Bipartisan Support in Washington for 401k Skimming

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This cannot be a surprise to anyone.

Let us all agree that Wall Street should be permitted to continue to skim hundreds of billions annually from what’s left in Americansretirement accounts, says the Wall Street Journal in its “The Borzi Savings Bomb” editorial today. It’s not enough that taxpayers bailed out Wall Street when it spectacularly failed; we’ve got to continue to feed the beast. If we don’t, our national economy will suffer, says DemocratCarolyn McCarthy of New York.According to the Journal there is bipartisan opposition to a Department of Labor proposal holding Wall Street more accountable when entrusted with investing worker’s hard earned retirement savings. That should come as no surprise given the political contributions both parties receive from the financial services industry. If elected officials are going to pander to their Wall Street contributors and throw workers to the dogs, at least be honest about it. Don’t pretend that the proposed regulation will harm investors. It won’t.

Why on earth wouldn’t we, as a nation, want to require (as the DOL has proposed) Wall Street to meet a higher “fiduciary” standard when handling retirement savings? After all, we’re talking about people’s life savings. The fiduciary standard simply requires that firms place client interests before their own. Is that a controversial notion? In my book, it’s the price you pay for being trusted with someone’s life savings. If certain Wall Streeters are uncomfortable with being held to that higher standard, then the nation benefits, in my opinion, when they exit the business.

This article truly speaks for itself.

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