Alternative Investments: Warren, Ocasio-Cortez Move to Stop M&A Activity During COVID-19 Pandemic
Two prominent Democrats are moving to pass the Pandemic Anti-Monopoly Act, legislation to stop mergers while the U.S. deals with COVID-19. Senator Elizabeth Warren (D-Mass.) and Representative Alexandria Ocasio Cortez are pushing the bill. This new bill would place a moratorium on all mergers reported to the FTC. It would also stop any deals involving firms with more than $100 million or engaged in private equity.
“As we fight to save livelihoods and lives during the coronavirus pandemic, giant corporations and private equity vultures are just waiting for a chance to gobble up struggling small businesses and increase their power through predatory mergers,” Warren said in a statement.
The lawmakers said that the moratorium would last until the FTC unanimously decided that small businesses and workers are “no longer under severe financial distress,” according to the statement. The FTC has five voting members.
The Pandemic Anti-Monopoly Act
Pandemic Anti-Monopoly Act will arrive to Congress on May 4 when the Senate returns. The House of Representatives will return on May 11. It is unlikely to pass in the Republican-controlled Senate. The legislation comes a week after Representative David Cicilline (D-RI) called on a similar moratorium. The Congressman is a member House Judiciary Committee’s antitrust panel.
Related: Elizabeth Warren: Everything is Wrong with Private Equity, Everything
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