Discussion · House of Representatives
Joseph D. Morelle Democrat
“I do not want this bill because it is too weak to stop insider trading. It still lets lawmakers keep the stocks they own and make money from them. We should require members of Congress, the president, and federal judges to sell all their stocks.”
“Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I thank Mr. Roy, whom I have had a chance to be in a number of meetings with on this issue, about restoring faith and trust in America. Recognize, I came to Congress and sold all of the stock that my wife and I owned. At the time, as I recall--it has been many years--Microsoft, Google, Alpha, a number of technology stocks. If I had come here under this bill, should this become law, I would be able to continue to hold onto all of them. Honestly, depending on what committees I serve, I can do a great deal to make sure that my investments were guarded, that they were protected, that they were furthered. It is not supposed to be the way this functions. That is not what we have been talking about. Holding on to stock when you are in a position to affect markets is wrong. Simply put, it is wrong. We should end it. Require the divestiture of stock by Members of Congress, the President, the Vice President, and members of the courts. That is what we should be doing. Anything less than that, particularly when you continue to hold stock, continue to trade by selling stock, when it is appropriate for you and your portfolio, and even to be able to take dividends from stock you own and reinvest and buy more stock--that is allowed under this bill, as well. Others have pointed out Democratic Members and recognized them. There are glaring examples here. However, to reiterate the point, this bill would not prevent insider trading. It would just trick the American people into thinking we are trying to do something about corruption when we are not. Take one glaring example. In December of last year, a Member of the House Republican leadership purchased up to $250,000 in private shares of Elon Musk’s xAI. Within days, the Department of Defense announced an expanded partnership with xAI to provide Grok AI tools. Convenient timing, no doubt. I am sure most Americans would love to have participated in such convenient timing. This Republican Member of leadership, who sits on the Armed Services Committee, including on the subcommittee on Cyber, Information Technologies, and Innovation, just happened to buy xAI stock shortly before the Department of Defense’s announcement. They sure did. That is what they did. It gets worse. Earlier this year, Elon Musk’s SpaceX acquired xAI soon thereafter. SpaceX launched an initial public offering, and the value of the xAI shares this Member of Congress had acquired skyrocketed. In fact, the Member may have made as much as a 60 percent return on the Member’s investment, if liquidated at the right time, potentially a $150,000 profit on a $250,000 initial investment. That is extraordinary. Yet, this bill that the Republicans are purporting would restore trust in America would not have in any way impeded the ability of a Member to do that. If that isn’t extraordinary, if that is not an indictment on what is happening here, I don’t know what is. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Illinois (Mr. Krishnamoorthi), my dear friend.”
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I thank Mr. Roy, whom I have had a chance to be in a number of meetings with on this issue, about restoring faith and trust in America. Recognize, I came to Congress and sold all of the stock that my wife and I owned. At the time, as I recall--it has been many years--Microsoft, Google, Alpha, a number of technology stocks. If I had come here under this bill, should this become law, I would be able to continue to hold onto all of them. Honestly, depending on what committees I serve, I can do a great deal to make sure that my investments were guarded, that they were protected, that they were furthered. It is not supposed to be the way this functions. That is not what we have been talking about. Holding on to stock when you are in a position to affect markets is wrong. Simply put, it is wrong. We should end it. Require the divestiture of stock by Members of Congress, the President, the Vice President, and members of the courts. That is what we should be doing. Anything less than that, particularly when you continue to hold stock, continue to trade by selling stock, when it is appropriate for you and your portfolio, and even to be able to take dividends from stock you own and reinvest and buy more stock--that is allowed under this bill, as well. Others have pointed out Democratic Members and recognized them. There are glaring examples here. However, to reiterate the point, this bill would not prevent insider trading. It would just trick the American people into thinking we are trying to do something about corruption when we are not. Take one glaring example. In December of last year, a Member of the House Republican leadership purchased up to $250,000 in private shares of Elon Musk’s xAI. Within days, the Department of Defense announced an expanded partnership with xAI to provide Grok AI tools. Convenient timing, no doubt. I am sure most Americans would love to have participated in such convenient timing. This Republican Member of leadership, who sits on the Armed Services Committee, including on the subcommittee on Cyber, Information Technologies, and Innovation, just happened to buy xAI stock shortly before the Department of Defense’s announcement. They sure did. That is what they did. It gets worse. Earlier this year, Elon Musk’s SpaceX acquired xAI soon thereafter. SpaceX launched an initial public offering, and the value of the xAI shares this Member of Congress had acquired skyrocketed. In fact, the Member may have made as much as a 60 percent return on the Member’s investment, if liquidated at the right time, potentially a $150,000 profit on a $250,000 initial investment. That is extraordinary. Yet, this bill that the Republicans are purporting would restore trust in America would not have in any way impeded the ability of a Member to do that. If that isn’t extraordinary, if that is not an indictment on what is happening here, I don’t know what is. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Illinois (Mr. Krishnamoorthi), my dear friend.