Bill would bar congressional insider trading

Members of Congress would be barred from insider trading and could be prosecuted for using non-public information they gather as lawmakers for personal gain under new legislation unveiled by Sen. Kirsten Gillibrand (D-N.Y.) Wednesday.

Senators and representatives now are exempt from insider trading laws. A CBS "60 Minutes" report last Sunday said some lawmakers profited from information they gleaned in closed meetings during the financial collapse in 2008.

"Members of Congress should not have a different set of rules," Gillibrand said of legislation she is sponsoring with Democratic Sens. Jon Tester of Montana and Debbie Stabenow of Michigan.

"The American people deserve the right to know their lawmakers' only interest is what's best for the country, not their own financial interests," Gillibrand said.

The bill would require the Securities and Exchange Commission and the Commodity Futures Trading Commission to create regulations to bar congressional insider trading and to prosecute lawmakers who violate those rules.

Lawmakers would have to file reports on stock transactions of over $1,000 within 90 days.

The legislation would require "political intelligence consultants," who contact Congress to gain market information on proposed bills and rules, to register as lobbyists.