Sen. Elizabeth Warren (D-Mass.) is calling on the Securities and Exchange Commission to investigate financial firms for allegedly making misleading statements about a federal effort to protect people saving for retirement.
In a letter sent Thursday to SEC Chair Mary Jo White, Warren said firms could have violated securities laws by issuing conflicting comments about a proposed rule that would require financial advisors to act in the best interest of their clients, rather than the best interest of their own profit.
Warren is referring to the so-called fiduciary rule, which the White House estimates could help Americans trying to retire save $17 billion a year. Current law allows financial advisors to work on commission when they offer suggestions to savers about retirement accounts, such as 401(k)s and Individual Retirement Accounts (IRAs). Advisors are allowed to earn money from mutual fund companies for steering clients to specific funds, even if those funds are bad for the client.
(CN) – The Department of Justice does not have to release several documents related to the FBI’s investigation of former House Majority Leader Tom DeLay’s relationship with disgraced insider lobbyist Jack Abramoff, a federal judge ruled.
The FBI opened a corruption investigation into Abramoff activities in 2004. Abramoff pleaded guilty to conspiring to cheat his clients, Native American tribes, of an estimated $85 million in fees, and bribing members of Congress. He was sentenced to four years in prison.
Two former DeLay staff members, Michael Scanlon and Tony Rudy, were indicted along with 19 others in the Abramoff scandal, but DeLay announced in 2010 that the Justice Department had informed him he would not be criminally charged.
Shortly thereafter, Citizens for Responsibility and Ethics in Washington filed a Freedom of Information Act request seeking documents related to the investigation.
In April 2014, U.S. District Judge Karen Henderson ruled that the department could not categorically refuse to turn over documents from the investigation in light of DeLay’s “substantial privacy interests.”
On Wednesday, another federal judge, U.S. District Judge, Richard Leon, held that the department had done enough.
Leon explained: FOIA “exempts from disclosure intra-agency memorandums or letters which would not be available to a party other than an agency in litigation with it.”
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