Email from Frankly Speaking What we're missing, and how to fix it. In 2022, I Warned About Congressional Insider Trading Here’s why real reform is needed, and how to fix it The recent flood of news about Congressional insider trading and conflicts of interest, leaves little doubt it will continue - unless something changes. I sounded this alarm nearly four years ago - long before today's headlines - and proposed a comprehensive solution, because the problem ran much deeper than most realized. My original proposal, called the TRUST Act, wasn’t just about preventing members of Congress from trading individual stocks. It was about instituting the same strict rules that those of us who spent our careers on Wall Street have followed for decades. Here’s what I proposed: A qualified blind trust will be established for every member of Congress, run by independent, third-party financial professionals. Full oversight of those trusts by an independently appointed panel of experts, ensuring accountability, transparency and adherence to the rules. Strict limitations on certain investments where clear conflicts of interest exist. Family members, staffers and close associates will be held to similar trading practices. No more running trades through spouses, siblings, children or other connected 3rd parties. Penalties for violations, include removal from committees, forfeiture of profits, and potential removal from office. Tighter restrictions on political donations from companies and individuals connected to select legislators, cutting off potential avenues of influence. These are not radical measures. They’re the bare minimum for anyone with access to non-public information, and standards that are strictly enforced in the financial services sector every day. What’s unfolding in Congress goes far beyond isolated stock trades. It’s about a vast network of beneficiaries including family members, friends, donors, investment banks, hedge funds, and others. The issue isn’t just about trading on privileged information; it’s about shaping legislation itself to guarantee investment outcomes. In effect, the violators are playing chess—thinking several moves ahead, manipulating the board; while those trying to stop them are playing checkers - outmatched from the start! Unless legislation is written with enough forethought to account for every link in that chain, insider trading by our legislative leaders will not stop. We’ll just see it morph into new forms, always staying one step ahead of the rules. What I proposed in 2022, (and what my opponents failed to grasp) is that superficial reforms aren’t nearly enough. Real change means building a system where incentives and the opportunities for abuse are taken off the table for everyone, not just the person whose name is on the ballot. Attempting at enact meaningful reform without identifying and closing every possible loophole is like playing chess while refusing to use your queen, rook, or bishop. If we fail to anticipate and block every move, we’ll keep finding ourselves in check - consistently outmaneuvered by those who know exactly how to work the system. Best regards, Frank Pallotta Former Congressional Candidate, NJ05 Wall Street Veteran Frank T. Pallotta 2025 Assembly Candidate, LD39-NJ '20 '22, GOP House Candidate, NJ05 Steel Curtain Capital, LLC 145 N. Franklin Tpke. Suite 203 Ramsey, NJ 07446 201-921-8384   Steel Curtain Capital, LLC | 145 North Franklin Tpke. Suite 203 | Ramsey, NJ 07446 US Unsubscribe | Update Profile | Constant Contact Data Notice