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Democrats Renew Effort to End Private Equity Looting
"Union-busting, pollution, and bankruptcy aren't side effects of the private equity model: They are the model," said one campaigner backing the bill. "It's a smash-and-grab, plain and simple."
Oct 10, 2024
Less than a month away from the U.S. general election, over a dozen congressional Democrats on Thursday renewed their fight to "fundamentally reform the private equity industry" with a bill that Rep. Mark Pocan said "will finally hold these predatory firms accountable and protect workers from being plundered by corporate greed."
"It's long past time for billionaires and big corporations to stop gambling with hardworking Americans' and their communities' assets in service of corporate greed," declared Pocan (D-Wis.), who is leading the Stop Wall Street Looting Act with Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) and Sen. Elizabeth Warren (D-Mass.).
"In Wisconsin, we've seen what happens when private equity firms like Sun Capital raid companies for their wealth and leave workers and communities to pick up the pieces," he noted. "When Sun Capital took over Shopko—a Wisconsin-based retail chain that had stood strong for more than 50 years—they drained it dry, buried it in debt, pushed it into bankruptcy, and abandoned roughly 14,000 workers."
"Private equity takeovers are legal looting that make a handful of Wall Street executives very rich while costing thousands of people their jobs, putting valuable companies out of business, and in the case of healthcare, is literally a matter of life and death."
Warren's state is also dealing with fallout from the industry. As The Boston Globereported Thursday, the legislation is "designed to rein in the growing power of private equity firms and limit the sort of leveraged buyout deals that led to the crisis at Steward Health Care, whose bankruptcy continues to roil communities in Massachusetts and seven other states."
The bill "was reintroduced in part as a response to the unfolding crisis at Steward, which before its bankruptcy was the nation's largest private for-profit hospital system," the newspaper noted. It follows the Senate's unanimous approval of a resolution to hold CEO Dr. Ralph de la Torre in criminal contempt of Congress for his refusal to comply with a subpoena to testify before a committee. Shortly after the vote—the first of its kind since 1971—he resigned.
"Private equity takeovers are legal looting that make a handful of Wall Street executives very rich while costing thousands of people their jobs, putting valuable companies out of business, and in the case of healthcare, is literally a matter of life and death," Warren, a former bankruptcy law professor, said Thursday. "Our bill is designed to close loopholes and end incentives for private equity pillaging—and it will make sure what happened at Steward never happens again."
As a fact sheet from the sponsors details, the bill would make private equity firms responsible for liabilities including debt, legal judgments, and pension-related obligations; limit how much money they can extract from companies; close a loophole they have used to conceal assets from bankruptcy courts; implement various protections for workers and customers; increase transparency; impose guardrails for receiving public funds; and drive real estate investment trusts out of healthcare.
"From healthcare to housing, millions of Americans are seeing private equity take over companies with the promise of improving services, only to strip them for parts and hurt both workers and working families," said Jayapal. "It's time for Congress to take action to protect Americans from the dangers of private equity and corporate greed, and that's exactly what our Stop Wall Street Looting Act will do."
The legislation is backed by Reps. Raúl Grijalva (D-Ariz.), Rick Larsen (D-Wash.), Barbara Lee (D-Calif.), Delia Ramirez (D-Ill.), Jan Schakowsky (D-Ill.), Alexandria Ocasio-Cortez (D-N.Y.), and Eleanor Holmes Norton (D-D.C.), along with Sens. Tammy Baldwin (D-Wis.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), and Ed Markey (D-Mass.).
The bill is also endorsed by dozens of groups including the American Federation of Teachers, Americans for Financial Reform, Economic Policy Institute, Indivisible, National Employment Law Project, National Nurses United, Public Citizen, Service Employees International Union, Student Borrower Protection Center, Take on Wall Street, United for Respect, and Working Families Party.
"Union-busting, pollution, and bankruptcy aren't side effects of the private equity model: They are the model," said Porter McConnell of Take on Wall Street. "It's a smash-and-grab, plain and simple. That's why we are so pleased to see comprehensive legislation like the Stop Wall Street Looting Act introduced in Congress today. We created the loopholes in the law that allowed the private equity industry to thrive, and we can end them."
United for Respect co-executive directors Bianca Agustin and Terrysa Guerra stressed that "Wall Street private equity firms have proven themselves to be a parasite on workers, our economy, and American retailers by gutting companies for profit and driving mass layoffs. Holding billionaire profiteers accountable for the damage they do to our working families and communities is imperative to addressing growing economic inequality."
