John,

I recently spoke with Jacobin about an ethics issue that I wanted to fill you in on:

A recent investigation found that 10 senators and 16 representatives have more than $150 million invested in private equity funds. Thirteen of those members have at least $500,000 invested in those funds—and because the investments are reported as ranges, they are likely worth much more.

These are not insignificant investments. And there’s very little to no transparency into these funds, which means there’s no accountability.

Because of the limited disclosures around these types of investments. In many cases, we don’t know what the funds are invested in—so we don’t know whether members' investments pose ethical issues.

The private equity funds could all be invested in defense stocks. Or the underlying assets could be concentrated in electric vehicles, or oil and gas. Meanwhile, members could be voting on bills that affect those industries. Members could buy or sell their interests in the funds based on what they learn in their committees or in briefings.

The problem is, we have no way of knowing.

But here’s the good news: there’s already a bipartisan bill that Congress is considering that would end this practice altogether. The ETHICS Act, which CREW has wholeheartedly endorsed, would ban congressional stock trading and ban members from investing in private equity funds.

John, we need to know that members of Congress are not putting their financial interests above their constituents. Passing the ETHICS Act would be a decisive step toward rebuilding public trust and closing not only this private equity loophole but banning congressional stock trading once and for all.

Can you help CREW fight for this crucial reform with a donation today?

You can read the full story here. Thank you,

Virginia Canter
Chief Ethics Counsel
CREW