Below is the opening of our monthly newsletter. View the full newsletter online here.
Summer is in full swing and activities in Washington, DC are heating up—on the Hill, at the financial regulatory agencies, and throughout the Administration.
One area that’s hot is the Trump administration’s ongoing attacks on diversity, equity and inclusion, but the Juneteenth holiday was an occasion to remember the importance and value of reflecting on the enduring struggle for racial justice and broad based inclusion. This is not about devaluing meritocracy, but recognizing that diversity across race, gender, socioeconomic status, and lived experience helps create environments where better decisions are made, blind spots are avoided, and economic returns are enhanced. Diversity is a strategic advantage that strengthens organizations, institutions, companies, our financial system, and our entire country while improving outcomes and communities. Take a minute to read our fact sheet, which discusses these issues and more, including how discrimination, predatory lending and limited access to financial services imperils the American Dream for too many individuals and families.
Another area that’s hot is the financial industry trying to get its hands on your retirement money, and unfortunately the Trump administration is helping them. While they claim that would be great for you, it would really be great for the financial industry’s profits (a slice of which you can bet would then be used to contribute to the campaigns of those who put the industry’s profits above your retirement security). First, there’s a big push to allow 401(k)s to invest in private markets, but, as our Director of Securities Policy Ben Schiffrin detailed, everything you’ve been told about investing in private markets is wrong. Second, Trump’s Department of Labor foolishly rescinded guidance warning managers of retirement plans of the risks of offering crypto. With more than $24 trillion in retirement accounts ($15.2 in IRAs and $8.9 in 401(k)s), the stakes for Americans hoping to have a comfortable retirement could not be higher.
Crypto remains hot as the Senate passed the misleadingly named GENIUS Act, a bill that promotes the use of so-called stablecoins (or, as we call them, unstable coins). Unfortunately, the bill fails to address fundamental risks in this emerging sector, such as the susceptibility of stablecoin companies to runs, bankruptcies, and taxpayer-funded bailouts. Passing this Act puts consumers, investors and the economy at risk. Our team continues to drive awareness of the risks of stablecoins and what can be done to protect American consumers, including Amanda Fischer, our Policy Director & COO, testifying before the House Financial Services Committee.
Amanda Fischer with House Financial Services Committee Ranking Member Maxine Waters
Finally, I’d like to share a recent victory: Since being created after the 2008 financial crash, the Consumer Financial Protection Bureau (CFPB) has been a fearless and effective ally of Main Street Americans ripped off by the financial industry, returning more than $20 billion to more than 200 million Americans – that’s why the industry has fought so hard to kill the agency. The Trump Administration is now doing the industry’s dirty work by dismantling the agency, protecting financial firms ripping off consumers, hiding consumer complaints, licensing lying about FDIC insurance, and curtailing transparency and accountability in oversight of nonbanks. Trump’s anti-consumer leaders at the CFPB have gone so far as to try to undo a settled anti-discrimination case. This unprecedented and outrageous action was opposed by Better Markets and allies in an amicus brief led by the National Fair Housing Alliance and the court agreed with us, thoroughly and convincingly rejecting the CFPB’s alliance with an alleged racist mortgage broker.
Our work this month, and always, is focused on standing up for the economic interests of Main Street Americans, de-rigging the economy so that it works for all Americans, and on ensuring the financial system supports the real productive economy, rather than threatening it with failures, crashes, and bailouts.
Dennis
Dennis Kelleher
Co-Founder, President, & CEO
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