A U.S. economist working for the left-leaning Brookings Institution has resigned after being called out by Senator Elizabeth Warren for an apparent conflict of interest, reports MarketWatch.com.
“Warren […] complained about the funding that economist Robert Litan received for a study on the proposed fiduciary rule, which would require brokers to follow client best interests,” notes the report. The study was critical of the proposed rule on the grounds it would reduce access to advice.
“In a letter to the Brookings Institution, Warren noted that the study critical of the rule was funded by the Capital Group, a mutual fund provider that sells its American Funds line through brokers.”
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