There's a huge risk going on in the insurance market, where private equity companies have been purchasing these insurance companies. That could also have some consequences that the finance folks might want to know. Private equity firms may be using that money for riskier investments than insurers traditionally do. If an insurance company fails, it won't necessarily be the private equity firm that has to pay for it, pay for the policies.
If you want to maximize the value of your home for decades, you might update the kitchen. But if your time frame is one week, then you might burn down the house. Brendan Ballou is a federal prosecutor and special counsel at the Department of Justice, where he led the antitrust division’s work on private equity. He's also authored a new book, “Plunder, Private Equity’s Plan to Pillage America.” Ricky Mulvey caught up with him to talk about: - The techniques many private equity companies use to generate short-term returns - A key misunderstanding about the fall of in-person retailers - Private equity’s impact on medical billing, bakeries, and insurance Companies discussed: CG, KKR, BX Host: Ricky Mulvey Guest: Brendan Ballou Engineer: Tim Sparks
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