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GRZLY50 USMC C-560 and GRZLY07 Beech UC-12W Huron out of MCAS Miramar and ne
AZAZ09O9 C-560 depart Chicago-Midway and se
DDFI5899 C-560 out of Stafford Regional airport and sw-origin New Orleans
French AF CTM2006 A400M out of Beirut Int'l and wn
Thousands of U.S. banks may sit out small-business rescue plan on liability worries
Thousands of U.S. banks, including some of the country’s largest lenders, have said they may not participate in the federal government’s small-business rescue program due to concerns about taking on too much legal and financial risk, five people with direct knowledge of industry discussions told Reuters. Seeking to help millions of small businesses that have dramatically curtailed operations or shut down altogether during the coronavirus pandemic, Congress included $349 billion for small firms in its $2 trillion stimulus package passed last week. Small businesses, which will rely on banks to get the funds, employ about half of U.S. private sector employees, according to the Small Business Administration website.
Borrowers can apply for the loans through participating banks starting from Friday and until June 30. Trump administration officials have said they want the loans disbursed within days.
But representatives of some major lenders, as well as thousands of community lenders, have expressed serious reservations about participating in the scheme in its current form and called that deadline totally unrealistic.
Their main concern is that the Treasury Department said on Tuesday that lenders will be responsible for preventing fraudulent claims by verifying borrower eligibility, which is determined by a few measures including the borrower’s number of employees and its average monthly payroll costs.
Banks also must take steps to prevent money laundering and terrorist financing, a process that would normally take weeks, the sources said.
Community banks said the Treasury’s guideline interest rate of 0.5% will be unprofitable, and that many small banks will not have sufficient liquidity to front up the loans. The Treasury and the Small Business Administration did not immediately respond to requests for comment.
After hearing the concerns, Treasury officials are considering withdrawing Tuesday’s guidance and are working to fix the issues, according to two sources.
Reuters could not learn which specific big banks are thinking about shunning the program. The Bank Policy Institute (BPI), a Washington trade group, hosted a call on Wednesday during which executives from its members discussed their concerns, three of the sources said. Members of the group include JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Wells Fargo & Co (WFC.N) Citigroup Inc (C.N), Truist BankBBTVA.UL and PNC Bank PNCBNK.UL.
Banks want a document customers can sign attesting to their eligibility and other requirements, thereby relieving the industry of responsibility for potential misconduct.
One source said banks are also seeking a written assurance from the government regarding their legal liabilities and obligations before they agree to participate in the program.
https://www.reuters.com/article/us-health-coronavirus-stimulus-banks-exc/thousands-of-u-s-banks-may-sit-out-small-business-rescue-plan-on-liability-worries-sources-idUSKBN21K075
they had ZERO problem qualifying everyone for loans when it suited their purpose but now they don't want the liability of it going forward.'
see this
Federal Reserve temporarily eases some bank leverage requirements
The U.S. Federal Reserve announced on Wednesday it was temporarily easing its leverage rules for large banks by exempting certain investments from a key leverage calculation, part of the effort to combat the economic slowdown inflicted by the coronavirus pandemic.
Now, banks will be able to exempt any holdings in U.S. Treasury debt or deposits at the Fed from their calculations of the supplementary leverage ratio, or SLR, an additional leverage restriction imposed on the largest U.S. banks.
The exemptions, which the Fed said will help ease strains in the Treasury market and encourage banks to continue lending, will stay in place until March 31, 2021.
The leverage restrictions easing marks the latest attempt by the Fed to ensure that banks can continue to lend during the slowdown due to the pandemic.
The SLR, which applies to banks with over $250 billion in assets, was created by the U.S. central bank following the 2007-2009 financial crisis that saw banks nearly collapse after a national housing crisis. The rule, which directs banks to hold a certain percentage of capital as a cushion against its assets, was aimed at ensuring the largest institutions had an extra layer of protection against any future downturns
https://www.investing.com/news/stock-market-news/federal-reserve-temporarily-eases-some-bank-leverage-requirements-2128334
pf thanks you for that and adds it wasn't always like that. It changed much in late 2018 early 2019 and can 'member unless you had something to contribute you just did not post lest you end up getting BTFO'd by everyone else…and rightly so.
GRZLY39 USMC C-560 out of MCAS Miramar nw
Three GRZLY's active out of the 'dangah zone
Bank of England doubles size of corporate bond purchase program
LONDON (Reuters) - The Bank of England said on Thursday it will double the size of its corporate bond purchase programme to at least 20 billion pounds, part of a previously announced stimulus package to help the economy during the coronavirus crisis. “(The BoE) expects to make these purchases at a significantly faster rate than in the 2016 scheme,” the BoE said in a statement.
The central bank last month increased its bond purchase programme by a record 200 billion pounds to a total of 645 billion pounds, to be financed with newly-created money, mainly for British government bonds. Until Thursday, it had not specified the size of planned corporate bond purchases.
The BoE will begin ramping up its corporate bond purchases through a series of reverse auctions starting on April 7, holding three a week, and it will be able to buy 20 million pounds of any single bond — double the previous amount. As before, the BoE said it will aim to purchase a “balanced portfolio of bonds across eligible issuers and sectors”, so as not to favour specific companies or sectors of the economy.
The list of eligible bonds, last published in August and intended to include companies that “make a material contribution” to Britain’s economy, will be updated in mid-April.
Bonds issued by banks, building societies and insurers will not be eligible.
yet….
https://uk.reuters.com/article/uk-health-coronavirus-britain-boe/bank-of-england-doubles-size-of-corporate-bond-purchase-programme-idUKKBN21K2EB
nomming your own post….
if it is notable it will stand on it's own merits.