Elizabeth Warren demands answers from private equity industry on coronavirus response, lobbying

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Warren's letter comes as the coronavirus recession has brought the role of private equity in the economy back into the spotlight.

Wearing a face mask to reduce the chance of transmission of the novel coronavirus, Sen. Elizabeth Warren arrives at the U.S. Capitol for a vote May 18, 2020 in Washington, DC.has written to the CEO of the private equity lobbying group, the American Investment Council, demanding more information about the organization's efforts related to the federal government's multi-trillion-dollar coronavirus relief law.

In a letter to Andrew Maloney, which was delivered Wednesday and obtained by CNBC, Warren demanded information about the group's communication with the Treasury Department and White House officials, including Jared Kushner, whose family real estate businessShe also questioned how the industry plans to protect the employees of the companies in which they invest.

"I am particularly concerned that the private equity industry you represent may exploit this crisis to continue extracting value out of struggling companies, lining the pockets of wealthy firms at the expense of workers and communities struggling to respond to this pandemic across the country," wrote the Massachusetts Democrat. Several companies that were acquired through leveraged buyouts, such as Neiman Marcus and J.

 

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