Americans for Financial Reform

News Category: Press Releases & Statements

News Release: CFPB Enforcement Action Challenges Abusive Forced Arbitration Practice

The Consumer Financial Protection Bureau’s (CFPB) recent enforcement action against Ejudicate, a forced arbitration platform, highlights the urgent need to restrain a practice that hurts millions of consumers. The agency found Ejudicate had misled student borrowers about its neutrality in arbitration and illegally started sham forced arbitrations against those borrowers.

News Release: New Legislation Needed to Curb Private Equity Abuses

The Stop Wall Street Looting Act of 2024 includes new measures to curb the growing power of private equity across the board and in key sectors of the economy like healthcare, and to penalize private equity firms and executives for their actions that harm a company and its workers even after they no longer control it. Lessons from the 2023 collapse of Steward Health Care, which stemmed from its 2010 buyout by private equity firm Cerberus Capital Management, shaped the new provisions.

News Release: Private Equity Holdings in Fossil Fuels Spew Gigaton of Carbon Annually

The 2024 Private Equity Climate Risks Scorecard studied 21 private equity firms that manage $6 trillion worth of companies, and found that two-thirds of the energy companies in their portfolios are invested in fossil fuels, using hundreds of millions of dollars from pension funds. Their gigaton of carbon emissions is over three times as much as from the energy used to power all the homes in America and exceeds those of the global aviation industry.