The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

Tag: bailouts

Loophole Allowed Airline Firms To Fire Workers And Scam Bailout Funds

Reprinted with permission from ProPublica.

Three airline industry companies slated to receive $338 million in public money designed to preserve jobs in the hard-hit industry have laid off thousands of workers anyway, according to Treasury disclosure filings and public layoff data.

The largest company, Gate Gourmet, is a global preparer of airline meals and part of a Swiss conglomerate owned by the private equity firm of wealthy Malaysian businessman Richard Ong. Gate Gourmet is scheduled to get $171 million from the federal program to bail out the airline industry even after it reported laying off thousands of workers at airports in half a dozen states, including California, Georgia, New York and Illinois, in recent months, according to public filings. The exact number of workers who lost their jobs is not clear.

Read Now Show less

How Fed Bailout Greased A Top Treasury Official’s Family Financial Firm

Reprinted with permission from ProPublica.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin have become the public faces of the $3 trillion federal coronavirus bailout. Behind the scenes, however, the Treasury's responsibilities have fallen largely to the 42-year-old deputy secretary, Justin Muzinich.

A major beneficiary of that bailout so far: Muzinich & Co., the asset manager founded by his father where Justin served as president before joining the administration. He reported owning a stake worth at least $60 million when he entered government in 2017.

Read Now Show less

The Bailout Is Working — For The Very Rich

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

Ten weeks into the worst crisis in 90 years, the government's effort to save the economy has been both a spectacular success and a catastrophic failure.

The clearest illustration of that came on Friday, when the government reported that 20.5 million people lost their jobs in April. It marked a period of unfathomable pain across the country not seen since the Great Depression. Also on Friday, the stock market rallied.

Read Now Show less

Bless Their Hearts: How Red States Screw Blue States

Nothing angers Andrew Cuomo more than the notion that taxpayers in "red states" should resent or resist assistance for "blue states" struggling against the coronavirus. Hearing that message from Senate Republicans provoked the Democratic New York governor to remind the nation several times of the gross disparity between what his state remits to the Treasury and what their states reclaim in federal benefits.

Cuomo noted acidly that New York pays $116 billion more than it gets back annually, while lucky Kentucky, the home of Senate Majority Leader Mitch McConnell, gets $148 billion more than it pays. By that reckoning, New York has kicked in far more over the past few decades than any of the states whose Republican leaders criticize supposed liberal profligacy.

Read Now Show less

A New Message For Mitch: No More Red-State Bailouts

Reprinted with permission from Alternet

As of 48 hours ago, few people knew that Kentucky was the nation's leading recipient of federal largess, and certainly had no clue just how much the state received compared to the rest of the country. Then, Senate Majority Leader Mitch McConnell, Republican from Kentucky, started whining about "Blue state bailouts," and the shit has hit the fan.

Read Now Show less

McConnell Got Pandemic Funds For Kentucky — But Opposes ‘Blue State Bailouts’

Last month, Senate Majority Leader Mitch McConnell asked the federal government for emergency funding to help his state of Kentucky combat the coronavirus.

"As of March 24, 2020, Kentucky has confirmed 124 cases of COVID-19 and 4 fatalities," McConnell and the other members of Kentucky's congressional delegation wrote to Donald Trump.

Read Now Show less

Seeking To Slash Services, McConnell Rejects ‘Blue State Bailout’

Reprinted with permission from Alternet.

Senate Majority Leader Mitch McConnell staked out risky ground on Wednesday in an interview with right-wing radio host Hugh Hewitt with a callous dismissal of calls for Congress to support state and local governments amid the coronavirus pandemic and recession.

While many observers have argued the states will need federal support as their revenues collapse and their expenses spike, McConnell said he's more interested in letting the governments go bankrupt.

Read Now Show less

Trump Aiming To Cripple Bailout Oversight Board

Reprinted with permission from ProPublica.

In the wake of President Trump's move to push aside the official who was supposed to lead the coronavirus bailout watchdog group, four other members are just as vulnerable.

Trump was able to remove the panel's chosen head, Glenn Fine, by naming a new Defense Department inspector general and bumping Fine to the No. 2 job at the Pentagon watchdog office. No longer an acting inspector general, Fine was disqualified from serving on the panel he was supposed to lead.

Fine's removal sounded an alarm among Democrats in Congress, who had demanded that spending safeguards be built into the $2 trillion recovery package. House Democrats rushed out a proposed tweak that would stop further removals like Fine's by opening up eligibility to senior officials in IG offices, not just IGs themselves.

Read Now Show less