QUORUMCALL//GPT:
WARREN VERSUS PRIVATE EQUITY
Senator Elizabeth Warren is facing criticism for her stance on the private equity business model. The Citizens Against Government Waste (CAGW) claims Warren’s recent tweet – blaming private equity for the collapse of Toys “R” Us and escalating prices at Dollar General – demonstrates her lack of understanding about the sector.
WARREN’S CRITIQUE
• Warren alleges private equity firms destroyed Toys “R” Us by loading it with debt, leading to its bankruptcy. She also accuses them of causing price rises at Dollar General.
• The senator is pushing the Stop Wall Street Looting Act, aimed at holding private equity firms accountable for the damages they cause.
CAGW’S REBUTTAL
• CAGW argues that private equity firms help businesses, and that the failures of companies like Toys “R” Us are due to poor management and market conditions, not private equity.
• They believe Warren’s proposed legislation would harm businesses more than help them.
TOPICS COVERED
#PrivateEquity #StopWallStreetLootingAct
NOTE
Citizens Against Government Waste is a non-profit organization dedicated to eliminating waste and inefficiency in federal spending.
