As (almost) always, it's so ubiquitous that the German language even invented a word for that fact: "wegloben". Loosely translated as: praising someone away.
Why is it broken? Because while it's certainly possible that someone would recommend the best people they've ever worked with in the rare case of a sudden bankruptcy, chances are usually far, far higher that people try to recommend the weaker ones they had to let go in times of hardship to others, simply because they want to be nice and soften the blow.
Been there, done that. Multiple times.
If there's _really_ someone excellent, you move heaven and earth to keep them around in your own team.