As everyone knew he would, Slow Joe vetoed H.R. 30, a Congressional Review Act (CRA) resolution that would nullify his new ESG rule.
Up until Biden, retirement investment fund managers were guided by fiduciary responsibility – the managers were legally bound to invest for the maximum safe return for their investors. They could not put their clients money into funds that would enrich themselves nor could they invest in companies to advance their political views. Return on investment was the only guide with massive fines and potential jail for the violators.
The Biden rule enables fund managers to weigh climate change and prioritize ESG initiatives when selecting retirement investments and exercising shareholder rights, such as proxy voting.
Like I said – this was no surprise, of course we was going to veto a bill that tried to curb his power.
But the way he spun it is really galling. From his Twitter:
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.
Got that? Its those evil Republicans who want to put your money at risk by maximizing your return not the virtuous democrats who want to use your money to advance their social programs.
I would suggest reaching out to your fund managers and ask if they intend to “weigh climate change and prioritize ESG initiatives when selecting investments and exercising shareholder rights”.
If the answer is yes – close your account. Move your money elsewhere.