Past share buybacks haunt some US companies
Standard & Poor’s 500 companies have spent $1.73 trillion on buybacks up to September since the fourth quarter of 2004, according to the ratings company. With the U.S. in a recession, the companies face the threat of additional credit-rating downgrades after being punished for the earlier borrowing.
But what was the trick behind, which pushed serious companies such as Macy’s or Gannet to buy back their shares? And (hard to believe), even by borrowing money to do so?
