Senate adopts amendment to bar members and immediate family from trading on pending measures

The Senate adopted an amendment expanding a proposed ethics rule to prevent senators and their immediate family members from trading on information about pending legislation. The proposal, offered by Senator John F. Keenan, extended the existing prohibition—previously phrased as a restriction on purchases when a measure affecting a corporation was pending—to also cover sales intended to avoid losses and to apply the prohibition to immediate family members.

Keenan said the amendment would close loopholes that otherwise might allow a legislator to pass information to a spouse or relative to enable trading. He described past legislation that affected corporate stock prices after floor action and urged that the chamber avoid the appearance or reality of trading on privileged information.

The measure passed overwhelmingly on a roll call that the clerk recorded as 38 in the affirmative and none in the negative. A clerk announcement in the transcript states: "Recorded. 38 members having voted in the affirmative, none in the negative. The amendment is adopted." The amendment requires that members not purchase or sell securities with knowledge of pending measures that could grant or deprive special privileges to corporations or associations and extends that prohibition to immediate family members.

Ending: Senate leadership said the amendment sends a message that the chamber will not tolerate trading on nonpublic legislative information and will seek to avoid criticisms often directed at federal lawmakers.