Warren Calls on Mnuchin and Powell to Protect Workers & Root Out Corruption When Doling Out New CARES Act $500 Billion Bailout Fund

Statement

United States Senator Elizabeth Warren (D-Mass.) sent a letter to Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jay Powell in which she laid out a detailed list of conditions that should come with any bailout funds to corporate America. In her letter, Senator Warren urged Secretary Mnuchin and Chairman Powell to use their broad authority under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to ensure that bailout funds (1) are used to protect workers and not to reward corporate misbehavior; and (2) are protected by strong anti-corruption and transparency rules.

"Any bailout funds should come with strict conditions to ensure that the funds are used to protect workers and the economy rather than just benefitting wealthy senior executives," the senator wrote. "I will be watching carefully as you hand out these funds."

While the CARES Act included some protections for workers and the economy -- including requirements that companies receiving these funds not engage in stock buybacks until after they have repaid their loan -- these statutory protections are insufficient and incomplete. However, the legislation gives the Treasury Secretary and Federal Reserve Chairman the authority to make discretionary decisions about the recipients of this huge bailout for big corporations, and the terms and conditions under which they receive aid.

Senator Warren asked that Secretary Mnuchin and Chairman Powell use their legal authority over the funds and adhere to the following principles when deciding which big corporations will benefit from the bailout and under what terms:

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