Banking – The Carriage HSE Tue, 21 Sep 2021 23:15:41 +0000 en-US hourly 1 Banking – The Carriage HSE 32 32 SBA Checks Whether Bankrupt Debtors Can Take PPP Loans Fox Rothschild LLP Tue, 09 Mar 2021 10:57:19 +0000

Until the US Small Business Administration changes its position and rules, bankrupt debtors still cannot get PPP loans.

Indeed, under the Consolidated Appropriations Act 2021 (the law) signed by President Trump on December 27, 2020, none of the bankruptcy provisions are effective until the SBA authorizes them.

The law explains in detail how bankruptcy debtors, or trustees acting on their behalf, can obtain Paycheck Protection Program (P3) loans.

But at the end of Section 320 of the act, Congress declares that the bankruptcy provisions allowing bankrupt debtors to obtain PPP loans do not take effect until the SBA submits a written determination to the director of the executive office. of the United States Trustees that any bankruptcy the debtor or the trustee licensed to carry on the debtor’s business “would be eligible for a loan under paragraphs (36) and (37) of Section 7 (a) of the Small Business Act, “referring, respectively, to the original paycheck Protection Program Loans and Paycheck Protection Program Second Draw Loans.

In other words, the SBA still has the regulatory authority associated with the second-run PPP, just as it did with the original PPP.

The SBA has made its position clear: bankrupt debtors are not eligible to receive PPP loans. Congress specifically added the PPP program to Section 7 (a) of the Small Business Act, which never allowed bankrupt debtors to apply for 7 (a) loans or an SBA loan for that matter. The fourth interim final rule that the SBA made when implementing the PPP was that bankruptcy debtors are specifically ineligible for the PPP. In addition, the Fifth and Eleventh Circuits confirmed the power of the SBA to prohibit bankrupt debtors from obtaining PPP loans.

And now Congress has specifically reaffirmed the power of the SBA by declaring that the bankruptcy law provisions relating to the ability of bankrupt debtors to obtain PPP loans do not come into effect until the SBA does. has not provided written authorization to the Office of the Syndic.

Source link

]]> 0
How to refinance your mortgage with a bad credit score Tue, 09 Mar 2021 10:57:19 +0000

Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

Mortgage rates have recently hit record highs, and many Americans are jumping at the chance to buy new homes as well as refinance.

According to the Mortgage Banking Association (MBA), mortgage loan applications have been outbreak since March 2020 when the Fed reduced interest rates in response to the coronavirus pandemic. At the end of the year, mortgage applications are should double in size compared to economists’ original forecast for 2020.

Mortgage refinancing requests are also on the rise: Americans are now asking for mortgage refinancing at a 38% higher rate than they were at this time last year.

Refinancing your home essentially means taking out a brand new loan, often for the rest you owe on the property (but not always). Depending on your home equity (that is, what you’ve already paid off) and your credit rating at the time of application, refinancing can offer you one or more benefits, including:

  • a lower interest rate (APR)
  • a lower monthly payment
  • a shorter repayment term
  • the ability to cash in your equity for other uses

When you’re faced with economic uncertainty, refinancing your mortgage can give you a break. But at the same time, if you are having financial difficulties, refinancing can be a bit more complicated. If you have a bad credit rating, you will need to take a few steps to make sure you may even qualify. And when you qualify, you want to make sure that your refinanced mortgage is better than your original mortgage, not worse.

Below, CNBC Select spoke with a senior community development lending officer at Quontic Bank Darrin Q. English on what to keep in mind when refinancing your home with less than perfect credit. He shares 3 tips to keep in mind.

How to refinance your mortgage with a bad credit score

  1. Understand what “bad credit” means for banks
  2. Work with a community loan officer
  3. Improve your credit

1. Understand what “bad credit” means for banks

The first step in refinancing your home loan is understanding what banks are looking for to provide borrowers with the best rates.

The minimum credit score you need to be eligible for the most accessible mortgage programs, like Federal Housing Authority (FHA) loans for first-time home buyers, is 580 (sometimes as low as 500, depending on your down payment).

But for refinancing, you want a better score than 580, says the Englishman.

“There is no desire at this time to lend to subprime candidates ”, he said CNBC Select. English defines these applicants as having a score below 580 and at least two missed payments on their credit report – especially on an installment loan in the past 12 months.

