DON’T GET TOO EXCITED, ALREADY LOOKED, THE PEANUT BRITTLE, THE
ONLY PEANUT BRITTLE THEY ARE
SELLING IS THE SUGAR FREE, THAT
WILL NOT WORK FOR ME.
A DAY LATE AND HUNDREDS OF
BILLION DOLLARS SHORT, CONGRESS
OF COURSE SAYS IT’S WORKING TO
SECURE MORE MONEY FOR SMALL
BUSINESS LOANS BECAUSE THE FIRST
RAN OUT OF MONEY BUT IT’S TOO
LITTLE, TOO LATE.
CHARLIE GASPARINO JOINS US NOW
ON THE LATEST OF THE SMALL
BUSINESS OWNERS IN THE MIDST OF
THE PANDEMIC.
THE PANDEMIC. >> THERE’S AN INTERESTING ANGLE
THAT HAS NOT BEEN COVERED, WE
HAVE BEEN COVERING THE INABILITY
FOR A LOT OF SMALL BUSINESSES TO
GET THE MONEY AND WE’VE BEEN
COVERING HOW HEDGE FUNDS ARE
POSING AS SMALL BUSINESSES
BECAUSE THEY TECHNICALLY ARE,
THEY HAVE LESS THAN 500
EMPLOYEES, THEY STILL MAKE
INCOME, THEY SHOULD REALLY
QUALIFY FOR THIS PROGRAM WHICH
IS INTENDED FOR MOM-AND-POP
SHOPS AND SALONS, PEOPLE WITH A
REAL NEED AND NOT -- NO INCOME
COMING IN, THEY HAD TO LAY
PEOPLE OFF, HERE’S ANOTHER
INTERESTING SIDE ASPECT OF THE
PPP PROGRAM, THE PAYROLL
PROTECTION PROGRAM THAT IS
SUPPOSED TO GIVE LOANS TO SMALL
BUSINESSES, IT’S ADMINISTERED BY
THE BANKS, THE BIG BAKES HAND
THESE OUT OR YOU APPLY THROUGH
THEM OR YOU GET YOUR CHECK FROM
THEM AND YOU GET YOUR
APPLICATION, OBVIOUSLY THE REIGN
OF THE FIRST 350 MILLION, HERE’S
WHAT THE BANKS ARE WORRIED
ABOUT, THEY SAY THERE HAS BEEN
VERY LITTLE GUIDANCE FROM THE
TREASURY, BROAD-BASED MANDATE,
YOU BASICALLY GO OUT THERE AND
YOU CAN HAND CHECKS TO ANYBODY
WITH LESS THAN 500 EMPLOYEES
THAT QUALIFIES AS A SMALL
BUSINESS AND NOT A LOT OF
LENDING CRITERIA THAT THEY’RE
OPEN UP TO, I’M GETTING THIS
FROM SOURCES AT THE MAJOR WALL
STREET BANKS, BANK OF AMERICA,
CITIGROUP, YOU NAME THEM,
THEY’RE TELLING ME THAT THERE
WORRIED ABOUT SIGNIFICANT LEGAL
LIABILITY WHEN THIS IS ALL OVER,
WHY IS THAT, THERE WORRIED ABOUT
BEING SUED FOR NOT DOING ENOUGH
DUE DILIGENCE ON THE LOANS
BECAUSE THEY HAVE TO HAND THEM
OUT AND THERE’S A PUBLIC POLICY
NEED, THERE ALSO WORRIED ABOUT
DISCRIMINATION OR MAYBE RACIAL
DISCRIMINATION, THE WAY IT WAS
POSED TO ME, THE REASON WHY THEY
HAVE BEEN BUY THE BOOK AND
HANDING OUT THE LOANS, THEY
FIRST SERVE AND BEST CUSTOMERS,
IF YOU HAVE A CREDIT CARD AND A
CHECKING ACCOUNT, YOU ARE A
BETTER CUSTOMER THAN IF YOU JUST
HAVE A CREDIT CARD OR A LINE OF
CREDIT WITH THE BANK.
