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Tell Congress: Stop Wall Street looting

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Petition to Congress:

"Pass the Stop Wall Street Looting Act of 2019."

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    Tell Congress: Stop Wall Street looting

    They killed Sears. Closed Toys R Us. Ended KB Toys and Payless Shoes. And they've got their claws companies that include newspapers, casinos, grocery stores and nursing homes.

    Wall Street private equity firms are looting companies and laying off workers to line their own pockets.1 Progressive Democrats just introduced a plan to stop it.

    The Stop Wall Street Looting Act would eliminate all the incentives for private equity firms to pursue get-rich-quick schemes while destroying lives and livelihoods.2 It should be at the heart of any agenda to tackle inequality and economic slowdowns – but we need a huge show of support to make that happen.

    Tell Congress: Stop Wall Street looting.

    Predatory private equity firms destroy jobs without helping anyone but themselves. Sen. Elizabeth Warren calls it "legalized looting":3

    The firms can use all sorts of tricks to get rich even if the companies they buy fail. Once they buy a company, they transfer the responsibility for repaying the debt they took on to the company that they just bought. Because they control the company, they can transfer money to themselves by charging high “management” and “consulting” fees, issuing generous dividends, and selling off assets like real estate for short-term gain. And they slash costs, fire workers, and gut long-term investments to free up more money to pay themselves.

    The Stop Wall Street Looting Act would prioritize workers, consumers, investors – and private equity firms that are actually trying to help companies get on a more solid footing. It would block predatory schemes by forcing private equity to share in the pain of outrageous debt loads, prohibiting fees and closing loopholes to dodge taxes. It would also give workers a higher priority in bankruptcy hearings so private equity can't walk away with full bank accounts and leave disaster in its wake.4

    Nearly 6 million workers are under threat from private equity, and the industry grows every day. Private equity firms take money from institutional investors and wealthy individuals and make them even richer at the expense of people who work for a living.5 If we're going to confront skyrocketing inequality and the economic stagnation of the 99%, we need to confront private equity and end Wall Street looting.

    Tell Congress: Stop Wall Street looting.

    Thank you for speaking out.

    References:

    1. Emily Stewart, "Elizabeth Warren’s latest Wall Street enemy: private equity," Vox, July 19, 2019.
    2. Ibid.
    3. Ibid.
    4. Ibid.
    5. Ibid.