Elizabeth Warren just laid out 8 conditions that companies should accept for government bailout money during the coronavirus crisis
- Warren unveiled eight conditions on Monday for companies that accept emergency federal funding during the coronavirus crisis.
- Democrats are attacking the proposed $50 billion in federal assistance for airlines as a bailout, given the industry has directed massive profits toward stock buybacks.
- "Let me be clear: We're not doing no-strings-attached bailouts that enrich shareholders or pay CEO bonuses. Period," Warren said on Twitter.
- Some of Warren's conditions included barring stock buybacks, giving workers a seat on the company's board of directors, and banning executive bonuses.
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Sen. Elizabeth Warren unveiled eight conditions on Monday that companies must accept for emergency federal funding during the coronavirus crisis.
The Trump administration is calling for over $50 billion to aid the airline industry, which has been battered by a wave of cancellations as the coronavirus spreads, compelling Americans to cancel travel plans and stay home. It would be part of a $1 trillion stimulus plan to shore up the economy and inject it with a deluge of cash.
But Democrats like Warren are attacking the proposed funding for airlines as a bailout. The nation's largest airlines are coming under fire from progressives for directing massive profits in recent years towards stock buybacks - which pushes up share prices - instead of increasing their financial cushion or improving labor conditions.
"Let me be clear: We're not doing no-strings-attached bailouts that enrich shareholders or pay CEO bonuses. Period," Warren said on Twitter.
Here are Warren's eight conditions:
- Companies must maintain payrolls and use federal funds to keep people working.
- Businesses must provide $15 an hour minimum wage quickly but no later than a year from the end
- Companies would be permanently banned from engaging in stock buybacks.
- Companies would be barred from paying out dividends or executive bonuses while they receive federal funds and the ban would be in place for three years.
- Businesses would have to provide at least one seat to workers on their board of directors, though it could be more depending on size of the rescue package.
- Collective bargaining agreements must remain in place.
- Corporate boards must get shareholder approval for all political spending.
- CEOs must certify their companies are complying with the rules and face criminal penalties for violating them.
Warren's rise to prominence began in the wake of the 2008 financial crisis. Since then, she's repeatedly called for tougher regulations on Wall Street and the financial sector, a centerpiece of her recent presidential campaign.
In a CNN op-ed published Monday, Warren called for an emergency rescue package that puts families first and helps them make ends meet.
"When the 2008 financial crisis hit, the federal government responded with a bankers' bailout. The rich and powerful got richer and more powerful," Warren wrote. "We should learn from the past and meet the challenges of this pandemic head-on, this time to deliver meaningful, grassroots relief directly to American families."
