Tag Archives: Wall Street

News Release: Fed Should Avoid Weakening Rules that Limit Private Equity Access to Bailouts

A group of financial reform, labor, and public interest organizations today warned the Federal Reserve not to water down rules that limit the access of companies owned by private equity firms to emergency lending facilities created during the COVID-19 pandemic. Allies of the industry have pressed the Fed to loosen the affiliation rules for its new Main Street Lending Facility, a step that would ease the way for private equity to access public money despite its ready access to capital markets and uninvested capital.

News Release: Senate Pandemic Relief Bill Would Weaken Key Safeguard Against Financial Crisis

A provision inserted by Sen. Mike Crapo, chairman of the Senate Banking Committee, would encourage Trump-appointed regulators, who have already sought to reduce the minimum amounts of their own risk capital that banks have to hold during the COVID-19 pandemic, to go further. Sen. Susan Collins, sponsor of the part of Dodd-Frank in 2010 that Crapo wants to gut, has already filed an amendment that would strike the part of Republican bill that would make this change. The Senate should follow her lead and preserve minimum statutory thresholds for bank capital.

Ten Years of Dodd-Frank: What We Need Next to Create a Resilient, Equitable, and Sustainable Economy

To mark the tenth anniversary of President Obama signing the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, Americans for Financial Reform hosted a series of virtual events asking what we have learned, and what changes we think are needed now to protect consumers, uproot systemic racism, and transform finance so that it contributes to a resilient, equitable and sustainable economy.

News Release: Federal Reserve Rendering Volcker Rule on Speculative Trading “Close to Useless”

In August regulators issued a rule that dramatically weakened the Volcker Rule limits on direct proprietary trading by banks. Today, they have proposed new changes that would greatly weaken restrictions on banks taking risks through ownership of external funds, including venture capital funds and securitization vehicles like collateralized debt obligations.

In The News: Wall Street Venture-Fund Curbs to Be Eased in Volcker Revamp (Bloomberg)

In revising the Volcker Rule’s proprietary trading ban last year, the regulators had already relaxed one component of the limits on investment in funds, clarifying the industry’s ability to do so on behalf of clients. Backing off some of the fund restrictions will “complete the process of neutering the rule,” Marcus Stanley, policy director at Americans for Financial Reform, said in a criticism of the regulators’ actions last year.