How Lockdowns are Hurting the Banking System

Posted On May 31 2021 by

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save June 3, 2020 1,214 Views Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Acting Comptroller of the Currency Brian P. Brooks has expressed concerns about the effects of regional and local responses to COVID-19 on the federal banking system.In letters to the National League of Cities, the U.S. Conference of Mayors, and the National Association of Governors, the Acting Comptroller of the Currency urged mayors and governors to consider the adverse impact of long-term regional economic shutdown on the nation’s banks when making their decisions. “Certain aspects of these local orders,” wrote Acting Comptroller Brooks, “potentially threaten the stability and orderly functioning of the financial system the OCC is charged by law to protect.”The letter raises awareness among state and municipal officials of certain risks closely associated with “essentially indefinite” business closures in certain cities and states. Requiring businesses to remain closed decreases businesses’ ability to service their debt, thus increasing default risk in the banking system. Lengthy business closures also reduce the value of collateral securing commercial real estate because of increases in burglaries and vandalism of vacant strip malls, storefronts, and the like; in those cities considering cutting off electric, water, and other utilities to businesses that choose to remain open notwithstanding lockdown orders, the degradation of the physical loan collateral exposes banks to higher loss severities. During a period of double-digit unemployment and stresses caused by local responses to COVID-19 to previously safe and sound business and commercial real estate portfolios, actions that exacerbate that risk may prolong and worsen an economic downturn, reduce the availability of credit and capital that would support recovery, and result in safety and soundness issues that are especially significant for smaller community and regional banks with business concentrations in these areas.”National banks and federal savings associations entered the COVID-19 crisis extremely well capitalized and with strong liquidity,” Mr. Brooks wrote. “The President and Congress have relied on a strong banking system to deliver many of the elements of the CARES Act and other relief to support the nation during this difficult period. I ask that your members carefully consider the impact of their lockdown orders on the health and function of our shared national financial infrastructure as they implement the President’s guidance to determine when and how to unwind those orders.” Tagged with: Banking Federal Reserve OCC Previous: Stabilizing the Mortgage Market Next: Veteran Owned Financial Services Company Launches Banking Federal Reserve OCC 2020-06-03 Seth Welborn How Lockdowns are Hurting the Banking System The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / How Lockdowns are Hurting the Banking System The Best Markets For Residential Property Investors 2 days agocenter_img in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Subscribelast_img read more

Y2K Finances

Posted On Jan 17 2021 by

first_img Checking and savings account statements. Loan and repayment schedules (including credit cards) and payment receipts. “. . . You need to keep good records all the time, not just because you’re worried about the Y2K ‘bug.'” Esther Maddux, UGA College of Family and Consumer Sciences FDIC Federal Trade Commission Department of Commerce Investment account statements. With these records, if problems do occur, you’ll be able to straighten them out quickly. For further peace of mind, the Federal Trade Commission offers these precautions to ease your way into the next millennium. For more information about Y2K and your finances, visit these sites on the World Wide Web: Computer experts have been working hard to make sure nothing will happen to your bank accounts on Jan. 1, 2000, said a University of Georgia specialist. You need not worry. “There are some end-of-year statements and paperwork to collect,” said Esther Maddux, an Extension Service financial specialist with the UGA College of Family and Consumer Sciences. “But you need to keep good records all the time, not just because you’re worried about the Y2K ‘bug.'” Banking and financial institutions began preparation for the 1999-2000 rollover severalyears ago. So their systems are either compliant or are scheduled to be compliant before the newyear. “The banks are ready,” Maddux said. “So banking customers just need to collect recordsthey normally would at the end of the year.” Maddux recommends you have three to six months’ worth of these records at the end of the year.center_img Social Security Administration Ask your financial service provider how it is dealing with the rollover. If you’re not comfortable with the response, consider doing business elsewhere. Some people plan to have a little extra cash on hand near the new year, just in case. But remember, cash can easily be lost or stolen. Banking experts say any funds in FDIC-insured accounts are safe, no matter what happens to the computers. In a recent on-line interview, Federal Deposit Insurance Corporation chairman Donna Tanoue said, “FDIC-insured deposits are safe, just as they always have been. The FDIC’s protection of insured deposits will not be affected by the year 2000.” Ask what type of backup records are kept in case of an emergency. How would these records be used to identify and correct problems affecting your deposit, loan, or other account? Get a copy of your credit report from one of the three major credit bureaus — Equifax (800-685-1111), Experian (800-682-7654) or TransUnion (800-916-8800) — before and after Jan. 1, 2000. You may be charged up to $8 for your report. Check for errors and report them to the credit bureau. last_img read more

Chelsea Still Keen on Osimhen’s Move to Stamford Bridge, in Contact…

Posted On Sep 17 2020 by

first_imgAccording to a recent report by French news outlet Le10Sport, Premier League giants Chelsea are said to have contacted Ligue 1 outfit LOSC Lille to discuss the potential summer transfer of Nigerian international striker Victor Osimhen. The report suggests that the French club have received multiple firm offers for the striker’s services and that Frank Lampard’s Chelsea are certainly among the clubs said to be interested in his signature.Contrary to rumours floating around which state that Chelsea are going to hold back on spending amid the COVID-19 pandemic, the report suggests that the reality of the situation is actually the opposite. It has been clarified that the Blues are still extremely eager to sign players in the summer and that they are in a good position regarding the Victor Osimhen signature. Despite the excellent relationship between the two clubs, the Ligue 1 side are said to believe that they can get more than the €80m they got for Pepe from Arsenal.The West London club started the campaign with three recognised strikers for Lampard to choose from. Despite the decent form displayed by Tammy Abraham, the position gradually became an area of concern for the staff and fans alike. For all the excellent work that Abraham did in the early part of the season, an unfortunate back injury forced the Englishman out of the side for quite a while. The gaffer’s alternate options for the role included Olivier Giroud and Michy Batshuayi. The Belgian was given the opportunity to prove himself first. Although he did get a couple of decent goals along the way, the former Valencia man struggled to have any sort of meaningful impact on the pitch. Olivier Giroud was then brought into the team, and despite his advancing age, the Frenchman came good for the Blues when it mattered most. Although this could be perceived as a good thing, the fact remains that the Blues were uncertain with their striking options for the more than half of the league season, and that’s one mistake they don’t want to make again.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more