Bad Company
Bad Company
Ralph welcomes journalist and author Megan Greenwell to discuss her book "Bad Company: Private Equity and the Death of the American Dream." Then, Ralph speaks to James Zogby (co-founder and president of the Arab American Institute) about the recent Israeli attacks on Lebanon.
Megan Greenwell is a journalist who has written or edited for publications including the New York Times, the Washington Post, New York Magazine, WIRED, and ESPN. She is also the deputy director of the Princeton Summer Journalism Program, a workshop and college-access initiative for students from low-income backgrounds. She is the author of Bad Company: Private Equity and the Death of the American Dream.
The real trick with private equity (and this was the thing that made me want to write a book on it) is that when they take out those billions of dollars worth of loans (if you’re buying a bigger company), the private equity firm is not responsible for paying those loans back. Only the portfolio company in whose name the private equity firm has taken the money out is on the hook for that money. And so what you end up with is this split in incentive where what’s good for the private equity firm is not necessarily what’s good for its own portfolio company.
Megan Greenwell
[Congress hasn’t repealed the carried interest loophole] because Congress is in the pocket of the private equity industry. 88% of members of the House and Senate take donations from private equity. Interestingly, Donald Trump has called twice for the carried interest loophole to be closed. And still, even he, as much of a stranglehold as he has on the Republican Party, he can’t build support for it among Republicans. Because they’re all taking private equity money, as are the vast majority of the Democrats. So this is not a partisan issue.
Megan Greenwell
One of the reasons I was really interested to write this book as a series of narrative profiles of people trying to do something about [private equity] is: none of them are trying to do something about it through the federal government. And I think when we talk about “Only the federal government can save us,” we really risk turning people away from trying to do anything. And I think we’ve seen on the private equity issue there has been some really interesting movement on the state level in several places—real reforms that are much easier to accomplish on the state level than on the federal level.
Megan Greenwell
James Zogby is co-founder and president of the Arab American Institute, and he is featured frequently on national and international media as an expert on Middle East affairs. Since 1992, he has written a weekly column— “Washington Watch” —that is published in 12 countries. He is the author of several books, including Looking at Iran: The Rise and Fall of Iran in Arab Public Opinion, The Tumultuous Decade: Arab, Turkish, and Iranian Public Opinion - 2010-2019, Arab Voices: What They Are Saying to Us, and Why it Matters, and Palestinians: The Invisible Victims.
Not only are thousands being killed [in Lebanon], but there’s a process underway of demolishing villages, obviously expelling lots of people, creating internal refugees and sectarian tension as a result of it. And clearly (as Israel has stated, and I think we have to believe them), that they actually want to annex the territory up to the Litani River and maybe even further. They call it a buffer zone, but we’ve heard that buffer zone stuff before. It’s merely a way of taking new land and providing opportunities for settlements.
James Zogby
As we saw ourselves in Vietnam, as we saw in Iraq and Afghanistan, Israel is now getting PTSD reports that are deeply disturbing to them. They’re getting suicides. They’re getting an exhausted military. They’re not exhausted with the weapons that they’re losing (because they’re losing a lot and they’re using a lot), they’re getting emotionally and physically exhausted. Look, when the soldiers do what they’ve been doing—which is basically inhuman behavior, I mean, it’s disgraceful behavior—it begins to eat away at the soul. You get these suicides. You get these emotional collapses. And what gets me upset is that—72,000 Palestinians dead, a few Israeli soldiers having PTSD and trauma and committing suicide becomes a news story? My feeling has to be with the Lebanese and Palestinians.
James Zogby
When I hear on the DNC from other members who say to me, “When you talk about Israeli genocide, that’s anti-Semitic, it makes me uncomfortable,” I said, “You know what makes me uncomfortable? That genocide is actually taking place. And it makes me equally uncomfortable that you won’t admit it or even want us to talk about it.”
James Zogby
News 4/17/26
Our top story this week comes to us from New York City, where Mayor Zohran Mamdani is delivering on yet another campaign promise thought impossible by mainstream pundits and beltway insiders: the creation of municipal grocery stores. Capping off his first 100 days in office, Mayor Mamdani delivered remarks in front of La Marqueta in East Harlem, the site of one of the original city-run grocery stores created under Fiorello LaGuardia. Mamdani laid out how the stores will operate, noting that while “A private operator will run the store,” they will “answer to the standards the city will set…[including] requirements that at our stores bread will be cheaper. Eggs will be cheaper. Grocery shopping will no longer be an unsolvable equation. And workers will be treated with dignity.” Mamdani plans to have the first of these stores open in 2027 and stores in all five boroughs open by the end of his term in 2029. This from NBC4 New York.
