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Letter to Regulators: The Fed must recognize its own regulatory failures and take action in the wake of Archegos

Americans for Financial Reform Education Fund wrote the Fed to express concerns over the blow-up of the Archegos family fund. This incident reveals both the dangers of excessive leverage at private funds, and the failure of banking regulators, including the Federal Reserve, to properly regulate bank interactions with such funds. To address these issues, the Federal Reserve must investigate its own regulatory failures in this case and publicly disclose the lessons learned from this investigation, and must also work with the Financial Stability Oversight Council to address the risks of excessive leverage at private funds.

Joint Statement: Over 415 Orgs Call on President Biden to Cancel Federal Student Debt Immediately using Executive Action

Today, over 415 organizations sent an updated letter to President Biden and Vice President Harris, calling on them to use executive authority to cancel federal student debt immediately. In the letter, the 416 advocacy groups highlight that cancelling student debt would stimulate the economy, help reduce racial wealth gaps, and could have a positive impact on health outcomes.

Photo by Mikael Kristenson on Unsplash

Statement: The Education Department must ensure all borrowers benefit from the suspension

While it’s encouraging to see the Department act to protect over one million defaulted borrowers from seized tax refunds and wage garnishment, they must not leave behind the 5.5 million commercial FFEL borrowers who aren’t in default. An estimated 9 million borrowers total have been left out of the federal student loan suspension through no fault of their own. There is bipartisan support for ensuring no federal student loan borrowers areunfairly left behind; the Department must use its authority to protect all federal student loan borrowers.