Senators Tammy Baldwin and Jeff Merkley today introduced a bill to strengthen oversight of activist hedge funds. Americans for Financial Reform supports their legislation, and issued this statement explaining why:

“Again and again, activist hedge funds have used sneak attacks to accumulate large stakes in public companies and then cashed out quickly at the expense of workers, communities, and the long-term viability of the company itself. The Brokaw Act is a sensible and badly needed response to this problem. With the introduction of their bill, Senators Baldwin and Merkley have struck an important blow against the immediate-profits-at-all-costs mentality that has become such a huge obstacle to long-term investment in our country.”