Last March, wealthy Republican executive Rob Bresnahan Jr. was running to represent a competitive home district in northeastern Pennsylvania, when he published a letter to his editor in a local newspaper calling for the closing of stock transactions by members of Congress.
“The trust our political leaders and institutions have from Americans is historic low, and it's easy to understand why,” Bresnahan wrote in the voice of Wilkes-Barle. “Too often, I hear about how politicians make millions of dollars while in their tenure. That's offensive. If they want to restore confidence in government and political leaders, Congress must lead these policies.”
If elected, Bresnahan told voters that he would jointly support legislation to ban stock trading by members of Congress, saying “it needs to be terminated soon.”
More than two months after being sworn in, Bresnahan, who defeated the Democratic incumbent in one of the nation's most expensive house races last November, has not introduced or co-hosted such a bill. During that time, he emerged as one of the most active stock traders in the freshman class, according to Capitol Trades, a website that monitors the stock market activity of lawmakers.
Since he took office in January, Bresnahan has reported 264 stock transactions, according to the site. He has purchased up to $1.7 million in shares since taking office and sold up to $3.03 million, according to a regular trading report.
Lawmakers on both parties have long defended the issue of banning individual stock trading among Congressional members as a way to appeal to an increase in populist sentiment among their constituents. They note that lawmakers access classified information reports and meet with the CEO, set economic policies, and at least play an important role in creating the emergence of conflict.
The idea brought together a diverse group of supporters, from the far-right Texas Republican Chip Roy to the progressive New York Democrat Alexandria Ocasio-Cortez. But the effort has stagnated in recent months following the eviction of the top democratic champion of issues in Congress and amid lack of support among other lawmakers.
According to public votes, around 75% of voters support a ban on members of Congress from trading individual shares. A 2022 New York Times survey found that nearly 20% of Congressional lawmakers, including Democrats and Republicans, purchased shares that intersect with the committee's work.
Bresnahan, who works for the Transport and Infrastructure Committee, trades several stocks related to these sectors, including Caterpillar and construction and mining equipment manufacturers. CXS, railway company. Boeing is the manufacturer of airplanes.
During his campaign, Bresnahan attacked Democrat opponent Matt Cartwright and cracked down on practice for not co-hosting the law.
“This is the current bipartisan legislative topic within the home I am willing to co-sponsor,” he wrote in a letter to the editor. “My opponent, Matt Cartwright, is not a co-sponsor of this bill.”
Since he arrived at Capitol Hill, Mr. Bresnahan has not done so himself. He has not signed the corruption of corruption in government law, a bipartisan bill that bans insider trading by members of Congress and their spouses. He also has not added his name to the Congressional Trust Act, a bill that requires certain assets to be placed blindly in trust while serving as lawmakers, spouses and children.
In recent months, Bresnahan has traded tens of thousands of dollars in shares in Alibaba, an e-commerce giant with close ties with the Chinese Communist Party.
Between February and March, Bresnahan dumped Tesla stock, which he had held since last year, according to public records.
Bresnahan spokesperson Hannah Pope said he has not yet co-hosted legislation on the topic as he decided to introduce his own bill instead.
The Pope said that Bresnahan is to rely on financial advisors to trade stocks for him and never knows about the transaction before or before it happens. He also doesn't know that the company is trading, she said.
“Like the vast majority of Americans, Rob doesn't handle his own stock trades and he never has,” Pope said. “Robb's focus is on providing for people in northeastern Pennsylvania by securing our borders, continuing to stimulate our economy and rehabilitate our collapsed infrastructure.”
Alibaba's trade is part of a larger strategic equity package, she added. When it was reported, Bresnahan's team put in guardrails and was unable to trade that inventory again.
Donald K. Sherman, executive director of citizens for responsibility and ethics at Washington, a watchdog group distributed to Democrats, said Bresnahan's deal was questionable, especially given the promises and commitments during the campaign.
“More importantly, these questions are not asked if he is engaged in the sale and ownership of personal assets like stocks and leaves the ownership,” Sherman said. “He chose to run for Congress. He has the option of not engaging in the stock market. That choice will remain available to him.”
Sherman argued that the ban is important because we shouldn't be questioning whether lawmakers' equity portfolios affect legislative and committee work. There was no reason to believe Bresnahan was not complying with the law, but Sherman added, “Members who claim to protect themselves to a higher standard should try to meet that standard.”
Congress' willingness to ban stock trading began in 2020 after a revelation that both parties traded medical stocks after a closed door briefing on the coronavirus pandemic.
Still, the issue appears to have lost some steam with the departure from Congress of one of its most vocal champions, Abigail Spanberger.
“Someone is probably a freshman — there's an opportunity to win leadership positions on this,” Sherman said. “It's a good time to support ethical reforms supported by the majority of voters.”
