Banking – The Carriage HSE Fri, 04 Jun 2021 12:54:40 +0000 en-US hourly 1 Banking – The Carriage HSE 32 32 Italy in talks with EU to expand GACS bad loan program: sources Tue, 09 Mar 2021 10:56:45 +0000

By Giuseppe Fonte and Valentina Za

ROME (Reuters) – Rome is in talks with the European Commission over extending a state guarantee program that could help Italian banks get rid of around 30 billion euros ($ 36 billion) of bad debts this year, two sources familiar with the matter told Reuters.

Banks are expected to face an increase in problem loans once governments withdraw measures taken to keep businesses afloat during the pandemic.

Talks to renew the “GACS” guarantee program for one year from its expiration in May began earlier this year, one of the sources said, adding that negotiations should continue at least until the end. March.

Both sources said there would only be minor changes to the program if it was extended, dashing hopes in Italy’s financial sector that it could be expanded to include “unlikely to pay” (UTP) loans. .

UTP loans, unlike bad debts, are not yet in default and can be recovered by restoring the health of borrowers, a much more complex process than recovering money through the courts.

Italian authorities are concerned about the difficulty in rating UTP loans and the possibility that they may be treated as delinquent loans by rating agencies and investors, causing borrowers to tip over.

Italy introduced the “GACS” program in 2016 to help banks cope with bad debts totaling nearly a fifth of total loans after a deep recession.

After a slow start, it allowed Italian lenders to get rid of around € 85 billion in overdue loans, according to bad debt specialist Banca IFIS.

The Treasury renewed the measure in May 2019 for two years, saying at the time that it could be extended for a third year provided the EU competition authorities allow it.

Greece is also negotiating an 18-month extension of its “Hercules” program, which replicates the GACS model and expires in April.

Under the GACS program, banks can purchase a Treasury guarantee to support less risky banknotes when selling bad debt repackaged into securities. This makes it possible to obtain a better price and to minimize the losses that banks incur when selling such loans.

($ 1 = € 0.8433)

(Edited by Kirsten Donovan)

]]> 0 For millions of student loan debt, bankruptcy is not an easy solution Tue, 09 Mar 2021 10:56:45 +0000

“It is an untouchable subject,” she said.

The transformation of bankruptcy rules began in 1976, with unfounded rumors.

A handful of lawmakers have claimed to have heard of a parade of young doctors and lawyers trying to play with the system and get rid of their debts while embarking on lucrative careers. Legislators hardened the rules, largely preventing borrowers from requesting a waiver within five years of graduation. The rules only got tougher over the next three decades.

Borrowers must prove that their student loans constitute “undue hardship” – a standard interpreted differently, depending on where you live. Some court circuits, including those in Nebraska, where Ms. DeLaet has testified, ask the judge to consider a “set of circumstances” for the debtor and make a decision.

Other jurisdictions employ a less flexible standard, the Brunner test, from the name of the case that established it. Judges must answer three questions in the affirmative to pay off the debt. First, did the debtor make a good faith effort to repay the loans? Second, is the debtor unable to maintain a minimum standard of living while making payments? And finally, is the debtor’s situation likely to continue?

But even jurisdictions that use the Brunner test apply it differently. Some require the judge to find that borrowers have a “Certainty of despair” by paying off their debt. Other jurisdictions do not.

Here, the Johnsons may have enjoyed good geographic luck.

Lawyers for the Educational Credit Management Corporation – a nonprofit that collects delinquent loans on behalf of the federal government – examined how the Johnsons spent their monthly income of $ 2,100.

Each expense was reviewed, including Ms Raney-Johnson’s monthly union dues of $ 35, her $ 100 pension contribution and $ 215 to pay off loans from her pension plan. None, according to the association’s lawyers, was necessary to maintain a “minimum standard of living”.

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Bill to Create a State “Bank” for Barrels in Utah’s Inner Port Tue, 09 Mar 2021 10:56:44 +0000

SALT LAKE CITY – Another Utah Inner Port Authority bill tabled at the end of the Utah Legislative Assembly’s general session this year seeks to create a funding mechanism for loans at low interest rates for rural port projects.

