Category: Look Out for the Little Guy

Trump Endorses Repeal-First Strategy if Health Care Deal Not Reached

As Senate negotiations continue over the stalled Republican health care bill, President Donald Trump Friday morning called on senators to pass a simple repeal of Obamacare now and focus on replacing it later this year if no deal is reached.

Trump’s tweet came just after Sen. Ben Sasse, R-Neb., sent a letter to the White House urging the president to support a repeal-first, replace-later strategy if there is no agreement by the time senators return from their week-long Fourth of July recess on July 10.

The idea has been floated by some Republicans since a planned Senate vote on the GOP Better Care Reconciliation Act was postponed Tuesday because leaders were unable to secure the 50 GOP votes needed to pass it.

Sasse has been working quietly with the White House on the idea, according to a Senate Republican aide who said the administration was receptive to the idea.

“You campaigned and won on the repeal of Obamacare. So did every Republican senator. We should keep our word,” Sasse wrote in the letter.

“On the current path, it looks like Republicans will either fail to pass any meaningful bill at all, or will instead pass a bill that attempts to prop up much of the crumbling Obamacare structures,” he added. We can and must do better than either of these — both because the American people deserve better, and because we promised better.”

Sasse also asked the president to call on Congress to cancel its scheduled month-long August recess to work on a replacement bill for a Labor Day vote. “After we gave our word to repeal and replace Obamacare’s monstrosity,” he said, “we should not go back to our states during August as the American people struggle under fewer choices and skyrocketing costs. We should remain in D.C. at work.”

Sen. Rand Paul, R-Ky., who has publicly been advocating starting the idea of starting with a full Obamacare repeal publicly for two weeks, quickly retweeted the president and added his support.

Sasse has kept a low profile throughout the negotiations on health care, refusing to comment or publicly engage on the bill.

The idea was considered by Republican leaders at the beginning of this year when Trump took office but it was quickly dropped when they realized it would be too politically difficult to replace Obamacare outside the reconciliation process where the Senate would need the support of Democrats to pass a replacement.

Senate Republicans continue to discuss a way forward in the health care bill, considering changes to appear both moderates and conservatives to get the support of 50 of 52 Republicans.

[NBC News]

 

Trump team halts rules meant to protect students from predatory for-profit colleges

The Trump administration is suspending two key rules from the Obama administration that were intended to protect students from predatory for-profit colleges, saying it will soon start the process to write its own regulations.

The move made Wednesday by Education Secretary Betsy DeVos was a victory for Republican lawmakers and for-profit colleges that had lobbied against the rules. Critics denounced it, accusing the administration of essentially selling out students to help for-profit colleges stay in business.

The Education Department released a statement saying that it was going to create new committees to rewrite rules covering borrower defense to repaying, or BDR, and gainful employment. BDR relieves students of all federal loans if a school used illegal or deceptive tactics to persuade students to borrow money to attend. Gainful employment requires that action be taken — including possible expulsion from the federal student aid program — against vocational programs whose graduates leave with heavy student loan debt. Ninety-eight percent of the programs that officials found to have failed to meet those standards are offered by for-profit colleges.

Parts of the gainful employment rule are already in effect. BDR was set to become effective July 1 but will now be postponed. The Education Department said that while new rules are drawn up, it will process applications under the current borrower defense rules.

A program is considered to lead to “gainful employment” if the annual loan payment of a typical graduate does not exceed 20% of their discretionary income or 8% of their total earnings. Exceeding those debt-to-earnings rates means possible expulsion from the federal student aid program.

DeVos criticized the regulations that were approved by the Obama administration, saying that they are unfair to students and schools and that they leave taxpayers with a big bill.

“Fraud, especially fraud committed by a school, is simply unacceptable,” she said in her department’s statement. “Unfortunately, last year’s rule-making effort missed an opportunity to get it right. The result is a muddled process that’s unfair to students and schools, and puts taxpayers on the hook for significant costs. It’s time to take a step back and make sure these rules achieve their purpose: helping harmed students. It’s time for a regulatory reset. It is the department’s aim, and this administration’s commitment, to protect students from predatory practices while also providing clear, fair and balanced rules for colleges and universities to follow.”

