Why do I doubt they are the real losers here? Bloomberg states that they pocketed over $470M in fees.[1] And I imagine they were able to write off losses agai

Why do I doubt they are the real losers here? Bloomberg states that they pocketed over $470M in fees.[1] And I imagine they were able to write off losses against wins elsewhere. So the real losers still seem to be the employees and the American people. A few years back I was talking to an east coast banker turned VC and he was pooping on the leveraged buyout industry. He said that all the debt payments are tax deductible, so you take a cash flow positive company, saddle it with debt, and essentially stop paying taxes to the government and turn that into payouts for the investors.[2] He said if you look at other countries with different tax policies in regards to debt, you don’t find the same scale of the industry. Perhaps with a better tax policy we could have seen a more natural outcome for Toys ‘R’ Us? I assume unfortunately that the limit on deductions in the second linked article never made it into law and went the way of closing the carried interest loophole.[3] [1] https://www.bloomberg.com/news/articles/2017-09-19/bain-kkr-vornado-suffer-wipeout-in-toys-r-us-bankruptcy https://www.bloomberg.com/news/articles/2017-09-19/bain-kkr-... [2] https://www.reuters.com/article/us-usa-tax-privateequity/u-s-tax-curbs-on-debt-deduction-to-sting-buyout-barons-idUSKBN1EF1G5 https://www.reuters.com/article/us-usa-tax-privateequity/u-s... [3] https://www.thedailybeast.com/republicans-love-welfarefor-the-rich-its-called-the-carried-interest-loophole https://www.thedailybeast.com/republicans-love-welfarefor-th...