Bloomberg today reports Denmark Imposes Curbs on Leveraged Buy-outs (June 5). Danish regulators passed a law to limit the excessive use of debt in leveraged buy-outs and cutting tax breaks exploited by takeover specialists. The former prime minister of Denmark, Poul Nyrup Rasmussen, said that the private equity business is often motivated by the desire to “make a lot of money fast, with no respect for jobs, workers or long-term investment.”
Comment: greed and excessive leverage are an infamous recipe for financial loss. Good on Denmark for trying to impose some responsible limits on mania.
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