These requirements make sense. Refinance loans, or refi, are meant to give borrowers with positive credit histories a chance to leverage their creditworthiness and make lenders compete for their business. People normally refinance after building up a good history and building equity in their home. When the banks see this, they will think you are less risky and are more likely to give you a better loan with good rates.

“When it comes to refinancing, 620 is the minimum number you really need to be able to leverage one lender against another,” says English. Achieving this mark opens up more access to loan programs and gives you the ability to shop. And the real “sweet spot”, says the Englishman, is 680 or more.

Learn more: Here is the credit score required to buy a home

2. Work with a community loan officer

Loan officers who have expertise in community development can be your number one resource when looking to refinance your home. You can go a long way in researching mortgage programs on the web, but loan officers can act as a partner and help you identify and then work on your options.

Plus, loan officers have access to industry tools that could speed you up to qualify for a mortgage. Often a loan officer can review your credit report and identify the steps you can take to improve your credit within 30 days or so. They may suggest that you pay off certain balances or point out errors on your report and advise you on how to resolve them.

Once you’ve taken steps to improve your credit, a loan officer can also do what’s called a “quick reassessment” and submit evidence of your new improved credit behavior directly to the bank. credit bureaus.

“We have the ability to ask the bureaus to refresh the borrower’s credit and reassess it based on new balances and other updates. [The bureaus] use some form of artificial intelligence to determine risk, and they’ll score the borrower’s new credit based on that, ”says English.

Community loan officers can also help you understand the ins and outs of each mortgage program so that you are comfortable with the terms of your loan.

3. Improve your credit

Once you understand what banks are looking for in a borrower and build a relationship with a trusted loan officer, use a credit monitoring tool to monitor your credit as you work on rebuilding.

English recommends using a free credit score simulation tool like this from Capital One’s CreditWise®. Similar to what credit bureaus see, you can check the status of all your credit accounts and see the potential effect that certain actions, like paying down debt or closing a credit card, can have on your. credit score. Start checking your credit score a few months before you know you want to refinance, so you know ahead of time what improvements you may need to make.

Capital One’s CreditWise®

The information on CreditWise has been independently collected by CNBC and has not been reviewed or provided by the company prior to posting.

  • Cost

  • Supervised credit bureaus

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

The credit bureau Experiential Also offers a free credit monitoring service that you can sign up for without providing a credit card number. It’s helpful to get your report from a credit bureau in addition to using simulation tools like Capital One’s CreditWise, because mortgage lenders look at the same reports when they assess your creditworthiness.

“One bank will use all three offices,” says English. “It’s called a tri-merge credit report, which includes Experian, Equifax, and TransUnion. Then we’ll use the mean, or median, score as the qualifying credit score.”

Experian Dark Web Scan + Credit Monitoring

On the secure Experian site

  • Cost

  • Supervised credit bureaus

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

English also recommends that you take advantage of Experian Boost ™, which allows you to add positive payments for telephone and utility bills to your Experian credit report, potentially increasing your credit score. Experian Boost now allows you add netflix payments on time to increase your credit score.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

Source link

]]> 0
Nabard to pay 1.2 trillion rupees for farm loan to farmers in fiscal year Tue, 09 Mar 2021 10:57:18 +0000

In a bid to support the agricultural sector amid the COVID-19 crisis, the National Bank for Agriculture and Rural Development said on Thursday it was aiming to disburse a harvest loan of Rs 1.20 lakh crore to farmers to cover production expenses for this fiscal year.

The agricultural financial institution Apex Nabard disbursed a loan of Rs 90,000 crore every year at a concessional rate.

“It has been increased to Rs 1.20 lakh crore for this fiscal year. Of this amount, Rs 40,000 crore has already been disbursed,” said the president of the National Bank for Agriculture and Rural Development (Nabard), GR Chintala.

Speaking at the CII event, he said, the pandemic has seen a paradigm shift in the functioning of the agricultural sector, and with the help of Rs 1 lakh crore Agriculture Infrastructure Fund as part of the package Atmanirbhar Bharat will promote infrastructure for the sector.

Under the program, 10,000 crore rupees has been allocated for the current fiscal year and 30,000 crore rupees annually for the next three years, Nabard said in a statement.

“It will play a crucial role in providing credit for the establishment of essential agricultural infrastructure at the ground level and it will create 25 lakh tonnes of capacity under the Agricultural Infrastructure Fund. We also work in partnership with most commercial banks to provide credit for food micro-processing. units associated with local units in Kirana, ”Chintala said.

