On the heals of SEC Commissioner Luis A. Aguilar’s comments supporting the curtailment of mandatory pre-dispute arbitration provisions in investor account agreements, Reuters is now reporting that a group of federal lawmakers have urged the SEC to take action on the issue of mandatory pre-dispute arbitration. According to Reuters, lawmakers have sent a letter to SEC Chair Mary Jo White expressing a “deep concern that the commission’s failure to respond to the dangers posed by widespread forced arbitration will weaken existing investor protections.”
The lawmakers signing the letter were led by Democratic Senator Al Franken of Minnesota, and include Sens. Patrick Leahy (D-Vt.), Tom Harkin (D-Iowa), Bernie Sanders (I-Vt.), Richard Blumenthal (D-Conn.), Dick Durbin (D-Ill.), Sheldon Whitehouse (D-R.I.), Jeff Merkley (D-Ore.), Mazie Hirono (D-Hawaii), Sherrod Brown (D-Ohio), Martin Heinrich (D-N.M.), Frank Lautenberg (D-N.J.), Robert Menendez (D-N.J.), Ron Wyden (D-Ore.) and Elizabeth Warren (D-Mass.) joined Franken in signing the letter, along with 22 House Democrats.
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