Draft invoice places 1-year ban on buybacks for bailed out companies



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A draft copy of the large $2 trillion Senate rescue bundle anticipated to be handed on Wednesday would bar corporations receiving federal loans from inventory buybacks for one 12 months after the mortgage is paid again.

The large rescue bundle authorizes $25 billion in loans to passenger air carriers, $four billion to cargo air carriers, and $17 billion for "companies essential to sustaining nationwide safety." It additionally authorizes as much as $454 billion in loans to different eligible companies in any other case unable to obtain credit score. 

The laws would additionally bar giant corporations from paying dividends to shareholders for one 12 months after the mortgage is paid again, and from lowering their employment ranges by 10% till the top of September. Mid-sized corporations can be barred from paying dividends whereas the mortgage was excellent. 

Along with loans, the laws additionally authorizes money grants to these within the airline trade. It requires $25 billion in grants for passenger...



Supply cnbc.com



Source marketwatch.com