THERE WORRIED ABOUT RACIAL
DISCRIMINATION, SOMEONE COMING
UP AND SAYING YOU DID NOT GIVE
ENOUGH LOANS TO WOMEN-OWNED
COMPANIES, AFRICAN AMERICAN
COMPANIES, WHAT THEY ARE DOING
IS PRIORITIZING THESE LOANS TO
SAY WE HAD TO DO THIS BASED ON
THE BEST WAY THAT WE WERE TOLD
FROM THE FEDERAL GOVERNMENT THUS
WE PRIORITIZE ON A FIRST-COME
FIRST BASIS, BASED ON THE NEED
BY THE BUSINESS RELATIONSHIP
BECAUSE WE HAVE A RESPONSIBILITY
TO OUR SHAREHOLDERS TO TAKE CARE
OF THE BEST CUSTOMERS, WE
SHOULD POINT OUT THAT THIS IS
NOT AN ABSURD WORRY, I WOULD
TELL YOU, I COVERED THE
FINANCIAL CRISIS IN 2008, J.P.
MORGAN WAS SUED A LOCKED AND WHY
WERE THEY SUED BECAUSE THEY TOOK
OVER BEAR STEARNS THE COMPANY,
THEY TOOK OVER THE LIABILITY AS
WELL.
WELL. THEY GOT IN TROUBLE THAT A LOT
WAS DONE BY BEAR STEARNS, THEY
HAD TO ASSUME THEIR LEGAL
LIABILITY EVEN THOUGH IT WAS NOT
THE STAFF THAT WAS INVOLVED.
THIS IS NOT AN ABSURD WORRY, IF
YOUR STOCKHOLDER IN THE BIG
BANKS IT IS SOMETHING YOU SHOULD
LOOK AT GOING FORWARD, OBVIOUSLY
IT’S EARLY IN THE GAME BUT
DEFINITELY SOMETHING TO LOOK AT
IF YOU OWN SHARES OF THE BANK,
J.P. MORGAN, BANK OF AMERICA,
THIS IS SOMETHING THE LEGAL
STUFF IS WORRIED ABOUT INSIDE
THESE PLACES.
THESE PLACES. LIZ: REALLY QUICKLY, MY
QUESTION, PART OF WHAT NANCY
PELOSI SAID SHE WAS CONCERNED
ABOUT HIS HASTE MAKES WASTE, WE
HAVE TO GIVE THAT MONEY OUT VERY
QUICKLY BUT IN RETROSPECT YOU
ARE GOING TO FIND THAT THE RICH
HEADPHONES LEGALLY CAPITALIZED
ON THE MONEY, APPLIED AND GOT IT
WHEN THEY’RE STILL MAKING MONEY
HAND OVER FIST.
SO WHAT WILL HAPPEN, REAL QUICK.
>> I DON’T THINK ANYTHING’S
GOING TO HAPPEN, I’VE ASKED THE
BANKS AND TOLD YOU CANNOT GIVE
MONEY TO HEDGE FUNDS.
IF THEY ARE A CLIENT, GOOD
CLIENT, THEY GET PRIORITIZE, IF
THEY CAME IN FIRST, HEDGE FUNDS,
WERE NOT TALKING ABOUT THE BIG
STEVE COHEN HEDGE FUNDS, WERE
TALKING ABOUT HEDGE FUNDS HAVE
LESS THAN 500 EMPLOYEES AND THEY
CAN APPLY FOR THIS, THE PROBLEM
IS.
IS. LIZ: LEGALLY.
LIZ: LEGALLY. >> THEY PROBABLY SHOULD’VE TAKEN
ANOTHER WEEK TO THINK THROUGH
WHAT IS A SMALL BUSINESS THAT
SHOULD GET THIS MONEY.