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I wish he would leave our sh!t alone. Now EOs on banking and 401Ks
Having a guy with six bankruptcies ruling on investments is like Richard Speck encouraging young women to pursue a career in nursing.
A pair of executive orders President Trump is expected to sign Thursday show how he is beginning to reshape the world of banking and high finance—some in ways Wall Street likes, and in other ways it feared.
One order would make it easier for everyday Americans to invest their retirement savings in assets that lie outside public markets, such as private equity, cryptocurrency and private real estate...
401K(s)
The executive order on retirement plans is expected to direct the Labor Department to consult with the Treasury Department and the Securities and Exchange Commission, as well as other federal agencies, to determine what regulatory changes need to be made to facilitate the goal of expanding private-markets access to 401(k)s.
It remains to be seen how successful the order will be in getting employers to provide such 401(k) options to employees. Private assets tend to be harder to buy and sell than other investments and typically come with higher fees.
Firms that invest in private markets say those fees are justified by the potential for higher returns, but employers have been sued over fees in the past. The risk of such litigation has prevented many from adding private-markets offerings to their plans.
The executive order is also expected to extend to cryptocurrencies and other digital assets, which have been a focus for Trump.
Debanking
PMorgan, Bank of America and other big banks largely blame pressure from regulators for their decisions to drop certain customers.
Banks have pointed in particular to pressure to avoid businesses or industries that pose a “reputational risk.” Thursday’s other order is expected to direct regulators to withdraw the use of reputational risk as well as any other policies or guidance that could lead to debanking.
“The heart of the problem is regulatory overreach and supervisory discretion,” said a spokesman for the Bank Policy Institute, one of Wall Street’s trade groups.
But some Republicans say banks still use arbitrary internal rules or amorphous legal risks to justify what is a political decision.
“There is always a nonideological fig leaf they can choose” as an excuse, said Kansas Attorney General Kris Kobach.
Kobach led a group of state attorneys general who sent a letter to Bank of America Chief Executive Brian Moynihan last year over concerns about discrimination against conservatives. Bank of America and others drew the ire of Republicans for providing information to the Federal Bureau of Investigation as part of a probe into the Jan. 6, 2021 attacks on the U.S. Capitol.
Bank of America has said it provided the information lawfully under a Treasury Department program.
One order would make it easier for everyday Americans to invest their retirement savings in assets that lie outside public markets, such as private equity, cryptocurrency and private real estate...
401K(s)
The executive order on retirement plans is expected to direct the Labor Department to consult with the Treasury Department and the Securities and Exchange Commission, as well as other federal agencies, to determine what regulatory changes need to be made to facilitate the goal of expanding private-markets access to 401(k)s.
It remains to be seen how successful the order will be in getting employers to provide such 401(k) options to employees. Private assets tend to be harder to buy and sell than other investments and typically come with higher fees.
Firms that invest in private markets say those fees are justified by the potential for higher returns, but employers have been sued over fees in the past. The risk of such litigation has prevented many from adding private-markets offerings to their plans.
The executive order is also expected to extend to cryptocurrencies and other digital assets, which have been a focus for Trump.
Debanking
PMorgan, Bank of America and other big banks largely blame pressure from regulators for their decisions to drop certain customers.
Banks have pointed in particular to pressure to avoid businesses or industries that pose a “reputational risk.” Thursday’s other order is expected to direct regulators to withdraw the use of reputational risk as well as any other policies or guidance that could lead to debanking.
“The heart of the problem is regulatory overreach and supervisory discretion,” said a spokesman for the Bank Policy Institute, one of Wall Street’s trade groups.
But some Republicans say banks still use arbitrary internal rules or amorphous legal risks to justify what is a political decision.
“There is always a nonideological fig leaf they can choose” as an excuse, said Kansas Attorney General Kris Kobach.
Kobach led a group of state attorneys general who sent a letter to Bank of America Chief Executive Brian Moynihan last year over concerns about discrimination against conservatives. Bank of America and others drew the ire of Republicans for providing information to the Federal Bureau of Investigation as part of a probe into the Jan. 6, 2021 attacks on the U.S. Capitol.
Bank of America has said it provided the information lawfully under a Treasury Department program.
https://www.msn.com/en-us/money/other/trump-shakes-up-wall-street-with-orders-on-401-k-s-debanking/ar-AA1K5R3w?ocid=msedgntp&pc=HCTS&cvid=909159ecd2c7483e8a8e67a3ae3620b9&ei=10
8 replies
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I don't want rule by EO, I don't want rule by the Heritage Foundation. The Heritage Foundation is a cancer on DC, they are a Nazi organization. They need to be destroyed permanently! 