Draft bill puts 1-year ban on buybacks for bailed out firms


A guy walks by the Wall Road subway sign on March 23, 2020 in New York Town.

Angela Weiss | AFP | Getty Illustrations or photos

A draft copy of the large $2 trillion Senate rescue package expected to be handed on Wednesday would bar firms getting federal financial loans from inventory buybacks for one particular year immediately after the personal loan is compensated back again.

The massive rescue offer authorizes $25 billion in financial loans to passenger air carriers, $4 billion to cargo air carriers, and $17 billion for “companies critical to maintaining countrywide stability.”

The legislation would also bar sure providers from shelling out dividends to shareholders for a person calendar year right after the mortgage is paid back, and from cutting down their work amounts by 10% until the conclusion of September. 

The text of the legislation will have to be finalized and voted on by the Senate, approved by the Democratic-managed Residence of Associates and signed by President Donald Trump ahead of becoming legislation.

The Senate is envisioned to acquire up the legislation later Wednesday. The Household is not likely to vote on the make a difference until finally Thursday. 

— CNBC’s Kayla Tausche contributed to this report.

This is breaking news. Check again for updates. 


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