As the Trump administration rolls back the greater regulatory scrutiny the for-profit college industry has faced during the last several years, it is private equity that stands to benefit the most, posing continuing dangers to students, taxpayers, and the integrity of the federal financial aid system.
A new report from Americans for Financial Reform and the Private Equity Stakeholder Project documents how the private equity industry has driven the growth — and abuses — of the for-profit higher education industry.
The regulators must act on the same principles in approaching fiduciary rulemakings; anything less leaves investors vulnerable to losing billions of dollars a year to ‘advisors’ who pitch investments that produce greater returns for themselves, but leave the clients earning less.
The AFR Advocacy Fund has released its voting record for 2017, the first year of the 115th Congress. “Where They Stand on Financial Reform” tracks more than 55 votes that gave House members and Senators a choice: They could decide to stand up for consumers, borrowers, investors and the safety, transparency, and accountability of the financial system. Or they could take the side of big banks and other powerful financial industry interests. Taken together, these votes show a disturbing readiness, on the part of many of those currently serving in the U.S. House of Representatives and Senate, to do the financial industry’s bidding without regard for harm to families and communities.
Trump’s unlawfully appointed Acting Director of the Consumer Financial Protection Bureau Mick Mulvaney is giving predatory payday lenders a free pass. Specifically, National Credit Adjusters, a debt collector for payday loan companies with 685 complaints against it, confirmed that a pending case against the company is “dead.”
“The Omnibus budget package contains several policy riders designed to benefit Wall Street investment funds and big banks at the expense of the public. One provision in the omnibus allows Business Development Companies (BDCs), a type of private equity fund sold directly to retail customers, to double their permitted fund leverage from the current 1-1 level (one dollar of borrowed money for each dollar of investor equity) to 2-1. BDCs are already the beneficiary of regulatory exemptions since conventional closed-end mutual funds can only leverage 1-2, or borrow one dollar per two dollars of investor equity…”
Press Advisory: FRIDAY DC Activists Take on Trump and the Carlyle Group to Close the Carried Interest Loophole
Washington, DC – Friday at noon, DC activists will rally to close the egregious carried interest loophole outside private equity firm The Carlyle Group.
AFR sent a letter opposing six bills — HR 4659, HR 4790, HR 4861, HR 5051, HR 5082, and HR 5323 — being voted on in the March 21st House Financial Services Committee markup. These bills would endanger both consumer and systemic risk protections. AFR
AFR sent a letter to the House opposing passage of HR 4566, which would eliminate stress testing of non-banks under Title 1 of the Dodd-Frank Act AFR floor oppo letter HR 4566