HR10595

The Stop Wall Street Looting Act was introduced on September 24, 2026 by Rep. Pocan and eight cosponsors, all Democrats. It has been referred to four committees: Ways and Means, Financial Services, Judiciary, and Education and Workforce. The bill is in early stage with no further action. The legislation directly targets private equity firms by making them jointly and severally liable for the liabilities of companies they acquire and control, and by imposing a surtax on amounts received from controlled target firms. It also includes provisions limiting dividends, buybacks, and outsourcing, and increasing worker protections in bankruptcy. No funding is authorized; the bill operates through tax and liability changes. The primary impact is on private equity firms whose business model relies on leveraged acquisitions and extracting returns. If enacted, the bill would increase legal risks and tax burdens, potentially reducing deal activity and fund returns. The legislative path is uncertain given the partisan sponsorship and early stage, but the bill represents a significant regulatory threat to the private equity industry. Investors in pure-play private equity firms should monitor committee action and potential amendments.