sunny.png
Friday September 20th, 2019 2:27PM

States sue SEC, claiming investors left behind by new rules

By The Associated Press

NEW YORK (AP) — Seven states and the District of Columbia have sued the Securities and Exchange Commission, saying the regulatory agency is putting investors in jeopardy by relaxing rules designed to ensure that securities brokers keep the interests of their customers ahead of their own.

The lawsuit filed Monday in Manhattan federal court asked a judge to order the agency to scrap a new rule that weakens protections for consumers because it violates the intent of Congress and was approved in an arbitrary and unlawful manner.

A message seeking a response was left Tuesday with the SEC.

The states said they are harmed because bad investment advice leaves consumers with less money to spend, and that therefore they collect less in taxes.

New York Attorney General Letitia James said the SEC was failing to protect investors, favoring "Wall Street over Main Street."

She noted that new rules let broker-dealers consider their own interests when recommending investments.

"This watered-down rule puts brokers first," she said, making it likely that investors will be confused.

James said the SEC was failing to adopt the investor-protections passed by Congress in 2010 when it used the Dodd-Frank financial overhaul law to tighten regulatory loopholes revealed by the 2008 financial crisis.

"The SEC is now promulgating a rule that fails to address the confusion felt by consumers and fails to remedy the conflicting advice that motivated Congress to act in the first place," she said in a release.

Other state plaintiffs include California, Connecticut, Delaware, Maine, New Mexico and Oregon.

  • Associated Categories: Associated Press (AP), AP Business
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
L Brands chairman 'embarrassed' by former ties with Epstein
L Brands' Chairman and CEO Les Wexner says he's 'embarrassed' by former alliance with disgraced Jeffrey Epstein
3:34PM ( 9 minutes ago )
Lawyer: John Hinckley interested in music industry job
The man who tried to assassinate President Ronald Reagan is interested in getting a job in the music industry, possibly in California
3:21PM ( 22 minutes ago )
Pope says US critics use 'rigid' ideology' to mask failings
Pope Francis said Wednesday he wasn't afraid of schism in the U.S. Catholic Church led by his conservative critics, but says he prays that it doesn't happen
3:18PM ( 25 minutes ago )
Associated Press (AP)
Share of uninsured Americans rises for 1st time in a decade
Proportion of Americans without health insurance rises for 1st time in decade; poverty rate falls
3:00PM ( 43 minutes ago )
Climate change, trade woes reshape Frankfurt auto show
The headwinds buffeting the global auto industry are making themselves felt at the Frankfurt Motor Show as the industry confronts slowing global trade and auto sales, the U.S
2:58PM ( 45 minutes ago )
Scientists rethink Alzheimer's, diversifying the drug search
Scientists explore novel ways to attack Alzheimer's in the wake of a string of disappointing drug failures
2:57PM ( 46 minutes ago )
AP Business
L Brands chairman 'embarrassed' by former ties with Epstein
L Brands' Chairman and CEO Les Wexner says he's 'embarrassed' by former alliance with disgraced Jeffrey Epstein
3:34PM ( 9 minutes ago )
Lawyer: John Hinckley interested in music industry job
The man who tried to assassinate President Ronald Reagan is interested in getting a job in the music industry, possibly in California
3:21PM ( 22 minutes ago )
Pope says US critics use 'rigid' ideology' to mask failings
Pope Francis said Wednesday he wasn't afraid of schism in the U.S. Catholic Church led by his conservative critics, but says he prays that it doesn't happen
3:18PM ( 25 minutes ago )
Italy's new pro-EU govt wins vote, now faces 2020 budget
Italian Premier Giuseppe Conte's new government has won its second and final mandatory confidence vote in Parliament, now must come up with a 2020 budget
3:14PM ( 29 minutes ago )
Apple unveils a cheaper iPhone and pricing for streaming TV
Apple expected to reveal relatively minor changes to iPhone line-up amid sales slump that raises the stakes riding on an upcoming video service
3:09PM ( 34 minutes ago )