“Her vision of ‘accountable capitalism’ would destroy savings built over a lifetime—and sink the economy.”
This Wall Street Journal piece is a must read for my retired friends who depend on the 401ks to provide a safe and secure life in their old age.
[Elizabeth Warren’s] “Accountable Capitalism Act” would wipe out the single greatest legal protection retirees currently enjoy—the requirement that corporate executives and fund managers act as fiduciaries on investors’ behalf. To prevent union bosses, money managers or politicians from raiding pension funds, the 1974 Employee Retirement Income Security Act requires that a fiduciary shall manage a plan “solely in the interest of the participants and beneficiaries . . . for the exclusive purpose of providing benefits to participants and their beneficiaries.” The Securities and Exchange Commission imposes similar requirements on investment advisers, and state laws impose fiduciary responsibility on state-chartered corporations.
Pffft, it would be gone as corporations have to be managed for the benefit not just of shareholders but other (pardon the cliche) “stakeholders” who would rip off the company for their own purposes, instead of the investors who along take the risk.
Warren can’t see the consequences of her legislation beyond her own self-interest in gettin elected. Brrrrr.
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