Boston Globe: Warren takes aim at private equity again, now with Steward as ammo

Senator Elizabeth Warren unveiled legislation Thursday designed to rein in the growing power of private equity firms and limit the sort of leveraged buyout deals that led to the crisis at Steward Health Care, whose bankruptcy continues to roil communities in Massachusetts and seven other states.

The bill would crack down on private equity firms that use debt to acquire businesses and then strip them of their cash, real estate, and other assets — often leaving them financially weak or even bankrupt.

Long a vocal critic of Wall Street, Warren is proposing new “anti-looting” measures that would make it more difficult for private equity firms to saddle their acquired companies with debt and then squeeze out profits for themselves.

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