An equity stake for the Government in companies that seek Coronavirus aid from taxpayers

post-image

The US Government may take an equity stake in corporations that want coronavirus aid from taxpayers.

The access to credit, and even solvency, of much of corporate America is top of mind for Wall Street. As such, a federal backstop could help break the fever that’s gripped equity markets during their fastest descent into a bear market in history.

The government could step in and take equity stakes in Boeing, United and others, with substantial preferred equity positions to stabilise the situation.

While deeply controversial politically, taxpayer backstops for the financial, automotive and housing-finance industries during the 2007-09 crisis were a key component of averting another Great Depression. While there were losses in some cases, equity stakes helped the government come out ahead on many of the transactions.

https://fortune.com/2020/03/19/equity-stake-companies-coronavirus-aid-kudlow-general-motors/



What do you think?


You must be logged in to post a comment.
Comments

Related Posts

COVID-19

post-image

Vaccine factories in shipping containers
18 February 2022 by Lynn Wood 0 Comments

COVID-19

post-image

Jobs on the rise- Australia
19 January 2022 by Lynn Wood 0 Comments

COVID-19

post-image

Being Covid-Safe Now Means Wearing N95 Masks
18 January 2022 by Maria MacNama... 2 Comments