“It’s not a real issue. ‘Debanking’ is an excuse for political attacks,” said Amanda Jackson, a director for Americans for Financial Reform, a coalition of progressive-leaning groups.
The letter was signed by bank trade associations including the American Bankers Association and consumer groups including Americans for Financial Reform. “This unprecedented overriding of state law and supervision weakens vital consumer protections, creates opportunities for regulatory arbitrage, and undermines state sovereignty,” the letter said.
“The private equity industry is looking for any streams of steady public funding,” Sen said in an interview. “As advocates have secured more funding for home and community-based services, that has resulted in the private equity encroachment.”
Lisa Donner, co-executive director at Americans for Financial Reform Education Fund, said that “private equity executives have enriched themselves by the billions, taking high fees and other charges from working people’s hard-earned retirement savings in pension funds.”
“Now they want fees from the trillions of dollars in individual retirement accounts,” Donner added, “putting millions of more people at risk.”
“What we’re seeing isn’t just a budget cut,” said Amanda Jackson, the consumer campaigns director at advocacy group Americans for Financial Reform. “It’s a structural defanging.”