Blankfein Defends Share Buybacks, Countering Bernie Sanders

(Bloomberg) -- Former Goldman Sachs CEO Lloyd Blankfein took to Twitter for the first time in almost seven months to respond to a New York Times opinion piece by Senators Chuck Schumer and Bernie Sanders that argued for limits on corporate stock buybacks.

“The money doesn’t vanish,” Blankfein tweeted. “It gets reinvested in higher growth businesses that boost the economy and jobs.”

Sanders responded to Blankfein with his own tweet, saying he agreed the money used for buy backs didn’t simply vanish.

“It increases the wealth of billionaires like him,” Sanders said. “How about increasing wages for American workers. Is that a bad idea?”

Sanders and Schumer had argued that companies shouldn’t be able to repurchase shares unless they first increase workers’ pay and benefits.

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