Friday, 03 February 2017 08:51

Trump Roll's Back Obama Legislation That Prohibits Conflicts of Interest In Wall Street Services Featured

wall street conflict of interest 640x964Donald Trump is ensuring that financial professionals are no longer legally obligated to put their client’s best interests first by eliminating the Department of Labor's Fiduciary Rule that was to come into effect this April, enacted by the Obama administration. 

The Fiduciary Rule demands that advisors act in the best interests of their clients, and to put their clients' interests above their own. It does not allow for the concealment of any onflicts of interest, and demands all fees and commissions be clearly disclosed in dollar form to clients. It also exands the actual definition of the term "fiduciary" to include any professional making a recommendation or solicitation, where previously the professional would have to had give ongoing advice. Previously, only advisors who were charging a fee for service (either hourly or as a percentage of account holdings) on retirement plans were considered fiduciaries.

This news bite is quite timely, for I just reviewed Apple's quarterly (non)earnings report, see Apple's 2017 1st Quarter Results as Viewed Outside the Reality Distortion Field, and the result was an opportunit for rampant conflicts of interest in the sell side. Despite a horrendous showing, not only is the press lit on reality distorting euphoria, but the sell side is screaming BUY! BUY! BUY! Let those commissions roll! 

Hey, did you know that Azimut is launching a new line of yachts right at the price point of a healthy Wall Streeet bonus?

It's not just the mom and pop investor that gets hurt here. If you remember in 2006 and 2007 when so many of the buy side got duped into those MBS packages, you realize that although many didn't like the Fiduciary Rule, it prevented many people's jobs and retirement savings from being used to cushion that pad under that sexy brunnete's buttocks in the pic above.

If you haven't already, see  Apple's 2017 1st Quarter Results as Viewed Outside the Reality Distortion Field for more. Now, more than ever, the services of BoomBustBlog are needed by both individuals and institutions!

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Last modified on Friday, 03 February 2017 09:56

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