Meanwhile, in New York’s 10th congressional district, former NYC Comptroller and Mamdani ally Brad Lander is aligning himself with AOC and calling for an end to U.S. aid to Israel. In a meeting with a group of local journalists, Lander said “We need to follow the Leahy Law and condition all of our foreign policy aid on human rights and international law compliance…At the moment, Israel is very far from complying with human rights and international law. So I would not vote for any more aid,” adding that he “hopes” Israel will “[get] there.” The Forward notes that this is an evolution from the position he took during his mayoral candidacy last year. At that time Lander opposed sending offensive weapons to Israel, but believed that the US should keep funding Israel’s Iron Dome, per the New York Post. Through a representative, Lander’s opponent in this race, incumbent Congressman Dan Goldman, told the Forward he “will always support defensive systems,” like Iron Dome.
The liberal Zionist organization J Street is also shifting its position. The Middle East Eye reports the group is calling for an end to “direct” US military support to Israel, according to a new policy paper. To be clear however, while this does mark a shift from J Street’s previous position that the U.S. should provide defensive weapons systems – like resupply for Iron Dome, at no cost to Israelis – J Street now argues that Israel should simply purchase these weapons instead. In short, J Street is arguing that Israel is rich enough to provide for its own defense and that the American financial subsidies are “unnecessary and politically counterproductive, creating avoidable tensions in US domestic politics and in the bilateral relationship.” This is in line with statements by Netanyahu himself, who has made it clear that Israel wants to reduce its reliance on U.S. military aid “all the way down to zero.”
In other news, Reuters reports Apple is closing several of its brick-and-mortar stores, including the first ever unionized Apple store. Over 100 workers at the store, located in Towson Town Center mall in Maryland, voted to join the International Association of Machinists & Aerospace Workers (IAM) in 2022; Reuters notes that “a similar union drive in Atlanta [around that same time] was withdrawn, with Apple workers alleging intimidation.”At the other stores being shuttered, employees were offered the option to continue their jobs at other nearby Apple stores. At the Towson store however, Apple is claiming that the collective bargaining agreement prevents relocation. The union says this is “false” and is reportedly exploring all legal options. IAM also expressed “serious concerns that this closure is a cynical attempt to bust the union.”
Elsewhere in Maryland, the state legislature has passed the Protection from Predatory Pricing Act. This bill, which Gov. Wes Moore has vowed to sign into law, is designed to prohibit surveillance pricing, the practice of retailers charging different shoppers different prices for the same item at the same time based on information the store knows about them as an individual. While crucial and innovative legislation, Consumer Reports – which “engaged on the bill…throughout the legislative process,” argues that it has been watered down to the point of inadequacy via lobbying by the Maryland Retail Alliance. Some of the added exceptions include failing to establish any baseline or standard price – given that “with no set standard price, everything can be marketed as a discount” — and exempting any pricing associated with loyalty or membership programs or subscriptions. The bill also does not contain strong enforcement provisions, such as a private right of action. So, while this bill is a start – and you have to start somewhere – we echo Consumer Reports’ urging that “other state legislatures considering personalized pricing legislation to build in stronger consumer protections and avoid loopholes that weakened this bill.”
In more consumer news, the scourge of sports betting continues to metastasize. A new report from Siena Research Institute has produced staggering findings: “27% of Americans and [52%] of men ages 18-49…[say] they have an active account with an online sportsbook such as DraftKings, Caesars, FanDuel, or BetMGM.” And, while most respondents maintain that they bet because it is “exciting” and “fun”, “31% of bettors report having had someone express concern about their usage of online sportsbooks, [42%] of bettors...say they have felt that they bet more than they should…Fifteen percent of bettors…say they have called a problem gambling Helpline or sought other help with problem gambling, and 22% of respondents overall say they know someone that has or has had a problem with online sports betting.” Taken together, this represents a deeply troubling gambling wave cresting in this country. And, while legislators are beginning to take notice, the sports betting interests are beginning to fight back, with Bloomberg reporting that these companies – FanDuel, DraftKings and Fanatics Sportsbook – are beginning to dump money by the truckload into new Super PACs. Just this year, they have contributed $41 million to Win for America, according to new FEC filings, and show no sign of stopping there.
