Ridgewood NJ, Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, released the following statement after the Federal Housing Finance Authority (FHFA) issued an alert that Fannie Mae increased the projected budget for their new Washington, D.C. headquarters by over 50 percent. Fannie Mae is one of the government-sponsored enterprises that was put in conservatorship after taking a $200 billion taxpayer bailout in 2008.
“Like a child with a credit card in a toy store, the bureaucrats at Fannie Mae just couldn’t help themselves. After being forced to bail out the GSE’s to the tune of nearly $200 billion, American taxpayers now get the news that they are underwriting lavish spending at Fannie Mae’s new downtown Washington, D.C. headquarters. So while Americans around the country are living paycheck to paycheck, Washington insiders are blowing through budgets by designing glass enclosed bridges and rooftop decks.
“Even more troubling, the Federal Housing Finance Authority—the entity whose sole job it is to oversee the GSE’s—appears to have been asleep at the wheel as costs spiraled out of control. This is the same FHFA that just last year thought it was a good idea to give GSE executives a pay raise to nearly $4 million. This complete failure by FHFA and the excess displayed by Fannie Mae are the exact reasons why the American people are disgusted by business as usual in Washington, D.C.”
Ridgewood NJ, Now that Josh Gottheimer “family member” Hillary Clinton has declared herself the Democratic Party nominee, constituents of the Fifth District deserve to know where Mr. Gottheimer stands on Mrs. Clinton’s policies and priorities.
Does Josh Gottheimer Support “Family Member” Hillary Clinton’s Use of Her Private Email Server?
Clinton’s Claim That Her “Predecessors Did The Same Thing” With A Secret Server Has Been Rated As Mostly False By PolitiFact. “Clinton said, regarding her State Department email practices, ‘my predecessors did the same thing.’ This is a misleading claim chiefly because only one prior secretary of state regularly used email, Colin Powell. Powell did use a personal email address for government business, however he did not use a private server kept at his home, as Clinton did. We rate this claim Mostly False.” (Lauren Carroll, “Hillary Clinton Said ‘My Predecessors Did The Same Thing,’ With Email” PolitiFact , 3/9/16)
NBC News Headline: “Clinton Broke Federal Rules With Email Server, Audit Finds” (Ken Dilanian, “Clinton Broke Federal Rules With Email Server, Audit Finds,” NBC News, 5/25/16)
Reuters Headline: “Clinton Email Server Broke Government Rules, Watchdog Finds” (Jonathan Allen, “Clinton Email Server Broke Government Rules, Watchdog Finds,” Reuters, 5/25/16)
The Associated Press Headline: “State Dept Audit Faults Clinton In Emails” (Michael Biesecker and Bradley Klapper, “State Dept Audit Faults Clinton In Emails,” APNewsBreak, 5/25/16)
The Washington Post Headline: “State Dept. Inspector General Report Sharply Criticizes Clinton’s Email Practices” (Rosalind Helderman and Tom Hamburger, “State Dept. Inspector General Report Sharply Criticizes Clinton’s Email Practices,” The Washington Post, 5/25/16)
The New York Times Headline: “Hillary Clinton Is Criticized For Private Emails In State Dept. Review” (Steven Lee Myers, “Hillary Clinton Is Criticized For Private Emails In State Dept. Review,” The New York Times, 5/25/16)
NBC News Headline: “Clinton Broke Federal Rules With Email Server, Audit Finds” (Ken Dilanian, “Clinton Broke Federal Rules With Email Server, Audit Finds,” NBC News, 5/25/16)
Reuters Headline: “Clinton Email Server Broke Government Rules, Watchdog Finds” (Jonathan Allen, “Clinton Email Server Broke Government Rules, Watchdog Finds,” Reuters, 5/25/16)
CNN Headline: “State Department Report Slams Clinton Email Use” (Ryan Browne and Evan Perez, “State Department Report Slams Clinton Email Use,” CNN, 5/25/16)
Ridgewood NJ, Congressman Scott Garrett (R-NJ) sent a letter today to his Democrat general election opponent regarding debates for the 2016 general election.
“I look forward to a campaign season filled with great debate about the best solutions for the future of our district and our country,” Garrett wrote.