The American Federation of Teachers pushed back against the decision.

“The Trump administration’s actions today show that the White House stands with predatory for-profit schools, not the students they rip off,” it said in a statement. “About the only thing worse than ripping off students with worthless degrees from for-profit colleges is denying them help to relieve their substantial debt, and allowing the schools to continue to prey on students. Given that for-profit colleges were big donors to Trump and other Republican candidates, one wonders whether this is simply a new pay-to-play scheme at the expense of our students, including our veterans, who are much helped by the rules Education Secretary Betsy DeVos wants to eliminate.”

Not everyone in higher education opposed the administration’s move, however. The Chronicle of Higher Education reported that the United Negro College Fund and the National Assn. for Equal Opportunity in Higher Education — which represent historically black colleges and universities, or HBCUs — sent a letter to DeVos this week urging her to put a hold on the implementation of the regulations and reconsider them.

“We remain concerned about the sweeping scope of the regulation and vague standards for determining ‘misrepresentation’ that could unfairly leave HBCUs and PBIs liable for frivolous claims, unwarranted fines, and unfounded penalties,” they said in the letter. “Such provisions could result in significant costs that would divert precious resources better spent on serving the needs of students.”

The nonprofit consumer advocacy group Public Citizen and the Project on Predatory Student Lending smacked DeVos’ move, saying in a statement that she had “put the profit margins of for-profit colleges ahead of the interests of students and their families” in “a craven attempt to avoid the agency’s legal obligation” to enforce the rules. The statement cited a part of the Obama-era rules that included a ban on the use of forced arbitration clauses in many student enrollment contracts:

“These clauses require students to submit any dispute that might later arise between the students and the institution to binding arbitration, a private process with little right to appeal, instead of a court of law. The rules also provide new and long-needed protections for students asserting defenses against repayment of their federal loans based on fraud or other misconduct by the students’ schools.”

[The Los Angeles Times]

DeVos Undoes Obama Student Loan Protections

Education Secretary Betsy DeVos on Tuesday rolled back an Obama administration attempt to reform how student loan servicers collect debt.

Obama issued a pair (PDF) of memorandums (PDF) last year requiring that the government’s Federal Student Aid office, which services $1.1 trillion in government-owned student loans, do more to help borrowers manage, or even discharge, their debt. But in a memorandum (PDF) to the department’s student aid office, DeVos formally withdrew the Obama memos.

The previous administration’s approach, DeVos said, was inconsistent and full of shortcomings. She didn’t detail how the moves fell short, and her spokesmen, Jim Bradshaw and Matthew Frendewey, didn’t respond to requests for comment.

DeVos’s move comes a week after one of the student loan industry’s main lobbies asked for Congress’s help in delaying or substantially changing the Education Department’s loan servicing plans. In a pair of April 4 letters to leaders of the House and Senate appropriations committees, the National Council of Higher Education Resources said there were too many unanswered questions, including whether the Obama administration’s approach would be unnecessarily expensive.

A recent epidemic of student loan defaults and what authorities describe as systematic mistreatment of borrowers prompted the Obama administration, in its waning days, to force the FSA office to emphasize how debtors are treated, rather than maximize the amount of cash they can stump up to meet their obligations.

Obama’s team also sought to reduce the possibility that new contracts would be given to companies that mislead or otherwise harm debtors. The current round of contracts will terminate in 2019, and among three finalists for a new contract is Navient Corp. In January, state attorneys general in Illinois and Washington, along with the U.S. Consumer Financial Protection Bureau, or CFPB, sued Navient over allegations the company abused borrowers by taking shortcuts to boost its own bottom line. Navient has denied the allegations.

The withdrawal of the Obama administration guidelines could make Navient a more likely contender for that contract, government officials said. Navient shares moved higher after the government released DeVos’s decision around 11:30 a.m. New York time. Navient stock ended up almost 2 percent.

