EDITOR NOTE: Hypocrisy reigns as defenders of "free market" line up at the trough for their fair share of bailout money.
“I won't insult your intelligence by suggesting that you really believe what you just said.”
Barry Ritholtz, Author of Bailout Nation, just got a bailout.
Please note the $1.3 billion Ritholtz Wealth Firm Takes Out a PPP Loan.
Count Ritholtz Wealth Management among the $1bn-plus RIAs which have taken out government-backed coronavirus relief loans.
Reformed Broker Under Pressure
The RIA’s chief executive, Josh Brown had this to say in a Reformed Broker blog post.
We qualified for the SBA-backed payroll protection loan after submitting our information and attestations. Two and a half months worth of employee payroll. I’m never comfortable taking on debt, but I’m even less comfortable about the idea of having to let people go. I would never be able to look myself in the mirror again if I had made that promise and didn’t back it up with action.
Thank you, Chase Bank! Thank you, SBA! It’s the news I needed and it came at the right time. Many of our peers of a similar size and employee headcount throughout the industry were able to make use of the program too. Being able to assure the firm that we’re keeping everyone and honoring all of our financial commitments meant everything in the moment.
Thank You Chase Bank!
Heaven forbid that an RIA would have to lose money over anything at all or layoff any employees.
It would be un-American for such travesties of justice to occur.
Fortunately, Ritzholz Wealth can use that money and under small business loan rules does not even have to pay it back.
Tears to My Eyes
I nearly cried when I read this part.
This post is dedicated to the 13,000 registered investment advisory firms in America and their 835,000 employees. Our industry serves 43 million clients nationwide and we are proud to be a part of it. Thanks to all of our colleagues who’ve shared their stories with us as we’ve shared ours.
No one can possibly be more deserving of a taxpayer bailout than RIA.
They do God's Work.
Bailout Nation - The Book
I happen to have a copy of the book Bailout Nation at hand.
From the jacket of Bailout Nation.
Ritzholz leaves no stone unturned as he breaks down how the Federal Reserve's interest-rate targeting policies as well as a condition known as moral hazard - the belief that you won't bear the full consequences of your actions.
The United States has abandoned its capitalist roots and become a Bailout Nation.
Once again, thank you Chase Bank for allowing RIAs to continue with their God's work.
Originally posted on The Street