Democrat Josh Gottheimer, a political insider capitalizing on his Clinton-family connections in order to bankroll his campaign, has yet to outline a substantive platform. This leads many in the Fifth District to assume that he is merely a mouthpiece for Hillary Clinton’s agenda.
In contrast, Congressman Scott Garrett’s platform includes the following issues that are high priorities for the people of the Fifth District:
Creating Jobs. A strong economy is a job-creating economy. When hard-working Americans are struggling to find work, it’s a sign our nation needs to get its economic house in order—and paralyzing small businesses with burdensome regulations isn’t the answer. Scott Garrett has worked consistently to advance economic growth and job creation, including ensuring America’s small businesses—the backbone of our economy—have the tools and resources they need to keep employees and create new jobs.
Stopping Reckless Spending. Our federal government’s spending over the last several years has ballooned out of control. Our national debt stands at an all-time high of more than $17 trillion. Scott Garrett recognizes that every dollar Washington spends is a dollar first earned by taxpayers. Since first going to Congress, Scott has worked tirelessly to end irresponsible spending, allow Americans to keep more of their hard-earned money, and force the government to live within a budget, just like taxpayers do.
Defending Our Nation. The threats against our nation are real. Scott Garrett has worked to make sure our men and women in uniform have the tools they need to accomplish the mission of keeping America safe. He firmly believes that before any troops are sent into harm’s way, the mission must be clear, and he has led efforts to guarantee our nation’s military will not be sent into war without Congressional authorization.Garrett continued his letter by emphasizing the importance of principled leadership in Washington, starting, “Throughout my time as the representative for the Fifth District, I have fought for policies to grow our economy, create jobs and strengthen our national security. Our county needs a representative who knows that leadership means fighting for the interests of the Fifth District, regardless of pressure from special interests in Washington.”
Finally, Garrett committed to being in touch regarding the scheduling of debates in the future, ending the letter by stating, “Once my constituent services calendar is finalized for this fall, I will be in touch about finding an opportunity for us to appear in a public forum to debate ideas.”
Since the founding of our country, there have always been brave men and women who understood what it takes to protect our freedom and democracy. And there has always been a grateful nation that understands that everything we have is because of their bravery. They are the very best that America has to offer.
Today, we remember those who gave their lives in service to the United States and we thank them for their sacrifice. Our words will never be able to express what their service meant to us, but we can continue to honor them with our actions. We can continue to live our lives in freedom and stand up to tyranny and oppression in whatever form it takes. It is our responsibility to pass along the gift of liberty that many in our armed forces died to protect.
To those who have lost family, friends, and loved ones—please know that our country stands with you today and every day, humbled by the sacrifice you have given to protect freedom and democracy. May God bless those who died in service to our country, and may God continue to look over those who put on a uniform every day and fight for United States of America.
1st Place winner, Alexandra Gutierrez with Scott Garrett
May 26,2016
the staff of the Ridgewood blog
Ridgewood NJ, Rep. Scott Garrett (NJ-05) announced the winners of the 2016 Congressional Art Competition at Sussex County Community College in Newton this Saturday. The Congressional Art Competition is open to all 9th-12th graders from New Jersey’s Fifth District, and this year’s competition featured 90 pieces of artwork from New Jersey high schools in Bergen, Passaic, Sussex, and Warren Counties (full list below).
This year the winners were: 1st Place, Alexandra Gutierrez, “Split Vision,” Bergen County Academies; 2nd Place, Grant Brewster, “Forgotten,” Delbarton School; 3rd Place, Nicole Spangenburg, “Doug,” Wallkill Valley Regional High School; 4th Place, Nicole Spangenburg, “Rasta Man Dan,” Wallkill Valley Regional High School; 5th Place, Sophia Bevacqua, “Landscape,” Northern Highlands Regional High School; 6th Place, Nicolina Kanapinski, “Take Me For a Ride,” High Point Regional High School; 7th Place, Maansi Srivastava, “The Afternoon Glow,” Bergen County Academies; 8th Place, Sarah Vargas, “The Dreamer,” Bergen County Academies.