With the upcoming launch of the program to promote 10,000 agricultural producer organizations (OPAs) in the country, the agricultural sector will experience quality production combined with an industry-centered vision, he added.

Speaking at the event, Minister of State for Agriculture Parshottam Rupala suggested Nabard digitize the crop loan subsidy scheme process, so that farmers can set loans to zero for cent in real time and transparently.

ITC Chairman and CEO Sanjiv Puri said the COVID-19 pandemic has taken businesses out of the survival phase into the recovery phase, and now after COVID-19 there will be ” next normal ”where innovative, digitally driven reforms will change trends forever.

“A key achievement has been the speed and integrity of the digital penetration that has been achieved, which would otherwise have taken years to achieve. In fact, 10 years of digital penetration has been achieved within weeks of the pandemic,” says Puri.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

Source link

]]> 0
Coronavirus thwarts vulture funds’ efforts to finally smash China Tue, 09 Mar 2021 10:57:17 +0000

BEIJING / SHANGHAI (Reuters) – Vulture funds encouraging freer access to China’s $ 1.5 trillion in bad debt have headed straight for a thorny market complicated by restrictions on coronaviruses, at a time when similar restrictions offer opportunities in developed markets easier.

FILE PHOTO: People look at the skyline of the central business district in Beijing, China April 16, 2020. REUTERS / Thomas Peter / File Photo

China agreed to fully open its non-performing loan (NPL) market during the first phase of the Sino-U.S. Trade deal in January, allowing foreign investors to purchase loan portfolios directly from Chinese banks, without local intermediaries.

Struggling debt specialists – or vulture funds – have been calling for easier access to NPLs for years, drawn by Beijing’s determination to modernize the market as well as the expectation of an increase in bad loans as the Chinese economy is slowing down.

NPL’s foreign investors, including Oaktree Capital Management LP, Lone Star and Bain Credit, closed a record 14 NPL deals in China last year, with a combined value of $ 1.1 billion, data shows from the consulting firm PwC.

Before the novel coronavirus began to strangle much of China’s economy in February, PwC said deregulation would be a “game changer” for the role of foreigners in the country’s bad debt market.

But efforts on the ground to take advantage of easier market access have been hampered by travel limits imposed to stop the spread of a virus that was first reported in China at the end of the year. last and has since killed more than 184,000 people worldwide.

“What investors can do right now is just a ‘computer review’,” said John Xu, Shanghai-based partner at Linklaters LLP, referring to project analysis via images and files. digital.

“Pending transactions are stalled and term sheets with signatures have piled up on the desk,” said Xu, whose clients include a New York-based bad loan company.


Vulture funds have also faced what they see as a lack of clarity regarding the regional licenses needed to operate local asset management companies (AMCs), Xu said.

The funds balk at the uncertainty of how long it takes to receive the licenses, or whether applications could be hampered by local unofficial license quotas, Xu said.

“I’m dying that we can all travel more and then talk to regulators about their preferences and concerns,” said Singapore-based managing director Avery Colcord of US alternative investment fund manager CarVal Investors. .

CarVal made two deals in China in 2018, PWC showed. He is currently considering launching a local currency fund, Colcord said.

Colcord said CarVal was in talks with regulators in Shanghai over a local AMC license application, but the company was “in the early days of learning what a provincial AMC would be allowed to do.”


Some funds have also been distracted by opportunities in better-known markets such as Europe and the United States, where virus restrictions have seen companies grapple with forced shutdowns and customers confined to their homes.

At least one global vulture fund has assigned some of its staff in mainland China to analyze overseas opportunities, said a person from the fund familiar with the decision, who was not authorized to speak to the media and therefore has refused to be identified.

“Major distressed debt funds are likely to prioritize the European and American markets in terms of investment and energy for at least two years,” said a mainland China-based credit banker at a large firm in Wall Street, highlighting the appeal of the more established. procedures and practices in mature non-performing loan markets.

“China is sizeable in size, so foreign companies are naturally interested, but it’s an afterthought given the current situation.”

Reporting by Cheng Leng, Samuel Shen and Ryan Woo; Editing by Jennifer Hughes and Christopher Cushing

Source link

]]> 0
Distressed borrowers seek creative loans to survive virus (1) Tue, 09 Mar 2021 10:57:17 +0000

When PizzaExpress secured a new loan from a private credit company earlier this month, it paved a way that other cash-strapped businesses are likely to follow in the coronavirus era.

