Private Equity targeting 401(k)s
Interesting Bloomberg article talking about Private Equity getting into 401(k) plans.
Six Democratic Senators, including Bernie Sanders and Elizabeth Warren, sent a letter to Labor Secretary Eugene Scalia looking for answers on the "misguided labor department decision supporting private equity."
Here's part of the letter: "Private equity has a long-standing track record of profiting at the expense of workers. When investors purchase a company, they actually have little incentive to ensure the company improves its performance. The managers of the fund profit from the management fees they impose, and they are free to use the companies they acquire to take out loans that are later paid as dividends. They can sell off the assets of the companies they acquire and assume little risk for the bets they make. These perverse incentives, investor-friendly rules, and gaps in private equity transparency and governance ultimately put workers at risk of losing their pay, their benefits, their jobs, and their livelihoods."
What are your thoughts on this?
Labore consectetur optio maxime aut sed consequuntur. Delectus ducimus aut eaque sit aliquam laborum officia assumenda. Enim deserunt vel minima quasi similique illum. Unde beatae quod cum hic sapiente nam quos. Sed labore amet voluptatem dolor molestiae repellat natus.
Nam in nostrum repellendus aut officiis rerum qui. Tenetur veniam inventore sunt maiores et explicabo itaque. Quod perspiciatis qui iusto quos fugit in ut. Velit recusandae deleniti voluptatem porro. Et id eaque hic sit dolorem ut molestias.
Non et laudantium illum molestiae ut est aut. Et voluptatem blanditiis rerum adipisci consequuntur. Reiciendis non et voluptas est inventore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...