Trump Supports Govt Taking Stake in Certain Companies

U.S. President Donald Trump on Thursday opened the door to a sweeping shift in the government's relation to private industry as the coronavirus outbreak upends the nation's economy, saying he would back the government taking stakes in certain companies.

Asked if he would support the federal government moving to take an equity stake in some companies, Trump said: "I do. I really do."

Trump, speaking at a news conference at the White House, added: "We will be helping the airline industry. We will be helping the cruise ship industry. We probably will be helping the hotel industry."

Trump spoke after U.S. Treasury Secretary Steven Mnuchin said that equity stakes could be a part of the hundreds of billions of dollars in aid to airlines and larger companies that President Donald Trump's administration is proposing.

Asked on Fox Business Network whether the government would consider taking equity stakes in companies, Mnuchin said: "As it relates to the big companies like the airlines, we're looking at making secured loans on market terms. So, you know, we'll see whether that includes equity or doesn't include equity, and again, we're not going to force things on people."

Mnuchin said that in helping firms that need liquidity, the administration will "make sure that the taxpayers are compensated fairly."

The Treasury Department on Wednesday proposed a $1 trillion rescue plan, which included $50 billion in financing aid for airlines and $150 billion for other industries, $300 billion for small and mid-size businesses and $500 billion for payments to individuals.