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Abandoning the fiduciary rule was a mistake

108 点作者 petethomas大约 6 年前

10 条评论

inflatableDodo大约 6 年前
Estimated cost to the financial advice market (by the financial advice market) of having to abide by the fiduciary rule - $2.4 billion<p><a href="https:&#x2F;&#x2F;www.investmentnews.com&#x2F;article&#x2F;20151230&#x2F;FREE&#x2F;151239992&#x2F;dol-fiduciary-rule-could-take-2-4-billion-bite-out-of-financial" rel="nofollow">https:&#x2F;&#x2F;www.investmentnews.com&#x2F;article&#x2F;20151230&#x2F;FREE&#x2F;1512399...</a><p>Estimated cost over the next 30 years for retirees (by the Economic Policy Institute), just from the fiduciary rule being delayed for 18 months - $10.9 billion<p><a href="https:&#x2F;&#x2F;www.epi.org&#x2F;publication&#x2F;another-fiduciary-rule-delay-would-cost-retirement-savers-10-9-billion-over-30-years&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.epi.org&#x2F;publication&#x2F;another-fiduciary-rule-delay...</a><p>This isn&#x27;t even capitalism. This is like some John Frum cargo-cult version, being acted out by people who have heard the word &#x27;economics&#x27; but have at best only absorbed that it is something to do with people who like money and dressing in suits.
village-idiot大约 6 年前
Pretty much every neutral observer called that one, and quite a few non-neutral ones too. There’s no rational way to justify allowing wealth managers to sell their clients products that are contrary to the clients’ interests, least of all under the laughable excuse of “customer choice”.<p>The only question is, exactly how corrupt was this? Was it “the boss is an idiot and doesn’t understand”, or “they bought enough over priced hotel rooms”?
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hguhghuff大约 6 年前
It’s a mistake if you believe that the government acts or should act in the interests of its citizens.<p>If however you think the governments purpose is to further the interests of corporations, then it’s the opposite of a mistake.
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0n0n0m0uz大约 6 年前
Mistake for who? The gutting of the consumer protection served the function and constituency it was designed to.
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krob大约 6 年前
Well, Trump administration is trying their best to muck things up as good as they can. Then they can be blamed for the next major depression type recession &amp; costing the american public the welfare state of FDR.
diogenescynic大约 6 年前
It’s going to take generations to fix what the Trump administration and republicans like Mitch McConnell have done to this country. Never forget or forgive these assholes.
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Jerry2大约 6 年前
As a sidenote, anyone else noticed the heavy amount of browser fingerprinting on Bloomberg sites? I have a few extensions that block browser fingerprinting and whenever I go on Bloomberg sites, I get a bunch of warnings about canvas, fonts etc fingerprinting. Then, I&#x27;m immediately redirected to a page where I have to enter a recaptcha to view the page [0]. That page also states that they&#x27;ve &quot;detected unusual activity from your network&quot; winch is a total lie because if I disable those, I don&#x27;t get a warning and get a paywall instead.<p>[0] <a href="https:&#x2F;&#x2F;i.imgur.com&#x2F;EEIcwK2.jpg" rel="nofollow">https:&#x2F;&#x2F;i.imgur.com&#x2F;EEIcwK2.jpg</a>
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rayiner大约 6 年前
The very first sentence is quite misleading:<p>&gt; Last year, the Trump administration abandoned a regulation designed to protect U.S. savers from conflicted investment advice.<p>That suggests that the Trump administration repealed the rule. What actually happened is that a federal appeals court vacated the rule because it overstepped the DOL’s statutory authority: <a href="https:&#x2F;&#x2F;images.thinkadvisor.com&#x2F;contrib&#x2F;content&#x2F;uploads&#x2F;documents&#x2F;415&#x2F;299631&#x2F;5th-Circuit_chamber-fiduciary-mandate.pdf" rel="nofollow">https:&#x2F;&#x2F;images.thinkadvisor.com&#x2F;contrib&#x2F;content&#x2F;uploads&#x2F;docu...</a>. (Among other things, the DOL departed from its own long-standing interpretation of a key statutory term.)<p>When the article says the Trump administration “abandoned” the rule, it means that the administration declined to seek rehearing—basically, asking the appeals court to change its mind—or Supreme Court review. Of course, both of those options are long shots. A federal court of appeals decision in a case is almost always the last word. Further review is discretionary, and rare. That is especially true in a case like this one. The prerequisite for rehearing or Supreme Court review is typically a case of “exceptional importance” or where there are conflicting decisions among the courts of appeals for the different circuits. An esoteric financial regulation doesn’t fit either criteria.
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Zarath大约 6 年前
I&#x27;ll play a bit of devil&#x27;s advocate here: Was it though? Financial advisors were always mostly a ripoff for people with basic financial literacy who aren&#x27;t trying to do crazy tax stuff or laddering CDs or something. If anything, this should just accelerate the switch to index funds.
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mnm1大约 6 年前
&gt; To be clear, there are upstanding insurers and agents who sell indexed annuities only when appropriate.<p>There were. Now investors simply cannot tell the difference so for all intents and purposes, there are not. If you&#x27;re investing through a third party at this point, you&#x27;re a fool and you&#x27;ll be taken advantage of. There is no protection other than the law. This article and others should make that clear. Investors need to become experts themselves and learn about what they invest in as well as how to invest. It&#x27;s a tall order but that&#x27;s what it takes to not get ripped off now. That&#x27;s what this administration wanted and that&#x27;s what they got: a clear path to ripping people off on their retirement savings. What else would one expect from them?
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