News Release: Biden Sides with Workers on First Veto
Washington, D.C. – President Biden vetoed a misguided Congressional Review Act resolution that sought to nullify a Department of Labor rule that protects workers and their life savings.
Blog: Mutually Reinforcing Changes to Law, Regulation and Supervision Produced Crisis
At the behest of a bank lobby that pumps billions into the political system, Congress in 2018 relaxed laws on mid-sized banks like Silicon Valley Bank, at a time when regulators appointed by former President Trump were already eager to go easier on banks. The signal could not have been clearer, and AFR warned so at the time.
News Release: Bonuses Paid to Silicon Valley Bank Highlight Need to Finish Executive Pay Rules
President Biden’s and Congress’s efforts to begin to hold the executives of Silicon Valley Branch accountable are important to rein in the reckless and imprudent practices of senior bank executives, who have gamed our financial system and hurt communities in the process. True accountability includes executives forfeiting enormous bonuses, while their bank is on the brink of failure.
In The News: ‘It’s a wake-up call’: Advocacy groups, lawmakers highlight law they say led to SVB collapse (USA TODAY)
“It’s a wake-up call,” Renita Marcellin, advocacy and legislative director for Americans for Financial Reform, a financial-reform group in Washington, D.C. told USA TODAY. “Congress should be thinking and starting to figure out how to repeal this law.”
Letters to Regulators: Comment Letter to OMB on Uniform Guidance Relating to Stock Buybacks and Executive Comepensation
AFREF and the Institute for Policy Studies, Global Economy Project led a comment letter to the Office of Management and Budget (OMB) about its uniform guidance, which sets the boundaries around the types of strings states and localities are allowed to attach when they disburse federal funds. This comment letter argues state and local governments should be allowed to give preferential treatment to bidders that commit to make productive investments in their companies and refrain from stock buybacks and excessive executive compensation.
News Release: Bank Collapses Underscore Need for Tough, Broad Oversight Now
Washington, D.C. – The swift demise of Silicon Valley Bank and Signature Bank and the actions taken by the federal regulators over the weekend underscore the folly of the partial rollback of the Dodd-Frank law in 2018 and the need, looking forward, for strict oversight of large banks and the entirety of the financial system.
In The News: Was This a Bailout? Skeptics Descend on Silicon Valley Bank Response. (The New York Times)
“At the end of the day, what has been shown is that the explicit guarantee extended to the globally systemic banks is now extended to everyone,” said Renita Marcellin, legislative and advocacy director at Americans for Financial Reform. “We have this implicit guarantee for everyone, but not the rules and regulations that should be paired with these guarantees.”
News Release: Biden Budget Puts Working People Over Wall Street
Washington, D.C. – President Biden’s recent budget proposal would bring billionaires and big corporations closer to paying their fair share in taxes. It would also disincentivize wasteful spending on stock buybacks.
News Release: House Financial Services Republicans Squander Opportunity to Hold Crypto Industry Accountable
Washington, D.C. — The House Financial Services subcommittee hearing today on digital assets should have been an opportunity to identify critical actions Congress and regulators should take to address the fallout of the crypto crash, but consumer advocacy groups fear the hearing will take a very different direction instead.
Letter to Congress: Oppose Legislation Undermining Stable CFPB Funding
AFR and partners submitted a letter to the House Financial Services Committee in opposition to the TABS Act.