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Today the God-King signed an executive order to unwind the 2010 Dodd-Frank Wall Street Reform Act. He claimed it was because he has “friends” who can’t get loans to start businesses, but the St. Louis Fed found commercial lending is at a 70-year high. In fact, the God-King has declared open season on suckers who think they “can out-finance financial professionals,” as Hamilton Nolan explains:
Perhaps the greatest tragedy of the presidential campaign is that so many down-and-out people voted for Donald Trump with the idea he would help them. No. Now, he is going to help rich people rob you.
Among the God-King’s (and bankers’) targets, a new fiduciary rule that would require investment brokers to act in their clients’ best interest, rather than pushing higher-cost products that line brokers’ own pockets:
If you’re in the business of recommending mutual funds to investors, you probably shouldn’t also take money from the funds you recommend. And if you do, you should probably disclose that to your clients, right?
That, in a nutshell, is the principle behind the Department of Labor’s fiduciary rule, issued last April over the moaning and wailing of brokerage firms and scheduled to take effect in two months.
Is this the “freedom” that the God-King’s voters wanted?
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