Since the declaration of COVID-19 as a major disaster, the federal regulatory agencies have issued multiple frequently asked questions (FAQs) across various issuances. The FDIC has compiled these FAQs, in addition to specific guidance for FDIC- regulated institutions, into one document as of May 4, 2020. The FAQs were initially released on March 19, to address…
read article →The data from April continues to be terrible but May looks better. While this is not the last of the terrible economic data, we are near the end of the worse. The key data this week is consumer confidence due out on Tuesday. This reading of consumer sentiment dropped by more than 30 points in…
read article →Institutions are reminded that notwithstanding any executive orders regarding foreclosures or evictions regarding shorter time periods, if an institution becomes the successor in interest of a dwelling or residential real property in which a bona fide tenant resides, such tenant must be provided with a notice to vacate at least 90-days prior to the effective…
read article →Investors are offering their own relief options. Institutions must refer to the applicable secondary market investor guidelines. Note that under the CARES Act, section 4022 requires that, for Federally-backed mortgage loans (loans insured or guaranteed by certain U.S. government agencies and programs, as well as loans made by the Department of Agriculture and loans sold to…
read article →Through mid-May, the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) has approved more than 4.3 million loans nationwide, representing well in excess of $500 billion. The PPP initiative, with Congressional authorization to commit approximately $670 billion in funding to small businesses as part of the $2+ trillion CARES Act stimulus plan, was largely…
read article →The federal agencies have published several statements regarding issues and concerns facing financial institutions during this time. The following links lead to FDIC websites, although these are interagency statements. Encouraging Financial Institutions to Meet Financial Needs of Customers and Members Affected by Coronavirus (March 9, 2020) https://www.fdic. gov/news/news/press/2020/ pr20025.html Financial Institutions Working with Customers Affected…
read article →Even with record drops in economic activity, financial asset pricing has held up. It should be no surprise that retail sales and industrial production dropped by record amounts in April. When we close stores, restaurants and force people to stay home, consumption expenditures will decline by huge amounts. When we close manufacturing factories, industrial output…
read article →The April data being released is as bad as the worst forecasts expected. There is little reason to spend time on the economic data being released for April. The unemployment rate jumped to levels not experienced since 1940 and even this 14.8% rate is probably understated. The survey was taken in the middle of April…
read article →We are resuming issuing our economic forecast as conditions become clearer. There is no way to describe the carnage to the economy from the coronavirus pandemic. The data for economic conditions being released for April is unprecedented. The Advance report for Real GDP in the first quarter indicated a decline of 4.8%. This was despite…
read article →This Banking Market Update provides earnings, equity market and M&A analysis for the banking industry through April 2020. Please contact us if you would like further data or to discuss how the COVID-19 pandemic may impact your bank. May 2020 Banking Market Update
read article →Economic data continues to be shocking but fully expected. The issue is not how bad is the economic data from March, the issue is the pace of restarting the economy. At this point, it appears it will be a rolling restart with parts of the economy allowed to restart in some parts of the country…
read article →With the world’s attention, and understandably so, on any and every developing story related to the coronavirus pandemic, I thought I would take a quick look at a few underlying financial metrics that existed within the banking industry at year-end 2019, as compared to those same metrics just before the start of the Great Recession….
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