Interesting headline
Corporations who defer interest payments in new lending program will not be allowed to buyback shares or pay dividends.
- Main street program in development could complement congressional proposals to help small businesses and get credit to full breadth of firms
- Hoping new programs will avoid technical forced defaults on corporate bonds as people practice social distancing
- New TALF program meant to reopen currently-challenged markets for auto loans, other forms of credit
- Corporate credit facilities meant to help companies survive crisis and ramp up after
- New facilities consistent with existing Fed powers, with lending to special purpose vehicles similar to programs used in earlier crisis
The Fed isn't supposed to be able to take credit risk but they're working with the Treasury so the government takes the losses if/when they come.
