Elizabeth Warren challenges Brookings over research backed by industry
Sen. Elizabeth Warren today takes her ongoing crusade against the outsized influence of the financial services industry to one of Washington’s most respected think tanks. The Massachusetts Democrat is questioning the independence of the Brookings Institution and one of its longtime scholars over a study that criticizes a proposed regulation aimed at reining in conflicts of interest among retirement advisers.
Post reporter Tom Hamburger obtained letters that Warren sent this week to Brookings and the Labor Department. The Massachusetts Democrat blasts a report by non-resident scholar, Robert Litan, which predicted high costs for a measure backed strongly by progressives, consumer groups and President Obama.
Citing the $85,000 combined fee that Litan and a co-author received from a leading investment firm, Warren calls their report “highly compensated and editorially compromised work on behalf of an industry player seeking a specific conclusion.”
Litan, who held senior positions in Bill Clinton’s administration, confirmed that the outline for his study was reviewed by its sole sponsor, The Capital Group, which offered some comments. The investment firm has more than $1.4 trillion under management in its American Funds and other products. The company, like others handling retirement investment assets, has made opposition to Labor’s rule one of its top priorities.
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