Brendan Ballou

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Brendan Ballou

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February 2023


Brendan Ballou is a federal prosecutor and served as Special Counsel for Private Equity in the Justice Department's Antitrust Division. Previously, he worked in private practice, and before that, in the National Security Division of the Justice Department, where he advised the White House on counterterrorism and other policies. He graduated from Columbia University and Stanford Law School. ...more

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Brendan Ballou It's a great question, and at the risk of plugging the book, Chapter 12 has a long list of things that the government can do with existing authorities…moreIt's a great question, and at the risk of plugging the book, Chapter 12 has a long list of things that the government can do with existing authorities to curb the excesses of the private equity business model.

At a high level, I think we're trying to do three things: (1) get firms to think for the long term, (2) keep them from extracting onerous fees and loading companies with unsustainable debt, and (3) hold them responsible for the consequences of their companies' actions.

Much of this can be done with existing authorities, and to the extent the federal government cannot act (and Congress does not), state and local governments can step in for companies headquartered in their jurisdictions. So I agree there could be more authority here, but there's a lot that can happen with our existing legal framework. It's a great question.(less)
Brendan Ballou On issuing more debt, it's a great question, and Dan Rasmussen of Verdad Capital is far more expert on this than I, and has written about the issue: h…moreOn issuing more debt, it's a great question, and Dan Rasmussen of Verdad Capital is far more expert on this than I, and has written about the issue: https://www.institutionalinvestor.com...

On improving the bankruptcy code, speaking personally, I think we could limit the use of "363 sales" and "credit bidding" that can be used to quickly push pension obligations onto the Pension Benefit Guarantee Corporation. Chapter 12 describes these ideas, and Lynn LoPucki of UCLA has even more detailed suggestions.

Thanks, they're great questions.(less)
Average rating: 4.08 · 1,069 ratings · 154 reviews · 1 distinct workSimilar authors
Plunder: Private Equity's P...

4.08 avg rating — 1,069 ratings — published 2023 — 5 editions
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“Most importantly, do not give in to despair or nihilism. Yes, private equity is part of a larger story of the financialization of our American economy, a story about how our country has grown more unequal and unjust. But to believe that our condition is, for better or worse, inevitable is exactly what the most privileged among us want you to believe. They want you to think that a better world isn’t possible. They want things to stay as they are. This isn’t to say that change is certain, but it is possible. Let’s get started.”
Brendan Ballou, Plunder: Private Equity's Plan to Pillage America

“Private equity surrounds you. When you visit a doctor or pay a student loan, buy life insurance or rent an apartment, pump gas or fill a prescription, you may—wittingly or not—be supporting a private equity firm. These firms, with obscure names like Blackstone, Carlyle, and KKR, are actually some of the largest employers in America and hold assets that rival those of small countries.

Yet few people understand what these firms are or how they work. This is unfortunate because private equity firms, which buy and sell so many businesses you know, explain innumerable modern economic mysteries. They explain, in part, why your doctor’s bill is so expensive and why your veterinary clinic seems to be in decline. They explain why so many stores are understaffed or closing altogether. They explain why there are ever fewer companies in America and why those that remain are selling ever lower-quality products.

In fact, despite their relative anonymity, private equity firms are poised to reshape America in this decade the way in which Big Tech did in the last decade and in which subprime lenders did in the decade before that. And as we will explore, they’re all doing it with the government’s help.”
Brendan Ballou, Plunder: Private Equity's Plan to Pillage America

“Private equity surrounds you. When you visit a doctor or pay a student loan, buy life insurance or rent an apartment, pump gas or fill a prescription, you may—wittingly or not—be supporting a private equity firm. These firms, with obscure names like Blackstone, Carlyle, and KKR, are actually some of the largest employers in America and hold assets that rival those of small countries.

Yet few people understand what these firms are or how they work. This is unfortunate because private equity firms, which buy and sell so many businesses you know, explain innumerable modern economic mysteries. They explain, in part, why your doctor’s bill is so expensive and why your veterinary clinic seems to be in decline. They explain why so many stores are understaffed or closing altogether. They explain why there are ever fewer companies in America and why those that remain are selling ever lower-quality products.

In fact, despite their relative anonymity, private equity firms are poised to reshape America in this decade the way in which Big Tech did in the last decade and in which subprime lenders did in the decade before that. And as we will explore, they’re all doing it with the government’s help.”
Brendan Ballou, Plunder: Private Equity's Plan to Pillage America




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