Even though dozens of speakers lined up online and in person on Utah’s Capitol Hill on Monday – filling the limited capacity of the Senate committee room due to COVID-19 and several overflow rooms – Committee chair Senator Daniel Thatcher has allowed less than 15 minutes of public comment on the bill as lawmakers head for the end of the 45-day session this week.

“We’re running out of time here,” Thatcher said of R-West Valley City, calling on the last public commentators to speak. Shortly thereafter, the Senate Committee on Government Operations and Political Subdivisions swiftly voted 6 to 1 to approve the bill, with only Senator Kathleen Riebe, D-Cottonwood Heights, voting against.

It is now under consideration by the entire Senate.

that of Stevenson SB243 would create “infrastructure banks” that would store state money to use as a loan for future Utah Inner Port Authority projects, including projects in rural areas. House lawmakers announced on Friday that a large one-time sum of money – $ 75 million – would be set aside in this type of “infrastructure bank” specifically for port authority projects.

Supporters, including Utah Inland Port Authority executive director Jack Hedge, said the SB243 The bill to create “infrastructure banks” for rural port projects “would give us opportunities to focus on the efforts of rural areas”.

Senator Daniel Thatcher, R-West Valley City and Chairman of the Senate Standing Committee on Government Operations and Political Subdivisions, listens to Senator Jerry Stevenson, R-Layton, sponsor of SB243, discuss the bill during a hearing in the Senate building at the Capitol Complex in Salt Lake City on Monday, March 1, 2021. The bill would create a fund for inland ports with a credit of $ 75 million.
Steve Griffin, Deseret News

“Our goal with this infrastructure bank is to use that to drive project growth. … This is really our goal, ”Hedge said.

Stevenson echoed what Hedge and other pro-port stakeholders have pointed out to address environmental concerns.

“We have the opportunity to build a unique new port in the world,” Stevenson said. “I think all the industries that want to come here will all be very green. “

Activists have been protesting against the port for years – at one point storm the Salt Lake City Chamber of Commerce building in downtown and sometimes disrupt public meetings and face arrests – to prevent what they see as a project that would worsen Wasatch front air quality, ruin fragile wetlands near Great Salt Lake, disrupt Utah roads with more trucks and would increase fossil fuel exports from rural Utah.

While anti-inland port activists have spoken out against the bill, calling it yet another Utah Inland Port Authority bill drafted behind the scenes and unveiled in no time To get the audience digesting it, they rushed to finish their comments within the minute allotted to them before their mics were cut.

“This whole process is just ridiculous,” said Katie Pappas of Salt Lake City.

Deeda Seed, activist for the Center for Biological Diversity and lead organizer of Stop the Polluting Port, called the public process “shameful” and intended to facilitate the development of an inland port in Utah that continues to worry environmentalists because which she declared there “are there no green ports.

“Why are you creating a funding mechanism … even before a plan is in place?” Seed asked. “Wouldn’t it be more responsible to create the plan before creating a fundraising vehicle?

The bill’s sponsor, Senate Budget Chairman Jerry Stevenson, said SB243 “builds a fence around these funds until a viable project comes to authority” and a committee loan would determine the viability of the project.

As currently provided for in the bill, the loan fund would be managed by a committee of five appointed members, two of whom are appointed by the Governor, one by the Speaker of the House, one by the Speaker of the Senate and one by the Speaker of the Senate. the permanent community. Council of the Impact Fund.

“It doesn’t return the funds to those authorities,” Stevenson says. “They have to go through a process to get them.”

The bill would also create a loan fund mechanism for the Point of the Mountain State Land Authority, the board overseeing the development of the future site of Utah State Prison in Draper, and the Military Installation Development Authority, an agency the state originally created to accelerate development near Hill Air Force Base, but was expanded to create a new ski resort in Wasatch County.

Victoria Ashby, director of government relations for the League of Cities and Towns of Utah, and Salt Lake City Councilor Andrew Johnston have expressed concerns about the bill. They asked for a city representative on the committee that oversees the loan fund, as well as concerns that the loan fund could serve as a vehicle to potentially spend the increase in municipal tax (tax revenue generated by the growth of the property tax) on projects outside the Salt Lake City project. territorial jurisdiction.

