There is an open rebellion going on at the Department of Labor. The Democrats in Congress have been sure to slow walk all thing to do with appointees for the department. There a bunch of Obama era executives that are running the sabotage plans against President Trump. This needs some attention now. Heads need to roll out the door at Labor.
As Written By Jazz Shaw for Hot Air:
All is not well at the Department of Labor these days. There were early signs that the Democrats were going to try to hang on to Obama era policies at Labor when they put up an intense fight to keep Andy Puzder from taking over and those efforts don’t seem to be slowing down. The Wall Street Journal is reporting this week that the department, still ripe with management from the last administration, is in “open rebellion” against policies being put in place by President Trump.
Now we know one reason Democrats blocked President Trump’s first nominee to be secretary of Labor: The bureaucracy is in open rebellion against the new President’s directives. The casus belli is the fiduciary rule, the attempt by Obama Labor Secretary Tom Perez to rewrite the rules for offering investment advice. The rule was supposed to go into effect Monday.
Proponents argued that the new rule would raise the standards for advice given to retirement investors. In reality, it would make that advice more expensive while opening up another lucrative vein for the plaintiffs bar. In anticipation of the rule, some financial firms have already announced they are dropping their business for these small investors.
That’s one reason President Trump last month directed the Labor Department to review the rule. Specifically, the President asked Labor to investigate whether the rule is likely to reduce access to retirement-savings vehicles or related financial advice, whether the rule has caused disruptions in the industry that may harm retirees and investors, and whether it will lead to more lawsuits. If a review determines any of these things had happened, the department is to propose revising or abolishing the rule.
So there’s probably a much larger pool of resistance at Labor in terms of general regulatory theory, but for the moment everything seems to be focused on the fiduciary rule. You may recall that the President put out an executive order on this subject shortly after taking office. Here’s the key portion of the memo that went out to the Labor Department:
Section 1. Department of Labor Review of Fiduciary Duty Rule. (a) You are directed to examine the Fiduciary Duty Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. As part of this examination, you shall…
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