In our final domestic story, this week saw the implosion of leading California gubernatorial candidate, Rep. Eric Swalwell. Swalwell ultimately opted to resign his seat in Congress after it became clear that the Democratic and Republican House leadership was mulling a deal to expel him and flagrantly corrupt Democratic Congresswoman Sheila Cherfilus-McCormick along with two scandal-ridden GOP Reps., Tony Gonzales and Cory Mills. The fact that Swalwell’s resignation was paired with that of Gonzales lends credence to the idea that some deal was worked out behind closed doors. Yet, deal or no, this leaves Cherfilus-McCormick and Mills in their seats despite general acknowledgment that they should be expelled, per the Hill. This constitutes congressional horsetrading at its most base.
Turning to international news, this week Canadian Prime Minister Mark Carney, who has for months governed the country with a plurality in the House of Commons, has successfully secured a majority for his ruling Liberal Party. This majority was secured via three byelection victories, but more significantly, by five recent “floor crossings” – elected MPs switching parties to join the Liberals. Having secured a majority, Carney is now confident in his ability to stave off a no-confidence vote and will likely remain in power at least until the 2029 general election. Unfortunately, the New Democratic Party (NDP) saw improvement in their share of the vote in only one “riding” despite their new leadership. This just proves the party has a long, difficult climb back to relevance in Canadian politics. This from the CBC.
Looking Southward, this week, Peru held the first round of their presidential election. The top two vote getters will advance to a runoff, but who those candidates would be remained unclear for an agonizingly protracted period of time. Keiko Fujimori, daughter of the former Japanese-Peruvian dictator and a perennial far-right candidate herself, came in first with 17% of the vote. And at first, it seemed like the second slot would be taken by ultraconservative Rafael Lopez Aliaga. However, following days of vote counting, Aliaga moved down to third place, with the second place finisher proving to be Roberto Sanchez, a figure of the Peruvian Left and ally of ousted former President Pedro Castillo. Sanchez however is also allegedly allied with the Andean supremacist movement led by Antauro Humala in Peru. The Peruvian political system has been rocked by instability, churning through “eight presidents in the past 10 years, including four who were impeached,” per France 24. Castillo, the last democratically elected president, was sentenced to over 11 years in prison in 2025; if elected, Sanchez would likely pardon the former president as other left-wing Latin American leaders including Mexican President Claudia Sheinbaum have urged. How long Sanchez, or for that matter Fujimori, might last in office is another question.
Finally, we turn to the United Kingdom where the dream of a new Leftist party – Your Party – is foundering. After a promising start, Your Party ultimately descended into infighting between the Grassroots Left faction, led by Zarah Sultana, and another faction, the Many, led by former Labour Party leader Jeremy Corbyn. Your Party also chose to bar from participation any avowedly leftist organizations. These moves, alienating to the very constituencies most interested in backing the YP, paired with the meteoric rise of the Green Party under Zack Polanski and a threatened exodus by the Scottish YP segment, have rendered what could have been a substantial power in Parliament, pressing for concessions on issues if not achieving a majority itself, utterly toothless. An inside account of the internal battles is available at Counterfire.
This has been Francesco DeSantis, with In Case You Haven’t Heard.
Discussion about this episode
https://www.ralphnaderradiohour.com/p/bad-company
We are moving toward a new version of a feudal system. A small percentage of the population will own everything, and the masses will be forced to rent or lease everything. Most of the dry cleaners, HVAC repair people, printers, plumbers, dentists, and doctors have become employees of private equity. Communities wake up to find less local competition, higher costs, lower salaries, and worse services. Over time investment in the communities decrease because profits are extracted to provide the "owners" their income to live a life of leisure. When America had lots of independent small businesses the communities had distinctive flavors and numerous collaborators that kept the economy vibrant. Now we have chain restaurants, mega-retailers, and private equity owned shops. It doesn't matter where you live in the USA, it's becoming a homogenized, sterilized mediocrity without a soul.