“We have to be careful of this,” said Johnston. “Because it might be a kind of precedent-setting step.”

Salt Lake City is still grappling with a legal battle with the state, which has now reached the level of the Utah Supreme Court, over whether the creation of the Utah Inland Port Authority and its nearly 16,000 acre jurisdiction in Salt Lake City are constitutional.

Stevenson said he was still working on the bill “as I sat in church yesterday”, and promised in Salt Lake City and other parties that “the door is not closed” . We will continue the discussions.

Jack Hedge, executive director of the Utah Inland Port Authority, discusses SB243 during a hearing before the Senate Standing Committee on Government Operations and Political Subdivisions in the Senate Building at the Capitol Complex in Salt Lake City on Monday, March 1 2021. The bill would create a fund for inland ports with a credit of $ 75 million.

Jack Hedge, executive director of the Utah Inland Port Authority, discusses SB243 during a hearing before the Standing Committee on Government Operations and Senate Political Subdivisions in the Senate Building at the Capitol Complex in Salt Lake City on Monday, March 1 2021. The bill would create a fund for inland ports with a credit of $ 75 million.
Steve Griffin, Deseret News

To complaints about the late tabled bill and the condensed time for public comment on the bill, Stevenson admitted, “It’s late in the session.”

“My apologies to the audience, but this has a lot to do with my schedule and my editors,” he said. “We are not going as fast as usual.”

Stevenson said the bill had been worked on “throughout the session”. Even though Friday marked the first time that lawmakers have disclosed that they are considering creating “infrastructure banking” legislation and that they have arrived at the figure of $ 75 million, Stevenson said he did not. there was “no attempt to circumvent any process or public opinion in this bill.”

“There was no attempt to do it in the back room,” Stevenson said. “It’s in the light of day now.

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Superior prepays a $ 2.6 million loan from Kestrel Aircraft Tue, 09 Mar 2021 10:56:44 +0000

The Upper City Council closed the chapter on Kestrel Aircraft Company on Tuesday, March 2.

The company had hoped to revolutionize the general aviation industry by building its K-350 – a carbon composite turboprop aircraft – at Superior, creating 600 jobs. Kestrel announced that it would build its manufacturing facility in Superior in 2012. They were never built.

The project died in a dispute between company founder Alan Klapmeier and the state of Wisconsin.

Councilors approved repayment of the $ 2.66 million bond the city obtained on behalf of the company a year earlier.

“It’s, I think, kind of a big moment,” said Mayor Jim Paine. “This will allow us to pay off the Kestrel loan sooner. This will end our business with Kestrel.

RELATED: Board of Governors closes Connors Point Tax District

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Kestrel Aircraft defaulted on its loan payments to Superior in 2016; the last payment was received in October 2015.

The city has since repaid the bond at a cost of approximately $ 365,000 per year using the money normally set aside for capital projects such as improving sidewalks, streets and parks.

The city joined the Douglas County Revolving Loan Fund and the Wisconsin Economic Development Corporation – both of which held loans that Kestrel defaulted on – in a bid to recover the money in 2018. The revolving credit fund board had approved a loan of $ 500,000 and WEDC offered a $ 2 million loan.

ONE Aviation, created by a merger between Kestrel Aircraft and Eclipse Aerospace, filed for bankruptcy, ending all chances of reimbursement for the city, county and state.

Superior was still responsible for the repayment of the bonds it had entered into on behalf of the company.

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Two Home Industry Leaders and Home Care Veterans Formalize Agreement to Help More Adults Age Safely at Home | Business Tue, 09 Mar 2021 10:56:44 +0000

ST. LOUIS, MO – March 8, 2021 – Home Care for Veterans (HCV), the national leader in obtaining VA assistance and assistance benefits for veterans and their spouses through its VetAssist® program, and In place, a leading home care provider, say they have formalized a labor agreement to allow more seniors to age happily at home.

