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Oct 20, 2021 10 tweets 5 min read Read on X
Today, we will be clipping videos from the Senate Banking, Housing, and Urban Affairs subcommittee hearing on “Protecting Companies and Communities from Private Equity Abuse.”

Follow along in this thread, or watch the hearing live, starting at 2:00pm: banking.senate.gov/hearings/prote…
Shirley Smith, former sales manager at Art Van Furniture and leader with @forrespect opens: "working at Art Van was like my own little slice of the American Dream, until the PE firm T.H. Lee came in and broke up our family."
Shirley Smith continues: "I am here today to show you the human toll of Wall Street's greed. Our elected leaders... I have to ask you why billionaires should be allowed to do this and destroy the fiber of America?"
Dr. Appelbaum, Co-Director of Center for Economic and Policy Research, highlights where private equity firms are investing and their effects on the employees. “Win or lose, private equity firms always walk away with a profit.”
In response to questioning from @SenJackReed, Illinois State Treasurer Michael Frerichs:"as PE continues to evolve, there is a growing need for improved disclosures."
Shirley Smith in response to @SenWarren: "everything [T.H. Lee] did was to profit them and hurt the people, and they didn't care."
Shirley Smith again in response to @SenWarren: "this is cannibalism."
@SenWarren: "How would the SWSLA help address these market failures?"

Dr. Appelbaum: "it would stop the worst abuses and encourage PE to do what it says it does and help companies to grow and be successful"
@SenWarren asks registered nurse Peggy Malone about the consequences of PE in healthcare: "all of these things result in death."
@SenWarren: "So what are we going to do about this?... I've introduced the Stop Wall Street Looting Act, which is groundbreaking legislation to clean up this industry."

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More from @RealBankReform

Oct 18, 2023
When some small business owner suggests higher bank capital rules will reduce access to credit BEWARE: it may just be @GoldmanSachs astroturfing 🧵1/10
Goldman cooked up a PR initiative, “10,000 Small Businesses” to lobby the government. And right now, those businesses are fronting for Goldman’s opposition to higher bank capital levels, which help cushion against shocks and avoid financial crises 2/10 goldmansachs.com/citizenship/10…
The public dislikes #WallStreet (see this poll) so much that Goldman and other big banks often do their lobbying by hiding behind other entities 3/10
ourfinancialsecurity.org/2020/09/voters…
Read 11 tweets
May 30, 2023
“If the U.S. government ... is now standing foursquare behind all bank deposits in the country, we, the people, should get something in return.”

See @monthly @CarterD about what we need for a stable, fair and equitable financial system. 🧵1/14 washingtonmonthly.com/2023/05/22/a-n…
“[T]he explicit guarantee extended to the globally systemic banks is now extended to everyone,” said Renita Marcellin (@aphisha28)of @realBankRefrom. “We have this implicit guarantee for everyone, but not the rules and regulations that should be paired with [them].” 2/14
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Read 15 tweets
Mar 17, 2023
GREAT SCOOPS: Last weekend, Federal Reserve Chair Powell sought to DOWNPLAY role of failed regulation/supervision -- partly by the Fed! -- in collapse of #SiliconValleyBank

H/T @TheProspect @ddayen & @nytimes trio 🧵1/12
"the Biden administration pushed to formally spotlight shortcomings in financial regulation that they blamed for the banks’ rapid descent to insolvency." But Powell "blocked efforts to include a phrase mentioning regulatory failures" 2/12 nytimes.com/2023/03/16/bus…
As @ddayen points out, that statement was pretty anodyne, and included praise for (unnamed) Dodd-Frank law of 2010 but no mention of the 2018 partial rollback that eased oversight of SVB 3/12 federalreserve.gov/newsevents/pre…
Read 13 tweets
Mar 14, 2023
GOOD NEWS: Authorities looking into possible executive malfeasance in #SiliconValleyBankCrisis

The executives lost their jobs, shareholders were zeroed out --> There was no bailout a la 2008

But we still need systemic change 🧵 1/6

nytimes.com/2023/03/14/bus…
Thanks to the #BankLobbyistAct back in 2019, and the Trump-era Fed's further deregulation, the Fed took its eyes off large banks like SVB. AFR fought against that tooth and nail. 2/6
The government moved decisively to avoid a panic by guaranteeing deposits. Banks that benefit from that now need tougher supervision. AFR's Renita Marcellin told the NYT ... 3/6
Read 6 tweets
Mar 13, 2023
The collapse of Silicon Valley Bank and Signature Bank have something in common: they both benefited from deregulation under the #BankLobbyistAct in 2018 1/5
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Read 5 tweets
Jan 10, 2023
🚨 NEW REPORT 🚨

The subprime corporate credit market, which includes private equity’s fave, leveraged lending and CLOs, has hit $5 trillion in the US.

This problem portends bring slower growth, job losses, and possibly instability in parts of the financial sector.

🧵1/10
This lending seldom goes to productive uses, relies on sketchy accounting, and is often very opaque.

It's often to finance private equity buyouts refinance existing debt, or suck cash out of companies.

And it supports monopoly power, by driving corporate consolidation. 2/10
The odds of a 2008-style crisis are low but the risks of damage are high.

This debt has – a redistribution of money towards Wall Street – has left companies and workers in a worse position to handle a slowing U.S. economy. 3/10
Read 13 tweets

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