The Obama administration vision for how federal loans would be serviced almost certainly meant the feds would have to increase how much they pay loan contractors to collect monthly payments from borrowers and counsel them on repayment options. Already, the government annually spends around $800 million to collect on almost $1.1 trillion of debt. DeVos, however, made clear that her department would focus on curbing costs.

“We must create a student loan servicing environment that provides the highest quality customer service and increases accountability and transparency for all borrowers, while also limiting the cost to taxpayers,” DeVos said.

With her memo, DeVos has taken control of the complex and widely derided system in which the federal government collects monthly payments from tens of millions of Americans with government-owned student loans. The CFPB said in 2015 that the manner in which student loans are collected has been marred by “widespread failures.”

DeVos’s move “will certainly increase the likelihood of default,” said David Bergeron, a senior fellow at the Center for American Progress, a Washington think tank with close ties to Democrats. Bergeron worked under Democratic and Republican administrations over more than 30 years at the Education Department. He retired as the head of postsecondary education.

During Obama’s eight years in office, some 8.7 million Americans defaulted on their student loans, for a rate of one default roughly every 29 seconds.

Former Deputy Treasury Secretary Sarah Bloom Raskin worked on student loan policy during the latter years of the Obama administration, in part over concern that borrowers’ struggles were affecting the management of U.S. debt. DeVos’s decision to reverse some of her work “with no coherent explanation or substitute” effectively means that the Trump administration is placing the welfare of loan contractors above those of student debtors, she said.

In a statement Tuesday, Illinois Attorney General Lisa Madigan, who is suing Navient, agreed: “The Department of Education has decided it does not need to protect student loan borrowers.”

(h/t Bloomberg)

Trump Pulls Back Obama-Era Protections For Women Workers

With little notice, President Donald Trump recently signed an executive order that advocates say rolls back hard-fought victories for women in the workplace.

Tuesday’s “Equal Pay Day” — which highlights the wage disparity between men and women — is the perfect time to draw more attention to the president’s action, activists say.

On March 27, Trump revoked the 2014 Fair Pay and Safe Workplaces order then-President Barack Obama put in place to ensure that companies with federal contracts comply with 14 labor and civil rights laws. The Fair Pay order was put in place after a 2010 Government Accountability Office investigation showed that companies with rampant violations were being awarded millions in federal contracts.

In an attempt to keep the worst violators from receiving taxpayer dollars, the Fair Pay order included two rules that impacted women workers: paycheck transparency and a ban on forced arbitration clauses for sexual harassment, sexual assault or discrimination claims.

Noreen Farrell, director of the anti-sex discrimination law firm Equal Rights Advocates, said Trump went “on the attack against workers and taxpayers.”

“We have an executive order that essentially forces women to pay to keep companies in business that discrimination against them, with their own tax dollars,” said Farrell. “It’s an outrage.”

Out of the 50 worst wage theft violators that GAO examined between 2005-2009, 60 percent had been awarded federal contracts after being penalized by the Department of Labor’s Wage and Hour Division. Similar violation rates were tracked through the Occupational Safety and Health Administration (OSHA) and the National Labor Relations Board.

But the research did not reveal much about sexual harassment or sexual assault claims. That’s because forced arbitration clauses — also sometimes called “cover-up clauses” by critics — are commonly used to keep sex discrimination claims out of the courts and off the public record.

“Arbitrations are private proceedings with secret filings and private attorneys, and they often help hide sexual harassment claims,” said Maya Raghu, Director of Workplace Equality at the National Women’s Law Center. “It can silence victims. They may feel afraid of coming forward because they might think they are the only one, or fear retaliation.”

Mandatory arbitration clauses are increasingly used in employment contracts, said Raghu, who added that banning the process was an important step forward for victims of workplace harassment or assault.

