FT News Briefing Fed to extend debt purchases, US small businesses struggle, Robinhood hit with legal complaint
Dec 17, 2020
The Federal Reserve is set to continue its significant monthly debt purchases to support the struggling U.S. economy. Meanwhile, small businesses are grappling with a credit crunch while larger corporations thrive. Luckin Coffee faces a hefty $180 million penalty for accounting fraud, raising questions about corporate accountability. Additionally, Robinhood is under legal scrutiny in Massachusetts over its marketing practices. The episode sheds light on the urgent need for targeted support for smaller enterprises.
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Fed Continues Support
- The Federal Reserve will maintain its support for the US economy through bond purchases.
- This decision aims to boost the economy's recovery by ensuring market stability.
Uneven Recovery
- Large companies have easier access to financing than smaller businesses during the pandemic.
- This advantage creates an uneven recovery, favoring larger corporations.
American Airlines vs. GNS Foods
- American Airlines secured billions in bonds, demonstrating large companies' access to capital markets.
- GNS Foods, a smaller supplier, struggled to obtain financing, highlighting the challenges faced by small businesses.