To Stop Private Equity Predators, Pass Wall Street Looting Act

October 10, 2024

To Stop Private Equity Predators, Pass Wall Street Looting Act

Washington, D.C. - Today, Sen. Elizabeth Warren (D-Mass.) joined with 5 co-sponsors to re-introduce the Stop Wall Street Looting Act. In the House, nine representatives introduced a companion bill.This bill aims to reform the private equity market by holding private equity partners personally liable for debt issued by target companies, limiting the dividends and fees managers can extract, and improving disclosures.

Bartlett Naylor, financial policy advocate at Public Citizen, issued the following statement:

Wall Street buccaneers, parading under the prim banner of private equity, proudly loot once-thriving companies. They inundate them with debt, sell prized assets, suck out out bloated management fees, terminate workers, and, too often, stiff creditors through bankruptcy: the business equivalent of stealing cars to strip and sell the parts.

In the health care sector, the entrance of private equity means increased costs and worse care for patients. In retail, private equity means shuttered storefronts and abandoned shopping malls. In real estate, private equity means rising rents and unaffordable housing. This legislation takes meaningful steps towards stopping these pilferers in their tracks.