Letters to Regulators: Letter to Treasury, OCC, FRB and FDIC on the Need to Fight Bank Consolidation

The President has made it clear: it’s time to fight consolidation, not facilitate it. In reviewing lessons learned from this most recent banking crisis to better prevent the next one, the regulators must be full-throated and clear in their affirmation that robust regulation and competition, not consolidation, will lead to a healthier, safer, and more vibrant financial system. Banks must exist to serve the needs of the American people, not the other way around – and it is regulators’ critical task to ensure so. 

In The News: Bill to Seize Failed Bank CEOs’ Pay Draws Bipartisan Senate Support (The Washington Post)

“There is now bipartisan momentum to pass legislation to hold executives more accountable when Wall Street takes outsized risks that pay off for executives but not the rest of us,” Natalia Renta, senior policy counsel at Americans for Financial Reform, said in an email. “It is a welcome change that some Republicans are finally joining forces with Democrats to advance an important aspect of financial reform.”

In The News: New report about private equity in home health raises red flag, authors say (McKnight’s Home Care)

A new report reveals that the top five private equity firms collected over $850 million in Medicare revenue and operated almost 280 locations in 2020. These findings should sound an alarm bell for antitrust regulators, according to the report’s authors, Diana L. Moss, president of the American Antitrust Institute, and Oscar Valdes Viera, research manager for Americans for Financial Reform. They spoke to McKnight’s Home Care in a Newsmakers podcast.

CFPB

Letters to Congress: Letter in Support of the CFPB

AFR led a letter signed by 84 national, state, and local groups ranging from civil rights, consumer protection, labor unions, antitrust, and general public interest groups voicing our collective support for the work and mission of the CFPB. In the letter we highlight the importance of an agency dedicated solely to consumer protection and the work the CFPB has done to make customers whole after harm was done. We again push back on the agenda to limit the agency’s effectiveness by subjecting the agency to annual appropriations, changing its leadership structure to a commission, and the most recent proposal to raise the asset threshold for companies under the CFPB’s supervision to $50 billion from the current $10 bn threshold. 

Report: Wells Fargo: We Go Far Beyond The Law

Wells Fargo, the San Francisco-based megabank, has been embroiled in a series of scandals, lawsuits, and customer abuses over the past decade. Despite public outrage and legal actions, the bank’s executives have failed to address the issues adequately. They have been accused of lying to Congress, neglecting shareholder complaints, and evading accountability for their wrongdoings while claiming to make improvements. 

Events: Renita Marcellin’s EconCon 2023 Appearance

We are thrilled to announce that our Advocacy and Legislative Director, Renita Marcellin, is a featured speaker at EconCon 2023 (June 8-9). Marcellin is sharing insights on the reasons behind the failure of Silicon Valley Bank and delving into other important topics. 

In The News: American exceptionalism on climate risk amplifies financial instability (Green Central Banking)

“… it’s called climate change because the climate is changing, and much faster than scientists originally anticipated. We cannot merely use past data to predict future climate impacts,” wrote Alex Martin, senior policy analyst at AFR. “We must take a precautionary approach and heed the stern warnings from scientists about our dire current global trajectory. The US will not be spared the effects.”

Letters to the Regulators: Letter to the SEC Supporting the Prohibition of Conflicts of Interests in Securitization

Americans for Financial Reform Education Fund submitted a comment to the Securities and Exchange Commission (SEC) supporting its proposal to prohibit conflicts of interest in securitizations. Such conflicts were at the heart of the Great Financial Crisis of 2008 leading to trillions of dollars in losses across the financial system and irreparable harm to millions of homeowners. Now, with the growth in securitizations such as those backed by commercial real estate and other assets, the SEC’s proposals can ensure that similar practices do not happen again at the harm of investors and others.