Wall Street unites behind child investment plan

Washington, July 6 (IANS) America’s leading financial institutions and some of its biggest corporate philanthropists on Monday joined forces behind a new initiative to give millions of children an early stake in the US economy, marking an unprecedented collaboration between the New York Stock Exchange and Nasdaq.

The White House event, hosted by President Donald Trump to launch the “Trump Accounts” programme, also featured what organisers described as the first-ever joint opening bell ceremony involving the two rival stock exchanges, alongside pledges worth billions of dollars from business leaders to support children’s investment accounts.

Michael Dell and Susan Dell announced a commitment of 6.25 billion dollars to benefit eligible American children born between 2016 and 2024, saying they wanted youngsters born before the programme’s launch to receive the same opportunity.

“Every newborn American child will start their life with 1,000 dollars invested in America’s greatest companies, compounding for the future,” Michael Dell said. “To every business leader out there who hasn’t already joined us, please join us.”

Dell said the funds could eventually help children pay for higher education, make down payments on homes or provide start-up capital for businesses.

“Our founders… pledged their fortunes to an idea. Today we’re pledging our fortune to the next generation of children,” he said.

Susan Dell described the initiative as an investment in both America’s children and its long-term economic future.

“A child that has a financial account in their own name is a child who has so many more opportunities and hope,” she said. “Every child deserves that.”

Brad Gerstner, who helped develop the proposal over several years, said supporters now hoped to extend the initiative to every child in the United States.

“We believe we’ll raise over 100 billion dollars for America’s kids over the course of the next 12 months,” Gerstner said. “This isn’t a programme. This is a transformative platform.”

He said the long-term goal was to ensure all 70 million American children under the age of 18 eventually had investment accounts supported by contributions from families, employers, philanthropists and corporations.

The initiative also drew support from the country’s two largest stock exchanges.

Lynn Martin, President of the New York Stock Exchange, called the programme “the purest manifestation of that American dream”, saying it would allow the youngest generation to participate in America’s wealth creation.

“We couldn’t be more optimistic about the future of this country,” she said.

Nasdaq Chair and Chief Executive Adena Friedman said the programme would broaden participation in US capital markets.

“Every American will have the opportunity to be a part and share in this prosperity of this nation,” she said.

Jeff Sprecher, Chairman and Chief Executive of the parent company of the New York Stock Exchange, linked the initiative to Wall Street’s historical role in financing the newly established United States.

“It’s incredibly fitting… to widen the markets for everybody in the country,” Sprecher said.

Ted Cruz, one of the congressional supporters of the legislation, called the programme “Donald Trump’s New Deal”, arguing that instead of expanding government dependency it would make “every child and every American a capitalist”.

“Every one of our kids is now going to be an owner of the biggest producers in our country,” Cruz said.

The launch brought together political leaders, Wall Street executives, corporate donors, and philanthropists around a common effort to expand American families’ ownership of financial assets.

–IANS

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