Each spring, the Congressional Institute sponsors a nationwide high school visual art competition to recognize and encourage artistic talent in the nation and in each congressional district. Since the Artistic Discovery competition began in 1982, more than 650,000 high school students have participated. Students submit entries to their representative’s office, and panels of district artists select the winning entries. The first-place winner from each congressional district is invited to attend a reception in Washington, D.C., and the winning artwork is displayed in the U.S. Capitol for a year. Read more here.
Students from the following schools will be participating (by county):
Bergen County Academies
Bergen County Technical High School (Student lives in district)
Ridgewood NJ, Rep. Scott Garrett (NJ-05) welcomed Maryana Stern to be his shadow for a day as part of the fifth annual “Congressional Foster Youth Shadow Day.” Nearly 100 foster youth and alumni from across the country travelled to Capitol Hill to accompany members of Congress to work and get a behind-the-scenes look at the House of Representatives.
“It was a pleasure to have Maryana shadow me this morning on Capitol Hill,” said Garrett. “She is an ambitious young woman who has overcome a lot, and it was great to show her around Congress and discuss issues that affect foster youth across the country. As a member of the Congressional Caucus on Foster Youth, I know it’s important to ensure that our nation’s foster youth have the opportunities and support they need to succeed.”
In addition to shadowing Rep. Garrett, Maryana attended a lunch where members speak about the work Congress is doing to support foster youth. Rep. Garrett is a member of the Congressional Caucus on Foster Youth. This bipartisan caucus unites over 160 Members of Congress to examine the challenges facing all foster youth and develop policy initiatives
Ridgewood NJ ,Rep Scott Garrett’s Democratic challenger Political insider Josh Gottheimer has lots of high profile friends he’s using to try to buy his way into Congress. Unfortunately for him, these “friends” believe the rules don’t apply to them – which means they have bit a habit of running into trouble with the law…Terry McAuliffe is just the latest in a series of scandals plaguing members of the “Gottheimer Cartel.”
Does Josh Gottheimer agree with his “friends” – that the rules don’t apply to him?
Gottheimer’s Clinton 2008 Campaign Mentor and Virginia Governor Terry McAuliffe:Terry McAuliffe Under FBI Investigation For Possible Campaign Violations. “The FBI is investigating whether Virginia Gov. Terry McAuliffe’s 2013 campaign accepted illegal contributions.” (NBC News, 5/23/2016)
“Family Member” Hillary Clinton: FBI May Question Clinton. ”In addition to the FBI investigation, inspectors general at the State Department and the U.S. intelligence community are reviewing whether security procedures or laws were broken.” (ABC News, 5/23/2016)
Donor and Wife Beater Ibrahim Al-Rashid: Democratic Groups Keep Donations From Domestic Violence Convict. “Al-Rashid, the son of a Saudi multimillionaire, pled guilty in 2014 to a domestic assault charge against his estranged wife, who was formerly the finance director for Rep. Patrick Murphy (D, Fla.).” (Washington Free Beacon, 5/19/2016)
Donor and Disgraced Senator Bob “The Torch” Torricelli: Torricelli Angling for Return to US Senate by Supporting Clinton “Family Member” Gottheimer?“Former U.S. Sen. Robert Torricelli said if Hillary Clinton is elected president, he “might ask to do something” in her administration.” (NJ.com, 4/21/2016)
RIDGEWOOD, N.J. – Rep. Scott Garrett (NJ-05) will be hosting young legislators from 35 New Jersey high schools in Bergen, Passaic, Sussex, and Warren counties (full list below) at the third annual Model Congress this Saturday in Ridgewood. The Model Congress is an educational event for students where they will replicate a day in the life of a Congressperson in the U.S. House of Representatives. The event is open to all media, but please observe an embargo on this information until Saturday at 9am.
About: The Model Congress gives students a first-hand opportunity to learn how Congress works by allowing them to research legislation currently being considered in the U.S. House of Representatives, break into committees to further examine and debate the legislation, and finally bring the legislation to the House floor for a vote. Students will be assigned to represent different states, but not specific political parties. This is a nonpartisan event. Each school in New Jersey’s Fifth District was invited to recommend two students for the Model Congress, and awards will be given for best debater, best consensus builder, best speaker, best research, best counterargument, and leadership at the end of the event.
