Global Markets Recap
Some wealthy businesses and people got Payroll Protection Program dollars while many honest-to-goodness, legitimate mom-&-pop shops were shut out, NBC News reports. “Billionaire property developer Joe Farrell, a prominent fundraiser, received up to $1 million in taxpayer coronavirus relief funds, according to federal data released Monday.
Other players in the world of celebrity & influence who took advantage of loans under the Paycheck Protection Program, or PPP, to help struggling small businesses hurt by coronavirus shutdowns included a rapper’s $3 billion clothing company, multimillionaire pop artist Jeff Koons & the Church of Scientology, which is reported to be worth at least $1 billion.”
Stories like this point to a major flaw in the system; the government itself cannot serve as the liaison on a complex program of this nature. The Fed hired BlackRock to trade bonds for them & that kind of thinking might have gone a long way here, too.
“Even if they technically could argue that they did meet the criteria, taking the money clearly violates the spirit of the law and just seems greedy & wrong. This is one of the reasons why transparency is so important,” said Neil Barofsky, the former special inspector general for TARP, which had relief oversight in the 2008 crisis.