Daily News Digest

 

April 17, 2020


Grassroots Action Alert

The initial $350 billion funding for the Paycheck Protection Program (PPP) ran out shortly after 10:00 a.m. yesterday. NYBA issued an urgent Grassroots Action Alert for bankers to call their U.S. Representatives and Senators to urge additional funding for the program.  Thank you to all those who answered the call to action. If you have not yet contacted your member of Congress, please do so today. (House of Representatives; Senator Schumer-202-224-6542; Senator Gillibrand-202-224-4451) NYBA contacted all members of the New York delegation to urge the reignition of the program.

Here’s a quick recap of yesterday’s other developments:

  • Governor Cuomo extended the New York State on PAUSE “stay at home” program for non-essential businesses until May 15, 2020. Financial services remain classified as essential.
  • The Department of Financial Services (DFS) issued new guidance on Holding Virtual Required Meetings and Extension of Time on Stockholders Meetings
  • The Fed announced that the Paycheck Protection Program Liquidity Facility (PPPLF) is open and providing liquidity to eligible financial institutions, which will help support small businesses.
  • The federal agencies will hold a webinar to discuss the reporting of loan modifications on Friday, April 24 at 3:00 p.m. ET. Participants must pre-register here.

Remember to visit our webpage for all the latest updates throughout the day. Once again, thank you for continuing to work with your customers and support your communities during this challenging time.

Mike Smith
President & CEO, New York Bankers Association

The Wall Street Journal

  • Federal Reserve Bank of New York President John Williams told the Economic Club of New York (via Zoom) yesterday that the U.S. central bank's strong response to the coronavirus crisis has helped to move financial markets back toward health, even as he warned the path of economic recovery is likely to be one to two years in duration. He also discussed the likely lingering psychological impact of prolonged social distancing that could cause Americans to pause before resuming normal activities.
  • Treasury Secretary Steven Mnuchin is under growing pressure from industry officials and members of Congress to ease strains on mortgage companies as millions of borrowers skip their monthly payments amid the coronavirus outbreak.
  • With millions of homeowners expected to seek relief on their mortgage payments, FHFA Director Mark Calabria is blocking the federal government from using Fannie Mae and Freddie Mac to stave off a housing crisis.
  • President Trump presented a framework for restarting the U.S. economy that takes a “phased and deliberative approach” to be led by each state’s Governor and spurred by 14 days of decreasing evidence of illness.

New York Post

  • Glitches, affecting tens of millions of Americans, plagued the Economic Impact Payments sent by the IRS this week. These problems included long delays for taxpayers using H & R Block and Turbo Tax software to file returns, deceased individuals receiving payments, and payments sent to incorrect account numbers. The IRS says it is working to fix the issues.

Daily News

  • Hundreds of thousands of frustrated New Yorkers remain unable to access unemployment benefits because the State’s system is still overloaded. Even though the State has “taken drastic measures to handle the surge,” there are still 275,000 outstanding claims.

American Banker

  • Bank deposits were up as the nation headed into the coronavirus shutdown. Consumers conserved cash. Businesses drew down corporate lines of credit and redeposited the money.
  • JP Morgan Chase is reducing its exposure to the mortgage market by temporarily halting home equity loans.
  • Bankers have called on Congress to take action to prevent debt collectors from accessing Americans’ Economic Impact Payments. Many banks said they would not collect on negative balances during the crisis, but they are still subject to court-ordered garnishment obligations unless Congress classifies the payments as benefits, thereby shielding the payments from collection.

Politico

  • Americans filed just over 5.2 million jobless claims last week, the Labor Department reported, signaling continued massive economic dislocation.
  • Signs of unrest are emerging across the country as Americans grow tired of social distancing measures. Demonstrators have held protests in a half-dozen states this week, with more to come.





Questions?

Karen Armstrong
Senior Vice President, Communications and Political Action
karmstrong@nyba.com


Duncan McCausland
Marketing and Communications
dmccausland@nyba.com