‘False Indictment’
Financial advisers took a dim view of the analysis.
Furman “is supposed to be the president’s chief economic adviser and he wrote something that wouldn’t pass an undergraduate economics exam,” said Creighton, of the Financial Services Roundtable. “They view the entire industry as conflicted and self-dealing,” he added. “It is a stunningly false indictment.”
Kenneth Bentsen, chief executive officer of Sifma who attended the White House meeting, agreed.
“If it goes the way of the Furman memorandum and impugns the integrity of an entire sector of the economy in order to push this rule on specious facts, I imagine this gets very public, very fast,” Bentsen said.
The groups opposing the rule have also been working with former Labor Department Solicitor Eugene Scalia. Now in private practice at the Gibson, Dunn & Crutcher law firm, Scalia has become well-known for suing the government to overturn financial regulations.
Scalia said the push by Labor Secretary Thomas Perez was unusual. Issuing this rule would be a surprising move by Secretary Perez, since historically Labor secretaries avoid controversy over retirement-related issues, and this one will be very contentious, including with a number of congressional Democrats,” Scalia said.