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View Diary: Uh-oh! Bring in the big guns! Kossack bluebarnstormer made too much sense! (56 comments)

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  •  Yes it's possible (2+ / 0-)
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    sethtriggs, Dirtandiron

    but ESOPs - employed stock owned companies are especially difficult to pull off because the financial benefits are on the side of those who have gamed the system, not those who merely want to build long term value.

    The only tool the employees have to take control is to use financial leverage on their pension funds to borrow the capital necessary to providing working funds, growth capital and the like.  Of course, if you're a big investment bank you're not going to be assured big management fees, so why would you invest?

    There's more to it, but a friend of mine worked at a decent size firm 30 years ago that attempted an ESOP. I helped him look at the ways they would get screwed, and also how the deck was stacked in favor of financial sharks - the guys who paid big bucks to buy members of congress to provide the loopholes.

    Labor needs to learn how to buy a senator or two, just as the billionaires did with Phil Gramm.

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