It is a travesty of justice that Wall Street executives can rip-off consumers for billions of dollars each year with no accountability for the damage they inflict on the people who trust their financial advisors to provide competent, ethical advice. See Elizabeth Warren: American Justice System is ‘Rigged’ in Favor of the Rich
by Zach Carter
How do they get away with it? Wall Street lobbyists spend an estimated $300 million per year making sure regulations favor the industry and not the consumers they are supposed to be serving.
It is happening right now. Wall Street is spending millions fighting fiduciary standards for advisors who provide financial advice and services to 401k plans and IRAs. What is Wall Street fighting? A regulation that requires advisors and firms to do what is best for consumers. A fiduciary standard would increase Wall Street’s liability when it rips off consumers with bad advice and bad investment products.
Why cheat consumers? Wall Street executives collect millions of dollars per year in bonuses and other “perks” when they maximize the profitability of their firms.
Consumers are just collateral damage.
Is there a solution? Not really. There is no organization or politician that has the power or will to take on the special interests and their legions of supporters in Congress.
Donald Trump says he is not beholden to the special interests. But, he is up against hundreds of politicians who are.