Elizabeth Warren to lead important new regulatory office
Former Harvard bankruptcy professor Elizabeth Warren is trying to restore support for tighter regulation in another part of the financial industry. Seeking to alleviate financial irresponsibility, the bill prohibits PEs from applying new business loans in order to withdraw dividends. In addition, the bill creates a number of protections for workers that prohibit outsourcing and guarantee severance pay in the event of bankruptcy. Companies like Sports Authority, Shopco and Gymboree have all filed for bankruptcy under PE, the debt Warren is trying to ban. Warren failed to grab attention from across the aisle with the bill, but is hoping to gain more traction this time around. Opponents say the bill will use private funding for new and small businesses and could hamper the ability to recruit new people or increase their workforce.
FINAL SUM: Regulation like this will undoubtedly hurt some small businesses, but the protection and benefits could outweigh those restrictions, but the bill is unlikely to gain enough leverage in its current statute to reach the Oval Office.
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