Former Goldman Sachs CEO breaks Twitter hiatus to criticize Schumer-Sanders anti-buyback proposal
Clearstead Advisors' James Awad on Sen. Chuck Schumer and Sen. Bernie Sanders planning to introduce a bill going after stock dividends and the outlook for the markets.
The prior head of Goldman Sachs broke a nearly seven-month Twitter hiatus on Tuesday to criticize an effort from prominent U.S. senators to make it more difficult for companies to buy back their own stock from investors.
Former CEO Lloyd Blankfein -- who departed the investment firm in 2018 – argued in a post on the social media site that companies “used to be encouraged to return money to shareholders when it couldn't reinvest in itself for a good return.”
“The money doesn't vanish, it gets reinvested in higher growth businesses that boost the economy and jobs. Is that bad?,” he tweeted.
In an op-ed on Monday, Senate Minority Leader Chuck Schumer, D-N.Y., and Sen. Bernie Sanders, a Vermont independent who caucuses with Democrats, advocated for legislation to require companies to enhance worker benefits before purchasing shares.
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Democrats have seized on a slew of record stock buybacks to criticize the GOP-led tax law, which permanently lowered the corporate rate to 21 percent and spurred higher profits at many U.S. businesses. While several companies provided bonuses to employees with the savings, others also simulatenously initiated billion-dollar share repurchases.