Economic patriot and Presidential candidate Elizabeth Warren: Private equity firms are “vampires”
…and “Wall Street is looting the economy”
Democratic presidential candidate Elizabeth Warren, who inaugurated her “economic patriotism” proposal about a month ago, unveiled fresh new strategies Thursday. She proposes to rein in private equity players and roll back Trump’s financial deregulation.
PE players are vampires, she alleges
Ms. Warren plans to introduce regulation that will clip the wings of private equity firms, whom she likened to vampires that bled their acquisitions dry, and then walked away leaving the company stricken.
Writing in medium.com, she said her proposed “Stop Wall Street Looting Act” would restrict the flow of dividends and monitoring fees to PE firms, and instead, link their profits to the performance of the company they acquired.
Significantly, she also proposes to limit the tax breaks available to PE players on debt they load on the acquired companies.
The Act would also seek to make PE players liable for the debts and retirement pension obligations of companies they acquire.
Trump reforms to be scrapped
Ms. Warren said she would “reverse the Trump-era weakening of rules on capital, liquidity, leverage, and resolution-planning for big banks.”
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