Industry News
Banking
Top stories summarized by our editors
7/2/2020

Businesses are showing scant interest in the Federal Reserve's $600 billion Main Street Lending Program. Bankers say companies in desperate need are unlikely to qualify, while stronger companies can get better terms elsewhere.

Modern Money Murmurs: Given how much the scope of the PPP has evolved since it launched, it seems there ought to be some consideration given to making the MSLP more accessible.

7/2/2020

Senate Democrats have proposed an extension of the federal enhanced unemployment benefit of $600 per week until joblessness in individual states normalize. Support would then decrease by $100 for each percentage point decline in a given state's unemployment rate until it reaches 6%.

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Reuters
7/2/2020

Index-based funds can help drive sustainable investing because they track benchmarks with carbon reduction goals and hold shares as long as companies remain in indices, writes Lionel Paquin, CEO of Lyxor Asset Management.

7/2/2020

The investment firm owned by former Time Warner CEO Richard Parsons and Ronald Lauder, the billionaire who made his money with cosmetics firm Estee Lauder, received a $726,000 loan from the Paycheck Protection Program, designed to help small businesses. Semper Capital Management said in a regulatory filing that it applied for the loan "due to the economic uncertainties surrounding the COVID-19 pandemic."

7/2/2020

The House of Representatives voted to extend the Paycheck Protection Program through Aug. 8 and sent the measure to President Donald Trump for approval. About $130 billion in PPP funds remains available and some 4.8 million businesses have received loans through the program since its launch in April.

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The Hill
7/2/2020

The coronavirus pandemic's impact on banks has not yet reached its height as government stimulus checks and payment deferrals are helping consumers, according to PNC Financial Services Group CEO William Demchak. A resurgence of the virus now and in the fall could hurt household budgets, particularly for lower-income individuals, Demchak said.

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William Demchak
7/2/2020

Citigroup employees in 13 states will not be returning to their offices as planned due to a resurgence of COVID-19. About 5% of staffers at the bank's Northeastern offices will return on schedule.

7/2/2020

Investment firm Edward Jones filed an industrial bank charter application with the Utah Department of Financial Institutions with plans to begin offering banking services in late 2021. Former UBS Bank CEO Ray Dardano is slated to lead the new bank.

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AdvisorHub
7/1/2020

The Senate unanimously agreed to extend the deadline for applying for Paycheck Protection Program loans until Aug. 8. The plan still needs approval from the House.

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Senate
7/1/2020

As much as $140 billion unspent under the Paycheck Protection Program could be used to help hotels, restaurants and other businesses hit hard by social distancing, US Treasury Secretary Steven Mnuchin says. The idea appears to have bipartisan support, Mnuchin says, and he intends to keep discussing it with lawmakers on both sides.

Modern Money Murmurs: I wonder if the discussions over "repurposing" these funds included any plans for transparency.

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Reuters
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Steven Mnuchin