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Business might be great, but TIL McDonald's borrowed $109M directly from the Fed as part of the Commercial Paper Funding Facility invoked after the Lehman colla
by apaprocki 15y ago
Business might be great, but TIL McDonald's borrowed $109M directly from the Fed as part of the Commercial Paper Funding Facility invoked after the Lehman collapse and was in debt to the Fed for 223 days.
http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending#/McDonald%27s_Corp http://www.bloomberg.com/data-visualization/federal-reserve-...
- tptacek 15y agoDoes that suggest something about the precariousness of MCD's business model or about the severity of the credit crisis?
- apaprocki 15y agoYou'd have to dive into their business to figure out if they would have been in deep trouble without public money or if they were literally eating our lunch. Personally, I'm not sure a fast-food chain should be receiving money from the Fed, but hey...
- tptacek 15y ago400,000 employees, for a start.
- apaprocki 15y agoLooking at their financial sheet, I'm not sure any of their business would be affected if they had to pay more for this measly $109M. Their profit and positive cash flow is in the billions per year. At some point (and higher rate), someone would loan McDonald's $109M, no? Why wasn't this just left up to the market?
- eru 15y agoMcDonald's probably has some lobbyist of their own.
- asmithmd1 15y agoThat is scary, no one would loan money to McDonald's!? Talk about a safe bet - the corporation owns almost all the land their restaurants sit on. Imagine the number of prime commercial real estate properties they have worldwide.
- patio11 15y agoAlternatively, it could be a simple "incentives matter." Government: Have free money. McDonalds: Seriously? Government: Dead serious! McDonalds: OK then, we'll take the free money.
- roel_v 15y agoYeah well if somebody offered me money for free, I'd take it too, even if I was sitting on a heap of it.