Trump Turns Over Wall Street Reform and Your Retirement Savings to Goldman Sachs
President Will Sign Executive Order Chipping Away at Wall Street Reforms Put in Place After the Financial Crisis of 2007-08, Will Also Allow Financial Advisors to Steer Clients Toward Retirement Investments That Pad Their Own Bottom Lines
WASHINGTON, D.C. – Today, Allied Progress denounced President Trump’s reported decisions to weaken important Wall Street reforms put in place following the financial crisis of 2007-08 and to direct the Labor Department to delay implementation of its “fiduciary rule” requiring brokers who offer retirement investment advice to put the best interest of their clients first rather than recommending investment products that pad their own bottom lines.
“If anyone thought Trump filling his administration with Goldman Sachs executives wouldn’t result in financial policy that stacks the deck against hardworking Americans, this should finally dispel that notion. Put simply, the White House wants to let financial advisors guide their clients to retirement investments that are good for business but bad for consumers.,” said Karl Frisch, executive director of Allied Progress.
He continued, “America’s Swamp-Drainer-In-Chief has made it clear that his top priority is returning power to the big banks and financial institutions that helped wreck our economy and cost millions of Americans their homes and retirement savings. Because of the financial crisis they caused, millions still worry about the safety of their retirement savings. They shouldn’t have to worry about the priorities of their president too.”
“It’s no surprise that former Goldman Sachs president Gary Cohn is running point for Trump on these initiatives,” he concluded.
Karl Frisch is available to speak to members of the media regarding Trump’s efforts. Contact Mike Czin at 202-286-7654 or mczin@skdknick.com.
Background on the “Fiduciary Rule”
Because of a “Retirement Advice Loophole” from the 1970s, banks, brokers, mutual funds, and insurance agents with major conflicts of interest are allowed to provide investment advice that puts their own bottom lines ahead of what’s best for their clients. Millions of hard-working Americans are impacted by this loophole every year without even knowing it, and it is draining away their retirement savings. The “fiduciary rule” that President Trump is seeking to quash would require that financial professionals to instead put the best interest of their clients first. For additional Information on the “fiduciary rule,” visit SaveOurRetirement.com.
Background on Dodd-Frank
The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in direct response to the financial crisis of 2007-08. It aims to stop financial institutions from being reckless with the most comprehensive set of financial regulatory reform initiatives since the Great Depression. Primary components of Dodd-Frank include:
- Financial Stability Oversight Council (FSOC) which watches for risks in the financial system especially since many large banks are considered too big to fail and if one did, would cause other banks to fail.
- Consumer Financial Protection Bureau (CFPB), which reigs in the worst practices of consumer financial products like mortgages, payday and car title loans, credit cards, and more to protect consumers.
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Allied Progress is a nationwide, progressive advocacy organization that uses hard-hitting research and creative campaigns to hold Wall Street and powerful special interests accountable. Since launching in 2015, the organization has led high-profile campaigns on several issues including reforming the payday lending industry and exposing the those working to cripple the Consumer Financial Protection Bureau (CFPB).