SEC Must Tame the Wolves of Wall Street

From the AFL-CIO

Future retirees stand to lose one-quarter of their retirement paychecks because of corrupt financial advice.

Advocates have been fighting for decades to close a loophole that allows investment brokers to give self-serving advice. On Wednesday the Securities and Exchange Commission proposed a new rule that doesn’t go far enough to protect the interests of working people. The SEC should go further and require brokers to act with integrity.

A new proposed rule on investment advice would leave working people vulnerable to bad actors on Wall Street, and the AFL-CIO will fight for a stronger rule before it’s finalized or demand it to be scrapped altogether.

“Does this proposal require financial professionals to put their customers’ interests first, and fully and fairly disclose any conflicting interests? No,” said SEC Commissioner Kara Stein, explaining why she voted against the proposal.

“Americans deserve a clear best-interest rule that places the client’s needs ahead of the broker’s. Period,” said fellow Commissioner Robert J. Jackson Jr., who’s fighting to improve the proposal.

Working people want new economic rules that stop investment brokers from skimming our savings, so more working people can have a secure retirement.

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Posted In: Union Matters

Union Matters

America’s Wealthy: Ever Eager to Pay Their Taxes!

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

Why do many of the wealthiest people in America oppose a “wealth tax,” an annual levy on grand fortune? Could their distaste reflect a simple reluctance to pay their fair tax share? Oh no, JPMorganChase CEO Jamie Dimon recently told the Business Roundtable: “I know a lot of wealthy people who would be happy to pay more in taxes; they just think it’ll be wasted and be given to interest groups and stuff like that.” Could Dimon have in mind the interest group he knows best, Wall Street? In the 2008 financial crisis, federal bailouts kept the banking industry from imploding. JPMorgan alone, notes the ProPublica Bailout Tracker, collected $25 billion worth of federal largesse, an act of generosity that’s helped Dimon lock down a $1.5-billion personal fortune. Under the Elizabeth Warren wealth tax plan, Dimon would pay an annual 3 percent tax on that much net worth. Fortunes between $1 billion and $2.5 billion would face a 5 percent annual tax under the Bernie Sanders plan.

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No Such Thing as Good Greed

No Such Thing as Good Greed