A rule implemented by the Labor Department, formerly run by the now-DNC chair Tom Perez, was pushed through in violation of an executive order under Donald Trump. All Democrats can fight back with at the moment are the embeds in agencies and in the courts and they are using them efficiently.
In 2013, in a little-heralded case, the U.S. Court of Appeals for the Seventh Circuit rejected the Obama Labor Department’s attempt to punish voluntary retirement plan service providers. The DOL, under the direction of the controversial, radical leftist Tom Perez, had tried to force providers of 401(k), 403(b), IRA, and related services to adopt a massive new set of regulations known as “fidiculary” responsibilities.
The Seventh Circuit found against the Obama regime and slammed the door shut but all that meant was Obama would ignore the ruling and take out his pen and phone.
On August 24th 2015, Perez and the Labor Department confirmed they are moving forward with new regulations that would repudiate the court’s opinion. Even Obama’s SEC Commissioner issued an ominous warning that the Labor Department’s new regulations would unleash havoc and create “a mess.”
The vast regulatory morass they created was meant to drive small- and mid-size service providers out of the retirement business by ensuring that the costs of complying with regulations are unaffordable.
Our view is that the purpose was to force a consolidation of the retirement service industry, just as Obamacare drove mergers and acquisitions in the health care business, leaving only gigantic corporations in its wake. These companies have become intertwined and dependent upon legislators and lobbyists in Washington. They can’t make a move without the permission of the federal leviathan.
The Obama regime was trying to nationalize savings. It would have had the same effect as Dodd-Frank as well which put the small banks out of business.
The Obama administration has its sights set on an incredible amount of your money. By some estimates, Americans are holding well over $10 trillion in private retirement accounts.
For a government spending out-of-control the money in those accounts is like heroin to a junkie.
Alexander Acosta was finally confirmed as secretary of labor after a long delay by Democrats, and he will hopefully reign in the rogue agency and stop a fiduciary rule businesses don’t want, Americans don’t want, Congress doesn’t want, and which denies sound investment advice to ordinary Americans.
An executive order was issued to kill the rule but the agency holdovers rushed it through against the President’s order and it becomes effective on June 9, 2017.
The department deceptively wrote that “the Fiduciary rule and Impartial Conduct Standards … are among the least controversial aspects of the rulemaking process.”
In reality, the opposite is true. It would be the single largest government expansion over individual savings in four decades and the second-most expensive regulatory regime crafted in the last 12 years that doesn’t deal with environmental issues.
It gives the Department of Labor direct authority over individual retirement accounts (IRAs) which are already regulated by the Securities and Exchange Committee. They are the agency responsible for protecting investors.
Giving the Labor Department control over IRAs leads to bigger government, less competition, fewer jobs, and diminished savings for the American worker.
Instead of being able to seek advice, most savers would only get advice from an online computer program using algorithms no investor would understand.
The bureaucratic state established by Obama doesn’t care. The swamp wants to rule by government agencies. These are the deep state actors people have been referencing.
The executive order did not reign in the leftist worker bees. These mutineers need to be fired or placed in jobs where they can do no harm.