Wall Street-friendly Trump may be looking to delay or repeal 'fiduciary rule'

One of the most pivotal issues of the recent presidential election was how an unregulated Wall Street is able to gain massive record profits through fraudulent and criminal behavior while wealth inequality is at all-time highs. The Obama administration had recently passed a bill, known as the “fiduciary rule,” aimed at curbing this phenomenon within the financial adviser industry. However, with the election of Donald Trump to the White House this rule may face a delay in implementation or possibly a repeal.

The rule which goes into effect April 2017 is set to put a fiduciary duty on any financial advisers giving advice to consumers. This means that a financial adviser has to make recommendations that put the interests of the client ahead of all other interests, including commissions received by the financial adviser for recommending financial products of specific companies. A majority of Americans believe Wall Street needs to be held accountable for its actions, which is what the fiduciary rule aims to do.

Donald Trump even ran his campaign on promises to reign in Wall Street. On the other hand, his cabinet picks of Wall Street insiders put serious doubt on whether or not he was being honest when making these promises. His choice for Labor secretary, Andrew Puzder, a fast food CEO, has not offered his opinion on the fiduciary rule, according to an article published by Investment News. However, Pudzer's conservative slant towards smaller government and his radical belief that there should be no minimum wage makes it highly likely he would not be looking out for the everyday person and would not likely be a friendly supporter of the fiduciary rule.

As head of the Department of Labor, which is in charge of implementing the rule, Puzder will have significant power to delay implementation of the rule. Delaying implementation is a viable alternative to a straight out repeal of the rule for Trump and the GOP, reported The National Law Journal. A repeal of the rule may also be possible, especially with the Republicans controlling both the House and Senate. GOP House leader Congressman Paul Ryan has been vociferous in his harsh criticism of the fiduciary rule in the recent past, according to an article published on TheStreet.com.

Delay or repeal of the fiduciary rule when combined with the GOP plan to privatize Social Security can put senior citizens especially at risk of being defrauded by unscrupulous financial advisers salivating over privatized, self-directed retirement accounts. Therefore, it is essential the American public voices its disapproval of any delay or attempt to repeal the fiduciary rule. Please contact your local congressional representatives and senators and let them know your concerns about the fiduciary rule. You can also sign CREDO's petition to tell Senate Democrats to hold the line and not help Republicans delay or repeal the fiduciary rule.

Will Trump oppose GOP and keep his promise to maintain Social Security and Medicare?

Donald Trump made many promises as a candidate. Most of them he hopefully does not keep, such as banning immigrants and refugees based upon their religious beliefs or breaking up families through mass deportations. On the other hand, one promise he should keep is his promise to not cut funding for Medicare and Social Security, which millions of senior citizens depend on to survive in an environment of ever-increasing costs of living and medical care.

Trump vs. GOP

However, many Republican lawmakers' positions on Social Security are diametrically opposed to Trump's stated position. GOP lawmakers, led by Congressman Paul Ryan, have repeatedly worked towards cutting Medicare and Social Security and ultimately want to privatize the program. This would result in healthier seniors dropping out of traditional medicare causing increased Medicare spending as well as higher costs for seniors remaining in traditional Medicare, according to an article published by the National Committee to Preserve Social Security and Medicare (NCPSSM). It is likely the GOP will test Trump's resolve to keep his campaign promise to look after America's senior citizens.

Broken promises not uncommon for Trump

Unfortunately, Trump has a habit of not keeping his campaign promises which can already be seen through his cabinet selections. Trump promised to “drain the swamp,” meaning to rid Washington D.C. of Wall Street influence. But, instead of looking out for the everyday American on Main Street, Trump has packed his cabinet full of Wall Street insiders. With this in mind, one has to wonder what the chances are that he will again turn his back on everyday Americans, particularly seniors who depend on benefits from the government.

Promise to repeal ACA contradictory to promise to maintain Medicare

Another factor which could cause an issue is that Trump and his Republican colleagues have promised to repeal and replace the Affordable Care Act (ACA), otherwise known as Obamacare. The problem with this is that the ACA has greatly helped in refilling the Social Security trust fund, according to an article published by the NCPSSM. If the ACA is repealed without replacing it with another similar program it would be difficult to avoid having to cut the meager benefits that seniors are already receiving without raising taxes. An increase in taxes to fund government programs is now significantly less likely with the GOP in control of both the House and Senate.

Continue the pressure on Trump and GOP

It is essential that we keep up the political pressure on Trump and the Republicans to honor the wishes of the majority of Americans and steer clear of making cuts to Social Security and Medicare. Along with contacting your Congressperson or Senator one can help to apply political pressure against cutting these important social welfare programs through supporting already-existent organizations dedicated to preserving Social Security and Medicare. The NCPSSM has an outstanding record of success in lobbying lawmakers to not cut benefits. Another excellent organization is Social Security Works. If you have the financial ability to help, please consider these organizations for charitable donations.