Reports in recent years have featured how legislators in Washington D.C. exempted themselves from insider trading laws that apply to everyone else. One study from Georgia State University even concluded that Congress makes “significant abnormal returns” when it comes to the stock market.
After receiving pressure and media attention, Congress passed the Stop Trading on Congressional Knowledge Act, also known as the STOCK Act. It is suppose to combat insider trading among government employees and members of Congress. However, its full range of restrictions has yet to be implemented, as the bill continues to be delayed. Naturally, the stock picks made by Congress continue to attract interest. If you can’t beat them, join them, right?
Each year, the Center for Responsive Politics researches the finances of the U.S. Congress, as members are required to file annual disclosures of their holdings and investments. It can be difficult to pinpoint all the investments politicians make, since many place their money in mutual funds or managed portfolios, but there are some clear winners when it comes to individual stocks, especially among mega-banks.
Here are the top 5 most popular financial stocks in Congress, according to the most recent data and the number of members invested in each stock…