Hmmm. Got it. It is really about control. I could try to construct a case where lenders would not lend w/o having control (because of issues of trust). but I think I am reaching.

I still feel their is an un-address externality (the value of providing a job) which is being indirectly covered here. Still I am less clear, now perhaps such a law could have more benefit than harm. Thanks for the discussion!