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Elizabeth Warren: “Companies bought by private equity firms are 10 times more…”

Featuring: Elizabeth Warren, Democratic | U.S. Senate, Massachusetts

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Private Equity Guts Everything from Red Lobster to Hospitals: Let's Talk About the Economy Episode 5

Published | Video Starts at 01:23

So it's sort of like stealing cars and selling them for the parts, right? Yeah, sort of. Over and over. They buy up businesses doing just fine and then run them into the ground. In fact, Companies bought by private equity firms are 10 times more likely to go bankrupt than those that aren't. So what's going on? Well, it looks something like this. Step one, A private equity firm buys a business like Red Lobster, but they typically don't buy it with their own cash. (01:23–01:31)

CLAIM

Asserts that private equity-owned companies have a significantly higher bankruptcy rate.

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