The sudden cessation of operations by the trucking titan, Yellow Corp. (NASDAQ:YELL), may lead to financial losses for American taxpayers, highlighting the inherent risks of government aid to corporations.
Government’s Lifeline To Yellow And Its Implications
In 2020, during the peak of the Covid-19 pandemic, the U.S. government loaned Yellow $700 million, a move that kept the company afloat and facilitated its business expansion plans.
The Treasury Department acquired approximately a 30% equity stake in the company as part of the deal. However, the handling of the loan by the Trump administration has since been scrutinized in at least three government investigations, The Wall Street Journal reports.
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Yellow Shuts Operations, Ready To File For Bankruptcy
Yellow has now ceased …
