Private equity's political problem
If Democrats gain full control of Congress next week, as many polls and prediction markets suggest they will, private equity could once again find itself in the political crosshairs. The big picture: Private equity has become a rhetorical punching bag for a number of Democratic House and Senate candidates, including in debates and on the stump, as an affordability bête noire. Most of this has…
As Democrats appear poised to secure full control of Congress, private equity companies may once again face political scrutiny. Critics argue that private equity has contributed to the skyrocketing housing costs in areas like Maine and New Hampshire, making it difficult for residents to afford housing. Candidates such as Troy Jackson, Chris Pappas, and Marcy Kaptur have criticized private equity's influence in the housing market, calling for regulation and an end to excessive corporate ownership.
Elizabeth Warren, who would chair the Banking, Housing and Urban Affairs Committee if Democrats retain control, has also vowed to take on private equity, having previously collaborated with a Republican senator on legislation aimed at curbing the industry's activities. Despite past resistance, private equity has a proven ability to thwart federal legislation that could negatively impact its profits.
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