NEW YORK (AP) — Seven states and the District of Columbia have sued the Securities and Exchange Commission, saying the regulatory agency is putting investors in jeopardy by relaxing rules for brokers.

The lawsuit filed Monday in Manhattan federal court asks a judge to order the agency to scrap new rules that weaken protections for consumers.

A message seeking a response was left Tuesday with the SEC. The states say they are harmed because bad investment advice leaves consumers with less money to spend, and thus they collect less in taxes.

New York Attorney General Letitia James says in a release that new rules let broker-dealers consider their own interests when recommending investments. She says that favors "Wall Street over Main Street."

Other state plaintiffs include California, Connecticut, Delaware, Maine, New Mexico and Oregon.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from this section

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.