President signs bill to limit STOCK Act’s web-based publication of employees’ financial information

On Monday, April 15, President Obama signed legislation rolling back the disclosure requirements of the STOCK (Stop Trading on Congressional Knowledge) Act, which would have required creation of a searchable, sortable database for the annual financial interest forms of 28,000 executive branch employees as well as highly paid Congressional staff. These forms contain detailed information about employees’ assets, outside income and gifts. Former national security officials raised security concerns about this publication requirement. Current employees filed a lawsuit, resulting in a federal court ruling that publishing such information on the web would violate employees’ right to privacy. “Both the court and the National Academy of Public Administration recognized that federal employees have a legitimate right to privacy regarding their personal financial information,” says Kathleen Clark, JD, government ethics expert and professor of law at Washington University in St. Louis.

Senate votes to limit STOCK Act’s web-based publication of employees’ financial information

On Thursday, April 11, the Senate voted to roll back the STOCK (Stop Trading on Congressional Knowledge) Act, limiting the web-based publication of government employees’ personal financial information. This action comes in response to a federal court ruling that such publication violated employees’ right to privacy and a critical report by the National Academy of Public Administration. “The court recognized that the federal employees have a legitimate right to privacy regarding their personal financial information and ruled that the federal government failed to identify a compelling government interest that would justify posting that personal information on the internet,” says Kathleen Clark, JD, government ethics expert and professor of law at Washington University in St. Louis.

Law requiring Internet posting of executive branch employees’ financial information delayed

On Dec. 7, President Barack Obama signed legislation to delay implementation of the STOCK (Stop Trading on Congressional Knowledge) Act, which would require Internet posting of the annual financial interest forms for 28,000 executive branch employees. A law, WUSTL Congressional ethics expert Kathleen Clark says, that will not prevent Congressional insider trading.