Why would they?
They're not going to have to re-issue shares at a lower price; they're going to get bailed out by the taxpayers.
The conditions for government money should be:
1. All current debt is converted into shares, erasing payback preferences and on-going payments to creditors.
2. Companies must issue new shares as collateral to the government at current market rate, in exchange for the money.
3. Rather than repayment, the government will sell the shares on the open market in years 2-6 (a 5 year window).
4. All share buybacks at the company are banned for a period of 10 years.
It's okay to nationally support critical businesses, but make the shareholders take it in the wallet for their reckless business practices leading up to this.
They took a gamble by buying shares instead of saving -- let them take the hit for losing.
They're not going to have to re-issue shares at a lower price; they're going to get bailed out by the taxpayers.
The conditions for government money should be:
1. All current debt is converted into shares, erasing payback preferences and on-going payments to creditors.
2. Companies must issue new shares as collateral to the government at current market rate, in exchange for the money.
3. Rather than repayment, the government will sell the shares on the open market in years 2-6 (a 5 year window).
4. All share buybacks at the company are banned for a period of 10 years.
It's okay to nationally support critical businesses, but make the shareholders take it in the wallet for their reckless business practices leading up to this.
They took a gamble by buying shares instead of saving -- let them take the hit for losing.