, and 13 roll calls in the senate with many changes and amendments proposed until it passed 96 to 3.

Personally, I don't expect anything to ever come from the STOCK act in terms of punishments, but I'm happy that we have it or we wouldn't even be having these conversations in the first place.

[–] [email protected] 6 points 5 months ago

The standard fine for violating the STOCK Act is $200, but frequently the House Committee on Ethics and the Senate Select Committee on Ethics waive the fee.

The penalty is $200, but only if they feel like paying it.

[–] [email protected] 9 points 5 months ago

The cost of doing business.

Income-based fines should really be more commonplace.