“The C.F.P.B. should make sure companies are complying with all emergency protections on the books, and maximizing assistance to consumers to prevent garnishments, foreclosures and repossessions,” said Linda Jun, senior policy counsel at Americans for Financial Reform.
While it’s true that the largest banks currently look solvent in the face of economic stress, this is in significant part because they have benefited greatly from regulatory forbearance and from Federal Reserve intervention in financial markets. This report, based on analysis of regulations and bank financial reports by Americans for Financial Education Fund and Risky Finance, lays out some of the clearest ways in which the nation’s six largest banks have benefited from regulatory forbearance and the Federal Reserve’s financial market interventions.
In The News: Rashida Tlaib and AOC have a proposal for a fairer, greener financial system — public banking (Vox)
“It’s basically a way to finance state and local investment that doesn’t go through Wall Street and doesn’t leave the community and turn into a windfall for shareholders,” said Porter McConnell, the campaign director of advocacy group Take On Wall Street. “This is more about community development.”
On Oct. 19, AFR Executive Director Lisa Donner participated in a virtual conference organized by the Federal Reserve Bank of Minneapolis. Entitled “Empowering the public to assess large bank resiliency, the conference brought together leading experts to bank transparency to discuss how to maintain and improve transparency of the conditions of major banks.
Wall Street is pumping tremendous sums of money into the 2020 elections, and there are some notable trends regarding who is getting the money and who, within the financial services industry, is contributing this cycle. At the presidential level, Wall Street is splitting its contributions close to evenly, or maybe slightly favoring Biden over Trump. At the same time, it is fairly clear that Wall Street is investing in keeping the Senate in Republican hands.
It has been more than ten years since the Obama Administration signed into law the Dodd Frank Act, a set of modest financial regulations that were meant to address the causes of the Great Recession. Since then many of the regulations have been weakened and whittled down. But a new poll finds strong public support, across the political spectrum for Wall Street to be held to account.
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.
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.
Cross-border derivatives regulation is the latest area in which Trump appointees are systematically dismantling the post-2008 framework for regulation of Wall Street and the global “too big to fail” banks. Today, the Commodity Futures Trading Commission drastically weakened their rules governing the massive global markets for financial derivatives.
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.