The agreement elevates Veterans Home Care’s VetAssist® program as the preferred recommended provider of choice for VA benefits with Home Franchise Owners Rather nationwide. In return, participating Home-to-Place franchises will be matched with VetAssist® clients to provide care. Instead, ninety-two Home franchises are already part of HCV’s VetAssist® network of over 4,000 vendors.

“This agreement is a real win-win which not only helps amplify the two corporate brands, but also allows us to help more seniors enjoy the comfort of aging at home. Home Rather and their franchisees have already demonstrated the highest level of professionalism while providing care to our customers. We look forward to taking our relationship to the next level and helping thousands of Veterans and their surviving spouses get the benefits they deserve, ”said Bonnie laiderman, CEO of Veterans Home Care.

“Our partnership with VetAssist allows us to give back to the veterans who have given us so much. We want more families of veterans to know about it. They have earned this VA benefit and we are happy to see them use it, ”said Tiffany plott, Owner of Rather house in Keller, Texas.

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Dutch government suspends bailout loan to KLM | New Tue, 09 Mar 2021 10:56:44 +0000

The restructuring plan proposed by KLM was rejected by the Dutch government for failing to secure crucial union commitments, and the airline will not be allowed to draw more on the loans offered to support the carrier.

The Dutch Ministry of Finance informed Parliament that the first drawdown of the loan – in the amount of € 277 million – was made on August 26, with a drawdown of € 665 million on a revolving credit facility on same day.

But the ministry affirms that the government “will not make available a second tranche” until the restructuring plan of KLM will not have met “the satisfaction of the State”.

KLM presented its restructuring plan on October 1, but tried to secure commitments from the unions on labor contributions which, as a condition of the loan, must run for the duration of the loan.

The airline was unable to secure those commitments by the Oct. 31 deadline as the carrier’s cockpit union refused to sign a deal.

KLM and its unions are expected to adhere to the terms of the financial support, the ministry said, and the government has informed the airline’s board that the Dutch state “cannot approve” the proposed restructuring plan.

The ministry adds that the airline “cannot therefore proceed to a subsequent drawing” of the direct loan or the credit facility initially made available to KLM.

“It is up to KLM and the unions to ensure that the conditions set are met,” the ministry told parliament, adding that it would provide further information if the situation changes.

Air France-KLM Group released third quarter figures showing KLM recorded an operating loss of 234 million euros in the three months to September 30 and just over 1 billion euros in the first nine months of this year.

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Here’s why a nightmarish tax season awaits small businesses Tue, 09 Mar 2021 10:56:44 +0000

Westend61 | Westend61 | Getty Images

A hellish tax season is fast approaching for small businesses that have received assistance under the CARES Act.

“The provisions of the CARES Act are all useful for small businesses, but they will complicate tax planning efforts over the next two years,” said Holly Wade, Federation director of research and policy analysis. national independent business.

As winter approaches, half of small business owners are still in survival mode, but they are starting to understand how difficult tax compliance will be next year, said Tom Sullivan, vice president of small business policy in the United States Chamber of Commerce.

“Anxiety is just starting to show up for small business owners,” he said. “They don’t make decisions based on the tax code, but they understand April’s filing season could be a nightmare.”

Indeed, the pandemic relief law that became law this spring established Paycheck Protection Program loans and employee retention credit and paved the way for entrepreneurs to turn their losses. in silver.

However, with the help comes additional tax complexity for 2020 and some pain when it comes time to file a return in the spring.

If there’s ever been a time for business owners to hire a tax professional, this is it.

PPP deductibility issues

The CNBC survey | SurveyMonkey Small Business Q4 2020 reveals widespread support for another round of Covid-19 stimulus and relatively high levels of support among small business owners from both political parties for increased funding for the paycheck protection program.

Q4 2020 CNBC | SurveyMonkey Small Business survey

While technically true, this also makes the loan taxable to the extent that other business income will be more fully taxed.

“If the top priority is to free up capital for business, the government should free up capital,” said Sullivan of the Chamber of Commerce.

“A double benefit is exactly what Congress intended and the IRS should be made aware that these expenses are still deductible,” he said.

Sullivan and Wade are lobbying Congress to remedy the situation.

