“Wall Street has pulled out all the stops in opposing a plan by its own self-regulator to require brokers to share extensive information about their clients’ accounts. “The proposal by the Financial Industry Regulatory Authority, or Finra, is “a troubling and serious threat to investors’ civil liberties and constitutional rights,” Carrie L. Chelko, chief counsel […]
Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued the following statement in response to legislation introduced by Rep. Ann Wagner that would prevent the release of the Department of Labor’s (DOL) proposed rule to protect Americans from conflicts of interest when brokers and other financial advisers give retirement advice: “This bill […]
“I wanted to spend a bit of time on the Labor Department’s proposal to place a fiduciary obligation on those who manage or provide investment advice on retirement plans. These include individual retirement accounts and 401(k)s (including 403(b)s). The new rules require the broker or adviser to “operate in the best interest of the client.” “I don’t […]
“Here is a short tale of how the way Americans save for retirement has changed over the last couple of generations. It helps explain what the Obama administration is up to with a new initiative this week: “Once upon a time, companies took it as their responsibility to ensure that their workers could enjoy a comfortable retirement. They socked […]
“Investor advocate groups are stepping up their lobbying efforts in support of the Department of Labor’s proposed fiduciary rule, gathering Friday morning with supporters at AARP’s Washington, D.C. headquarters to talk strategy. “The Labor Department is expected to propose a rule that would require advisors overseeing retirement plans to act under a fiduciary standard, putting client interests […]
But perhaps the most important question is whether you can trust your financial adviser. Some financial advisers in the United States are paid not on the basis of how their clients do, but according to what financial products they persuade them to buy. Dennis Kelleher of Better Markets, a pro-reform group, recently summed up the […]
Better Markets and the Consumer Federation of America sent a letter to the full Senate the same day, arguing that the DOL rulemaking should be allowed to move forward as the “actual contents” of the DOL rule have not been made public. The discussion about the DOL rulemaking “has for the most part been based […]
Countering this, Better Markets, a financial reform lobby group, posted a memo on their web site advocating that people not believe the “spin,” posting common “myths” that surround the issue. The memo appears to directly address some of Gallagher’s statements regarding the status quo being acceptable. “No existing rules adequately protect retirement assets,” they write, […]
Dennis Kelleher, president and CEO of Better Markets, applauded Obama endorsing DOL’s proposed rule. “By advancing this rule, the president is taking a huge step towards ensuring that tens of millions of Americans finally get unbiased advice, maximize their savings, and increase their chances for a comfortable and dignified retirement,” Kelleher said. Read the full […]
“If you’re working hard and saving money, sacrificing that new car or vacation so you can build a nest egg for later, you should have the peace of mind that the advice you’re getting is sound,” President Obama said, at the Save Our Retirement Coalition event at AARP’s offices in Washington. Coalition members include the […]
“In America, after a lifetime of hard work, you should be able to retire with dignity and a sense of security.” — President Obama Because of a “Retirement Advice Loophole” dating back to the 1970s, Wall Street banks, brokers, mutual funds, and insurance agents with major conflicts of interest are allowed to provide investment advice […]
By Dennis Kelleher President and CEO of Better Markets President Obama, joined by Sen. Elizabeth Warren, Sen. Cory Booker and other leaders, announced a very important retirement security initiative: ending conflicts of interests and hidden fees when people save for retirement. This common sense rule merely requires brokers and other financial advisers to act in […]
Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued the following statement on President Obama’s action today endorsing the Department of Labor’s proposed rule to protect Americans from conflicts of interest when brokers and other financial advisers give retirement advice: “It is shocking and unacceptable that brokers and other financial advisers can […]
To: Interested Parties From: Jeff Gohringer, Communications Director, Better Markets, [email protected] 202-618-6430 Re: Don’t Believe the False Spin on Labor Department’s Effort to Protect Americans’ Retirement Security Date: Monday, February 23, 2015 The Department of Labor is expected to soon take a major step forward in protecting workers and retirees by requiring anyone […]
Washington, D.C., February 11, 2015 – Dennis Kelleher, President and CEO of Better Markets, sent the following letter to The Honorable Thomas E. Perez, Secretary of Labor, urging the Department to issue an updated rule designed to protect retirement savings: The Honorable Thomas E. Perez Secretary U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, […]