Address: Ridgewood High School
627 E. Ridgewood Ave
Ridgewood, NJ 07450
When:Saturday, May 14 9am – 12:30pm
Students from the following schools will be participating (by county):
Bergen:
Bergen County Academies
Bergen County Technical High School
Bergenfield High School
Dumont High School
Fair Lawn High School
Glen Rock High School
Hackensack High School
Indian Hills High School
Lodi High School
Mahwah High School
Midland Park High School
Northern Highlands High School
Northern Valley Regional-Demarest
Paramus High School
Park Ridge High School
Pascack Hills High School
Pascack Valley High School
Ramapo High School
Ramsey High School
Ridgewood High School
River Dell High School
St. Joseph Regional High School
Teaneck High School
Waldwick High School
Westwood Regional High School
Passaic:
Lakeland Regional High School
West Milford High School
Sussex: High Point High School
Kittatinny Regional High School
Newton High School
Pope John XXIII High School
Vernon Township High School
Wallkill Valley Regional High School
Jerry , with Congressman Scott Garrett presenting Korean War Veteran and Wanaque resident Thomas Falato with an award at the Ridgewood 4th parade 2015
May 1st 2016
the staff of the Ridgewood blog
Ridgewood Nj, The Ridgewood Fourth of July Celebration Committee is sad to announce the passing of Gerald “Jerry” DeSimone on February 10, 2016. Jerry served as committee president beginning in 1977 with a passion that was instrumental in making the Ridgewood 4th of July Celebration what is is today. We would like to thank all of the donors for their pledges in Jerry’s honor.
The Ridgewood Fourth of July Celebration is an all volunteer, community funded event that receives no direct funding from the Village of Ridgewood. In addition to our generous sponsors and to ensure our tradition continues we need your support! Donate Now at the link below:
Please join us for the 106th annual Ridgewood Fourth of July Celebration on Monday, July 4th, 2016.
The theme for the Parade this year is “America the Beautiful – Celebrating 100 Years of our National Parks” Our theme this yearhonors the creation of the National Park Service through the Organic Act of 1916 signed by President Woodrow Wilson and originated by President Theodore Roosevelt.
Each year, the Fourth of July Celebration Committee chooses a theme that celebrates a certain aspect of American history or culture. The theme also serves as the basis for the float competition held among the town’s elementary schools.
Thank you for your continued support of this great tradition!
Ridgewood NJ, Rep. Scott Garrett (NJ-05) today called upon U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy and EPA Region 2 Administrator Judith Enck to re-evaluate their decision to place a barrier over the 166,000 tons of contaminated materials at the Ringwood Superfund Site instead of pursuing complete removal of the toxic substances.
Recent discoveries of significant levels of 1,4-dioxane, a probable human carcinogen that may result in liver, kidney, and upper respiratory damage, at levels close to 100 times the state maximum standard, raises new concerns about the EPA’s decision to cap the site. Congressman Garrett demands that the EPA identify all potential toxic substances that may be present at the Ringwood Superfund Site and ensure that a new cleanup plan rectifies the presence of all hazardous substances once and for all.
“As you know, the Ringwood Superfund Site is a decades old and continued concern for New Jersey residents,” said Garrett in his request to the EPA. “The discovery of an additional toxic substance has increased public concern about the EPA’s decision to approve the plan to cap the site. New Jersey residents deserve to know that a plan to mitigate hazardous substances in their communities will be successful and will permanently remove the public health threat posed to them.”
The Congressman is also demanding answers from a February 2016 letter where he requested information about groundwater tests when it came to light that they had knowledge of the presence of 1,4-dioxane. To date, the EPA has not responded to these requests.
Congressman Garrett’s Specific Requests from the EPA:
1. Is the EPA reevaluating the decision to cap the site instead of a full cleanup due to the discovery of a new toxic substance and the possibility that other toxic substances may be present?
2. What were the reasons behind approving the plan to cap the site despite the EPA initially supporting a full cleanup?
3. What are the criteria for pursuing the plan to cap the site and does the presence of a new toxic substance affect these criteria?
