Carl Icahn, Gary Cohn and President Trump are giving themselves a couple of extra months to decide how, exactly, to put the worst injustice since the Dred Scott decision declaring black people ineligible for citizenship out of its misery.
The delay in the April 10 implementation gives the department time to re-evaluate the “fiduciary” rule, which requires brokers to act in the best interests of retirement savers, after President Donald Trump last month ordered a review of its economic impact on business and investors. Economists at the department will conduct a new analysis of the rule’s potential implications, looking specifically at issues raised by Mr. Trump’s executive order: whether the regulation is likely to restrict consumers’ access to financial advice, disrupt the financial-services industry and cause an increase in litigation….
As it considers the rule’s fate, Mr. Trump’s Labor Department is reopening the public-comment period, accepting feedback from consumers and players across the financial industry. The department will accept public comments on its delay proposal for 15 days and comments on issues raised by Mr. Trump’s executive order for 45 days.
Now, don’t hold your breath waiting for Jeb Hensarling to get all up in arms about how the Labor Department could make such a major decision without, you know, there being a Labor secretary. Still, also don’t hold your breath for this 60-day delay to be the last interim delay before the final, permanent, coup-de-grâce delay.
While many in the industry welcome a delay in the fiduciary rule’s implementation and are hopeful that it will be watered down or reversed, the 60-day delay prolongs the period of uncertainty that has loomed since the election.
“More delays are likely,” said Mr. Saxena, given that the Labor Department doesn’t yet have a secretary installed. He said it would be difficult for the department to initiate modifications or rescind the rule “without the direction of a secretary.”