3.3 Million in U.S. Filed for Unemployment: Live Business Updates


Lawmakers put some restrictions on the compensation of executives whose companies receive government assistance under the bill, in an effort to address one of the criticisms about bailouts of banks and other companies during the 2008 financial crisis. But the limits will not do away with multimillion dollar paydays for corporate bosses.

THE DETAILS Executives who made more than $3 million in 2019 could be awarded $3 million, plus half of any sum in excess of $3 million. As a result, a chief executive who earned $20 million in 2019 would be allowed compensation of $11.5 million, or $3 million plus half of $17 million per year. The restrictions would apply from the time the federal support begins to one year after it ends.

In addition, companies receiving assistance will not be allowed to increase the compensation of executives who earned between $425,000 and $3 million in 2019 until a year after government support ends.

THE CONTEXT Of course, senior executives and their boards of directors could decide on their own to pay themselves far less to show investors, employees and lawmakers that they, too, are making a sacrifice. But those who don’t would effectively have their compensation subsidized by taxpayers, said Sarah Anderson, a project director at the Institute for Policy Studies, a progressive research organization based in Washington.

The Aid Plan

Unlike the federal stimulus packages enacted in 2008 and 2009, the legislation passed by the Senate is not focused on the country’s biggest banks. Emergency relief measures enacted by the Federal Reserve have already given those companies access to short-term funding and added liquidity, or ease of trading, to the markets. So the role of banks in the rescue bill is to provide much-needed capital to businesses and taxpayers.

THE DETAILS Banks are widely expected to provide loans and other types of financing to distressed individuals and companies. To ensure that their own access to cash is not hampered by a raft of new client demands or market developments, the Fed has encouraged them to use the so-called “discount window,” its lending operation for big banks, and at least eight major financial institutions already have. As part of the stimulus package, banks can opt out of observing new federal accounting standards for estimating future credit losses during the period covered by the law.

THE CONTEXT Thanks to the Dodd-Frank Act of 2010 and new regulatory requirements that have been placed on major market participants, the U.S. financial system is in a far better position than it was in 2008, when big banks relied too heavily on borrowed money to fund themselves and their future obligations. But the backstops the government is providing to troubled borrowers could benefit the banks too.


How much money will individuals get — and how will it be distributed? How are unemployment benefits changing? Are gig workers included?

The Senate unanimously passed a $2 trillion economic stimulus plan on Wednesday that will offer assistance to tens of millions of American households affected by the coronavirus. Its components include payments to individuals, expanded unemployment coverage that includes the self-employed, loans for small businesses and nonprofits, temporary changes to withdrawal rules from retirement accounts, and more.

The House of Representatives was expected to quickly take up the bill and pass it, sending it to President Trump for his signature.

We collected answers to common questions about what’s in the bill.

The Trump administration is considering postponing tariff payments on some imported goods for 90 days, according to people familiar with the matter, as it looks to ease the burden on businesses hurt by the coronavirus pandemic.

The world is awash in crude oil it doesn’t need, and is slowly running out of places to put it.

The coronavirus pandemic has strangled the world’s economies, silenced factories and grounded airlines, cutting the need for fuel. But Saudi Arabia, the world’s largest producer, is locked in a price war with its rival Russia and is determined to keep raising production.

So storage facilities around the globe are filling up. Huge tankers filled with crude are anchored off coastlines, with no place to go.

“For the first time in history, we are seeing the likelihood that the market will test storage capacity limits within the near future,” said Antoine Halff, a founding partner of Kayrros, a market research firm.

As storage space becomes harder to find, the prices, which have already fallen more than half this year, could drop even further. And companies could be forced to shut off their wells.

The most vulnerable people — poor women, farmers, widows, and senior citizens — will also receive small direct cash transfers to their bank accounts.

The extended lockdown is expected to be particularly hard on poor workers, most of whom feed themselves from their day’s earnings. With everyone ordered to stay inside and virtually all businesses closed, these workers no longer have a way to make a living.

For medical workers and others on the front line of the coronavirus response, the government said it would provide 5 million rupees, or about $67,000, of health insurance coverage.

For wealthier workers employed by corporations, the central government will make all the required contributions for the next three months to their state-sponsored retirement accounts.

Reporting was contributed by Niraj Chokshi, Vindu Goel, Kate Kelly, Peter Eavis, Neil Irwin, Tara Siegel Bernard, Ron Lieber, Peter S. Goodman, Patricia Cohen, Tiffany Hsu, Kevin McKenna, Ben Casselman, Geneva Abdul, Amie Tsang, Carlos Tejada, Alexandra Stevenson, Su-Hyun Lee and Heather Murphy.

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