Financial advisers want to rip off small investors. Trump wants to help them do it.
One of the most important investor protections is the new fiduciary or conflict of interest rule that requires those who advise on retirement investments must put their clients' interests ahead of their own.
House Speaker Paul Ryan has called the rule "Obamacare for financial planning."
White House National Economic Council Director Gary Cohn, one of Trump's closest advisers, says, ‘We think it is a bad rule,’ he told the Wall Street Journal. ‘This is like putting only healthy food on the menu because unhealthy food tastes good but you still shouldn't eat it because you might die younger.’
Robert Reich reports that “Trump and his Republican enablers plan to roll back[the fiduciary rule] designed to protect retirees and small businesses from financial hucksters.
“For years predatory financial advisers have steered their clients towards risky investments to boost their own commissions. Under current laws, stock brokers and retirement planners can conceal conflicts of interest. As a result, Americans lose $17 billion a year from retirement accounts they’ve invested in based on compromised advice.
“A new rule proposed by Obama administration would require financial advisers to put their clients’ interests ahead of their own. Not surprisingly it’s faced fierce opposition from the financial sector. And now Trump and banksters are intent on killing it.
“White House National Economic Council Director and former Goldman Sachs exec Gary Cohn likens the rule to ‘putting only healthy food on the menu because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.’
“In other words, vulnerable investors have the right to get crappy investment advice that enriches their financial advisers.”
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By Susan Antilla