“Several of the nation’s most influential consumer and labor groups have started an online petition demanding a fiduciary obligation on financial advisors consulting with pension plans and their participants. “The petition is at SaveOurRetirement.org, which the ad-hoc coalition said it created to inform the public about why a fiduciary rule is needed. It will be […]
“Public interest groups have joined forces in a coalition to prod the U.S. Department of Labor to revise rules requiring financial advisers to act in their clients’ best interests when offering retirement investment advice. “SaveOurRetirement.com, a website created by the coalition, is urging the Labor Department to update the so-called fiduciary rule. Without that safeguard, advisers to retirement plans could sell […]
SaveOurRetirement.org will educate workers and retirees about the “Retirement Advice Loophole” – and mobilize public support to close it Washington, D.C., January 15, 2015. A broad range of national public interest organizations have joined forces in a new campaign to protect Americans from the “Retirement Advice Loophole” that can drain away thousands of dollars of […]
As the headlines have made clear for years, JP Morgan Chase has a long RAP sheet of illegal conduct and, although overlooked, it includes enabling Bernie Madoff’s $64.8 billion Ponzi scheme, the largest in history, which caused net losses of more than $17 billion and untold human wreckage. Six years ago on December 11, 2008, […]
“The sting operation had the trappings of a Wall Street thriller, except that it was run by a team of Harvard and MIT economists. In an audacious experiment, the professors dispatched a squad of undercover operatives across Cambridge and Boston to pose as middle-class investors and ask retail brokers for investment advice. “The results were […]
Would you trust a food safety inspector who graded food based on how much the supplier paid the inspector, not on the safety or quality of the food? Would you trust a doctor who was allowed to recommend drugs that didn’t work or that even caused harm simply because the pharmaceutical companies paid the doctor […]
“A broad-based coalition of labor unions and consumer protection groups has reiterated its support for the U.S. Department of Labor (DOL) to update, strengthen and clarify rules around advice provided to workers saving through retirement plans. “The DOL earlier this year delayed proposing changes to the rule governing Employee Retirement Income Security Act (ERISA) plans […]
Washington, D.C., September 17, 2014 – Millions of hardworking Americans who have spent years saving for retirement are receiving financial guidance from professional advisers who are not obligated to act in the best interest of their clients, resulting in a huge drain on retirement savings for many workers and retirees, wrote a group of leading […]
As you may know, the Department of Labor (“DOL”) is working to update and close loopholes in the rules under the Employee Retirement Income Security Act (“ERISA”) that relate to fiduciary duties of financial services firms that provide investment advice to retirement plans and plan participants. As currently written, those rules allow financial services firms […]
The Department of Labor will soon propose a rule that will go a long way toward limiting the conflicts of interests and exposing the hidden fees that are draining the savings of millions of American workers and retirees every day. It’s known as the “fiduciary duty” rule, but it’s really a simple idea: requiring those […]
“Former Goldman Sachs Group Inc trader Fabrice Tourre said Tuesday he would not appeal an order requiring he pay more than $825,000 after a jury found him liable for defrauding investors in a failed mortgage deal. “Tourre’s announcement came on the deadline to lodge an appeal in the case, ensuring the U.S. Securities and Exchange Commission’s August […]
“Premature withdrawals from retirement accounts have become America’s new piggy bank, cracked open in record amounts during lean times by people like Cindy Cromie, who needed the money to rent a U-Haul and start a new life. “Her employer, the University of Pittsburgh Medical Center, had outsourced Cromie’s medical transcription work. Cromie said the move cut […]
“The Securities and Exchange Commission has sent out subpoenas and demands for records to brokerage companies as part of a probe into how retail customers’ orders are routed, executed and filled, according to several people familiar with the matter. “The SEC’s enforcement division is investigating whether retail customers are receiving the best price and the most efficient execution for […]
“A federal regulator confirmed on Wednesday that the country’s biggest banks committed widespread errors in dealing with homeowners who faced foreclosures at the height of the mortgage crisis, but the findings are unlikely to put to rest questions from lawmakers and others about the extent of the problems. “The report released by the Office of the Comptroller […]
“Secretary of Labor Thomas Perez is being credited with re-energizing the Department of Labor’s bid to ensure that a rule to amend the definition of fiduciary under the Employee Retirement Income Security Act gets reproposed soon. “After being sworn in last July, Perez ‘immediately started focusing’ on DOL’s fiduciary rulemaking, said Knut Rostad, president of […]