Many learned about forced arbitration clauses for the first time just last year through the Fox News sexual harassment case. Fox News anchor Gretchen Carlson dodged her own contract’s arbitration clause by directly suing former CEO Roger Ailes rather than the company. Ailes’ lawyers accused Carlson of breaching her contract, and pressed for the private arbitration to try to keep the story out of courts and the public record.

A new lawsuit filed Monday by Fox News commentator Julie Roginsky joined a growing list of accusations against Ailes, and claims Roginsky faced retaliation “because of plaintiff’s refusal to malign Gretchen Carlson and join ‘Team Roger’ when Carlson sued Ailes,” NPR reported.

By overturning the Fair Pay order, Trump made it possible for businesses with federal contracts to continue forcing sexual harassment cases like Carlson’s into secret proceedings — where the public, and other employees, may never find out about rampant sex discrimination claims at a company.

After the Fox News sexual harassment problem came to light, Carlson testified before Congress about forced arbitration — and Senators Richard Blumenthal, Dick Durbin and Al Franken wrote to major arbitration companies to ask for information on the amount of secret arbitration proceedings involving sexual harassment and discrimination.

“If Ms. Carlson had followed Mr. Ailes’s reading of her contract, her colleagues might never have learned that she was fighting back,” read the August 2016 letter. “They might never have followed her example; Roger Ailes might never have been exposed; and Fox News might never have been forced to change its behavior. Decades of alleged abuse — harassment that should disgust and astound any reasonable person — could have been allowed to continue.”

Blumenthal told NBC News that Trump’s overturning the Fair Pay order sends women’s rights in the workplace back “to a time best left to ‘Mad Men.'”

“These coverup clauses render people voiceless — forcing them to suffer in silence, suppressing justice, and allowing others to fall victim in the future,” said Blumenthal. “At a time when the fight for equal pay continues, Trump also moved to eliminate paycheck transparency and leave workers to negotiate in the dark.”

The other result of Trump’s executive order on federal contractors was lifting a mandate on paycheck transparency, or requiring employers to detail earnings, pay scales, salaries, and other details. The Fair Pay order Trump overturned was one of the few ways to ensure companies were paying women workers equally to their male colleagues.

According to the Economic Policy Institute’s 2016 analysis of federal labor statistics, the median wage for U.S. women is about 16.8 percent less than the median for men — with women making about 83 cents to a man’s dollar. According to economist Elise Gould, that’s a gap that only increases as women become more educated and climb the corporate ladder.

“At the bottom, there’s just so far down women’s wages can go. They are protected by some degree by the minimum wage,” said Gould. “But as you move up, women are not occupying places at the top the way men are. The wage gap at the top is much larger.”

Wal-Mart is one example of how the wage gap works like an inverted pyramid. According to statistical data provided in Farrell’s class action lawsuit against Wal-Mart, women in lower-paying hourly jobs at the company made $1,100 less per year than men in the same jobs. But women with salaried positions were paid $14,500 less per year than their male coworkers.

The Fair Pay order made employers submit salary details to the government that would show massive wage gaps like Wal-Mart’s. It also made employers show overtime and deductions on paychecks so workers could make sure they were being paid exactly as they were supposed to.

The original class action case against Wal-Mart was dismissed by the Supreme Court. But Farrell told NBC News that Dukes v. Wal-Mart was a victory in its own right.

“The very public nature of that case prompted many changes by Wal-Mart including its pay and equity policies,” said Farrell of the law firm Equal Rights Advocates.

“No one, including workers at Wal-Mart, would have understood the issues in that case had there been forced arbitration clauses,” Farrell added, “Which would have kept all of those claims in secret.”

For the majority of workers, especially at low-wages, there isn’t an option to work around an arbitration clause the way that Carlson did with Fox News and Ailes.

“Unless you’re suing a deep-pocketed CEO, suing an individual for sexual harassment is not going to be the same as putting the employer on the hook for liability,” said Farrell. “You usually don’t get the same damages or results.”