The struggling UK restaurant chain secured £ 70million ($ 86million) from HPS Investment Partners in mid-March. As a super senior loan, it will be paid off first in the event of bankruptcy. Now, other companies are looking for investors willing to provide emergency liquidity to the safest part of the debt pile.

When contracts permit, this type of borrowing could make the difference between business failure or survival. Ordinarily, existing lenders would not agree to a debt being placed in front of them, but in distress or emergency situations, they are more likely to view it favorably, according to Matthew cox, partner at Baker & McKenzie law firm in London.

“We expect to see more and more loans of this type in the coming weeks,” he said, adding that his clients were “actively looking” for super senior opportunities.

Direct lending funds are looking to get into those situations where it used to be banks, he said.

“A trend is developing where alternative credit providers are closing the gap as they did in some ways after the financial crisis,” Cox said.

Likely candidates

On Tuesday, cruise line Carnival Corp., which plans a loss and suspended its dividend, has offered investors a priority right to its assets as it seeks to raise $ 3 billion in cash through senior secured notes.

Borrowers including the French equipment rental company Loxam and Spanish gaming company Cirsa, both with bonds listed at distressed levels, are potential candidates for super senior loans, according to analysts at Spread Research and CreditSights respectively. Online travel agent eDreams Odigeo SA, whose banknotes are priced around 50 cents per euro, should also consider this type of financing to address liquidity problems, say researchers from Covenant Review.

A spokesperson for Loxam said the company has no plans to apply for a super senior loan. Cirsa declined to comment.

“This is clearly an option available to us,” said an eDreams spokesperson, adding that the company had drawn 170 million euros ($ 187 million) from its senior revolving credit facility. “This is one of the strengths of our record.

Private equity owners and troubled debt funds are also natural providers of this type of financing. KKR Credit Advisors provided 50 million euros senior secure loan to vending machine company Selecta Group last week which will be repaid before company notes in case of execution

“We are urgently working with clients to find creative solutions,” said Korey fevzi, partner at Shearman & Sterling law firm in London. Lenders will likely only provide liquidity if they are ranked higher, he said.

However, while some investors are investigating loan opportunities, others are trying to determine if debt is going to be placed on top of them in the structure, thereby reducing the value of their holdings. Subscribers to the research firm Covenant Review are increasingly wondering how borrowers can raise this funding.

The investor lobby group European Leveraged Finance Association is hosting webinars to show its members how to know if high yield bond covenants allow companies to issue this type of debt.

Funding receivable

Another area of ​​secure credit that will see an increase in activity is debt financing, according to John miesner, a director of KPMG’s debt advisory team. This type of financing is attractive to lenders because they receive business invoices as collateral for the loans, thus providing an alternative remedy in the event of insolvency.

“Lenders will seek to structure loans in this way to improve the borrowing capacity of a business,” he said.

(Updates with commentary from Loxam, detail on Carnival)

–With the help of Marianna Aragao and Antonio Vanuzzo.

To contact the reporter on this story:
Katie linsell in London at

To contact the editors responsible for this story:
Vivianne Rodrigues to

Bruce douglas

© 2020 Bloomberg LP All rights reserved. Used with permission.

Source link

]]> 0
How to convert HDFC credit card payment to EMI? Tue, 09 Mar 2021 10:57:16 +0000

You can convert HDFC credit card bill in EMI online. Converting credit card dues to EMI essentially means converting to a to lend, where you will have to pay interest on your current loan. This feature is available on most HDFCs credit card, via the SmartEMI platform. SmartEMI function allows you to convert HDFC credit card bill to EMI. However, for the conversion you must be eligible for this purpose. As soon as you opt for SmartEMI, your credit limit is blocked. Here is everything you need to know to convert your HDFC credit card bills to EMI.

Which credit card contributions cannot be converted to an IME?

Purchasing gold or jewelry by credit card is not eligible for EMI. In addition, transactions that have gone through 60 days or more cannot be taken into account.

How to convert HDFC credit card bill to EMI?

To apply for the program, first verify your credit card eligibility. Verification of eligibility criteria can be performed using NetBanking or Phone Banking.

How to check eligibility and convert credit card bill to EMI through NetBanking?

Here is the step-by-step guide to help you verify your eligibility through HDFC Bank NetBanking:

1) Log in to your HDFC Bank NetBanking account

2) Click on the Cards tab

3) Next, under Credit Card, select the Transact option, then the SmartEMI option

4) An unbilled transactions page will appear. Choose your specific card.

5) Select Debit as the transaction type. Select the view.

