“Wall Street got Boeing’s cash; Main Street gets the relief bill.” If you want an example of how keeping Wall Street happy can undermine your business, look at Boeing. If you’re also interested in seeing how already-well-paid corporate directors can get a raise while presiding over a horrendous mess that helped lead a company to…
Tag: CARES act
Multi-millionaire Trump donor is top recipient of funds intended for struggling small businesses – Popular Information
UPDATE: Following this investigation by Judd Legum, Bennett has pledged to return the funds. Across the country, thousands of small businesses — many on the verge of collapse — have not been able to obtain a forgivable loan from the Paycheck Protection Program. The initial $349 billion for the program ran out in a few…
$500 billion Fed aid program for corporations won’t require them to preserve jobs or limit CEO pay
A Federal Reserve program expected to begin within weeks will provide hundreds of billions in emergency aid to large American corporations without requiring them to save jobs or limit payments to executives and shareholders. Under the program, the central bank will buy up to $500 billion in bonds issued by large companies. The companies will…
Treasury gives big public companies until May 7 to return loans meant for small businesses – MarketWatch
The Treasury Department on Thursday followed up on its pledge to get money back from big public companies that received loans meant for small businesses hurt by the coronavirus crisis, with officials issuing guidance that gives the large enterprises a May 7 deadline to return the aid. More than 100 publicly traded companies have received…
Some Companies Seeking Bailouts Had Piles of Cash, Then Spent It – The New York Times
Still, the crisis has exposed the potential failings of a strategy embraced by many big companies: aligning their priorities with the interests of shareholders, many of whom are narrowly focused on the performance of a company’s shares. Shareholders, wanting stock prices to go higher, pushed management to use up cash on buybacks and dividends. And…
Wachtell Lipton on The CARES Act: Litigation and Enforcement Lessons from the Financial Crisis
The stimulus act provides opportunities for short-term shoring up of core economic vulnerabilities and shortfalls. It is also an unprecedented government giveaway with endless possibilities for abuse. Wachtell Lipton attorneys Jonathan M. Moses, Elaine P. Golin, Graham W. Meli, Getzel Berger and Daniel J. Brenner write: As with the stimulus initiatives following the 2008 financial…
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