Coronavirus Bailouts Shouldn't Reward Investors And CEOs, Democrats Say
Source: huff post
03/18/2020 05:08 pm ET
They want strings attached to any taxpayer dollars given to major industries suffering from the coronavirus-fueled economic crisis.
WASHINGTON ― As Congress begins working on a huge fiscal package to prop up the economy and soften the blow for people who are suffering from the coronavirus epidemic and its effects on their livelihoods, Democrats are demanding that any taxpayer bailout to major industries include restrictions on corporate bonuses and stock buybacks.
The issue of corporate accountability remains fresh in many lawmakers’ minds. In 2009, amid the Great Recession, the insurance company American International Group (AIG) handed out millions in bonuses after receiving a bailout from the federal government. ....................
To address the severe economic shock currently gripping the country, the Trump administration is working on an emergency stimulus proposal of at least $1 trillion that includes $50 billion in loans for the airline industry, which has been hit hard by the crisis..................,...........
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But Democrats are calling on the Treasury Department to go even further, urging them to set specific conditions — that will apply beyond the coronavirus crisis — on taxpayer funds that go to corporations.
Sen. Elizabeth Warren (D-Mass.), ...........................
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“Funds must come with strings attached to ensure that the money goes to maintain payroll, not to enrich shareholders or pay executive bonuses,” Warren said in an op-ed this week. “Giant corporations that receive substantial loans from taxpayers should be required to set aside one or more board seats for a representative elected by the company’s workers. Violations should trigger criminal penalties and clawbacks.”
Senate Minority Leader Chuck Schumer (D-N.Y.), meanwhile, noted that many airline companies repurchased their own stocks to reward their investors when times were good.
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“There is no straight-face justification to give no-strings-attached cash to an industry that had the chance to use massive profits and tax cuts to build a rainy day fund, but instead used the money to pad investor returns and executive pay.”
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Read more: https://www.huffpost.com/entry/coronavirus-congress-bailouts_n_5e7233adc5b6eab779404287
Sen. Chris Murphy (D-Conn.) added on Twitter:
Link to tweet
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Eliz Warren OP Ed
https://www.cnn.com/2020/03/16/opinions/grassroots-stimulus-package-coronavirus-warren/index.html
= new reply since forum marked as read
