Americans for Financial Reform

Report Category: Policy & Analysis

Policy Memo: SPAC-tacular for Wall Street, For the Rest of Us, Less So

The folk legend Robin Hood was, as every child knows, the legendary outlaw who robbed from the rich to give to the poor. But in a reincarnation of a long-running Wall Street scheme, it is the wily financiers who rob from the ordinary folk holding investment accounts at Robinhood.

Policy Memo: Creating a Public Investment Bank

Reproduced and linked below is an AFR Education Fund memo on issues around the design of a national public investment bank that would be a modernized successor to the Reconstruction Finance Corporation. Link to pdf document: Policy memo on public investment bank – working draft RE: Policy Memo on new public investment bank, working draft

Memo: Sun Capital Case Study of Private Equity Looting

Today, private equity controls some 8,000 companies in the United States, more than twice as many companies as are publicly traded on U.S. stock markets. Private equity firms manage more than $4 trillion in U.S. assets and now own companies that collectively employ nearly 9 million American workers.

Like many PE firms, Sun Capital Partners often buys up existing businesses, loots their assets, squeezes workers, decimates jobs through layoffs and bankruptcy, and threatens workers’ retirement benefits. 

Kraninger Lets Industry “Drive the Agenda” at CFPB Even During COVID-19 Pandemic

Kathleen Kraninger, the current director of the Consumer Financial Protection Bureau,  told an audience of bankers at a November  2019 industry gathering that “you are really helping drive the agenda.” Unfortunately for the public and for consumer financial protection, the Kraninger agenda and the Wall Street lobby’s priorities are indeed all too similar, and that has proved true even during the COVID-19 pandemic and massive economic distress it has produced.