Draw-downs on C&I credit more than quadrupled in a seven-day period ended March 25. Lenders may try to rein them in if the crisis drags out, but legal precedent isn’t on their side.
On March 25, 2020, the Senate passed an amendment to H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (as amended, the “CARES Act”), which (as of March 26, 2020) is being considered in the House.
The complete text of the current draft of the CARES Act can be found here.
Read More from: Bankruptcy and Restructuring Blog
A former market president for State Bank Financial would serve as CEO of the proposed Classic City Bank.
Yeah!!! Some good student loan stuff in the bill.
that passed the Senate unanimously.
Dinosaurs like me will remember: “Pop, pop, fizz, fizz, Oh! What a relief it is!”
Alka Seltzer commercials back to the 1960s.
And there is some great relief -of course the House has to pass it too.
Under the draft legislation, obtained by Fox News Wednesday, federal student loan payments would be suspended through Sept. 30.
And this is on top of the earlier suspension of interest.
Read More from: Discharge Student Loan
Arizent, the parent company of American Banker, has conducted a broad industry survey on both the impact of the crisis and emerging responses. The survey probed continuity efforts and remote workforce enablement as well as planning and investments being pursued against future potential disruptions.
Concentrating on just about anything during these days of the coronavirus, let alone academic writing, has been a trifle difficult these. A splendid new paper on Boer Bonds by Kim Oosterlinck and Marie Van Gansbeke (here) did, however, get me focused (for a bit). And that’s in part because their paper has potentially turned upside down what I thought was an established part of customary international law. That is, the law of “War Debts.”
The international law of state succession, standard treatises will tell you, is strict. New states (and new governments) inherit the debt of predecessor states (and governments), regardless or changes in political philosophies. One of the only exceptions to this strict rule is the doctrine of War Debts. This doctrine, that I thought was implemented by the British Crown in 1900, in the wake of Boer War, says that debts incurred during hostilities by the losing party do not need to be taken on by the victor. The refusal of the United States to take responsibility for the debts incurred by the Confederacy during the Civil War is another example.
Read More from: Credit Slips
While LendingClub, Prosper, Avant and SoFi are giving existing borrowers breaks in the short term, they're considering tightening credit as the coronavirus outbreak threatens to drag the economy into a recession.
Many borrowers will suffer unless the program, the central bank's latest response to the coronavirus pandemic, includes consumer loans issued by fintechs.
The joint statement said examiners will not impede banks’ responsible efforts to offer open lines of credit, closed-installment loans or other products to borrowers dealing with fallout from the pandemic.
Further to our blog Mothballing businesses: survival through the lockdown and beyond we have prepared a more detailed note considering issues we anticipate for those businesses needing to shut down – see here.
Read More from: Mediatbankry
Federal Reserve Chairman Jerome Powell said the central bank will maintain its muscular efforts to support the flow of credit in the U.S. economy as Americans hunker down from the coronavirus pandemic.
Aside from managing the practicalities that Covid-19 places on business operations, directors must also consider in this context, their duties as directors. This note is a useful reminder of what those duties are and how Covid-19 could impact on those.
Corporations have tapped more than $124 billion in lines in the past three weeks; rating agency says virus “could wipe out a full year of U.S. banking profits.”
Last night we blogged about the $2 trillion COVID-19 stimulus bill that proposes to increase the SBRA small business debt limit in Subchapter V Chapter 11 bankruptcy cases from approximately $2.7 million to $7.5 million, at least for the next year. The Senate approved the legislation late last night, 96-0, and it’s now headed to the House and, ultimately, to the President. Unfortunately, our email feeder didn’t pick it up, hence this post for our email subscribers. Click here for last night’s post.
Read More from: Plan Proponent
While analysts agree banks are in better shape than in 2008, lawmakers are dusting off a crisis-era tool used by the Federal Deposit Insurance Corp. to soothe potential liquidity fears during the coronavirus pandemic.
Today on Yahoo! Finance, Gordian Group’s President, Peter S. Kaufman discussed the impact of the Coronavirus on the US economy. He offered his thoughts on the proposed stimulus package, how fast and effective it may be and whether we’ll see a wave of bankruptcies.
00:00 | Is $2 trillion stimulus enough to get us through this crisis and are we headed for a recession?
01:44 | How urgent is it for companies to receive stimulus funding especially since they’re being asked to keep employees on the payroll?
03:22 | What’s the potential effect on companies credit ratings and will we see a wave of bankruptcies? What types of companies are at risk given these unprecedented times?
05:04 | Have you seen any credit facilities being created to provide short to mid term relief for companies yet?
Read More from: Gordian Group
Read More from: Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney
With seven in 10 rooms sitting empty amid the coronavirus outbreak, hotel and banking groups are urging policymakers to open up the Term Asset-Backed Securities Loan Facility.