ARATI KREIBICH CONDEMNS REP. GOTTHEIMER’S SUPPORT OF COVID-19 AID FOR PRIVATE EQUITY FIRMS

“NJ-5 deserves a Representative who’s focused on North Jersey’s interests, not Wall Street’s.”

Glen Rock, NJ – Yesterday, the New York Times released an article highlighting private equity’s lobbying to expand access to federal COVID-19 loan programs; Rep. Josh Gottheimer is the only member of Congress quoted in support of the efforts.

• Marc Rowan of Apollo Global Management is advocating “for the relaxation of the Term Asset-Backed Securities Loan Facility, known as TALF, a $100 billion emergency loan program through which the Fed can backstop troubled markets.”
• Rowan is pushing to allow riskier debt to be used as collateral for cheap TALF loans: “a change that could potentially make the program more beneficial to private equity firms and their portfolio companies.”
• Rep. Josh Gottheimer is backing the Wall Street ploy and signed letters (1, 2) arguing for a broader use of the TALF: “‘We need to ensure small businesses have access to liquidity, or have the liquidity they need to reopen, and we shouldn’t discriminate against them because of their ownership structure.’”

Rep. Gottheimer’s primary challenger Dr. Arati Kreibich released the following statement in response: “While Rep. Gottheimer refuses to support crucial COVID-19 relief measures like a rent & mortgage moratorium and additional $2,000/month direct payments, he isn’t hesitating to stand up for his biggest campaign donors: private equity investors. NJ-5 deserves a Representative who’s focused on North Jersey’s interests, not Wall Street’s.

“Broadening access to TALF is designed to do one thing: bail out private equity firms with cheap federal loans so they don’t have to use their vast cash reserves. This isn’t about saving small businesses; it’s about protecting Wall Street’s bottom line.”

Marc Rowan has personally contributed $13,700 to Rep. Gottheimer’s campaign. Rep. Gottheimer has received the most campaign cash from private equity & investment firms of any member of the House of Representatives so far this election cycle.

###

Dr. Arati Kreibich is a Councilmember in Glen Rock, a neuroscientist, an immigrant, and a mom. She is running for Congress in New Jersey’s 5th District not only because her representative doesn’t honor our Democratic values, but because we live in an exceptional moment and need bold progressive leadership. Learn more at www.aratiforcongress.com, or visit our press kit.