“We are concerned that the Securities and Exchange Commission — which has always prided itself on serving as ‘the investors’ advocate’ — appears in recent years to have strayed from its primary focus on its investor protection mission,” the letter stated. “Given the vital role that average investors play in our markets and the overall economy, and the serious shortcomings that exist in the regulatory protections they receive, it is time in our view for these issues to be prioritized.”
“Americans for Financial Reform is urging Congress to reject Rep. Ann Wagner’s bill to halt Labor Department’s fiduciary duty rule. In a March 10 letter to Congress, AFR says: ‘On behalf of Americans for Financial Reform, we are writing to express our opposition to HR 1090, the ‘Retail Investor Protection Act.’ This misnamed legislation in fact eliminates needed protections for retail investors … Financial professionals not covered by a fiduciary duty are legally free to recommend investments that benefit them, the seller of the product, at the expense of the customer who is saving for their future.’”
“One area where [Treasury Deputy Secretary Sarah Bloom] Raskin has flexed her muscles is in a new drive to restrict executive compensation at the biggest banks… [T]he Dodd-Frank Act required federal regulators to prohibit pay packaged to bank executives that encouraged inappropriate risk-taking… The matter has been revived in recent months, in part because Raskin has made it a priority, pushing it with Lew and the President himself…”
“We’re very pleased that regulators seem to be returning to the drawing board and thinking about a rule that might actually have some impact,” says Lisa Donner, executive director of the liberal Americans for Financial Reform, adding that Raskin has been a “champion” on the issue.
“President Barack Obama unveiled a significant retirement security proposal with Sen. Elizabeth Warren (D-Mass.) on Monday, announcing plans to bolster retirement accounts by curbing conflicts of interest on Wall Street… Obama’s decision to put political capital behind a new rule has encouraged many financial reform advocates. ‘It makes sense, it’s right and it’s important,’ said Lisa Donner, executive director of Americans for Financial Reform.”
PoliticoPro reports that “financial reform advocates are ramping up lobbying against a push by regional banks to ease rules from the 2010 Dodd-Frank law.” While the banks argue that systemic-risk rules should be limited to a small group of the biggest and most complex banks, “Americans for Financial Reform says the failure of a large regional bank could be a big risk during a crisis,” writes Politico’s Zachary Warmbrodt.
“[B]ackers of tough Wall Street rules see the legislation as opening new doors for industry to take regulators to court, or requiring watchdogs to jump through even more hoops to write rules. ‘These bills, in slightly different and overlapping ways, basically put another thumb on the scale,’ said Lisa Donner, executive director of Americans for Financial Reform. ‘But I would say it’s a lot heavier than a thumb. It’s another fist on the scale.'”
