Americans for Financial Reform sent a letter to the House Financial Services Committee and the Senate Banking Committee supporting the Credit Card Competition Act of 2023. The Credit Card Competition Act will introduce much needed competition in a captured market and benefit consumers.
Letters to Congress: Letter to Senate Banking Calling for Mandatory Clawbacks of Incentive-Based Executive Compensation
AFR led a coalition letter to the Senate Banking, Housing and Urban Affairs Committee ahead of their hearing titled “Holding Executives Accountable for Recent Bank Failures.” The letter calls for mandatory clawbacks of incentive-based executive compensation and gains from stock trades in cases of bank failure.
AFREF joined a letter led by the Open Markets Institute and supported by 50 labor and public interest groups urging the Federal Trade Commission (FTC) to ban non-compete clauses as well as functionally equivalent restraints such as training repayment agreement provisions (or TRAPs), for all workers.
Letter to Regulators: Silicon Valley Bank Failure Demonstrates the Need to Implement Key Executive Pay Rule, Dodd-Frank Section 956
AFREF, the Institute for Policy Studies, Global Economy Project, and Public Citizen led a letter with 22 additional signatories to the agencies tasked with implementing section 956 of Dodd-Frank. That section tasked six agencies with promulgating regulations to prevent incentive-based executive compensation that encourages “inappropriate risk” by May 2011. Almost 12 years later, we don’t have a final rule. The letter was sent to regulators ahead of congressional hearings that will examine recent bank failures.
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.
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.
Letters to Congress: Defend the Department of Labor Rule that Safeguards Workers’ Retirement Security
AFR and Public Citizen led a letter to members of Congress, urging them to oppose a Congressional Review Act Resolution seeking to nullify the Department of Labor’s important new rule that safeguards workers’ retirement security. Over sixty organizations signed on to the letter.
A corporate tax break that could give some of Wall Street’s wealthiest people a $200 billion gift over ten years is under consideration as part of the omnibus budget negotiations underway in Congress this month. At issue are provisions of the 2017 Trump tax bill that took effect this year, and the private equity’s lobbying effort to overturn the parts of the law that limit a key tax break.
AFREF and allies submitted a comment letter to the Securities and Exchange Commission in support of its proposal to update certain substantive bases for exclusion of shareholder proposals. Shareholder proposals are an important part of our corporate governance system, and in the letter, we encourage the Commission to ensure the full range of benefits of shareholder proposals are taken into consideration when finalizing the rule, including shareholder proposals’ role in identifying, raising awareness, and addressing both company-level and systemic risks.
Letters to Regulators: Letter to the SEC Commenting on Listing Standards for Recovery of Erroneously Awarded Compensation
AFREF submitted a comment letter in support of the SEC’s proposed rule on clawbacks of erroneously-awarded executive compensation. Once finalized, the rule will signify the long-overdue implementation of a Dodd-Frank provision that sought to improve incentives for honest and transparent corporate governance by creating a mechanism for the clawing back of compensation awarded based on inaccurate financial statements. AFREF submitted a comment in support of the proposed rule in 2015, and submitted this additional comment to answer questions raised by the Commission upon reopening the comment period