As talks continue on a massive economic stimulus package to offset the negative financial impact of the Coronavirus, President Donald Trump told reporters Thursday that he could support a plan used in earlier bailouts by Uncle Sam, which would give the federal government an equity stake in companies which take emergency government loans.
"I do, I really do," President Trump said when asked by a reporter if he supported the idea of the feds getting an equity stake in companies which take loans.
Asked about the ballpark estimate of $1 trillion for an overall stimulus package, the President said the final numbers would simply depend on how swiftly the Coronavirus can be brought under control.
“We will be helping the airline industry. We will be helping the cruise ship industry,” Mr. Trump said. “We probably will be helping the hotel industry.”
I asked President Trump if he supports the idea of the federal government taking equity stakes in companies that may fail. He said “I do, I really do.” Flashbacks to 2008 and the auto industry bailout.— Ben Tracy (@benstracy) March 19, 2020
Trump: "We will be helping the airline industry. We will be helping the cruise ship industry. We probably will be helping the hotel industry” pic.twitter.com/zKTD8d8T17— QuickTake by Bloomberg (@QuickTake) March 19, 2020
Talk of bailouts has left some in Congress uneasy.
"No corporate bailouts," tweeted Rep. Justin Amash (I-MI).
"We shouldn’t be bailing out large companies. Period," said Sen. Rick Scott (R-FL), a key ally of the President, who has also pressed the White House to do more on Coronavirus testing.
The president said he is open to the federal government taking an equity stake in some businesses.— Kelly O'Donnell (@KellyO) March 19, 2020
He also supports relief aid being restricted from executive compensation
Mr. Trump also indicated he would be open to two other provisions which have been talked about by many Democrats - one which would not allow companies getting federal aid to buy back their company's stock, along with restrictions on executive pay.
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