Conditions for companies that get virus aid: Room for abuse?
MARCY GORDON
AP Business Writer
WASHINGTON (AP) — A $500 billion federal aid package for companies and governments hurt by the coronavirus includes rules aimed at ensuring that the taxpayer money is used in ways that would help sustain the economy. But questions are being raised about whether those guardrails will prevent the kinds of abuses that have marked some corporate bailouts of the past.
In return for the emergency loans, which could be spun by the Federal Reserve into up to $4.5 trillion, companies will face temporary limits on what they can pay executives. They'll also need to keep their workforces stable or at least not lay off more than 10% for several months. And they'll face restrictions on stock buybacks and dividend increases.
Yet loopholes may lurk in the legislation
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