Newark — Phil Murphy, Democratic candidate for governor, today said President Trump’s assault on the Dodd-Frank law enacted to prevent another financial industry meltdown coupled with the repeal of rules meant to protect investors from unscrupulous advisors shows Trump is doubling down on his attack on the middle class while favoring the powerful and connected.
“These actions by President Trump are rushed and wrong, he clearly has not thought through the consequences of these reckless acts,” said Murphy. “We need stronger — not weaker — oversight of Wall Street and the financial industry. And, with the stroke of a pen, he even marked open season on retirees and the middle-class by unscrupulous advisors who put profits before their clients’ well-being.”
Murphy said he is looking at all available options for the state to step in to protect consumers should Dodd-Frank be dismantled, including the possible creation of a state-level Consumer Financial Protection Bureau within the Department of Banking and Insurance.
Murphy has pledged to limit the influence of Wall Street in state government operations, including divesting state pension funds from hedge funds that have collected billions of dollars in fees — money which otherwise could have been reinvested in the pension system — and the creation of a public bank to invest state tax revenues in an institution dedicated to investing in New Jersey, rather than in Wall Street-based and foreign-owned banks. Murphy also has said he would eliminate the carried interest tax breaks received by hedge fund managers.
“Today shows that Donald Trump puts Wall Street power before the well-being of retirees and middle-class families trying to save for their futures. As Governor, I’ll lead the way in getting Wall Street off of State Street,” said Murphy.