Posted on 11/22/2022 1:38:46 PM PST by Oldeconomybuyer
(Reuters) - President Joe Biden's administration on Tuesday reversed restrictions imposed under his predecessor Donald Trump on retirement plans considering environmental, social and governance (ESG) factors such as climate change and racial justice when selecting investments.
The Labor Department announced a final rule first proposed last year after Biden, a Democrat, ordered government agencies to assess climate-related risk to retirement and pension investments.
The rule will make it easier for retirement plans to invest in socially responsible funds and companies, though it requires investment decisions to be based on traditional financial factors. The rule, which the department said covers plans that collectively invest $12 trillion, takes effect 60 days after it is formally published, which could be as soon as this week.
Biden's administration rescinded regulations adopted in 2020 under Trump, a Republican, that allowed retirement plans to consider only financial factors and not social responsibility in making investment decisions and exercising shareholder rights.
The Labor Department said the Trump-era rules, which had been criticized by business groups and the financial industry, failed to account for the positive impact that ESG considerations can have on long-term investment returns.
The new rule also allows plan fiduciaries to consider ESG factors when proxy voting on behalf of shareholders.
(Excerpt) Read more at usnews.com ...
next republican president simply undoes this and dictates that no money can be invested in “woke” companies.
This has the potential to destroy the market. When investment firms have no fiduciary responsibility, investors will pull their money out.
That's a good way to lose money.
You do that...
I’ll control my own retirement investments, thank you very much.
Yes, along with the usual disclaimers regarding investing in funds, there should be, in bold letters, this: GO WOKE GO BROKE
“Allows” = FORCES!!!
Get woke, WE go broke.
Didn’t that Fried guy call it “Effective Altruism?”
The fleecing of pension plans begins!!
I don’t give a s**t about ESG. I want high yields and safety.
BLOAT, and PM!
It will not be long before the Democrats MANDATE that all civil servant Thrift Savings Plans be invested ONLY IN ESG.
The Thrift Savings Plan (TSP) is similar to a 401K. Civil Servants can put their retirment savings in Stock, Bonds or T Bills. There are a few different Stock market options with varying levels of risk.
I can see the stock market options being changed to a single option that is completely ESG. Everyone will take their funds out of stocks and put it in T Bills immediately. That is a lot of money transferred at the same time. The government will have to limit how much the civil servants can move at a time. There will be a lot of howling.
It will happen, for the next two years or until a Republican becomes president.
Imagine how much idiot fund directors would have put in that FTX scam and Fried’s Effective Altruism crap.
Good thing FTX went under or they would all be all over that investment.
The government should not be the business of determining which companies are woke, or what food or shampoo is "natural". The rules for retirement fund managers are intended to protect the interests of retirees, and have been in place for almost a century. Do you really want bozos like this managing your retirement funds?
I’m sure they did but we’ll never hear about it. After the breaking of the Madoff scam Pols who received his money didn’t give it back but gave it to their favorite charities, they are doing the same with FTX money. The money should be put into an account until all legal procedings take place and then given back to investors.
More ways to bitcoin your a## by rat donors
More money to the lefties.
Obiously they’re no longer satisfied w/funneling tax dollars to their pet companies, that in turn funnel money back to their campaigns or what not.
Now their going to suck it out of your 401Ks.
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