ERICOPOLY Posted March 18, 2020 Share Posted March 18, 2020 A permanent ban on share buybacks. What is the point? https://www.cnn.com/2020/03/18/business/elizabeth-warren-bailout-buyback-ban/index.html The dividend will just go higher. Returning cash is returning cash. Link to comment Share on other sites More sharing options...
stahleyp Posted March 18, 2020 Share Posted March 18, 2020 I'd prefer something like any companies that take bailout money can't pay their ceo any more than 50x or 75x times their median employee...and anything over 25x has to be in company stock that they can't sell for 10 years. Link to comment Share on other sites More sharing options...
Castanza Posted March 18, 2020 Share Posted March 18, 2020 A permanent ban on share buybacks. What is the point? https://www.cnn.com/2020/03/18/business/elizabeth-warren-bailout-buyback-ban/index.html The dividend will just go higher. Returning cash is returning cash. I hope she conveniently ends up on the no fly list for all the airlines. Link to comment Share on other sites More sharing options...
stahleyp Posted March 18, 2020 Share Posted March 18, 2020 I hope she hits these guys hard. Everyone else will just lay down. Link to comment Share on other sites More sharing options...
Viking Posted March 18, 2020 Share Posted March 18, 2020 I wish people were spending their scarce resources finding solutions to the current issue: the virus. Her time would be better spent understanding Taiwan, Singapore and Hong Kong responses and how to fast adapt to US. Otherwise Ackman's fear will play out. And then she won't have to worry about stock buybacks because the US will be in a depression. Companies would be idiots to do a stock buyback right now... worse than tone-deaf... hello Starbucks? (That CEO just became famous... this will likely go down as one of the great gaffe's of this whole sorry episode.) Link to comment Share on other sites More sharing options...
Castanza Posted March 18, 2020 Share Posted March 18, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. Edit: either provide assistance with terms on the loan and let them handle it. Or don’t. You’re crossing the line when you try to dictate wages and all kinds of other political nonsense. Why not just buy out the airlines, convert it to a co-op and then handout copies of the Communist Manifesto? “Never let a good crisis go to waste!” Just another excuse to expand government control... Link to comment Share on other sites More sharing options...
stahleyp Posted March 18, 2020 Share Posted March 18, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. I was thinking more about Boeing but shareholders should never expect a bailout and companies should prepare accordingly. They had a shock with 9/11 so they know that things can and do happen. Link to comment Share on other sites More sharing options...
stahleyp Posted March 18, 2020 Share Posted March 18, 2020 I wish people were spending their scarce resources finding solutions to the current issue: the virus. Her time would be better spent understanding Taiwan, Singapore and Hong Kong responses and how to fast adapt to US. Otherwise Ackman's fear will play out. And then she won't have to worry about stock buybacks because the US will be in a depression. Companies would be idiots to do a stock buyback right now... worse than tone-deaf... hello Starbucks? (That CEO just became famous... this will likely go down as one of the great gaffe's of this whole sorry episode.) I liked that they were thinking independently and not following the herd. Link to comment Share on other sites More sharing options...
Sharad Posted March 18, 2020 Share Posted March 18, 2020 A permanent ban on share buybacks. What is the point? https://www.cnn.com/2020/03/18/business/elizabeth-warren-bailout-buyback-ban/index.html The dividend will just go higher. Returning cash is returning cash. Why not bail them out with government help at pennis on the dollar, and then give secured bondholders and the company the option to buy said bailout shares from the government for 3x (or some exorbitant multiple of) the cost to the government one year from now to remove all conditions? That might make the company think twice about leaving less than a quarter's worth of operating cashflow on the books at any given time. Link to comment Share on other sites More sharing options...
Viking Posted March 18, 2020 Share Posted March 18, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. Link to comment Share on other sites More sharing options...
Castanza Posted March 18, 2020 Share Posted March 18, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. Link to comment Share on other sites More sharing options...
rb Posted March 18, 2020 Share Posted March 18, 2020 I wish people were spending their scarce resources finding solutions to the current issue: the virus. Her time would be better spent understanding Taiwan, Singapore and Hong Kong responses and how to fast adapt to US. Otherwise Ackman's fear will play out. And then she won't have to worry about stock buybacks because the US will be in a depression. Companies would be idiots to do a stock buyback right now... worse than tone-deaf... hello Starbucks? (That CEO just became famous... this will likely go down as one of the great gaffe's of this whole sorry episode.) Why, if my position is strong and I have money, and my stock is cheap why shouldn't I do a buyback? If you were a moron and were doing buybacks when your stock was at 30x earnings, sure sucks to be you. Buy guess what, the smart thing is to do buybacks when your stock is cheap, not when it's expensive. Link to comment Share on other sites More sharing options...
Liberty Posted March 18, 2020 Share Posted March 18, 2020 A permanent ban on share buybacks. What is the point? https://www.cnn.com/2020/03/18/business/elizabeth-warren-bailout-buyback-ban/index.html The dividend will just go higher. Returning cash is returning cash. Politicians try to win votes. They say things that they think will be popular. Doesn't have to make too much financial sense. Link to comment Share on other sites More sharing options...
