(Reuters) – President Joe Biden's interim regulators are wasting time dissolving Wall Street-friendly measures introduced under former Republican President Donald Trump, using swift legal tactics.
They have nailed or stopped more than a dozen controversial Trump era measures that critics said eroded consumer protection, weakened compliance and limited investors' ability to drive change in the environment, social and governance (ESG).
Instead of embarking on the lengthy process of rewriting the rules, the agencies have in many cases used quick legal tools, according to lawyers, consumer groups and a review by Reuters. These include delaying unfinished rules, issuing informal guidance, revoking old policy declarations or issuing new ones and choosing not to enforce existing rules.
The rapid changes have led to alarm bells in the financial industry, which must quickly adapt to the tougher new regime, and set the stage for potential legal challenges along the way, said lobbyists and lawyers.
"The interim democratic leadership of these agencies is moving very fast to address the liberalization policy changes that occurred under Trump," said Quyen Truong, a partner at Stroock & Stroock & Lavan Law Firm.
"Agencies' use of guidance and feedback on policy statements requires a rapid reversal of corporate compliance."
Under the previous administration, Trump appointed regulators eased dozens of rules they said were outdated and damaged jobs, and outrage from Democrats who said the changes saved Wall Street billions of dollars while increasing risks and damaging
Congress, Democratic lawmakers will fight to repeal these rules, while delays in the presidential transition have left many nominees still waiting for confirmation nearly three months in. officials to begin implementing Mr Biden's agenda to help Americans recover from the pandemic and to address social injustice and climate change.
Acting Chairman Allison Lee of the Securities and Exchange Commission, for example, has been very active. She has returned power to senior executives, who had it removed from them in 201
She has also begun to reverse the Trump administration's attack on ESG investments with a new attempt to police misleading ESG revelations.
The SEC stated that each decision was taken in order to ensure "seamless leadership" in its mission. to protect investors.
Similarly, the Department of Labor said last month that it would not apply two rules finalized during the last months of the Trump administration that restricted investment and shareholder votes based on ESG factors. The Agency did not respond to a request for comment.
And acting director of consumer protection for financial protection, Dave Uejio, has not disappointed progressives who hoped he would fix policies that they said undermined fair lending.
"We take a closer look at previous policies that hampered the Bureau's effectiveness while working non-stop through oversight and compliance to ensure that financial institutions treat consumers fairly," said Uejio.
would do more harm than good, while Reuters has reported that the CFPB is exploring the review of the country's credit reporting system.
Mr Uejio said he plans to focus on more COVID-19 measures and legal action.
already seen financial agencies, especially the consumer watchdog, take the rubbish to some of the worst Trump-era politicians, "said Ed Mierzwinski of the consumer business group PIRG. U.S. Senator Pat Toomey of Pennsylvania, the top Republican in the congressional panel overseeing the Financial Bureau said, in a statement that the changes would "slow down economic growth." Deputy Director.
Lawyers still advised clients to adapt quickly, as changing challenges was unlikely to change the course. "Consumers can not wait for help," Uejio said. "They need us now." Catalog