6) An inventory of your credit card transactions eligible for SmartEMI will appear, with a “click” option to know your eligibility.

7) Select the “click” option to convert a particular transaction.

A detailed summary of transactions including card number, maximum spending limit, loan amount, interest rate and term will appear. Select the duration that best suits your repayment. The interest rate is determined based on your eligibility and you can view this rate once you click on the desired mandate.

8) Confirm the terms and conditions by selecting submit. A final overview of the loan details will be displayed.

9) During the validation of the transaction, an acknowledgment of receipt and the reference number of the loan are sent by SMS.

Your loan is processed and approved. You have successfully converted HDFC credit card bill to EMI online.

With HDFC Bank NetBanking, you can opt for SmartEMI on your unbilled amount. To convert your billed amount to EMI, follow the PhoneBanking process.

How to check eligibility and convert credit card bill to EMI through PhoneBanking?

You can convert the billed amount from credit card to EMI with HDFC through PhoneBanking by following the steps mentioned below:

You can search and call the customer service number unique to your city. Inform the customer service manager of the interest rate, amount available, and repayment term. After confirmation, your loan is instantly approved without documentation.

This feature allows you to effortlessly convert your HDFC credit card bill to EMI.

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

Source link

]]> 0
Small Energy Players Rely On Taxpayers And Wall Street For Coronavirus Help Tue, 09 Mar 2021 10:57:16 +0000

NEW YORK (Reuters) – Several publicly traded energy companies have taken out millions of dollars in U.S. taxpayer-funded loans to support their operations even as these companies had access to other means of generating cash, according to an analysis by Reuters from the Securities and Exchange Commission and other government data.

FILE PHOTO: A worker sets up a drill pipe rack on an oil rig near Midland, Texas, U.S. February 12, 2019. Photo taken February 12, 2019. REUTERS / Nick Oxford / File Photo

U.S. lawmakers authorized the Paycheck Protection Program (PPP) in the spring to help businesses cope with lost revenue as the coronavirus pandemic worsened. While many small businesses have benefited, large publicly traded companies have taken out loans as well, although many have also restructured their finances or used lines of credit.

Overall, at least a dozen publicly traded energy companies have received about a combined $ 50 million in PPP loans as they have also restructured lines of credit, cashed in crude oil hedges, or tapped into U.S. credit markets. according to Reuters analysis.

When Lonestar Resources US Inc took out a $ 2.2 million US taxpayer-funded loan in May, the small shale driller still had a pipeline to Wall Street and the bond market.

Companies like Lonestar were struggling even before the worst of the pandemic, so any help was a welcome relief. Yet he ended up agreeing to restructure $ 500 million in debt that had accumulated before the virus ravaged the economy.

“The PPP loan prevented me from putting employees on leave,” Lonestar CEO Frank Bracken said in a telephone interview before declaring bankruptcy. Bracken commented a day after Lonestar announced on September 15 that it would wipe out roughly $ 390 million in debt and preferred equity through a pre-arranged Chapter 11 bankruptcy plan.

The US Small Business Administration has said that PPP borrowers could obtain loans if the use of other sources of liquidity were significantly detrimental to their operations.

Tim Stretton, policy analyst at Project On Government Oversight (POGO), an independent watchdog, said Lonestar’s loan would have been better suited to companies without access to debt markets.

“These moms and dads don’t have lobbyists in Washington or Wall Street to make sure they get the loan,” Stretton said.

Citigroup, which provided the PPP loan to Lonestar, declined to comment on its relationship with the shale driller. The bank said it had funded more than $ 3 billion through the PPP, targeting small businesses with more than 300,000 employees.

Many companies took loans and then paid them back, including Calumet Specialty Products Partners LP, which manufactures lubricants and waxes. He paid off $ 31 million in PPP loans in full after reassessing his decision to take the money.

Other energy companies took bailout funds as they scrambled to raise funds. Oil exploration company Amplify Energy Corp received a $ 5.5 million PPP loan even as the company said in May it had sold some of its crude oil hedges and used other measures to boost cash flow. $ 80 million. Contango Oil & Gas secured a $ 3.4 million PPP loan from JPMorgan in April, but restructured a line of credit that also boosted liquidity.

Contango and Amplify did not return any messages requesting comment. JPMorgan declined to comment.