(h/t NBC News)

 

President Trump Just Signed Off on Killing Your Internet Privacy Protections

President Trump signed into law a resolution that repealed protections requiring Internet service providers to get your permission before collecting and sharing data. These protections — which had not yet gone into effect — were approved by the Federal Communications Commission in the final days of the Obama administration.

The providers have data on your web browsing history, app usage and geo-location.

Providers would also have been required to notify customers about the types of information collected and shared.

Trump’s move doesn’t come as a surprise: the White House said last week that repealing the protections will create an “equal playing field” between Internet service providers and tech companies

Opponents of the privacy rules argued they would place an undue burden on broadband providers while leaving large Internet companies like Facebook (FB, Tech30) and Google (GOOG) free to collect user data without asking permission.

“President Trump and Congress have appropriately invalidated one part of the Obama-era plan for regulating the Internet,” FCC Chairman Ajit Pai, who was appointed by Trump, said in a statement. “Those flawed privacy rules, which never went into effect, were designed to benefit one group of favored companies, not online consumers.”

But rather than apply similar protections to more businesses, the resolution passed by Republican-controlled Congress scraps the rules entirely.

Democrats and privacy advocates have argued this approach effectively hands over the customer’s personal information to the highest bidder.

(h/t CNN)

Trump Administration Rescinds Obama Guidance on Student Loan Defaults

The Trump administration on Thursday rolled back Obama-era guidance that forbade student loan debt collectors from charging high fees to defaulted borrowers, The Washington Post reported.

In a “Dear Colleague” letter, the administration tells agencies that collect on defaulted loan debt to disregard guidance prohibiting them from charging borrowers who default on their payments fees of as much as 16 percent of the loan’s principal and accrued interest.

It also says that the initial guidance handed down by the Obama administration in 2015 should have been subjected to public comment before it was issued.

“The Department thinks that the position set forth in the [Obama administration guidance] would have benefitted from public input on the issues discussed in the [guidance letter],” the Trump administration’s directive reads.

“The department will not require compliance with the interpretations set forth … without providing prior notice and an opportunity for public comment on the issues,” it continues.

The decision to rescind the guidance came two days after the Consumer Federation of America issued a report that finds that the number of people defaulting on their student loan payments is on the rise.

The Trump’s administration’s letter affects 7 million people with loans through the Federal Family Education Loan Program that are held by guaranty agencies. Individuals whose debt is held by the Department of Education are not impacted by the decision.

The amount owed in student loan debt has surpassed that of credit card debt — about $1.2 trillion.

(h/t The Hill)

Trump Won’t Require Keystone XL Pipeline to Use American Steel, Despite Pledge

A few weeks ago, when President Trump signed a directive clearing several hurdles out of the way of the proposed Keystone XL pipeline, the White House touted a new requirement — that the pipeline be made with American-produced steel.

Never mind.

The requirement to use domestic steel posed a potential conflict between the administration’s populist agenda and it’s pro-business stance. Apparently, business won.

Friday, a White House spokeswoman said Keystone would be exempt from the buy-America requirement because the pipeline was already partially underway.

“The way that executive order is written,” said White House Deputy Press Secretary Sarah Sanders, “it’s specific to new pipelines or those that are being repaired.

“Since this one is already currently under construction, the steel is already literally sitting there; it would be hard to go back,” Sanders told reporters traveling with Trump on Air Force One en route to Florida.

That’s not the way Trump described the requirement in his public statements. In a speech a week ago at the CPAC conference of conservative activists, the president said he had personally come up with the buy-America idea while signing off on the Keystone project.

“We have authorized the construction … of the Keystone and Dakota Access pipelines,” he said.

“This took place while I was getting ready to sign,” he continued. “I said, ‘who makes the pipes for the pipeline?’

“‘Well, sir, it comes from all over the world, isn’t that wonderful?’

“I said, ‘Nope, it comes from the United States, or we’re not building one.’ American steel. If they want a pipeline in the United States, they’re going to use pipe that’s made in the United States.”

