Document Type
Congressional Testimony
Publication Date
4-7-2022
Abstract
Professor Nagy testified (text attached, video below) in support of federal legislation that would prohibit members of Congress from owning the securities of individual publicly traded companies as well as certain other investments that would likely conflict with their official duties.
It was nearly 10 years ago to the day when President Barack Obama signed the Stop Trading on Congressional Knowledge (STOCK) Act, requiring enhanced financial disclosures and creating new securities transaction reporting rules for members of Congress, certain members of their family, and their staff. The Act also made absolutely clear that a member of Congress who trades securities based on material nonpublic government information would be violating the federal securities law’s insider trading prohibition. Nagy testified in both the House and Senate hearings that preceded the STOCK Act’s passage, but she believed then, as she does now, that it did not go far enough in preventing lawmakers from profiting off their congressional service.
Nagy’s scholarship in the areas of securities litigation and insider trading has been widely cited. She is the co-author of Ferrara on Insider Trading and The Wall and the forthcoming fifth edition of Securities Litigation, Enforcement, and Compliance: Cases and Materials as well as the author of more than 20 published law review articles and book chapters.
Recommended Citation
Nagy, Donna M., "Examining Stock Trading Reforms for Congress Hearing Before the U.S. House of Representatives Committee on House Administration" (2022). Public Testimony by Maurer Faculty. 6.
https://www.repository.law.indiana.edu/factestimony/6
Comments
On Thursday, April 7, 2022, the Committee on House Administration held a hearing titled “Examining Stock Trading Reforms for Congress.” The Committee hearing took place at 9:10 AM in Room 1310 of the Longworth House Office Building and also took place remotely via Zoom video conferencing.
Others testifying included Liz Hempowicz (Director of Public Policy, Project on Government Oversight), Jennifer J. Schulp (Director of Financial Regulation Studies, CATO Institute), Donald Sherman (Senior Vice President and Chief Counsel, Citizens for Responsibility and Ethics in Washington), and Jacob Straus (Specialist on Congress, Congressional Research Service).