Source link

]]> 0
Tom Cotton surprises political observers by opposing Hawley and Cruz’s Senate efforts to reject Electoral College results Tue, 09 Mar 2021 10:57:16 +0000 WASHINGTON (AP) – The unprecedented Republican effort to overthrow the presidential election has been condemned by a wave of current and former GOP officials warning that efforts to cast doubt on Joe Biden’s victory and retain the president Donald Trump in power is undermining Americans’ confidence in democracy.

Two House Democrats, meanwhile, said they sent a letter to FBI Director Christopher Wray asking him to initiate an investigation. Representative Ted Lieu said they suspected Trump “of engaging in solicitation or conspiracy to commit a number of election crimes.”

Trump has garnered the support of a dozen Republican senators and 100 House Republicans to challenge the Electoral College vote when Congress meets in joint session to confirm President-elect Joe Biden’s 306-232 victory.

While Biden is set to be inaugurated on January 20, Trump is stepping up efforts to prevent the traditional transfer of power, tearing the party apart.

Despite Trump’s election fraud allegations, state officials insisted the election went smoothly and there was no evidence of fraud or other issues that could alter the outcome. . States have certified their results as fair and valid. Of the more than 50 lawsuits the president and his allies have filed against difficult election results, nearly all have been dismissed or dropped. He also lost twice in the United States Supreme Court.

During a leaked call on Sunday (see full transcript), Trump can be heard pressuring Georgian officials to “find” him more voice.

Don’t miss: Trump, on audio tape, urges Georgian official to ‘get’ more votes

More: Restart of impeachment? Democratic lawmakers condemn Trump’s comments, raise crime issue

But some high-ranking lawmakers, including prominent Republicans, are backing down.

At least a dozen Republican senators and elected senators have pledged to reject the results.

Associated press

“The 2020 election is over,” a statement from a bipartisan group of 10 senators, including Republicans Susan Collins of Maine, Lisa Murkowski of Alaska, Bill Cassidy of Louisiana and Mitt Romney of Utah said on Sunday. .

Senators wrote that further attempts to cast doubt on the election are “contrary to the clearly expressed will of the American people and only serve to undermine the confidence of Americans in the election results already determined.”

Republican Gov. Larry Hogan of Maryland said, “Members of Congress’ plan to reject presidential certification makes fun of our system and who we are as Americans.

Former House of Representatives Speaker Paul Ryan, a Republican, said in a statement that “Biden’s victory is completely legitimate” and that efforts to cast doubt on the election “undermine the foundation of our republic “.

Representative Liz Cheney of Wyoming, the third House Republican, warned in a note to colleagues that objections to the Electoral College’s results “set an exceptionally dangerous precedent.”

One of the most vocal conservatives in Congress, Republican Senator from Arkansas, Tom Cotton, has said he will not oppose the certified electoral count on January 6. “I’m grateful for what the president has accomplished over the past four years, which is why I campaigned vigorously for his re-election. But opposing certified electoral votes won’t give him a second term – it won’t. than to embolden Democrats who want to further erode our constitutional system of government.

Cotton said he supported further investigation of any electoral issue, regardless of the counting of the Electoral College’s certified results.

Other prominent former officials have also criticized the ongoing attack on election results. In a brief Washington Post editorial, the 10 living former defense secretaries – half who served as Republican presidents – said “the time to question results is past; the time for the formal counting of the votes of the electoral college, as prescribed by the Constitution and the statutes, has arrived.

The unusual presidential challenge, on a scale unprecedented since the aftermath of the civil war, has clouded the opening of the new Congress and is expected to consume its first days. The House and Senate will meet in a joint session on Wednesday to accept the Electoral College vote, a generally routine process that should now be a protracted struggle.

Trump refuses to give in and pressure is mounting on Vice President Mike Pence to secure victory while presiding over what is usually a ceremonial role during the congressional session. Trump draws crowds for a rally in Washington.

The president tweeted Sunday against the election tally and Republicans not on his side.

Biden’s transition spokesman Mike Gwin called the Senators’ effort a “cut” that will not change the fact that Biden is sworn in on January 20.

House Speaker Nancy Pelosi said in a letter to her colleagues that while there was “no doubt” about Biden’s victory, their job now “is to convince the American people more to trust him. our democratic system “.

The effort in the Senate was led by Sense. Josh Hawley, R-Mo., And Ted Cruz, R-Texas. Hawley defended his actions in a lengthy email to his colleagues, explaining that his constituents in Missouri have been “highly clear” with their belief that Biden’s loss to Trump was unfair.

“It is my responsibility as a senator to voice their concerns,” Hawley wrote on Saturday night.