About half the steel used to build the pipeline is to come from a plant in Arkansas, according to the pipeline builder, TransCanada. The rest will be imported.

(h/t Los Angeles Times)

Reality

At the Conservative Political Action Conference last week, Trump said that the Keystone and Dakota Access pipelines must use American steel “or we’re not building one.”

This was a lie that he told right to their faces.

But do you want to know what country is producing steel for the pipeline? Russia.

Canadian Public Safety Minister Ralph Goodale said on Twitter that allowing non-U.S. steel was “important for companies like Evraz Steel,” a local subsidiary of Russia’s Evraz PLC, which had signed on to provide 24 percent of the steel before Keystone XL’s rejection by Obama.

Trump Signs Repeal of Transparency Rule for Oil Companies

President Trump signed legislation Tuesday to repeal a controversial regulation that would have required energy companies to disclose their payments to foreign governments.

The legislation is the first time in 16 years that the Congressional Review Act (CRA) has been used to repeal a regulation, and only the second time in the two decades that act has been law. It is the third piece of legislation Trump has signed since taking office three weeks ago.

It is the start of one front in an aggressive deregulatory effort that the Trump administration and the GOP Congress are undertaking to roll back Obama-era rules on fossil fuel companies, financial institutions and other businesses that they say have suffered for the last eight years.

The resolution repeals a Securities and Exchange Commission (SEC) rule written under the 2010 Dodd-Frank financial reform law.

It was meant to fight corruption in resource-rich countries by mandating that companies on United States stock exchanges disclose the royalties and other payments that oil, natural gas, coal and mineral companies make to governments.

At a signing ceremony in the Oval Office, Trump said the legislation is part of a larger regulatory rollback that he and congressional Republicans are undertaking with the goal of economic and job recovery.

“This is a big signing, very important signing,” Trump said, flanked at his desk by House Speaker Paul Ryan (R-Wis.), House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Sen. Jim Inhofe (R-Okla.) and other lawmakers.

“We’re bringing back jobs big league. We’re bringing them back at the plant level, we’re bringing them back at the mine level. The energy jobs are coming back,” he continued. “A lot of people going back to work now.”

Trump then asked Rep. Bill Huizenga (R-Mich.), the measure’s lead sponsor, to speak about it and regulatory reform in general.

“Over 20 years, there’s been 56,000 rules that have been put in place, with very little legislative input or oversight, and it’s time that changed,” he said.

The administration and congressional allies say the SEC rule imposes massive, unnecessary costs on United States oil, natural gas and mining companies, putting them at a significant competitive disadvantage to foreign companies that do not have to comply.

“Misguided federal regulations such as the SEC rule addressed by H.J.R. 41 inflict real cost on the American people and put our businesses, especially small businesses, at a significant disadvantage,” White House Press Secretary Sean Spicer said earlier Tuesday.

“It’s a priority for the Trump administration to fix our broken regulatory system so that it enhances American productivity and well-being without imposing unnecessary costs and burdens,” he said.

“Signing this joint resolution is one more step toward achieving this goal.”

The House passed the repeal measure earlier this month, followed shortly by the Senate.

Democrats and supporters of the SEC rule see the rollback as a victory for corruption.

“The rule they’re trying to repeal protects U.S. citizens and investors from having millions of their dollars vanished into the pockets of corrupt foreign oligarchs,” Sen. Sherrod Brown (D-Ohio), top Democrat on the Senate Banking Committee, said earlier this month. “This kind of transparency is essential to combating waste, fraud, corruption and mismanagement.”

Supports argued in part that if the United States takes a leading role on foreign payment transparency, other major nations would follow.

Exxon Mobil Corp., whose former CEO Rex Tillerson is now secretary of State, was one of the most vocal opponents of the rule, along with other major oil companies.

The SEC is still obligated under the Dodd-Frank law to write some form of a transparency rule for extractive industries.

But under the CRA, the agency can never publish any rule that is “substantially the same” as the one that has now been overturned.

