Americans for Financial Reform Applauds Introduction of the Stop Wall Street Looting Act

CONTACT: Jarice Thompson, [email protected]

Washington D.C. – Today, Americans for Financial Reform expressed support for Senator Warren and Representatives Pocan, Jayapal, and Landsman for introducing the Stop Wall Street Looting Act of 2026. This legislation aims to address the detrimental practices of private equity buyouts, which contribute to rising costs for essential services such as housing, healthcare, food, and childcare.

Oscar Valdés Viera, senior policy analyst at Americans for Financial Reform, criticized the current private equity model, stating, “Private equity has gotten away with a heads-I-win, tails-you-lose business model for far too long. They take control of companies, bury them in debt, strip out assets, fees, and dividends, and walk away richer, while workers lose their jobs, consumers pay more, and communities lose essential businesses and services.” He emphasized that the act would hold these firms accountable for the risks and damages they impose.

The legislation comes as the Trump administration begins to reverse a rule preventing private equity executives from bribing public officials, further complicating the financial landscape for American families.

The Stop Wall Street Looting Act would alter the private equity business model by holding firms financially responsible for their acquired companies’ debts, pension obligations, and legal liabilities. It aims to limit excessive fees and dividends, eliminate tax subsidies linked to high leverage and carried interest, and prevent firms from protecting assets during bankruptcy.

Additionally, the bill seeks to enhance protections for workers and consumers, require better transparency regarding fund fees and returns, and impose restrictions on firms that receive public funding. It specifically addresses the use of real estate investment trusts in healthcare, including sale-leaseback deals that remove essential assets from hospitals and clinics.

### Further Resources:

2026 Polling: Public concern about private equity's impact spans across party lines.

Assessment of the push for 401(k) funding to support private equity firms.

New AFREF white paper discusses risks to workers’ retirement savings from the Department of Labor’s proposed policies.