Ridgewood NJ, Capital Markets and Government-Sponsored Enterprises Subcommittee Chairman Scott Garrett (NJ-05), delivered the following remarks at a hearing entitled “Continued Oversight of the SEC’s Offices and Divisions”:
Congressman Scott Garrett’s opening remarks as prepared for delivery:
Today, the Subcommittee will continue its efforts to conduct vigorous oversight of the Securities and Exchange Commission, and in particular the individual offices which make up the SEC
In the last two years, our Subcommittee has heard testimony from the directors of the Trading and Markets, Corporations Finance, Enforcement, and Investment Management Divisions at the SEC
These hearings have allowed us to take a more thorough look at the agency’s operations, rulemaking agenda, and enforcement practices so that we can better understand whether the SEC is appropriately carrying out its three-fold mission to protect investors, maintain fair, orderly, and efficient markets, and (last but certainly not least!) facilitate capital formation
So I welcome our witnesses today and look forward to hearing their testimony – I hope that between the four of you, we are able to cover a lot of ground
Back in 2000, the SEC’s operating budget was about $369 million; today, the SEC has a budget authority for Fiscal Year 2016 of a little over $1.6 billion
And the SEC has recently submitted a request to bring its Fiscal Year 2017 budget up to nearly $1.8 billion
So during much of the time when Congress has been accused of starving the SEC of the funds it needs to fulfill its mission, its budget has actually quadrupled in the last fifteen years
It would be one thing if this four-fold increase in funding coincided with an agency that has become four times as effective
Instead, we are likely to look back at this period as a time when the SEC missed some of the greatest frauds in history, was ill-prepared for the financial crisis of 2008, failed to properly incorporate economic analysis into rulemakings, and, more recently, has often times been complicit in advancing the priorities of special interests
Unfortunately, instead of addressing some of the fundamental structural issues at the SEC, the Dodd-Frank Act created more offices within the agency – two of which we will hear from today
Dodd-Frank also granted the agency vast new rulemaking authority that the SEC has often times struggled to implement appropriately
For example, while the SEC has made strides towards improving the economic analysis that underlies its rulemakings, there is still much more work to be done in this area
It’s not acceptable for the SEC to simply say “Congress made us do it” and therefore assume that a rulemaking is beneficial, as the SEC did with its “pay-ratio” rule last year
It’s also incumbent upon the SEC to clearly articulate a problem or market failure that their rules are intended to address, which should be obvious but is still unfortunately lacking in many of the Dodd-Frank rules being implemented
So I’m eager to hear about some of the steps the SEC is taking to further improve its economic analysis
I also continue to have concerns over recent rulemakings related to credit rating agencies
While there is broad agreement that certain provisions in Dodd-Frank – such as the removal of references to credit ratings in regulations – were much needed and directly address one of the causes of the financial crisis, I worry that many of the other micro-managing rules included in Dodd-Frank have had the effect of further stifling competition in the credit rating agency industry.
April, 17, 2016
By Rep. Scott Garrett (New Jersey’s 5th Congressional District)
Ridgewood NJ, For too long, tax and spend politicians have used the tax code to confiscate more money from working families in New Jersey because they believe the government can spend the funds better than those that earned it. And each tax season, New Jerseyans are painfully reminded of their high tax burden.
At over 70,000 pages containing 4 million words, chances are you didn’t read the entire U.S. tax code before filing your taxes this year. In fact, the tax code is so long and complicated that you probably ended up having to pay a person or a service for their expertise — all the while hoping that they read and understood all 70,000 pages.
This is a tax code in desperate need for reform. Reform that keeps more money in New Jersey, ends the special interest loopholes, and lowers the overall tax margins for everyone.
Keep the money at home
Some politicians view tax reform and the ever-growing government as yet another opportunity to empower themselves at the expense of hardworking New Jersey taxpayers. By advocating for more programs and more benefits, big government spenders are really placing their faith in bureaucrats. So rather than send taxpayer dollars to Washington and hope bureaucrats send it back, I am fighting to keep more of your money in your own pocket.
