Experts not confident in STOCK Act passage

As the push for legislation to restrict private equities trading by lawmakers and their staffs intensifies in the House of Representatives, local political experts expressed doubts a measure would ultimately pass and whether anything would change if it did.

The Stop Trading on Congressional Knowledge Act, introduced under the 112^th Congress by U.S. Rep. Tim Waltz, D-Minn., and pushed since 2006 by U.S. Rep. Louise Slaughter, D-N.Y., with limited success, would label any trading by lawmakers or their staffs on legislative information as securities fraud and would require any trades of more than $1,000 to be reported within 90 days, among other restrictions.

As of Dec. 7, the House version of the STOCK Act had 180 co-sponsors, while the Senate version of the bill, which was introduced by Sen. Kirsten Gillibrand, D-N.Y., had 20 co-sponsors. Members of the House Financial Services Committee indicated they would hold a vote this week on the bill, while the Senate Homeland Security Committee continues to discuss the proposal.

“Transparency, openness ”“ it has not found its way into Congress and that is an enormous problem,” said Jeanne Zaino, interim dean of Iona College”™s School of Arts and Sciences and a professor of political science. “I think the STOCK Act is a good start. Do I think it”™s going to pass? I have my doubts, but we”™ve had some headway on it.”

Hank Sheinkopf, a seasoned campaign adviser and principal of New York city political consulting firm Sheinkopf Ltd., said Congress “probably won”™t pass the legislation” and the only solution would be to require that campaigns rely exclusively on public financing.

“People know that money is corrupting government,” Sheinkopf said. “The system is going to continue unless you have (exclusive) public financing campaigns so that public interest money ”¦ won”™t be able to interfere with democratic elections.”