America and Biden
Biden says the legislation would put retirement savings at risk
US President Joe Biden, Monday, used the presidential veto for the first time in his era against a proposal for a law submitted by the Republicans that limits the ability of pension funds to make investments that take into account environmental and social standards and good governance.
Biden tweeted that the legislation would jeopardize “retirement savings by making it illegal to consider risk factors,” which the far-right wing of the Republican Party opposes.
Republicans consider the so-called “responsible investments” (ASG) to be politically intrusive.
Biden stressed that the savings plan manager must be able to “protect hard-earned savings whether Representative Marjorie Taylor Green likes it or not,” referring to the Republican member of Congress, who is one of the most prominent figures of the far-right wing in the Republican Party.
The Republicans had taken advantage of their narrow majority in the House of Representatives to pass the legislation. Although the Democrats enjoyed a slim majority in the Senate, the absence of three members and the joining of two Republicans was sufficient to approve the legislation and refer it to the president.
Supporters of the legislation argue that the “responsible investment” factors are determined by left-wing social concerns and should not be part of financial transactions.
And in November, the Biden administration’s Labor Department reactivated a measure that canceled a measure by former US President Donald Trump’s administration that penalizes fund managers who take climate change into account when making their decisions.
And Democrats stressed that the political approach is neutral in how to take into account the factors of responsible investments as long as the investment funds fulfill their obligations to their beneficiaries.
And major investment companies such as “Black Rock” welcomed the Biden administration’s decision, which it saw as a financial payment to investors with concerns about climate risks.