President Biden issued his first veto since taking office, rejecting a bill that sought to overturn a Labor Department rule regarding environmental, social, and governance (ESG) investing.
Biden announces veto via a Tweet
Biden announced the move via a tweet: “I just vetoed my first bill. This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don’t like.
Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not,” he added, referring to the Republican congresswoman.
The Biden administration had issued a rule stating that money managers can weigh climate change and other ESG factors when making decisions regarding the investment of funds on behalf of clients.
The ruling replaced a prior rule from the Trump administration, which the Biden admin says discouraged considering ESG factors “even in cases where it is in the financial interest of plans to take such considerations into account.”
Will Hild, executive director of Consumers’ Research, which has led opposition to ESG policies, said, “This veto by President Biden goes directly against the interests of the American people and once again creates an illegitimate loophole for companies like BlackRock, State Street, and Vanguard to exploit to put politics over profits with American pension dollars.”
Meanwhile, Senator Mike Braun, lead author on the bill that was vetoed, accused the president of “doubling down on prioritizing a progressive agenda over Americans’ retirements and the will of Congress,” adding that “Americans’ retirement savings should be invested to get the best return, not to support a political agenda.”
Source: msn