President Trump and his Securities and Exchange Commission nominee Jay Clayton have been talking about creating jobs, but who's looking out for the everyday investor? If you are hoping the SEC Regulatory Accountability Act recently passed by the House Representatives will provide adequate protection, you may want to look elsewhere. The welfare of investors seems be an afterthought at best.
The bill demands the agency justify any attempts at passing a new rule by showing that it would "promote efficiency, competition and capital formation." In reality, it will likely do little more than overwhelm the SEC with administrative busywork.
On top of that, President Trump already promised to dismantle the Dodd-Frank Act that was passed in the wake of the 2008 financial crisis. Trump's administration is also expected to find ways to defang one of the only agencies that actually has a strong record of helping the public -- the Consumer Financial Protection Bureau, bane of financial firms.
The President said in his inaugural address that he will be looking out for the forgotten men and women. But will he remember the forgotten small investor?
This article was written by a staff member of TheStreet.