Viking Posted March 18, 2020 Share Posted March 18, 2020 I wish people were spending their scarce resources finding solutions to the current issue: the virus. Her time would be better spent understanding Taiwan, Singapore and Hong Kong responses and how to fast adapt to US. Otherwise Ackman's fear will play out. And then she won't have to worry about stock buybacks because the US will be in a depression. Companies would be idiots to do a stock buyback right now... worse than tone-deaf... hello Starbucks? (That CEO just became famous... this will likely go down as one of the great gaffe's of this whole sorry episode.) Why, if my position is strong and I have money, and my stock is cheap why shouldn't I do a buyback? If you were a moron and were doing buybacks when your stock was at 30x earnings, sure sucks to be you. Buy guess what, the smart thing is to do buybacks when your stock is cheap, not when it's expensive. Starbucks has a very strong brand. This move hurts their brand. Look at the negative press from today; it is only the beginning - they are going to continually get skewered. Perception is very important. Link to comment Share on other sites More sharing options...
rb Posted March 19, 2020 Share Posted March 19, 2020 I wish people were spending their scarce resources finding solutions to the current issue: the virus. Her time would be better spent understanding Taiwan, Singapore and Hong Kong responses and how to fast adapt to US. Otherwise Ackman's fear will play out. And then she won't have to worry about stock buybacks because the US will be in a depression. Companies would be idiots to do a stock buyback right now... worse than tone-deaf... hello Starbucks? (That CEO just became famous... this will likely go down as one of the great gaffe's of this whole sorry episode.) Why, if my position is strong and I have money, and my stock is cheap why shouldn't I do a buyback? If you were a moron and were doing buybacks when your stock was at 30x earnings, sure sucks to be you. Buy guess what, the smart thing is to do buybacks when your stock is cheap, not when it's expensive. Starbucks has a very strong brand. This move hurts their brand. Look at the negative press from today; it is only the beginning - they are going to continually get skewered. Perception is very important. Oh yea, ppl are gonna quit starbucks cause they do a buyback... phualease! The guys at chick-fil-a hate gay ppl and I had to stand in line to buy some chicken in west freaking hollywood. And seriously out of all the companies to be insensitive to issues... Starbucks?? Really?? Link to comment Share on other sites More sharing options...
stahleyp Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. Link to comment Share on other sites More sharing options...
KJP Posted March 19, 2020 Share Posted March 19, 2020 House Dems pandemic response plan: https://financialservices.house.gov/uploadedfiles/fsc_covid-19_legislative_package_-_03.18.20.pdf Link to comment Share on other sites More sharing options...
Castanza Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. That’s not leveling the playing field. That’s straight up intervention and beyond. The business was fine before the pandemic. If you want to say “keep more cash on hand because next time you’re not getting a bailout” fine. Are you going to make that same mandate for every small business across the country? Ridiculous. Link to comment Share on other sites More sharing options...
Gregmal Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. That’s not leveling the playing field. That’s straight up intervention and beyond. The business was fine before the pandemic. If you want to say “keep more cash on hand because next time you’re not getting a bailout” fine. Are you going to make that same mandate for every small business across the country? Ridiculous. The ordinary people that would bitch about a bailout would be the casualties. Retail/hospitality/airline/small business. Its not bankers and mortgage brokers this time. Link to comment Share on other sites More sharing options...
Spekulatius Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. That’s not leveling the playing field. That’s straight up intervention and beyond. The business was fine before the pandemic. If you want to say “keep more cash on hand because next time you’re not getting a bailout” fine. Are you going to make that same mandate for every small business across the country? Ridiculous. A bailout is Intervention to begin with. I actually think the management should be booted in many cases. Heads on sticks do serve a purpose for a better future. #skininthegame. I don’t think buybacks are problem, the problem is that they are overused. The classical examples are ASL and BA which both de-equitized their company with massive buybacks, leveraging their balance sheet and in BA case both their balance sheet and their supply chain. Link to comment Share on other sites More sharing options...
Castanza Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. That’s not leveling the playing field. That’s straight up intervention and beyond. The business was fine before the pandemic. If you want to say “keep more cash on hand because next time you’re not getting a bailout” fine. Are you going to make that same mandate for every small business across the country? Ridiculous. The ordinary people that would bitch about a bailout would be the casualties. Retail/hospitality/airline/small business. Its not bankers and mortgage brokers this time. I’m all for the bailout of individuals with some type of temporary loan until the dust settles. I just think it’s disingenuous to use this as a power grab over “big bad business”. Airlines provide a shit ton of utility at razor thin margins. Not to mention they already operate under extreme regulations. Link to comment Share on other sites More sharing options...
Castanza Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. That’s not leveling the playing field. That’s straight up intervention and beyond. The business was fine before the pandemic. If you want to say “keep more cash on hand because next time you’re not getting a bailout” fine. Are you going to make that same mandate for every small business across the country? Ridiculous. A bailout is Intervention to begin with. I actually think the management should be booted in many cases. Heads on sticks do serve a purpose for a better future. #skininthegame. How can you mandate they pay a minimum wage higher than the federal minimum wage? That’s an attack on a specific industry and specific businesses. That’s not the function of government. Link to comment Share on other sites More sharing options...
stahleyp Posted March 19, 2020 Share Posted March 19, 2020 I hope she hits these guys hard. Everyone else will just lay down. Why? What exactly did they do wrong? Let’s jack up the Capex on all of these companies so the already razor thin margins in the airline industry tighten even more and increase prices putting air travel back out of reach for the average American. The issue is 2008-09 is still fresh in many people's minds. Lots of ordinary people lost everything in the housing crash. Lots of big corporations got bailed out. Same thing looks to be happening again. Warren feels the scale is tipped too much one way. Lots of voters agree with her. I don’t disagree that lending should be sparingly and stringent. But you cross a line when you start mandating wages etc. There are simply better ways to structure this. They would be mandating wages if they take the offer. They don't have to take the offer. That's fair. The executives have "compensation consultants" to help them make more. Employees don't have that. You have to level the playing field. That’s not leveling the playing field. That’s straight up intervention and beyond. The business was fine before the pandemic. If you want to say “keep more cash on hand because next time you’re not getting a bailout” fine. Are you going to make that same mandate for every small business across the country? Ridiculous. Are small businesses leveraging up to juice their stock price? Do small business owners make 400x median employee? Link to comment Share on other sites More sharing options...
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