Thanks for the interviews. You had another similar interview with Gretchen Morgenson a few years ago: https://www.ralphnaderradiohour.com/p/predatory-capitalists
"Private equity", "hedge funds", and other similar extremely greedy and lawless international vulture-like companies, not only despoil the countries they prey on, but they also burn through many ivy league students, where they promise high wages but often require unethical and immoral business strategies for them to earn their keep. Just read the Rob Copeland book "The Fund" on Ray Dalio's operation in Westport and his bogus predicates spelled out in Dalio's book "Principles": https://www.nytimes.com/2023/11/06/books/review/the-fund-rob-copeland.html
Comment on the book: "The key to long-term, outsized success in the hedge fund business is quite simple, no secret at all: the acquisition of non-public information. I spent about 10 years working as a consultant to a number of hedge funds, primarily providing tools for measuring and explaining portfolio performance,. That work provided me access not only to all the trading data but put in daily, close-quarters contact with numerous private investment managers, some of whom separated themselves, year after year, from the merely lucky and intelligent. I worked for one who was renowned in the San Francisco financial community for his ability to bully grown men and women to tears. He would latch onto someone at a company that was a target of his attention, and make them so miserable through his attentions that in desperation they would feed him inside financial and market information in the hope that he would go away. He was particularly good at finding low-level employees at companies that he was thinking of shorting. At another firm, one manager received anonymous copies of public company earnings reports, the night before the reports were published. This approach is no secret. The quantitative models, the high-speed trading, the research of public information, will all enable market-average performance. But if you want to be the best, you need to consider expanding your idea of research, to include using non-public information. Then let nothing stop you in the quest for that data."
Another;
"Men like this are bloated but cunning parasites. That’s what these men of hedge funds, Wall Street, investor groups are — and in their quest to siphon all wealth into their personal coffers, they’re destroying their host — the government services, protections and social programs we need to remain a healthy society with a large middle class. Schools, news media, banks, hospitals, nursing homes, real estate, dental offices — EVERYTHING is now controlled by private equity and hedge funds. We know what they’re doing and the IRS and congress regulations have the power to end these scammers, but I suspect the corruption in our government has become too entrenched."
And:
"I did some IT work at his CT offices, I swear it was cult like and very paranoid. I couldn’t even take a picture of a data port number, when in the IDF closet there were 4 people watching what I was looking at. And very reception area would offer you his book along with coffee or. Nuts."
And:
"Bottom feeders of vulture capitalism, contributing zero to society (actually strip-mining productive endeavors and feasting on the carcass), operating in a black box beyond the purview of regulators, creating tax law by corrupting public officials. Their wealth is generated through exploitation, rigging of financial, legal, and regulatory systems, operating in a grey zone of money laundering and transnational Ponzi schemes. Beyond the ability of any authority to regulate, this firm is a modern day pirate operation feasting on the 99% - leaving devastated communities and lives in its polluted wake. A just society would not allow this criminal operation to function, but ours has long ago been neutered by the billions spent by firms like this to capture every regulator and tax authority that might impede their path of social destruction."
Steve Cohen's operation in Shippan was tagged with insider trading charges but was ruthless enough to avoid prison time as the trader refused to talk about Cohen's involvement.
Just look at "Glassdoor" reviews, especially the one and two star reviews of companies such as "Bridgewater", where employees talk about stress so great that they are reduced literally to tears. Bridgewater hired James Comey and Jamie Gorelick to fend off sexual harassment and insider trading suits.
Why can't the state of Connecticut tax carried interest as ordinary income instead of as capital gains? Who is Meagan Greenwell meeting with in Hartford and when?
On April 1, I presented to Governor Lamont a draft proposal to support a federal Direct Tax on capital to pay for the Iran War. Each state would be obligated to collect a tax in proportion to its population. Connecticut's share is about 1%.
Thank you Ralph. "What can we do about it?"...Americans could stop voting for this Red and Blue cabal.
A story : remember the days when returns were more important than risk, risk was something you had to do when you sometimes didn't have a choice or you made a mistake.
Many Years ago a friend of mine made a big mistake while working for a large airline in a Dallas tx and bought to much jet fuel and his boss was about to fire him and he got lucky and the price of jet fuel when up and he sold it for a nice profit for the airlines.,, but he got fired anyway. I told him he made a nice hedge on that jet fuel and didn't know it . A few years later he moved to New York City and I met him many years later at the 21 and he said he started what he called a hedge fund.
You see ,Don everyone thinks about earning something from doing something, I figured if I buy and sell something at the right time I can make more by ," doing nothing" and being smart can outsmart those guys and workers at that airlines that fired me and I'm in the chips now $$$$$$.
You see folks the hedge fund boys today hold about 8% or pretty close to 3 trillion of all your total tax deposits and credits in their private equity bank accounts and it was all made from, ' doing nothing " , but how does that old Ashop Fable story go ? sometimes, " nothing begets nothing"
Good luck America have a great day my friends