February 03, 2017

Duckworth: Trump Administration Wrong to Re-Incentivize Bad Wall Street Behavior


WASHINGTON, D.C. - U.S. Senator Tammy Duckworth (D-IL) issued the following statement today after the President blocked implementation of the so-called "Fiduciary Rule" that would have ensured retirement advisors provide hardworking American consumers with financial advice that is in the clients' best interests instead of lining their own pockets first. Without this rule, retirement advisors are under no such legal obligation, and are instead incentivized to steer their clients towards more expensive funds with higher fees, even if it could cost the client hundreds of thousands of dollars over their lifetime. This practice costs families saving for retirement an estimated $17 billion each year.

"Stopping Wall Street investment advisors from taking advantage of consumers should be a top priority for a President who ran for office pledging to be above the influence of special interests," said Senator Duckworth. "Instead, President Trump has stocked his administration with former Goldman Sachs employees who are eager to maintain a status quo that robs families saving for retirement of billions of dollars each year. Thatcan mean the difference between enjoying a comfortable retirement and having to sacrifice or skimp on food, housing, health care, transportation and other necessities.The Trump administration clearly didn't learn the right lesson from last year's Wells Fargo scandal, but the victims did. If you reward bad behavior like this, bad behavior is what American families will get."

Senator Duckworth has been an outspoken advocate for the fiduciary rule. Ina New York Times op-edlast year, she illustrated how common-sense reforms to Wall Street's shady incentive structure can help families save for retirement.