In unusual deal, U.S. Treasury to acquire 30 percent of trucking company in exchange for $700M loan
Source: Washington Post
In unusual deal, U.S. Treasury to acquire 30 percent of trucking company in exchange for $700 million loan
YRC Worldwide helps the U.S. military with transportation needs, the government said
The Treasury Department announced Wednesday that it will loan $700 million to a trucking firm that ships military equipment, in exchange for having U.S. taxpayers acquire an almost 30 percent stake in the company.
Under the unusual arrangement, the Treasury Department will provide the emergency loan to YRC Worldwide, while taking a 29.6 percent equity stake in the company. The U.S. government does not typically take ownership stakes in companies but was given permission to do so by Congress as a way to ensure taxpayer funds are not misspent.
The deal is the first under a $17 billion loan program approved as part of the broader stimulus by Congress in March. That pot of money was earmarked for firms deemed “critical” to U.S. national security. Congress gave Treasury the authority to approve more than $500 billion in emergency loans to companies and cities, although most of that money has not been disbursed.
“We are pleased for Treasury to make this loan pursuant to the CARES Act,” Secretary Steven T. Mnuchin said in a statement. “This loan will enable a critical vendor to the Department of Defense to maintain significant employment while providing appropriate compensation to taxpayers.”
Read more: https://www.washingtonpost.com/business/2020/07/01/treasury-loan-yrc-worldwide-cares-act/
Looks like socialism to me!
I wonder how many Republicans will howl about this...
= new reply since forum marked as read
Wasn't taking ownership stakes in companies railed against by GOPeers when Obummer 
did it????????
The gazillionth example of GOPee hypocrisy.
Do I need to include this?
