In the News: As Consumer Protections Dwindle, Schools Push Financial Literacy
Teaching students how to manage their money has become mandatory in many K-12 classrooms. But can it substitute for real enforcement of financial fraud?
Letter To Regulators: Comment on Bank Ownership of Unsecured G-SIB Debt
We commented to the banking regulators criticizing proposed rules on bank ownership of unsecured debt issued by systemically important (G-SIB) banks. This debt is intended to absorb losses in a potential future financial crisis, which may not be feasible if other banks are permitted to own significant amounts of it.
Letter to Regulators: Letters to FDIC, OCC, and Fed Urging them to Prevent Bank Payday Loans
Even within our broad coalition, it is exceedingly rare for so many organizations to come together and to speak with one voice. The tremendous outpouring of opposition to high-cost, short-term loans that put people in a cycle of debt, whether issued by banks or nonbanks, illustrates the importance of this issue to people across the country.
In the News: If You’re Wondering Who The SEC’s New ‘Best Interest’ Rule Helps, Listen To The SEC
As part of a larger package, the Securities and Exchange Commission this week adopted the new “Regulation Best Interest,” which requires that stock broker/dealers act in their customers’ “best interest,” a term that is not defined.
In the News: ‘Best Interest’ Rule for Brokers is an Improvement, but with Maddening Gray Areas
“By calling this Regulation Best Interest, (Chairman) Jay Clayton and the SEC have gone full Orwell on us,” Dougherty said. “This regulation does not require your broker to act in your best interest the way a doctor or lawyer does. You still need to treat your broker as a used-car salesman who might pull a fast one on you.”
Take Action: Cancel student debt, boost the economy
Cancelling America’s student debt would lift enormous burdens for the over 44 million Americans with student loans. But it would also boost the economy for EVERYONE, whether they have loans or not.
News Release: Statement on SEC Approval of Reg BI
Today, the SEC finalized a rule that will allow financial professionals to claim they are required to act in investors’ best interests. But “Regulation Best Interest” falls far short of what ordinary investors need to ensure they don’t fall prey to self-interested advice.
Media Advisory: Teleconference With SEC Commissioner Robert Jackson
Following the SEC meeting, Americans for Financial Reform will host a conference call with guest SEC Commissioner Robert Jackson. AFR and other groups have criticized the commission’s plan on investment advice for leaving ordinary Americans vulnerable to harmful industry practices. The call will include the AFL-CIO, AARP, and the Consumer Federation of America.
Letter to Congress: Comment on HFSC Leveraged Lending Hearing
Today’s hearing addresses the financial stability and economic risks of the growth of leveraged lending to non-financial businesses. The rapid growth and poor underwriting of high-risk corporate debt is clearly a significant current threat to financial and economic stability.
Letter to Regulators: Coalition Comment on Opportunity Zone Data Collection
24-Group Organizational letter on the need to collect data on Opportunity Zone tax break that could reduce affordable housing options, displacing lower-income families of color.