We urge Congress to resume the legislative effort to shine a light on the activities of Wall Street consultants and lobbyists who lurk on Capitol Hill seeking valuable information they can use to cash in on the stock market. Today, the Government Accountability Office issued its long-awaited report on how this “political intelligence” industry operates in the shadows for the benefit of itself and its paying clients.
When Congress approved the “Stop Trading on Congressional Knowledge” (STOCK) Act last year, making it clear for the first time that the laws against insider trading apply to Congress as well as the public, one key provision was left on the cutting room floor: a requirement that financial operatives and lobbyists who make a business trading on information gleaned from congressional sources disclose their activities and clients to the public.
At the time of the law’s passage, many in Congress seemed unclear about what the political intelligence industry is and how it operates. So Congress replaced the political-intel disclosure provision with a mandate for a congressional study on whether there is a problem.
That mandated study became public today, and it shows that there is indeed a problem.
Congressional oversight is a fundamental constitutional duty, and an important tool to detect problems in the government. Recognizing this, a bipartisan congressional Watchdog Caucus has launched with the goal of increasing oversight in government. The caucus’ purpose is to expose fraud, waste and abuse and will promote a more open government.
The Watchdog Caucus’ mission is one we fully endorse: promoting accountability of government employees and creating a culture of transparency and protecting taxpayer dollars.
The goal of the Watchdog Caucus is to empower watchdogs, wherever they are. Watchdogs include inspectors general, federal auditors, Freedom of Information Act officers, whistleblowers and transparency groups like Public Citizen, as well as private individuals.
Taxpayers need and deserve strong watchdogs to guard against waste, fraud and abuse. Watchdog Caucus co-chairs, Reps. Jackie Speier (D-Calif.) and Mike Coffman (R-Colo.) both have a history of investigating abuse and fraud within the government. Speier has spent the last 29 years encouraging openness on all levels of government and promoting the rights and protections of whistleblowers and others who expose government waste and abuse. Coffman is the chair of the House Veterans’ Affairs subcommittee on Oversight and Investigations.
“Establishing the Watchdog Caucus is only the first step to get control of the abuses exposed by government watchdogs and to tap the expertise of experienced investigators,” wrote Speier and Coffman in a recent Politico op-ed. “Moving forward, we want to be champions of whistleblowers and a constituency for good government.”
For more about the Watchdog Caucus, visit its web site.
Keith Wrightson is Public Citizen’s workplace safety expert. Keep up with Public Citizen’s workplace health and safety work by following @SafeWorkers on Twitter.
Shareholders at seven different companies have filed resolutions asking those companies to refrain from spending from their general treasuries to influence elections.
The resolutions, where were filed with 3M, EQT, Exxon Mobil, Chevron, Bank of America, Target and Starbucks, are in response to the unprecedented level of undisclosed outside spending in recent elections. According to a report by U.S. PIRG and DEMOS, outside spending in the 2012 election cleared the $1 billion mark, and as much as 58 percent of the funds came from groups able to take unlimited contributions from corporations and individuals without disclosing their donors.
Corporations accounted for roughly 12 percent of all disclosed donations to super PACs during the 2012 elections. But while super PACs are required to disclose the sources of their funding, corporations have several avenues to spend in secret. They can donate to 501c groups, and trade associations like the U.S. Chamber of Commerce, a political spending juggernaut. The U.S. Chamber spent more than $36 million in 2012 to influence the outcome of 37 Congressional races and the Presidential race.
With so many ways for corporate executives to funnel funds into elections, it’s no wonder that last year a record-breaking 126 political spending resolutions were filed. “The value of corporate political spending to shareholders is highly questionable, even as the risk it poses to our democracy is self-evident,” said Shelley Alpern, director of social research and advocacy at Clean Yield Asset Management. “It’s time for companies to reverse course and simply exit this activity.”