“In 2008 the problem was that major financial firms were facing runs,” he said, and therefore needed cash. “In this situation, the nonfinancial corporates are where the problem is — that is, think about an airline or a restaurant” that is unable to make payroll. “Notwithstanding tensions between the parties and between the branches, it may be necessary to give the administration broad authority and flexibility to act, within the parameters and oversight structure set by the legislature,” Mr. Paulson wrote. It was unfortunate that such authorities needed to be reinstated amid a crisis, he said. “It would have been better to do it before the crisis,” Mr. Scott said.

Source: New York Times March 15, 2020 18:03 UTC