The stock trading activity of members of Congress continues to be a hot topic in the world of investing with potential conflicts of interest and inside information leading to outsized gains.
One member of Congress is advocating for a ban on stock trading by members of Congress while also disclosing dozens of trades. So what gives?
What Happened: Representative Ro Khanna (D-Calif.) recently disclosed multiple stock purchases and sales in a filing on May 7.
The trades, which occurred in April, mostly involve transactions ranging from $1,000 to $15,000, with some trades listed at higher ranges., according to Unusual Whales.
A sale of the iShares Russell 2000 ETF IWM valued at $250,000 to $500,000 was the largest reported in the filing. GE Aerospace GE was another large transaction with a sale valued at $50,000 to $100,000.
The big question mark is what the transactions are and who made them.
"Are @RepRoKhanna calls to ban stock trading genuine? He disclosed 25 pages worth of stock trading today to include covid vaccine makers, big banks, FOX, and Tesla. He would probably claim his portfolio is ‘managed by outside advisors' if questioned as many members of Congress do," tweeted CongressTrading.
The tweet received a response from Khanna.
"Thanks for engaging and happy to chat. My wife and I do not trade and those disclosures are part of a diversified trust managed by a third party like an index fund. I am for banning members from trading," Khanna said.
CongressTrading followed up with a comment for the congressman.
"Congress has access to non-public information and the ability to make laws. Despite your claim you don't direct trading, you can still propose laws that benefit the individual stocks you own, which is a conflict, and damages public trust."
Khanna replied to the comment, elaborating more about his investments.
"My wife's holdings prior to marriage are so diversified it is effectively like an index fund. But I agree with you on a ban & pushing for a vote on the Trust Act. My votes against defense budgets & for holding corporations accountable show my independence."
Benzinga reached out to Khanna but did not hear back.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: Khanna recently called for a vote on a ban of stock trading by members of Congress with a message to his colleagues.
"Don't come to Congress if you want to make a profit," Khanna said.
Khanna added that Americans are frustrated with members of Congress because too many are trading stocks. He urged House Speaker Mike Johnson to bring a bipartisan bill to ban members of Congress from trading stocks for a vote.
The congressman also referenced the efforts of several websites that track congressional trading, including Unusual Whales, Quiver Quant, and Capitol Trades.
"Let's ban members of Congress from trading stock."
Khanna's latest stock filing was shared on Unusual Whales and Capitol Trades. Quiver Quant shows no trading activity for the congressman.
Whether the trades disclosed by Khanna are part of a trust managed by a third party, the timing could play into the hands of anyone speaking out about Congress being allowed to trade while in office. Some may find it challenging to take the congressman’s call for a ban seriously, given that he is still reporting trades himself.
Photo: Shutterstock
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