Tag Archives: Hedge Funds and Private Equity

Blog Post: Wall Street Money, Racism and the Politics of Anti-Democracy

The billionaires and millionaires of Wall Street deploy so much money to influence American politics and society that we can easily lose track of how pervasive it is. They spread money around to campaigns, think tanks, and lobbyists. Wealthy executives finance universities, cultural institutions, and hospitals. And this historical moment has laid bare for all to see that Wall Street also finances a virulently anti-democratic strain in American politics, one that always takes aim at people of color.

Blog Post: How a Politically Connected Private Equity Firm Scored a Special Bailout for its Heavily Indebted Trucking Company

Private equity giant Apollo Global in 2019 lent large sums of money to trucking company YRC Worldwide. After Apollo’s executives reached out to the White House on getting bailouts in the spring, YRC managed, under mysterious circumstances, to be the greatest beneficiary of a special loan program for companies critical to national security.

Letter to Transition: SEC Needs Chair Committed to Corporate Accountability, Transparent Public Markets.

We urge you to nominate an SEC Chair who is committed to restoring corporate accountability and rebuilding robust, transparent public markets. Our country needs an SEC that will challenge powerful interests on Wall Street to better promote inclusive economic growth, while also protecting main street investors, pension plan participants, workers, and the communities in which we live.

Memo: Sun Capital Case Study of Private Equity Looting

Today, private equity controls some 8,000 companies in the United States, more than twice as many companies as are publicly traded on U.S. stock markets. Private equity firms manage more than $4 trillion in U.S. assets and now own companies that collectively employ nearly 9 million American workers.

Like many PE firms, Sun Capital Partners often buys up existing businesses, loots their assets, squeezes workers, decimates jobs through layoffs and bankruptcy, and threatens workers’ retirement benefits. 

BLOG POST: How Private Equity Harms Workers

In many ways, the private equity industry embodies some of the worst impulses of Wall Street, squeezing profits at the expense of workers and consumers, and insulating bad actors from risks. But these abuses are not inevitable. On the contrary, they are the result of laws and regulations that can and should be changed.

Wall Street sign and a stoplight turned red - Photo by Roberto Júnior on Unsplash

Statement: SEC Exams Show Private Fund Managers Overcharge Investors

The problems the SEC identified include fund managers’ failure to make full and fair disclosure of conflicts of interest, charging improper fees, and failure to implement policies to prevent staff from trading on material non-public information. In other words, the SEC’s examinations have shown that private equity and hedge fund managers are consistently engaged in self-dealing and overcharging investors, like pension funds that provide for the retirement security of millions of Americans.