Our overly complex tax code is the lifeblood of the biggest scam perpetuated by Washington politicians. They take your hard-earned money through a broken tax system that no one understands, and then cut backroom deals to give this money to their favored programs. And if some tiny amount actually comes home, the taxpayers are supposed to thank Washington for giving some of it back.
Think of it this way. If someone stole a $50 bill out of your pocket, would you thank that person after they brought you a happy meal from a fast food restaurant? f course not! It’s your money and you know better how it should be spent.
Even the playing field
Next, we must end the tax benefit system bestowed to Washington’s favored industries. The current tax code is a grab bag of loopholes, deductions, and escape routes for those fortunate enough to be able to hire an army of tax attorneys and lobbyists.
Every year, pinstriped lobbyists descend upon Washington to receive their tax carve outs — known as tax credits — for their industry. Not only does this arrangement let the federal government pick winners and losers, it misallocates the capital investment that so many struggling industries need. And the individual taxpayer, who has no lobbyist in Washington, is left picking up the tab.
This is not the type of economic liberty and freedom of opportunity the Founders envisioned.
New Jerseyans should no longer be expected to pay for government favors enjoyed by mega-corporations and Washington’s preferred industries. Every industry should play on the same, even playing field, not the rigged system of carve outs we have now. Additionally, the number of deductions — which allow businesses to lower their tax burden –should be significantly reduced.
If it’s broke, fix it
And on the individual level, we need a simpler, fairer, and flatter tax code free of loopholes. The average American spent 13 hours preparing their taxes last year — totaling more than 6 billion hours for all Americans. Navigating the tax code has become too complicated and time consuming. Instead, the tax code needs to be simplified so that high-powered corporate executives, who can hire expensive tax attorneys to lower their rates and find loopholes, don’t end up paying a lower percentage than a single mom working two jobs.
Thomas Jefferson once wrote, “I predict future happiness for Americans if they can prevent government from wasting the labors of the people under the pretense of taking care of them.”
New Jerseyans have been frustrated by bureaucrats in Washington who continuously waste tax dollars. Comprehensive tax reform will force the government to be more efficient, effective, and accountable to the people. Americans deserve a tax system that provides equal opportunity and economic freedom for everyone, not just those who have power and influence in Washington
Ridgewood Nj, NJ.COM is reporting that Josh Gottheimer received $1,000 from former disgraced former NJ Senator Bob”the Torch,” Torricelli . “The Torch” was the subject of a lengthy federal ethics probe that ended his political career in 2002.
Robert Guy Torricelli (born August 27, 1951), nicknamed “the Torch,” is an American politician who served as the United States senator from New Jersey from 1997 to 2003 and a member of the U.S. House of Representatives from New Jersey’s 9th district from 1983 to 1997. From 1999 to 2000, he served as the chairman of the Democratic Senatorial Campaign Committee.
The Torch, as he’s known, was forced out nearly 13 years ago following a series of seamy revelations that he’d accepted lavish gifts from David Chang,a businessman North Korean ties which in turned prompted the Senate Ethics Committee to issue a formal letter of admonishment.
Many credit Torricelli’s swift fall from grace because he was so good at alienating fellow Democrats and was incapable of taking any blame for his misdeeds. Others say his lavish lifestyle ,expensive watches and suits rubbed too many people the wrong way .
Wall Street Journal – Congressional Letter Highlights Awkward Consequence of MetLife Case
Apr 11, 2016
By Ryan Tracy
A letter sent to Treasury Secretary Jacob Lew by a member of Congress on Monday highlights the awkward international consequences of a U.S. federal judge’s decision to rescind federal oversight of MetLife Inc.
Rep. Scott Garrett (R., N.J.), chairman of the House Financial Services Committee’s subcommittee on capital markets, wrote to Mr. Lew asking how, after the decision, the U.S. now will proceed with applying new regulatory standards to insurers designated “systemically important.”
The awkward subtext: The U.S. effectively has promised other countries it will apply tighter standards to MetLife, but the federal government no longer has the authority to do so. That could be reversed if the Obama administration wins the case on appeal, a process that could take months.
Mr. Garrett’s criticisms are ones long held by the U.S. insurance industry and state insurance regulators regarding the Financial Stability Board, a group of global regulators from the U.S. and other countries.
