Biden Kills Bill To Reverse ESG Investing Rule

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by Tyler Durden
Monday, Mar 20, 2023 - 06:40 PM

The woke industrial complex scored a win on Monday after President Biden issued his first veto since taking office, rejecting a bill that would have reversed a Labor Department rule permitting fiduciaries to consider environmental, social and governance (ESG) factors when making investment decisions for retirement portfolios.

"I just vetoed my first bill," Biden tweeted. "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.

The veto came as no surprise, and comes on the heels of a previous rule issued by the Biden administration that allowed ESG factors when making investment decisions on behalf of clients - replacing a Trump-era rule that discouraged ESG factors "even in cases where it is in the financial interest of plans to take such considerations into account."

Both the GOP-controlled House and the Democrat-controlled Senate voted last Wednesday to send the bill to Biden's desk - with Democrat Sens. Joe Manchin and Jon Tester joining Republicans in opposing the Biden administration's policy. The White House had previously promised that Biden would veto it if passed.

"The President vetoed the bill because it jeopardizes the hard-earned life savings of cops, firefighters, teachers, and other workers – all in service of an extreme, MAGA Republican ideology," White House spokesperson Robyn Patterson said in a statement, The Hill reports, adding that Congress is unlikely to be able to override the veto, which would require the support of two-thirds of both chambers.

According to Will Hild, executive director of ESG opponent Consumers' Research, "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."

"It is disappointing to see this administration use hardworking Americans’ retirements to further progressive politics rather than ensure Americans are financially secure."