How to trade insider trading congress: Inside the insider trading Congress
Congress is now debating whether to pass a bill to ban insider trading by Wall Street banks and their traders.
The bill, introduced by Senator Elizabeth Warren and Senator Sherrod Brown, would prohibit insider trading through a so-called fiduciary rule, which is the legal framework for regulating insider trading.
The law also would bar trading on insider information.
The House passed the bill in July, but it was put on hold by a judge who said the bill was too vague.
The Senate is expected to pass the bill next week.
The Securities and Exchange Commission says the rule is the most stringent in the nation and could be a model for other industries.
In an op-ed for the Wall Street Journal, Warren said the rules were needed to prevent companies from cheating investors.
“When companies engage in insider trading, they are cheating investors, too,” she wrote.
“I am also deeply concerned that the Securities and Trade Commission’s rule will become a model to other industries, including the finance and insurance industries, which will not be able to properly regulate their practices.”
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