Politico: Democratic lawmakers are poised to crack down on the private equity industry.
Democratic lawmakers are poised to crack down on the private equity industry.
Private equity firms went all out for Joe Biden in the 2020 election, giving his campaign six times more money than they donated to President Donald Trump. That's not going to do them much good with progressive Democrats in Congress.
Democratic lawmakers are poised to crack down on the industry, which they say threatens both the economy and workers through its debt-laden takeovers of companies in industries from health care to food, sometimes followed by painful restructuring and mass layoffs.
Sen. Elizabeth Warren (D-Mass.), private equity's biggest foe in Washington, will push for a sweeping set of reforms intended to stop what she calls "Wall Street looting." Sen. Sherrod Brown (D-Ohio), who supports Warren's plan and will be chairman of the Senate Banking Committee, is vowing to hold hearings and expects legislation aimed at the industry. Sen. Ron Wyden (D-Ore.) says he will scale back tax benefits as chairman of the Finance Committee that could have a significant impact on the companies' bottom lines.
By: Zachary Warmbrodt