Companies that give up stock buybacks for 5 years will get preferential treatment in $52 billion CHIPS program, Commerce Secretary Raimondo says

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Companies that give up stock buybacks for 5 years will get preferred treatment in $52 billion CHIPS program, Commerce Secretary Raimondo says

Commerce Secretary Gina Raimondo said the Biden administration's preference for companies that place a five-year ban on stock buybacks for CHIPS and Science Act funding will lower the cost of building larger manufacturing hubs.

Raimondo said stock buybacks is one factor being taken into consideration as part of a $39 billion manufacturing subsidy program. The agency, which released its criteria last week, is also weighing recruitment and training strategies as well as childcare benefits for employees, among other issues. The law also creates a 25% investment tax credit for building chip plants, estimated to be worth $24 billion.

"The law says that these companies are not allowed to use the taxpayer money to do a buyback or pay a dividend. Beyond that, we're giving a preference to companies who voluntarily say they won't do a buyback for five years," Raimondo told CNBC'son Monday. "Why? Because this is about enhancing research and development in America. The money should be used to expand in America, to out-innovate the rest of the world. Invest in R&D and your workforce, not in buybacks.

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I think that's called 'extortion' or 'bribery'

The dividends will increase right after they get the funds.

Handouts for the rich and a pandemic for the poor

It's because they know that stock buybacks can absolutely fuk the corrupt, criminal naked shorting practices that hedgefunds like citsecurities use to destroy companies and steal money from retail investors.

Wut?

Let companies do what best for their shareholders and the government should do what is best for the country and not social engineering!

Here come the dividends.

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