XPost: alt.politics.economics, sac.politics, talk.politics.guns
XPost: utah.general
FIRST ON FOX: A group of 25 states on Thursday filed a federal lawsuit
against the Biden administration, arguing a recent rule allowing
retirement plan managers to factor environmental and social issues into investment decisions violated the law.
The lawsuit — led by Utah Attorney General Sean Reyes and joined by 24
other states including Louisiana, Texas and Virginia — challenges a
Department of Labor (DOL) rule unveiled in November and which is set to go
into effect on Jan. 30. The rule would open the door for fiduciaries to
factor so-called environment, social and governance (ESG) considerations
into Americans' retirement accounts, an action the states argued could significantly harm the financial interests of customers.
"The Biden administration is promoting its climate change agenda by
putting everyday people’s retirement money at risk," Reyes told FOX
Business in a statement. "Americans are already suffering from the current economic downturn."
"Permitting asset managers to direct hard-working Americans’ money to ESG investments puts trillions of dollars of retirement savings at risk in
exchange for someone else’s political agenda," he continued. "We are
acting with urgency on this case because this illegal rule is set to take effect next week. It must be stopped."
REPUBLICAN STATES ARE PLANNING AN ALL-OUT ASSAULT ON WOKE BANKS: 'WE WON’T
DO BUSINESS WITH YOU'
The two dozen states filed the challenge in a federal district court in
Texas and asked the court for a preliminary injunction to prevent the DOL
from implementing the rule until a ruling had been issued in the case.
In the lawsuit, the states allege that the DOL violated the Employee
Retirement Income Security Act (ERISA) of 1974. The law safeguards the retirement income of 152 million U.S. workers, equivalent to more than two-thirds of the nation's adult population, and covers roughly $12
trillion in assets.
LOUISIANA DIVESTS FROM BLACKROCK OVER ESG POLICIES: 'WOULD DESTROY
LOUISIANA’S ECONOMY'
The states noted that ERISA requires retirement plan assets to be held for
the exclusive purpose of providing benefits to participants in the plan
and that the fiduciaries must act solely in the interest of said
participants. The Supreme Court has previously ruled that such "benefits"
are defined as "financial benefits."
After announcing the rule on Nov. 22, Labor Secretary Marty Walsh said the
move would "help plan participants make the most of their retirement
benefits." DOL Assistant Secretary for Employee Benefits Security Lisa
Gomez added that climate change and ESG factors were important for
investors.
"This is about protecting retirees in Louisiana and the rest of the
country," Louisiana Attorney General Jeff Landry told FOX Business. "Investments should be made using sound economic principles, not woke
policies. These firms have a responsibility to invest with their client's
best financial interests in mind rather than Biden’s disastrous agenda."
Liberty Energy CEO Chris Wright, a private plaintiff in the case, added
that his company was suing because the regulation "makes it harder to
protect our workers’ retirement security and impedes investing in our
industry and its ability to provide reliable and affordable energy to our communities."
"This rule is an affront to every American concerned about their
retirement account," Texas Attorney General Ken Paxton said in a statement
to FOX Business. "The fact that the Biden Administration is now opting to
risk the financial security of working-class Americans to advance a woke political agenda is insulting and illegal."
"For generations, federal law has required that fiduciaries place their clients’ financial interests at the forefront, and I intend to fight the
Biden Administration in court to ensure that they cannot put hard-working Americans’ retirement savings at risk," he added
TEXAS SUBPOENAS BLACKROCK FOR DOCUMENTS RELATED TO ESG PUSH
Over the past few years, massive asset managers and financial institutions
have increasingly focused on prioritizing ESG factors when making key investment decisions. They have particularly set their sights on investing
in companies based on those companies' efforts to combat climate change
and curb their carbon footprints.
Companies like BlackRock, State Street and Vanguard, which collectively
manage trillions of dollars in assets, have taken lead roles in the ESG movement.
In response to the growing movement, Republican state attorneys general
and financial officers have fought back, canceling contracts with the
firms and threatening legal action over how they handle customers'
investments.
"Everyday Americans are having their investment dollars used against them
as those in power favor a political agenda over financial returns," Derek Kreifels, CEO of the State Financial Officers Foundation, a group that has organized state and local opposition to the ESG movement, told FOX
Business. "It is the actions like that of these attorneys general that
will ensure Americans are safe from activist-investors and progressive
elites who would rather focus on politics than upholding their fiduciary
duty."
"Leaders at the state level, from treasurers to attorneys general, are
sending a message to Wall Street and the administrative state that we will refuse to allow the American people to be taken advantage of and we will continue to fight to ensure their hard-earned dollars aren’t being used to
push an agenda that runs counter to our values," Kreifels said.
Will Hild, executive director of consumer group Consumers’ Research, also applauded the challenge, saying it was a significant action against the
"left’s woke agenda."
"Attorney General Reyes is leading the way, highlighting how dangerous ESG
is and why it is important for the states to stop [BlackRock CEO] Larry
Fink and his ESG elitist friends from playing politics with the
investments and retirements of hard-working Americans," Hild told FOX
Business.
"As America’s oldest consumer protection agency, we will continue to
support state officials in their efforts to protect the American people
from the dangers of ESG and companies that are choosing politics over
profits."
In addition to Utah, Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri,
Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wyoming all joined the
lawsuit against the administration.
The Department of Labor didn't immediately respond to a request for
comment.
https://www.foxbusiness.com/politics/25-states-hit-biden-admin-lawsuit- climate-action-targeting-americans-retirement-savings
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