"The Stop Wall Street Looting Act will help close loopholes in our laws that for too long have allowed private equity to pillage companies and amass huge profits while workers lose their jobs and are left with nothing," they added. "United for Respect is proud to support this bill—and we need all legislators to join us in protecting workers and putting Wall Street on the hook for the havoc they reap."
While the bill is unlikely to go anywhere in the currently divided Congress, it's a clear statement from the sponsors where they stand, as early voting gets underway to determine the future of the Senate and House of Representatives as well as the next occupant of the White House—Democratic Vice President Kamala Harris or former Republican President Donald Trump.
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Tens of Thousands Call for Federal Marijuana Decriminalization
"When it comes to the DOJ's proposal to reschedule marijuana, public opinion could not be clearer," said a campaigner with Drug Policy Alliance, which analyzed public comments on the pending change.
Jul 23, 2024
Shortly after the public comment period for the Biden administration's proposed rule to reschedule marijuana closed, a reform group on Tuesday released an analysis showing that the majority of submissions advocate for federal decriminalization.
When President Joe Biden pardoned U.S. citizens and lawful permanent residents convicted of simple federal marijuana possession in October 2022, he also ordered the departments of Justice (DOJ) and Health and Human Services to review how cannabis is treated under the Controlled Substances Act.
Marijuana is currently Schedule I, the federal law's most restrictive category, despite dozens of states allowing adult recreational or medicinal use. In May, the Drug Enforcement Administration (DEA), which is part of the DOJ, proposed a shift to Schedule III and initiated the public comment period that ended Monday.
"Participation in public comment processes gives the American public a chance to speak from personal experience and provide feedback on proposed legal changes—and it gives the federal government an opportunity to adjust their proposals to reflect public opinion," said Cat Packer of the Drug Policy Alliance (DPA), which reviewed submissions.
"When it comes to the DOJ's proposal to reschedule marijuana, public opinion could not be clearer," added Packer, DPA's director of drug markets and legal regulation. "Rescheduling is simply not enough."
As DPA detailed in a statement, after analyzing the 42,910 public comments, the group found:
- 69.3% or 29,750 of comments support descheduling, decriminalizing, or legalizing marijuana at the federal level;
- 42.4% or 18,207 commentsmention the need for federal marijuana reform to advance racial justice or social equity; and
- 24% or 10,327 comments were submitted through a public comment tool hosted by United for Marijuana Decriminalization (UMD), a coalition that DPA convenes. These comments were the result of months of grassroots outreach to communities that have been impacted by marijuana criminalization.
"The people are demanding the Biden administration do more to deliver on the marijuana reforms that communities deserve," Packer said, pointing to previous promises from Biden and Vice President Kamala Harris, the presumptive Democratic nominee to face former Republican President Donald Trump and U.S. Sen. JD Vance (R-Ohio) in the November election.
Packer highlighted that nearly half of the comments "recognize that ending federal criminalization is key to achieving racial justice and social equity," and "this is something that the Biden administration has repeatedly identified as a priority in their marijuana reform efforts."
"However, under Schedule III, communities of color would still face disproportionate harms and lifelong consequences from federal marijuana criminalization," she explained. "Under Schedule III, people could still be jailed or deported for marijuana violations, even in states where it is legal. Under Schedule III, people could lose their jobs, their housing, their... food stamp benefits, or even lose custody of their children for marijuana violations."
Earlier this month, DPA and Human Rights Watch released a 91-page report detailing how the U.S. War on Drugs has impacted the lives of immigrants, "punishing people with deep connections to the United States, where they have formed families, attained education, and built their lives."
Packer argued Tuesday that "if the Biden administration wants to be responsive to public opinion and live up to their own stated values of racial justice and repair, marijuana must be federally decriminalized and additional actions must be taken to end the lifelong collateral consequences that result from marijuana criminalization."
"This is a galvanizing moment for our movement for drug policies grounded in health, equity, and reinvestment," she stressed. "Even if marijuana is ultimately rescheduled through this process, there are additional actions that President Biden and Congress can take. In the coming weeks and months, we will continue working with our allies to urge President Biden to take a whole government approach to advance equity in federal marijuana policy and mitigate the harms of criminalization."
"That means expanding pardons and commutations, protecting state marijuana programs, and directing federal agencies to cease punishing people for marijuana use," she said. "We know that the people and the evidence are on our side. It is time that our federal government listened."
Despite support from top figures including Senate Majority Leader Chuck Schumer (D-N.Y.), there is little hope that the current divided Congress would decriminalize marijuana. As Marijuana Momentreported shortly before House Speaker Mike Johnson (R-La.) was voted into his role last year, he "has consistently voted against cannabis-related legislation."
