As private equity’s role in major corporate bankruptcies draws renewed scrutiny, Senator Elizabeth Warren has reintroduced the Stop Wall Street Looting Act, a bill that would expand liability for investment firms and tighten rules around debt‑heavy buyouts.

"That accountability is especially urgent as the Trump administration moves to include private equity in workers’ 401(k) retirement accounts," said Oscar Valdés Viera, senior policy analyst at Americans for Financial Reform. “Workers should not be forced to risk their jobs, their communities, and now their retirement savings to subsidize Wall Street’s destructive business model and pad the pockets of billionaires.”

First introduced in 2019 and revived twice since, the bill returns in the 119th Congress at a moment when the industry’s footprint on the American economy has become too large to ignore.

The Stop Wall Street Looting Act has taken different forms in each of its three iterations. The original 2019 version and a 2021 successor (S. 5333) focused mainly on liability and bankruptcy priority; this iteration keeps those protections and adds new ones, including a provision barring private equity-backed firms from tapping federal bailout funds without meeting labor standards and expanded oversight of the private credit market, which has ballooned in size since the bill was first drafted.

According to Ranking Member Warren, “this year, Congress proved with our bipartisan housing law that we can stop private equity from rolling through industry after industry, jacking up prices and leaving businesses and workers in the dust. The Stop Wall Street Looting Act takes a stand against private equity’s looting and puts power back in the hands of workers and consumers.”

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Also with an eye to reign in private equity, two weeks ago Senator Warren and other senators and........

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