House Republicans are coming for your 401(k)
BY PAUL BLAND, OPINION CONTRIBUTOR 06/30/18 03:00 PM EDT
130 THE VIEWS EXPRESSED BY CONTRIBUTORS ARE THEIR OWN AND NOT THE VIEW OF THE HILL
Securities and Exchange Commission (SEC) Chairman Jay Clayton recently acknowledged that the agency may soon take away hardworking Americans right to defend our retirement savings against corporate criminals in court. Now, another front seems to have opened in this war on investor protections one that could leave anyone with an IRA or 401(k) at the mercy of corporations that would lie to or deceive people about their stocks.
Corporate America is working overtime to ensure investors harmed by financial fraud cannot hold them accountable. Industry lobbyists are pushing the SEC to block investors from joining together as a group to recover the losses from widespread violations of securities laws. Such a move would bar cheated investors from enforcing their own rights in lawsuits that have recovered billions and serve as a crucial deterrent to the kinds of devastating fraud that precipitated the financial crisis.
Last week, the House Subcommittee on Capital Markets, Securities, and Investment doubled down on this destruction by going after state protections against the kind of widespread fraud that could crush many Americans plans for retirement. The subcommittee considered H.R. 5037, which would block private enforcement of state protections against securities fraud and even restrict a states ability to defend its own citizens in enforcement actions.
The bills broad language is designed to preempt any state law that even tangentially touches on securities fraud. The North American Securities Administrators Association (NASAA), the oldest international organization devoted to investor protection, calls H.R. 5037 an attempt to tie the hands of the regulators who are the cops on the beat and the closest to Main Street investors in favor of large companies engaged in or suspected of securities fraud. NASAAs opposition letter goes on to decry these policies as overwhelmingly against the interests of all law-abiding market participants impassioned emphasis theirs.
H.R. 5037 is plainly a get out of jail free card for white-collar criminals who so rarely see the inside of a jail cell as it is. For more than a century, states have been free to regulate securities that have real and sometimes devastating impacts on their residents. Clayton himself remarked in a recent speech, state
regulators play a critical role in protecting Main Street investors.
http://thehill.com/opinion/finance/394803-house-republicans-are-coming-for-your-401k
For all of the republican blather of states rights...................................this bill shows exactly what they are about.............they talk out of the side of there mouth...................so for all you trolls out there .........................explain why the republicans are doing this....................they are not for states rights......................never were never have been...........