Elizabeth Warren, in detailed attack on private equity, unveils plan to stop 'looting' of U.S. compa

[Eugene]

Source: Washington Post

Elizabeth Warren, in detailed attack on private equity, unveils plan to stop ‘looting’ of U.S. companies

By Peter Whoriskey July 18 at 9:00 AM

Sen. Elizabeth Warren (D-Mass.) on Thursday released a plan to attack some of the most controversial methods of private equity firms, the financiers who buy and sell companies for profit.

The plan from the 2020 Democratic presidential contender would take several significant steps to rein in the industry, including measures to block the private equity firms from stripping cash, real estate and other assets from the companies they take over.

Most critically, however, the plan would hold private equity firms responsible for the large debts that they use to buy companies. These debts, a hallmark of private equity investment, typically wind up as a burden to the targeted company, not the private equity firm, and have precipitated many bankruptcies.

Private equity firms invest a half-trillion dollars in U.S. companies every year, according to the American Investment Council, but their role in the U.S. economy has drawn increasing resentment from economic populists.

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Read more: https://www.washingtonpost.com/us-policy/2019/07/18/elizabeth-warren-detailed-attack-private-equity-unveils-plan-stop-looting-us-companies/

[andym]

1. Mitt Romney might be out of business if she succeeds. NT.