On July 18, 2013, the FSB published a list of insurance companies it called “globally systemically important insurers” and agreed they should face tighter supervision. The Treasury Department, the Federal Reserve and Securities and Exchange Commission are U.S. representatives on the FSB. Since the FSB operates by consensus, Mr. Lew and other FSB members effectively endorsed the list of globally systemically important insurers.
That has long irked the insurance industry and regulatory critics such as Mr. Garrett, who point out the list was developed before U.S. regulators on the U.S. Financial Stability Oversight Council decided to apply stricter rules to domestic insurance companies. MetLife was on the July 2013 FSB list, along with rivals American International Group Inc. and Prudential Financial Inc., but MetLife wasn’t designated “systemically important” in the U.S. until December 2014. Prudential received the label in September 2013, and AIG received it July 8, 2013.
Mr. Garrett on Monday asked for a series of documents from Mr. Lew related to the FSB work. He also asked whether Mr. Lew plans to continue pursuing the stricter international standards the U.S. has agreed to apply to MetLife, now that the court has rescinded the federal government’s authority to do so.
MetLife is still overseen by state regulators, including in its home state of New York, and it is possible those regulators could take the view the firm deserves stricter rules because of its size and potential impact on the economy. But state regulators aren’t part of the FSB—a fact that has long frustrated them—so it is far from clear that they would keep up the U.S. end of the international bargain.
A Treasury spokesman didn’t immediately respond to a request for comment.
Mr. Lew previously has said that the U.S. and international processes for determining “systemically important” firms are separate and that U.S. regulators made their own decision about applying stricter rules MetLife and the other firms without regard to any international agreement.
“Saving for the future shouldn’t be a privilege for the wealthy, and Washington doesn’t need to put another roadblock between people and their financial goals. By ignoring the advice of the SEC and Congress, the DOL’s rule will increase the cost of retirement advice for lower- and middle-income Americans while creating a preferred class of rich investors. I will continue to fight for everyone’s right to get good financial advice because—unlike this administration—I believe in the people of New Jersey to make the best choices for their families and their futures.”Rep Scott Garrett
April 7,2016
the staff of the Ridgewood blog
Ridgewood NJ, Yesterday’s editorial (opening paragraphs below) point out that this set of rules is slanted to capture investment accounts with the goal of making small and medium sized savers invest in government run plans. Follow the money — those government run plans are going to lean toward investing in government paper with associated pitiful returns. That’s the conflict of interest that’s not being disclosed.
From the editorial…
President Obama’s regulators aren’t slowing down, alas. And on Wednesday they unveiled another part of their plan to push Americans out of private investment accounts and into government-run plans.
The Department of Labor says its so-called fiduciary rule will make financial advisers act in the best interests of clients. What Labor doesn’t say is that the rule carries such enormous potential legal liability and demands such a high standard of care that many advisers will shun non-affluent accounts. Middle-income investors may be forced to look elsewhere for financial advice even as Team Obama is enabling a raft of new government-run competitors for retirement savings. This is no coincidence.
Bu
Labor’s new rule will start biting in January as the President is leaving office. Under the rule, financial firms advising workers moving money out of company 401(k) plans into Individual Retirement Accounts will have to follow the new higher standards. But Labor has already proposed waivers from the federal Erisa law so new state-run retirement plans don’t have the same regulatory burden as private employers do.
This competitive advantage could be significant. Last month the board of California’s new “Secure Choice” retirement plan wrote to state legislators about their “exciting win” in Washington. They reported that employers enrolling workers in the new government-run plan “would have no liability or fiduciary duty for the plan.” Score! The California bureaucrats added that “we have been given the green light to auto-enroll workers into an Individual Retirement Account (IRA).”
Meanwhile, there are only losses for private competitors. The final rule Labor Secretary Tom Perez unveiled Wednesday is being marketed as less onerous than an earlier draft. Thus much of the financial industry is going to take a few weeks to decide on its response. But the main question is exactly how many billions of dollars in costs and lost opportunities will be visited upon investors. And how big the incentive will be to seek government options…
