Last Friday President Trump signed an executive order that laid the groundwork for repealing Dodd-Frank, the financial regulation legislation put in place in the aftermath of the 2008 financial crisis intended to keep an economic disaster of such magnitude from happening ever again. He also signed an order calling for the Department of Labor to explore rewriting, or completely eliminating, the fiduciary rule that was set to go into effect in April. The process behind the fiduciary rule is complicated, but the general idea isn’t: it requires financial advisors and retirement fund managers to act in the best interest of their client, not their own personal benefit. It’s been legal for years for retirement fund managers to recommend their clients buy worse investment products because those products give the managers higher commissions.
Donald Trump campaigned as a champion of the common people, but these executive orders are good for Wall Street and no one else. The American people have already suffered enough from Wall Street’s recklessness and greed – turning the clock back to allow the same abuses of the early 2000’s is a mistake. In DC and across the country, the Patriotic Millionaires are speaking out against these executive orders and demanding President Trump serve the people, not the big banks and financial companies.
In their own words:
“The proposed changes will mean that taxpayers will increase profits for banks in good years – and increase tax payer bail outs in bad years. I believe that if you are paying someone to help you invest your retirement savings – that he should give you advice that he believes is in your best interest – not simply tell you to invest in whatever generates the highest commissions for him,” said Chair Morris Pearl, former managing director BlackRock.
“People voted for Donald Trump because they believed that he would “drain the swamp” of corrupt public officials and stand up to big banks. Of course now he’s doing the exact opposite: screwing over working Americans and giving huge breaks to big banks. Here’s something a regular voter has literally never said: “There’s too much transparency in derivatives markets! The fed shouldn’t be allowed to establish risk-based capital requirements for banks!” said Patriotic Millionaire Max Temkin, founder Cards Against Humanity.
“Just about every action on the domestic front is about to turn the clock back on protections for those misguided souls who expected Donald Trump to give a hoot about them. He is behaving as expected and exactly as he has done for years in his businesses: scamming, stealing, lying, using workers and most of all, feathering his own nest” said Patriotic Millionaire Carol Saal, founder Network Associates.
“With the repeal of Dodd-Frank the best we have is hope. If all bankers, brokers, investment consultants and institutions act morally and ethically we’ve nothing to fear. And if past behavior is any indication of future performance, this isn’t likely. So we mustn’t relax the laws put in place to guide and put limits upon them” said Patriotic Millionaire Judy Pigott, Board Member ArtsWest Theater.
“Whether you are a Democrat or Republican, what possible argument exists to suggest that your financial advisor’s first and only obligation should be to anyone other than you, their client? Taking away that fiduciary duty is like calling the fire department when your house is on fire and not being sure they are there to put the fire out” said Patriotic Millionaire Josh Kanter, Investor at Windy City, Inc., Chicago Investments, Inc.
“This is how President Trump and his minions are looking out for the little guy – by reversing hard fought rules that followed the 2008 Wall Street debacle. If Wall Street wants to gamble with risky schemes – let it be their money that bankrolls it. The swamp gets murkier with each passing day” said Patriotic Millionaire Arthur Strauss, retired M.D.
“Donald Trump promised Americans he would focus on jobs and stand up for them against big banks and big business. But all he’s done so far has been to promise fewer regulations and lower taxes for business. Now he wants to gut financial regulations and give big banks the chance to once again run wild in their search for obscene profits at the expense the American public.” said Patriotic Millionaire Fred Rotondaro, Chair Catholics in Alliance for the Common Good.
“Why would anyone choose to hire a financial advisor who was NOT required to act in their best interests? Why should that be considered an onerous requirement? Common sense would dictate that anyone offering a service, particularly financial services, should be expected to act in the customer’s best interests. This should be be a basis for free markets. Wealthier clients can depend on expert advisors to keep track of their diversified investments, because the fees for that advice would represent a relatively small proportion of their investment. Most people cannot afford to hire experts to oversee their financial advisors and do not have the expertise or the time to keep track of these things themselves. Therefore, it is imperative that these advisors be legally required to behave in the best interests of their clients” said Patriotic Millionaire Alida Latham, Photographer.