Trump's labor plan is a massive 401(k) greed grab for Wall Street

[mahatmakanejeeves]

Trump’s labor plan is a massive 401(k) greed grab for Wall Street

The Labor Department wants to give Wall Street firms greater access to a lucrative market — your 401(k).

April 8, 2026 at 6:00 a.m. EDT Today at 6:00 a.m. EDT
5 min
Column by Michelle Singletary

With millions of workers lacking access to workplace retirement plans, the Labor Department has decided that a more pressing matter is giving Wall Street firms access to a lucrative market — your 401(k). ... A proposed rule would encourage the addition of alternative assets, such as private equity, private credit and cryptocurrency, to 401(k) menus.

Companies can already offer these assets. But employers have a fiduciary responsibility to act in the best interest of their workers. And because these sorts of assets are costly and hard to value, many plan sponsors worry about the possibility of legal action from workers.

If finalized, this rule — open for public comment — would add protection against lawsuits. As long as the people managing your 401(k) can demonstrate they’ve checked certain boxes, like reviewing fees, this rule would provide companies with a “safe harbor.” It essentially creates a legal shield that makes it much harder for you to hold your company accountable if they choose to offer riskier investments.

This proposal comes directly from an executive order that President Donald Trump signed in August, instructing the Labor Department to change the rules so that 401(k) plans can include “alternative” investments. It’s a move the administration claims will give regular investors more options. ... Trump’s order argued that “burdensome lawsuits” have “denied millions of Americans opportunities to benefit from investment in alternative assets.”

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By Michelle Singletary
If you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST (1-855-275-7678). Her award-winning column, “The Color of Money,” is syndicated by The Washington Post News Service and Syndicate and carried in dozens of newspapers.follow on X@SingletaryM

[lastlib]

1. The vultures are circling!

2008 should've taught us the lesson! It was those "alternative investments" (primarily credit default swaps, which, BTW, are STILL not regulated---THANK you, Phil Gramm, you filthy SOB!) that CAUSED that crash, and sent companies like Merrill Lynch and AIG into bankruptcy, and turned millions of 401(k)s into 201(k)s. Anyone who was facing retirement at that time was ROYALLY screwed! The rest of us took literally years to regain what we lost. And the Wall Street goons got PAID for doing that sh*t! Now they want to do it again. - - - - - -

[in2herbs]

2. Who did not see this coming? Q: Why is Wall Street the only one that the govt bails out in a financial

crisis? A: Because under their contractual authority of discretionary investment authority, the money in your investment portfolio belongs to Wall Street investors, not the American worker.