The cannabis industry analytics firm Headset on Tuesday also reviewed public submissions for the new proposal and noted that "this comment period has shattered previous DEA records, surpassing even the highly contentious 2020 telemedicine rules that garnered approximately 38,000 comments."
"To put this into perspective, that's roughly equivalent to the entire population of Juneau, the capital city of Alaska," the firm highlighted. "It's as if every resident of a small state capital took the time to voice their opinion on this crucial issue."
Headset found that 92.45% of comments were in favor of changing cannabis' schedule, with 61.7% of them advocating for descheduling and 38.3% supporting a shift to a less restrictive category. Just 7.55% wanted to retain Schedule I.
"Those supporting rescheduling emphasized potential medical benefits, increased research opportunities, and alignment with state laws," Headset said. "Proponents of descheduling, the largest group, advocated for complete legalization, citing social justice concerns, economic opportunities, and personal liberty."
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Genocide Is Not a Game: Congressional Baseball and War Crimes in Gaza
Why did we protest this national pastime? Because the systematic murder and starvation of Palestinians by Israel cannot continue with our silent complicity.
Jun 19, 2024
During last week’s Congressional Baseball Game, dozens of us in the crowd conveyed urgent messages to stop funding Israel’s genocide of Palestinian and to address the escalating climate emergency.
We were met by the disproportionate level of force from hundreds of police across multiple jurisdictions who encircled and followed us around. Activists with Climate Defiance entered the field and were plowed down forcefully by police officers and arrested.
In our seats, we stood with signs, flags, some just wearing kuffiyehs, chanting “Free Palestine” and “Genocide is not a game.” Despite the legality and common practice of cheering and displaying signs at baseball games, we were swiftly ejected by swarms of police officers.
Juxtaposed to our ejection and policing of our rights to freedom of speech, police unsurprisingly, did nothing to address the egregious and blatantly racist verbal abuse laced with profanity being hurled at us. In one instance, an entire section of the crowd erupted in a “fu** you terrorists” chants. Meanwhile, others in the stadium freely displayed their political messages without facing any consequences.
Our aim was to deliver a clear message to members of Congress, who were indulging in a photo-op game amid multiple crises they are directly responsible for through billions in funding to Israel and subsidies for the fossil fuel industry.
Since October, Congress have allocated billions more of our tax dollars to Israel, facilitating the genocide of over 40,000 Palestinians in Gaza while also displacing and starving millions of Palestinians.
The U.S. Pentagon is the largest institutional polluter in the world. Israel has also used white phosphorus and other weapons from the United States to destroy the local environment, facilitating the death of the local habitat. Each U.S. bomb tested, manufactured, transferred, and dropped exacerbates the climate crisis, intertwining Palestine’s plight with climate justice.
More bombs were dropped in the first 100 days of the US-Israel genocide in Gaza than in all of World War II combined.
Despite the majority of Americans wanting a ceasefire in Gaza (including the majority of republican voters), despite the majority of nation-states deploring Israel’s war crimes in Palestine, despite the highest court of the world releasing arrest warrants for crimes against humanity to Israel’s Prime Minister, Benjamin Netanyahu and Minister of Defence, Yoav Gallant, the U.S. is continuing to aid and empower Israel’s ethnic cleansing. Almost every congressperson who played that night voted to sanction the International Criminal Court after it issued an arrest warrant for Netanyahu.
The annual Congressional Baseball game is sponsored by a long list of companies profiting off of the Israeli and U.S. atrocities in Palestine, including: Boeing, RTX (formerly Raytheon), Caterpillar, Chevron, Amazon, Google.
It’s not a coincidence that while arms dealers are reaping historic highs in stock prices and earnings, members of Congress are lining their pockets with checks from Israeli lobbying groups. Particularly AIPAC, the American Israeli Public Affairs Council.
The baseball game is technically a fundraiser for groups like the Boys and Girls Club, Nationals Philanthropies, and the Washington Literacy Center. It is paradoxical that Congress raises trivial amounts for education while channeling billions of tax dollars into weapons shipments used to indiscriminately murder Palestinians.
Activists across the U.S are demanding an end to all aid to Israel and a reinvestment of those funds into our community needs such as housing, healthcare, and education. Our actions at the game were driven by a profound sense of urgency and justice.
The systematic murder and starvation of Palestinians by Israel cannot continue with our silent complicity. We must persist in demanding accountability from our elected officials. We demand that funds from warfare be redirected to vital community needs and to address the world’s common enemy, the climate crisis.
We stand in solidarity with Palestinians and all others who are fighting for their lives and dignity. The struggle for justice in Palestine is not just their fight; it is a global cause that calls for our unwavering support and action.
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