Both chambers of Congress have also passed a CRA resolution to overturn the Interior Department’s stream protection rule for coal mining, and Trump supports the repeal.

The House has passed numerous other regulatory repeal measures under the CRA, including ones on methane pollution and gun ownership, and the Senate is likely to take up at least some of them.

(h/t The Hill)

Trump Says He Cut Wall Street Reform Because His “Friends” Need Money

On Friday, Donald Trump signed an executive order intended to roll back Dodd-Frank, the sprawling regulatory framework President Obama signed into law in 2010 to avoid another financial crisis, which was not entirely beloved on Wall Street. He also scrapped a fiduciary rule intended to protect retirees by forcing brokers and advisers to “work in the best interest of their clients.“ (This, too, was controversial.)

According to its defenders, Dodd-Frank has been a modestly successful, if tortuous affair, requiring banks to bend over backwards to comply with regulations that protect investors and consumers from abusive practices and excessive risk. According to Trump, it was inconveniencing his friends:

“There is nobody better to tell me about Dodd-Frank than [JP Morgan C.E.O.] Jamie [Dimon]. So he has to tell me about it, but we expect to be cutting a lot from Dodd-Frank because, frankly, I have so many people, friends of mine, that have nice businesses, they can’t borrow money,” Trump said Friday morning, shortly before signing the executive orders. “They just can’t get any money because the banks just won’t let them borrow because of the rules and regulations in Dodd-Frank.”

And here’s how Gary Cohn, Goldman Sachs president turned White House National Economic Council Director made the case for getting rid of the fiduciary rule unveiled last spring:

“We think it is a bad rule. It is a bad rule for consumers. This is like putting only healthy food on the menu, because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.”

That is literally the greatest analogy we’ve ever heard, and we challenge Cohn and the Trump administration to top it. (In fact, the only way they could is if Cohn appeared on Meet the Press on Sunday and said, “The fiduciary rule is like only putting out vape pens at a party, because crystal meth feels good but you still shouldn’t smoke it because you might die younger.” Let the consumer have their meth! How could more choice be bad, in an industry defined by vast asymmetries of information between brokers and consumers?

Oh, and in case you were wondering: Elizabeth Warren is obviously pissed about all of this.

“Donald Trump talked a big game about Wall Street during his campaign—but as president, we’re finding out whose side he’s really on,” the Massachusetts senator said in a statement. “Today, after literally standing alongside big bank and hedge fund C.E.O.s, he announced two orders—one that will make it easier for investment advisers to cheat you out of your retirement savings, and another that will put two former Goldman Sachs executives in charge of gutting the rules that protect you from financial fraud and another economic meltdown.”

Warren, along with Senator Tammy Baldwin, also sent a letter to Gary Cohn telling him he ought to “recuse himself from decisions directly or indirectly related to Goldman Sachs.”

(h/t Vanity Fair)

 

 

 

Judge Orders Trump Golf Club to Reimburse Members

A federal judge has ruled that Trump National Jupiter Golf Club in Florida will pay just under $6 million to some members who were denied access to the club, Politico reported.

The judge found that the club violated its contracts by holding deposits from members on a “resignation waiting list.” Those members were denied access to the club.

The members who took part in the class-action lawsuit claimed membership rules were altered when now-President Donald Trump took over the club in 2012 and contracts were violated, according to CNNMoney.

Brad Edwards, the attorney for the former members, said the club was ordered to pay more than $4.8 million in damages and almost $1 million in interest, the amount the plaintiffs requested.

The club “created their own contorted reading of a contract that allowed them to avoid the refundability of the deposits,” he said.

The Trump Organization’s lawyer, Alan Garten, told the news outlet the decision will be appealed.

“The members who resigned were all members under Ritz-Carlton who resigned prior to Trump taking ownership. Trump purchased the club from Ritz and effectively saved it because it was in financial ruin. Notwithstanding the foregoing, we disagree with the judge’s ruling and intend to appeal it,” said Garten.

Trump owns the club, but was not a defendant in the suit.

(h/t The Hill)

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