AFR sent a letter to members of the House urging opposition to H.R. 5403, the “Reforming CFPB Indirect Auto Financing Guidance Act.” This legislation places unnecessary restrictions on the CFPB’s oversight of auto financing practices— restrictions that do not exist for any other financial practice and are designed to chill the agency’s attempts to bring fairness and transparency to the auto lending market.
“Supervision of nonbank auto financial institutions will bring much-needed attention to otherwise
lightly-regulated companies, will ensure compliance with consumer financial laws, and will
ensure that auto financing by banks, already subject to CFPB supervision, is not at a competitive
disadvantage.”
AFR calls on CFTC to require margin for derivatives.
AFR sent a letter to members of Congress urging them to oppose HR 5471. This legislation would amend the Dodd-Frank Act to expand exemptions from derivatives clearing requirements for financial affiliates of commercial entities.
“Mandatory margin requires participants in the swaps market to take full account of the risks of their derivatives transactions and provide some level of advance provisioning for such risks. The availability of properly segregated margin is clearly of enormous value in case of the default of a swaps counterparty.”
“On behalf of Americans for Financial Reform (AFR), we write today to ask you to ensure appropriate regulatory oversight of derivatives transactions conducted through foreign subsidiaries of multinational Wall Street banks. In particular, we urge you to prevent the inappropriate classification of such derivatives as ‘non-guaranteed’ by the parent company, a classification which could exempt them from numerous critical derivatives regulations.”
