Our Fearless Leader wants to protect your 401k.In his weekly radio address, Bush said the regulations to be issued by the Labor Department require that companies give their workers 30 days notice before any 401(k) "blackout" periods -- times when workers are restricted from trading stock.
Companies also must notify employees about the reasons for the "blackout" period, and the beginning and end dates, or face a civil penalty, a senior administration official said Friday.
"This important protection will help ensure that workers don't get stuck in a bad investment simply because their employers block them from accessing their own account, Bush said.
The president also supports a rule being drawn up by the Securities and Exchange Commission that would prevent corporate officers and directors from trading in company stock whenever workers are kept from doing so.
"If you can't sell on the shop floor, you should not be able to sell on the top floor," Bush said.OK, so let me see if I understand this.
If the upper management of a company doesn't like the way things are going and they decide to sell lots of shares at the end of the day, and then the next day they lock out the workers before the markets open to help protect the value of their remaining shares, the company (and not the upper management) will pay a civil fine, which will further damage the future prospects of the workers whose 401ks are damaged but won't touch the upper management in any way.
Yeah, sounds like a deterrent to me.
Of course, the president knows all about the protection provided to workers by notification deadlines on stock sales by corporate officers.