Hawley plans to oppose the Pennsylvania state count. But Republican Senator Pat Toomey has criticized the attack on Pennsylvania’s electoral system and said the results that named Biden the winner are valid.

Cruz’s coalition of 11 Republican senators commits to rejecting the Electoral College’s counts unless Congress launches a commission to immediately audit the election results. They focus on states where Trump has raised baseless allegations of voter fraud. Congress is unlikely to accept their request.

The group, which presented no new evidence of electoral problems, includes Sen. Ron Johnson of Wisconsin, James Lankford of Oklahoma, Steve Daines of Montana, John Kennedy of Louisiana, Marsha Blackburn of Tennessee and Mike Braun of the ‘Indiana. The new senators in the group are Cynthia Lummis of Wyoming, Roger Marshall of Kansas, Bill Hagerty of Tennessee and Tommy Tuberville of Alabama.

The convening of the joint session to count the votes of the Electoral College has already been the subject of objections. In 2017, several House Democrats contested Trump’s victory, but Biden, who at the time presided as vice president, quickly sacked them to assert Trump’s victory. Rarely have protests approached this level of intensity.

This is a defining moment for the Republican Party in a post-Trump era. Hawley and Cruz are both potential 2024 presidential candidates, cementing their alignment with Trump’s base of supporters. Others are trying to forge a different path for the GOP.

Pence will be watched closely as he presides over what should be an extended showdown, depending on the number of challenges mounted.
The vice president “welcomes the efforts of members of the House and Senate to use the authority they have under the law to raise objections,” Pence chief of staff Marc Short said on Saturday in a statement.

Senate Majority Leader Mitch McConnell warned Republicans against such challenges, but said little when asked about it on Capitol Hill when the Senate opened Sunday.

See: Biparty group of senators urges Congress to certify Biden victory

More: Republican ranks plan for challenge to Biden election – drawing reprimands within the party of Romney, Sasse, Murkowski, Toomey

“We will deal with all of this on Wednesday,” he said.

Some Republicans are not planning to join the effort. Senator Lindsey Graham, RS.C., said on Sunday that her colleagues will have the opportunity to make their point, but they must produce evidence and facts. “They have a high bar to cross,” he said.

Congress has been reluctant to interfere with state-run electoral systems. States choose their own election officials and write their election laws. During the coronavirus pandemic, many states have adapted by allowing postal voting to mitigate the health risks of voting in person.

MarketWatch has contributed to this.

Read on: US political polarization poses greatest “risk” to the world in 2021: Eurasia Group

Source link

]]> 0
Loan restructuring: Supreme Court calls for action on Kamath report Tue, 09 Mar 2021 10:57:15 +0000

The Supreme Court on Monday asked the Center and the Reserve Bank of India to record action taken on the KV Kamath committee report on debt restructuring and also urged the duo to consider “relevant issues raised by real estate associations. and electricity producers. ”.

The Supreme Court observed that the Centre’s offer to waive “interest on interest” on loans up to Rs 2 crore for specified individual borrowers and MSMEs was “unsatisfactory”. The affidavit “does not address several issues,” he said.

The court’s decision increased the chances that he would give instructions to the RBI modify the special window instituted by it in August for lenders to overhaul loans to individuals and businesses in difficulty.

“The problem is not to record the report but to implement the report… The Center and the RBI should make certain orders so that people know what benefit is extended,” the highest court said when the government made. argue that “there is nothing to hide”.

Last Saturday, the government agreed in court to waive compound interest on their loans up to 2 crore rupees for the six-month moratorium period (March-August), but strongly opposed the extension of ‘such relief to all categories of borrowers, citing the enormous burden such a measure would weigh on banks, which could even make most of them unsustainable.

The tax cost of the interest exemption proposed by the Center is variously estimated between Rs 5,000 and Rs 30,000 crore by various agencies, while a precise estimate will only be available when the details of the plan are clarified.

The KV Kamath panel was set up by the central bank in view of the stress inflicted by Covid-19 on various sectors to recommend parameters of eligibility for loan restructuring. He identified 26 sectors for relief last month and also suggested sector-specific thresholds for these sectors. He said electricity, construction, iron and steel, roads, real estate, wholesale trade, textiles, consumer durables, aviation, logistics, hotels, restaurants and tourism, mining were among the sectors that would require restructuring.

