US President Donald Trump today paved the way for a sweeping change in the administration’s attitude to the private sector against the backdrop of the Corona expansion in the US economy, saying it would support the acquisition of shares in certain corporate shares by the administration.
At a news conference held in the White House, Trump was asked whether he would support the federal government to buy shares in companies, responding: “Yes, I really am. We will help the airline sector. We will help the cruise industry. We will probably help the hotel industry.”
Acquisitions of US stock exchange shares by the US government are a rare occurrence, except for cases of companies that are having difficulties in preventing the collapse and dismissal of their employees.
Corporate and sector aid applications due to the spread of the Corona virus, in the form of direct grants, loans, loan guarantees and tax relief, already amount to more than $ 2 trillion. However, businesses rarely seek to enter the government as owners for fear of losing control of the company.
Trump was asked at the press conference whether the $ 1 trillion stimulus package would suffice, and replied, “We’ll know later. We’ll see what happens. It depends on how long it lasts, a lot depending on what’s going on in this room, in terms of the medical side. To put the virus in place, it will be a lot. If we don’t succeed, we will have to talk again. “
Larry Cadlow, Trump’s senior economic adviser, said Wednesday that the administration may consider demanding a stake in the shares of companies seeking aid due to the Corona.
For an article by Jeff Mason and Alexandra Alper