What does Stop Wall Street Looting Act do?

The Stop Wall Street Looting Act is a comprehensive federal legislative package designed to fundamentally restructure the regulatory environment governing private equity funds and their relationships with acquired companies. The bill addresses what its drafters characterize as systemic abuses in the private equity industry, including asset stripping, excessive fee extraction, evasion of liability for acquired firms' obligations, and inadequate transparency to investors and the public. The legislation operates across five major policy domains: anti-looting provisions that impose joint and several liability on controlling private funds; bankruptcy reforms that prioritize employee wages and benefits; tax code amendments targeting carried interest and business interest deductions; investor protection and disclosure mandates; and restrictions on securitizing risky corporate debt. The bill's scope is sweeping, amending the Internal Revenue Code of 1986, title 11 of the United States Code, the Investment Company Act of 1940, the Employee Retirement Income Security Act of 1974, the Securities Exchange Act of 1934, the National Labor Relations Act, and the Labor-Management Reporting and Disclosure Act of 1959. The overarching objective is to ensure that private equity firms bear meaningful accountability for the financial and operational consequences of their control over target companies, while providing workers, creditors, and investors with greater protections and information.

Elizabeth Warren, Tammy Baldwin, Richard Blumenthal, Edward Markey, Jeff Merkley, Bernard Sanders, Tina Smith

What is the status of S5512?

Introduced as of September 24, 2026.

What does Stop Wall Street Looting Act do?

The Stop Wall Street Looting Act is a comprehensive federal legislative package designed to fundamentally restructure the regulatory environment governing private equity funds and their relationships with acquired companies. The bill addresses what its drafters characterize as systemic abuses in the private equity industry, including asset stripping, excessive fee extraction, evasion of liability for acquired firms' obligations, and inadequate transparency to investors and the public. The legislation operates across five major policy domains: anti-looting provisions that impose joint and several liability on controlling private funds; bankruptcy reforms that prioritize employee wages and benefits; tax code amendments targeting carried interest and business interest deductions; investor protection and disclosure mandates; and restrictions on securitizing risky corporate debt. The bill's scope is sweeping, amending the Internal Revenue Code of 1986, title 11 of the United States Code, the Investment Company Act of 1940, the Employee Retirement Income Security Act of 1974, the Securities Exchange Act of 1934, the National Labor Relations Act, and the Labor-Management Reporting and Disclosure Act of 1959. The overarching objective is to ensure that private equity firms bear meaningful accountability for the financial and operational consequences of their control over target companies, while providing workers, creditors, and investors with greater protections and information.

Elizabeth Warren, Tammy Baldwin, Richard Blumenthal, Edward Markey, Jeff Merkley, Bernard Sanders, Tina Smith

What is the status of S5512?

Introduced as of September 24, 2026.

S5512 U.S. Senate: Stop Wall Street Looting Act

Introduced

S. 5512

Introduced in Senate · October 10, 2026

September 24, 2026

Ms. Warren (for herself, Ms. Baldwin, Mr. Blumenthal, Mr. Markey, Mr. Merkley, Mr. Sanders, and Ms. Smith) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To subject certain private funds to joint and several liability with respect to the liabilities of firms acquired and controlled by those funds, and for other purposes.

1. Short title; table of contents; 2. Findings; 3. Definitions; TITLE I—CORPORATE RESPONSIBILITY; 101. Joint and several liability for controlling private funds and holders of active interests in controlling private funds; 102. Indemnification void as against public policy; TITLE II—ANTI-LOOTING; 201. Limitations on post-acquisition dividends, distributions, redemptions, buybacks, and outsourcing; 202. Prevention of fraudulent transfers; 203. Surtax on certain amounts received by investment firms from controlled target firms; 204. Limitation on deduction for business interest of certain businesses owned by private funds; 205. Guardrails around accessing public funds; 206. Prohibiting payments from Federal health care programs to entities that sell assets to or use assets as collateral for a loan with a real estate investment trust; 207. Repeal of special rule for taxable REIT subsidiaries with interests in certain health care property; 208. Elimination of qualified REIT dividends from qualified business income; 209. Protections for striking workers; TITLE III—PROTECTING WORKERS WHEN COMPANIES GO BANKRUPT; 301. Increased priority for wages; 302. Priority for severance pay and contributions to employee welfare benefit plans; 303. Priority for violations of Federal and State laws; 304. Limitation on executive compensation enhancements; 305. Prohibition against special compensation payments; 306. Executive compensation upon exit from bankruptcy; 307. Collateral surcharge for employee obligations; 308. Voidability of preferential compensation transfers; 309. Protection for employees in a sale of assets; 310. Protection of gift card purchasers; 311. Commercial real estate; TITLE IV—CLOSING TAX LOOPHOLES; 401. Amendment of 1986 Code; 402. Partnership interests transferred in connection with performance of services; 403. Special rules for partners providing investment management services to partnerships; TITLE V—INVESTOR PROTECTION AND MARKET TRANSPARENCY; 501. Disclosure of fees and returns; 502. Fiduciary obligations; 503. Disclosures relating to the marketing of private equity funds; 504. Greater visibility into non-bank direct lending and private credit; TITLE VI—RESTRICTIONS ON SECURITIZING RISKY CORPORATE DEBT; 601. Risk retention requirements for securitization of corporate debt; TITLE VII—MISCELLANEOUS; 701. Anti-evasion; 702. Severability

Introduced

S. 5512

Introduced in Senate · October 10, 2026

September 24, 2026

Ms. Warren (for herself, Ms. Baldwin, Mr. Blumenthal, Mr. Markey, Mr. Merkley, Mr. Sanders, and Ms. Smith) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To subject certain private funds to joint and several liability with respect to the liabilities of firms acquired and controlled by those funds, and for other purposes.

Introduced

S. 5512

Introduced in Senate · October 10, 2026

September 24, 2026

Ms. Warren (for herself, Ms. Baldwin, Mr. Blumenthal, Mr. Markey, Mr. Merkley, Mr. Sanders, and Ms. Smith) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To subject certain private funds to joint and several liability with respect to the liabilities of firms acquired and controlled by those funds, and for other purposes.

Introduced

S. 5512

Introduced in Senate · October 10, 2026

September 24, 2026

Ms. Warren (for herself, Ms. Baldwin, Mr. Blumenthal, Mr. Markey, Mr. Merkley, Mr. Sanders, and Ms. Smith) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To subject certain private funds to joint and several liability with respect to the liabilities of firms acquired and controlled by those funds, and for other purposes.

S.5512

S. 5512

S.5512

S. 5512

S.5512

S. 5512

S.5512

S. 5512