A bench led by Judge Ashok Bhushan asked the Center and the RBI to submit to it within a week the panel’s recommendations and various policy decisions and directives taken by the panel to implement their plans on the loan moratorium. It also allowed them to file a consolidated response each rather than responding to each applicant separately. He also called on various industry organizations to table their responses to the government’s loan relief plan.

Under the RBI’s special window, lenders are allowed to recast loans to stressed individuals and businesses without classifying them as non-performing, provided they set aside 10% provisions on those advances.

The Supreme Court will hear the case on October 13.

Solicitor General Tushar Mehta argued that small borrowers were covered by his plan while the Kamath committee’s recommendations would cover borrowers who took on larger loans.

Senior lawyer V Giri, appearing for RBI, told the judges that “a large percentage of people feel that interest over interest hits them very hard. There are further deliberations and recommendations to be made and they will be taken into consideration. If you think the report needs to be saved, we’ll do it ”.

Senior lawyer Harish Salve, representing the banks, argued that “our accounts were frozen because the SC prevented us from classifying the accounts as NPA. It will take us 48 hours to come back to court on the government’s proposal ”.

Real estate agent organization Credai challenged the finance ministry’s estimate that waiving interest on loans to each category would cost banks 6 lakh crore. Its lead attorney, CA Sundaram, argued that the affidavit removed the real estate industry from consideration and did not affect the industry at all.

Senior lawyer Kapil Sibal also backed Sundaram, saying the problems were much more serious because, as of September 1, all of our accounts are “non-standard… We have not been granted any loan restructuring”. “Many of the facts and figures in the government’s affidavit are unfounded and the Finance Department’s estimate that waiving interest on loans to each category would cost banks 6 lakh crore is false,” he said. -he declares.

Sibal, in a previous hearing, argued that the current loan restructuring (as authorized by the RBI) will not provide relief to 95% of borrowers. “The downgrading of borrowers continues and they need to be protected,” he said.

On September 3, the SC had banned banks from reporting loan accounts that were not NPAs until August 31. He had given the government and the RBI a “last chance” to come up with a concrete plan on the issue of waiver of interest. He also called on the government to make a decision after considering the interests of all classes of creditors and all sectors of the economy.

Source link

]]> 0
Bank deposits are on the rise; Loan demand is declining Tue, 09 Mar 2021 10:57:15 +0000

Attracting deposits for banks is not always easy, as evidenced by the use of negotiated deposits. But these days, since the start of the pandemic, bank deposits have jumped to over $ 15.8 trillion in the first quarter, an increase of more than 13% from the previous year, and rose again for most of the second quarter.[1] Businesses and individuals appear to be inundated with cash. Individuals sell stocks and hold cash, companies conserve cash and do not invest in capital or other expenses. Many small businesses that have received PPP or similar loans related to COVID own the products and assess what expenses they can be charged against.

For the banks, normally all this money would be a good thing. They bring in money at very low interest rates and lend it out at higher rates in the form of loans. But in fact, the loan / deposit ratio goes from 71.9% to 68%. The reasons for this can be varied. The demand for loans may not be high because small businesses have access to P3s or other low-cost loan programs. Or, large companies may not borrow due to uncertainty in the market.

On the other hand, it may not be a demand issue: it could be a supply issue. Lenders are worried about the creditworthiness of borrowers given the uncertainty in the market and the number of bankruptcies filed, even by established companies, and therefore perhaps they do not offer credit.

Another factor that can have an effect is where the deposits are distributed. It is a fact that large amounts of cash reside in large central banks. Some of these funds are deposited by brokers who have cash flow from sales of their clients’ shares. Because customers want their deposits to be FDIC insured, the big banks distribute the funds to other big banks in a “daisy chain” to place them in FDIC insured deposits. But the number of such banks is usually limited to no more than 25 to 100 banks due to the requirements imposed by the SEC. Concretely, this means that a large amount of cash is dispersed only among the largest banks. These banks in turn do not have the relationships with small and medium enterprises all over the country to extend credit widely.

Ultimately, if banks cannot invest their money profitably in loans, borrowers may be forced to turn to non-bank lenders for funds. And if banks don’t make loans, they may also be forced to limit the amount of deposits they can take. On the asset side, the loans they have made may not be repaid, putting even more pressure on bank balance sheets and reducing their ability to make more loans. All of this indicates that there are fears that the delicate balancing mechanisms that have kept our economy running for decades will come under serious strain in the months to come.

[1] See the FDIC Quarterly Data Report at

Copyright 2021 K & L GatesRevue nationale de droit, volume X, number 177

Source link

]]> 0