One of the biggest nightmare scenarios for Republicans is coming to life as Sen. Elizabeth Warren is signaling a team up with President Obama on some new consumer protection rules.
Joined by Sen. Elizabeth Warren (D-Mass.), President Obama will move ahead on Monday with plans to impose new regulations for financial advisers that are vehemently opposed by the business community.
Obama officials say the new regulations — dubbed “fiduciary rules” — are needed to protect consumers from financial advisers who have conflicts of interests. They say too many financial advisers earn commissions from big banks after selling faulty retirement advice to unsuspecting Americans.
Warren’s presence at the event is a strong signal of another coordinated effort between liberals, progressives, and the White House. The business community opposes these protections because they will force less scrupulous financial advisers to put their clients first.
The White House explained their reasoning for the new regulations in a Fact Sheet, “Today, President Obama is taking a step to crack down on those Wall Street brokers who benefit from backdoor payments or hidden fees and don’t put the best interest of working and middle class families first. Many advisers do not accept backdoor payments or hidden fees and work on a different business model that puts their customers’ best interest first. They are hardworking men and women who got into this work to help families achieve their dreams and want a system that provides a level playing field for offering quality advice. But outdated regulations, loopholes, and fine print make it hard for working and middle class families to know who they can trust.”
Allowing the financial sector to run wild was one of the main causes of the Great Recession. It is important to point out that these protections are designed to target the financial advisers who are putting their personal profit on what is best for their clients. In the wake of the worst financial crisis since the Great Depression, these are the kind of steps that the government should be taking to protect consumers who are still trying to recover their retirement savings.
The team of President Obama and Sen. Warren (D-MA) is a signal that Democrats are strong, united, and taking the fight to those who would harm consumers for personal gain.
Mr. Easley is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association