President Donald Trump on stock buybacks with government aid: 'We don't want that'

White House holds a briefing on the government's response to the coronavirus pandemic.

President Donald Trump said on Thursday that he would not oppose barring companies that receive federal assistance during the coronavirus pandemic from conducting stock buybacks.

“It takes many many people in this case to tango, but as far as I’m concerned conditions like that would be okay with me,” Trump said during a White House press conference when pressed on whether he would support a provision forbidding stock buybacks in a bailout bill.

Trump said he was “never happy” with stock buybacks, but that it was difficult to prevent companies from doing them. “It’s very hard to tell them not to, but I would tell them not to, I would say I don’t like it,” he said.

The comments come as the White House and Congress are hammering out the details of a stimulus package expected to top $1 trillion in spending.

U.S. airlines, which are at the epicenter of the coronavirus outbreak as bookings crumble and cancellations outpace bookings, are seeking more than $50 billion aid, including direct grants from the government.

Some lawmakers, however, say that any bailout must ban on buybacks.

The four biggest U.S. carriers — Delta, American, Southwest and United — have collectively spent about $39 billion over the last five years buying back shares, according to a tally from S&P Dow Jones Indices.

Those carriers’ shares are now trading at multiyear lows. Boeing, which is also seeking government aid, spent more than $35 billion in that period.

Proposals to put conditions on federal bailouts have come from progressive lawmakers including Sen. Elizabeth Warren, D-Mass., and Rep. Alexandria Ocasio-Cortez, D-N.Y.

Warren has proposed that companies receiving federal assistance should be barred from buybacks permanently, and prevented from issuing dividends or executive bonuses for three years.

Warren has also proposed requiring those firms to boost their minimum wage to $15 an hour within a year of the end of the crisis, and provide a board seat to workers.

“If there is so much as a DIME of corporate bailout money in the next relief package, it should include a reinstated ban on stock buybacks,” Ocasio-Cortez tweeted earlier this week.

Billionaire entrepreneur Mark Cuban has also weighed in, saying that bailed out firms should be barred from buybacks forever.

“Not now. Not a year from now. Not 20 years from now. Not ever,” Cuban told CNBC on Wednesday. “Because effectively you’re spending taxpayer money to buyback stock and to me that’s just the wrong way to do that.”

Airlines for America, the sector’s lobbying group, argued Tuesday that “U.S. carriers have invested heavily in their employees, who are the backbone of the industry, to increase salaries and pensions over the last decade,” saying that between 2010 and 2018 airline worker compensation rose about 41% on average.

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[alpinemaximus]

Just let them fail. Let the whole thing crash, or we’ll be back here in a few years.

[lynnebarnes]

Warm fuzzy socialism for the corporations, rugged individualism for the rest of us, or is Trump a SOCIALIST? He may as well try it, they are out of options.

[therealpotheadmedia]

Ronald Reagan 1982 started the BuyBacks hence all the crashes since

[dennisjanda]

I don't feel better off than four years ago so I'll wait for the next four years if I survive..Just Sayin' !!

[TECHN]

Trump is working hard for the first time in his Presidency!

[thecomeupkidz]

We don't want that, but we're not going to do anything to stop it.

[stitchintime]

Trump is avoiding the question of money going for buybacks. Folds, do you love the way he is PASSING THE BUCK TO STATES?

[Spanosmusic]

No body in their wildest dreams could have imagined we would need so many ventilators, except anyone who was paying attention to what was happening in China months ago. We're in this together, but that doesn't mean we're going to ship medical supplies! As far as that goes, states are responsible for buying their own medical supplies. Good Luck!

[sandburgmartin]

1.2 Trillion to shore stock market for a day. 1.3 Trillion in tax cuts that mainly aided top 3%ers. Last BAILOUT favored business execs and aided monopolistic acquisitions while layoffs and foreclosures thrived.

[kt]

Huh, a president actually taking questions.

[paulneuenswander]

Trump should also look at CEO bonuses, Make sure you state noCEO will be payed with this money. They got nice enough packageswhen they retire. Put 1 or 2 workers reps on the boards. No dividendsno buybacks.

[VADORT]

MORE FED print DOLLAR MORE DOLLAR HAS VALUE LOL WTF !!

[lawrencesullivan]

always refusing to take a strong stand/ "we are not a shipping clerk"! what a comment. "nobody in their wildest dreams"?? no only in his demented, distorted mind

[lenering]

Donald is not having fun anymore. Hahahaha