Last-Ditch Bush Rule Would Threaten Retirement Security
In a last-gasp effort to reward its corporate friends, the Bush administration—on the very day of Barack Obama’s inauguration—proposed a new regulation that could reduce Americans’ retirement security by allowing firms to give financial advice to workers who participate in their 401(k) plans on products where they have a financial interest.
Current laws prohibit such conflicts of interest and the Obama administration has put the regulation on hold.
At a congressional hearing last week, Rep. Robert Andrews (D-N.J.), chairman of the House Education and Labor’s Subcommittee on Health, Employment, Labor and Pensions, said:
If workers receive investment advice, it should be independent and free of conflicts of interest. During a time where American workers have already lost $2 trillion in assets due to last year’s market downturn, exposing their hard-earned retirement savings to greater risk by allowing advisers to offer them conflicted advice is irresponsible and imprudent.
