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US senator wants tougher regulation of ‘vampire’ private equity firms

Elizabeth Warren wants to make buyout firms responsible for the behaviour of the companies they invest in

Elizabeth Warren is teaming up with a slate of fellow congressional Democrats calling for greater federal regulation of private equity firms, which the presidential candidate likened to vampires in a policy proposal that would alter the way the funds acquire other companies.

Warren, a senator from Massachusetts, unveiled on July 18 legislation that would require private equity funds to assume responsibility for the liabilities of companies under their control, including debt and pension-related obligations.

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