Elizabeth Warren Floats Expanded Powers for Bankruptcy Creditors Against Private Equity

Sen. Elizabeth Warren (D., Mass.) has proposed a new measure that would empower creditors in chapter 11 cases to pursue allegations of self-dealing by private-equity owners, rights that currently lie with corporate directors selected by those investment firms.

The senator introduced a revised version of her Stop Wall Street Looting Act on Wednesday, modifying a two-year-old proposal to rein in the private-equity industry and including fresh provisions targeting perceived abuses of the chapter 11 system by investment firms