“A comprehensive review of major banks’ foreclosure files could have delivered an additional $1.5 billion in cash to consumers if it wasn’t halted last year, a federal watchdog has found. “The Government Accountability Office, in a report being released Tuesday, evaluated federal bank regulators’ decision last year to cancel a prolonged review of foreclosure-processing and […]
“In a move that will surprise no one, Sen. Elizabeth Warren pulls no punches calling out bankers and Washington insiders in her just-released memoir. “The book, A Fighting Chance, hit bookstores on Tuesday. It details the Massachusetts lawmaker’s dramatic rise from humble Oklahoma roots to bookish Harvard law professor to liberal juggernaut, highlighting her work […]
“By his own admission, even New York’s top financial regulator did not know he could use the Dodd-Frank law to enforce consumer protections until very recently. “Once he did, however, Benjamin M. Lawsky, the state’s superintendent of financial services, put the power to use. “On Wednesday, Mr. Lawsky’s office filed a lawsuit against a subprime […]
“Merrill Lynch is dangling a new incentive in front of its brokers by creating a “recognition club” for those who bring in $8 million or more a year from clients, more than doubling the top goals set by its securities industry rivals. “Until now, Merrill Lynch Wealth Management’s top recognition club was its “Circle of […]
“The U.S. Securities and Exchange Commission is weighing a requirement that brokers tell investors exactly where their stock trades go to be executed, a proposal that may address complaints that the decisions are sometimes made against the client’s best interests. “The proposal could give investors more insight into whether they are getting the best price […]
(Reuters) – Wall Street’s self-funded regulator said on Wednesday it will consider proposing mandatory background checks for brokers after critics pointed to gaps in disclosures by some with checkered histories. The announcement by the Financial Industry Regulatory Authority (FINRA) comes at a time when the regulator is facing heightened scrutiny from legal groups and the […]
“FINRA embarked on the effort by asking Wall Street to submit comments and data about current rules on advertising andmarketing, as well as those for gift-giving, according to the notices.” “Among the details FINRA wants to know is whether the rules have addressed problems they were aimed at resolving and if any of them include ambiguities.” “FINRA’s […]
“Bank of America Corp. BAC -0.23% is in discussions to pay more than $800 million to settle allegations it pushed customers into signing up for extra credit-card products, according to people familiar with the talks.” “The agreement with the Consumer Financial Protection Bureau, which could be announced in coming days, would mark the largest federal settlement with a credit-card […]
“Ever since the collapse of MF Global, the search for $1 billion of the brokerage firm’s customer money evoked one ominous metaphor after another, including “uphill battle” and “magical mystery tour.” “But on Thursday, the search ended with a different saying: “Checks are going in the mail.” “James W. Giddens, the court-appointed trustee overseeing the […]
“The Consumer Financial Protection Bureau needs to improve the efficiency of its program for direct supervision of banks and non-banks, a federal watchdog said today.” “The inspector general at the Federal Reserve, which audits CFPB activities, said the agency, created by the 2010 Dodd-Frank law, has failed to meet its own timeline for completing examination […]
“Less than a month apart, the women behind the crafting of fiduciary rulemakings at the Department of Labor and the Securities and Exchange Commission made some definitive comments about their respective proposals. “In late February, SEC Chairwoman Mary Jo White set 2014 as the year the fate of a uniform fiduciary standard rulemaking for brokers […]
“Janet L. Yellen, the new Federal Reserve chairwoman, devoted more than an hour last week talking by telephone with three Chicago-area residents struggling to find jobs. “On Monday, she made their stories the centerpiece of the first public speech in her new job, delivering a strong statement about her concern over unemployment, her conviction that […]
“The Consumer Financial Protection Bureau says it is in the late stages of formulating new regulations for the payday lending business.” “The announcement, embargoed for release until midnight Tuesday, came as the agency published new research that it’s expected to use in writing the rules.” “The research suggests that many consumers who use payday loans […]
“The Consumer Financial Protection Bureau says it is in the late stages of formulating new regulations for the payday lending business. “The announcement, embargoed for release until midnight Tuesday, came as the agency published new research that it’s expected to use in writing the rules. “The research suggests that many consumers who use payday loans […]
“Several officials from the Consumer Financial Protection Bureau are being called to testify before a House subcommittee next week on recent allegations that employees were being mistreated. “The House Financial Services Oversight and Investigations Subcommittee said it will hold a hearing April 2 to look into statistical disparities that showed the CFPB’s white employees were […]
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