Wall Street Abandons the Chimp on Social Security

From Holden:

Those Wall Street folks know a loser when they see one.

Another major Wall Street player has dropped out of a business coalition that supports President Bush’s restructuring of Social Security.

The Financial Services Forum, an association of 19 chief executives of large financial services companies, has decided to withdraw from Compass, the group that is leading industry’s effort to gin up support for the president’s plan outside the Beltway.


The forum is the third defection in a month from business-led Social Security coalitions. Waddell & Reed Financial Inc., a Kansas-based money management company, and Edward D. Jones & Co., a Missouri-based brokerage, withdrew from the Alliance for Worker Retirement Security. The alliance, a sister organization to Compass, focuses on direct lobbying of Congress on behalf of Bush’s proposal, which includes private accounts as part of Social Security.

The moves are a blow to Bush’s effort. The White House is relying on coalitions such as Compass and the alliance to help persuade lawmakers and the public to rally behind the president’s plan. Wall Street groups have been leaders in the fundraising for those drives.