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business Saturday 21 November 2020

Mnuchin denies trying to hinder incoming administration

By MARTIN CRUTSINGER and the Treasury Department,
CHRISTOPHER RUGABER which serves as a backstop
AP Economics Writers for the initial losses the pro-
WASHINGTON (AP) — grams might incur.
Treasury Secretary Steven In his letter to Powell,
Mnuchin denied that he Mnuchin said that he is re-
is attempting to limit the questing that the Fed re-
choices President-elect Joe turn to Treasury the unused
Biden will have to promote funds appropriated by
an economic recovery by Congress.
ending several emergency He said this would allow
loan programs being run by Congress to re-appropri-
the Federal Reserve. ate $455 billion to other
Mnuchin said his decision coronavirus programs. Re-
was based on the fact that publicans and Democrats
the programs were not be- have been deadlocked for
ing heavily utilized. He said months on approval of an-
Friday that Congress could other round of coronavirus
make better use of the support measures.
money by re-allocating it After meeting Friday with
in another direction to sup- Mnuchin, Senate Major-
port grants to small busi- ity Leader Mitch McCo-
nesses and extended un- nnell said he supported
employment assistance. This Aug. 24, 2020 file photo shows Treasury Secretary Stephen Mnuchin at the White House in Mnuchin's decision to let
"We're not trying to hinder Washington. the loan programs expire at
anything," Mnuchin said Associated Press the end of this year and use
in a CNBC interview. "We months, they have refused said in a brief statement they need them most," said the money that had been
don't need this money to to take the steps necessary Thursday that the central Neil Bradley, the chamber's allocated in the March vi-
buy corporate bonds. We to support workers, small bank "would prefer that executive vice president, in rus relief measure for other
need this money to go help businesses and restaurants. the full suite of emergency a prepared statement. purposes.
small businesses that are still As the result, the only tool facilities established during Private economists argued "There is an obvious right
closed." at our disposal has been the coronavirus pandemic that Mnuchin's decision to use for these hundreds of
However, critics saw poli- these facilities." continue to serve their im- end five of the emergency billions of dollars of already
tics at play in Mnuchin's Mnuchin on Thursday had portant role as a backstop loan facilities represents an allocated but unused
decision, saying the action written Federal Reserve for our still-strained and vul- economic risk. funds," McConnell said in a
would deprive the incom- Chairman Jerome Powell nerable economy." "While the backstop mea- statement.
ing administration of critical announcing his decision The U.S. Chamber of Com- sure have been little used "Congress should repur-
support the Fed might need not to extend some of the merce also criticized the so far, the deteriorating pose the money toward
to prop up the economy as Fed's emergency loan pro- move. "A surprise termina- health and economic the kinds of urgent, impor-
coronavirus infections spike grams, which had been op- tion of the Federal Reserve's backdrop could shine a tant and targeted relief
nationwide. erating with support from emergency liquidity pro- bright light on the Fed's di- measures that Republicans
"There can be no doubt, the Treasury Department. gram, including the Main minished recession-fighting have been trying to pass
the Trump administration The decision will end the Street Lending Program, arsenal and prompt an for months."
and their congressional Fed's corporate credit, mu- prematurely and unneces- adverse market reaction," In public remarks Tuesday,
toadies are actively trying nicipal lending and Main sarily ties the hands of the said Gregory Daco, chief Powell made clear that
to tank the U.S economy," Street Lending programs as incoming administration U.S. economist at Oxford he hoped that the loan
Sen. Sherrod Brown, D- of Dec. 31. and closes the door on im- Economics. programs would remain in
Ohio, said in a prepared The decision drew a rare portant liquidity options for Under law, the loan facili- effect for the foreseeable
statement Friday. "For rebuke from the Fed, which businesses at a time when ties required the support of future.q

Universal strikes another deal with a major theater chain

By LINDSEY BAHR ting premium video on de- the rise in digital, streaming
AP Film Writer mand services. and cord cutting, as well as
Another major movie the- Titles that have an open- the unprecedented issues
ater chain has struck a deal ing weekend of $50 million our industry is facing right
with Universal Pictures to or more in North American now, our relationship with
allow for shorter exclusive theaters will be guaran- exhibition had to evolve
theatrical windows. Cana- teed at least five weeks in and adapt to the chang-
da's Cineplex has agreed theaters. ing distribution landscape,"
on a multiyear "dynamic The $50 million mark is just said Donna Langley, chair-
window" agreement, the theoretical at this point, man of Universal Filmed En-
film exhibitor and Univer- however. In normal times, tertainment Group. "Giving
sal Filmed Entertainment a $50 million launch is not consumers the flexibility to
Group said Friday. uncommon for Universal's view content on their terms
Like the deal struck with biggest franchises like "Fast is more important than ever
Cinemark earlier this week & Furious" and "Jurassic to help expand moviego-
and AMC Theaters before World." But no films have ing." A shopper walks past a closed AMC movie theater Thursday,
that, Universal and Focus done that kind of business Theater owners have long Nov. 19, 2020, in Santa Monica, Calif.
Features films will have at during the pandemic. adhered to a strict 90-day Associated Press
least three weeks of theat- "With audience fragmen- theatrical exclusivity win- effects of the pandemic on forced many to adapt and
rical exclusivity before hit- tation accelerating due to dow, but the devastating the movie business have compromise.q