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182 points tencentshill | 1 comments | | HN request time: 0.209s | source
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stuaxo ◴[] No.45065148[source]
Private equity is in need of some severe regulation, how many of the ills of society go back to this sort of thing ?
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JumpCrisscross ◴[] No.45065415[source]
The fact that it’s private equity is mostly a red herring.

The problem is the rules can be broken with minimal consequence. Swap out PE for another profit-seeking structure and you’ll tend towards the same outcome, as the bad outcompetes the good.

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phkahler ◴[] No.45065629[source]
>> Swap out PE for another profit-seeking structure and you’ll tend towards the same outcome, as the bad outcompetes the good.

The optimum might be an employee-owned facility, but even there you'd have incentives to increase profit - everyone would like to get paid more for whatever it is they do. PE has the strongest conflict of interest though, as they are simply investors seeking profit and have nothing else in the game.

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1. gruez ◴[] No.45065974[source]
>PE has the strongest conflict of interest though, as they are simply investors seeking profit and have nothing else in the game.

How is that a "stronger" conflict of interest than the previous case?