Smart. Sharp. Funny. Fearless.

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

Tag:

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