Interactions between PPP and other tax breaks

Even if this huge problem is resolved favorably for the small business community, profiting from and complying with other tax code changes will remain a huge challenge.

“It’s not just that the tax code is complicated,” said Victoria Glover, partner at Deloitte’s national tax office. “The IRS has issued many guidelines this year and taxpayers must follow everything.”

For example, recipients of PPP loans cannot claim the Employee Retention Credit, a credit equal to 50% of eligible salary paid to employees – or up to $ 5,000 per employee – from March 13 through the end of the year. year.

“Anxiety is just starting to show up for small business owners,” Sullivan said.

Tom sullivan

head of small business policy at the US Chamber of Commerce.

Employers taking out a PPP loan can also choose to defer their share of the social security tax until the end of the year.

“There are a number of interactions between the provisions of the CARES Act,” Glover said.

“It all depends on the facts and circumstances of each taxpayer,” she said. “People need to talk to their tax advisers about how parts of the CARES act interact with each other and with the rest of the tax code.”

Find a pro

Luis Alvarez | DigitalVision | Getty Images

Getting expert help is easier said than done for sole proprietors and small partnerships, said Wade of the National Federation of Independent Business.

“Most employers hire a tax professional, but the smaller the business, the less contact they get,” she said.

“It’s intimidating and they don’t know what questions to ask,” Wade said. “Even with a tax professional, it is difficult to manage these problems.”

Wade worries that many small business owners fail to take advantage of the provisions of the CARES Act because they are too daunting to understand.

“It involves more paperwork and time than they don’t have in a day,” she said.

Here are four questions to prepare you for your year-end meeting with your tax professional.

  • What should I do or think to prepare for our meeting? Maintain solid accounting and be sure to document your use of any P3 funding. This will make things easier for your CPA or accountant.
  • What are some common mistakes small business owners make when preparing their tax returns? This is not the year to go it alone. Know some of the main obstacles for entrepreneurs.
  • What tax changes in the past year could impact my business? The CARES law has emergency funding in place for small businesses, and this will affect your tax return.
  • What are the typical deductions and credits for a business like mine that may apply to me? Write-offs and refundable claims you can make will be based on the specifics of your business.
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Worcester couple arrested on charges of stimulation fraud | USAO-MA Tue, 09 Mar 2021 10:56:43 +0000

BOSTON – A Worcester couple were arrested today on charges of fraudulently applying for business loans under the CARES Act and then spending the money on personal expenses.

Lucy Oworae, 56, and her husband, Richard Oworae, 59, have been criminally charged with wire fraud and misrepresentation. They will make their first appearance before US Justice of the Peace David H. Hennessy this afternoon.

According to the impeachment documents, between late July 2020 and late August 2020, Lucy and Richard Oworae attempted to defraud the Small Business Administration (SBA) by submitting claims through the SBA website for at least three loans in the event disaster recovery (EIDL) totaling approximately $ 194,700. The Oworaes fraudulently applied for EIDL loans, provided false statements on loan applications, and misappropriated loan funds for their personal use.

The Oworas allegedly set up shell businesses with the aim of fraudulently applying for EIDL loans, and spent the funds obtained through this fraud on unauthorized personal expenses and to make money transfers through a money transfer company based in Tanzania to many people residing in Ghana.

EIDL funds are available to eligible individuals and businesses under the Coronavirus Help, Relief and Economic Security Act (“CARES Act”). The provisions of the CARES Act allowed the SBA to offer EIDL funding to business owners affected by the COVID-19 pandemic. The provisions of the EIDL program require that the loan proceeds be used only for certain permitted business expenses, which may include the payment of fixed business debts, payroll, accounts payable and other business expenses that could have been paid in the event. disaster of COVID-19. not happened.

The wire fraud charge carries a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $ 250,000. The misrepresentation charge carries a sentence of up to five years in prison, three years of supervised release and a fine of up to $ 250,000. Sentences are passed by a judge in a federal district court based on US sentencing guidelines and other statutory factors.

American lawyer Andrew E. Lelling; Joseph W. Cronin, inspector in charge of the US Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the Office of the Inspector General of Postal Services of the United States, made the announcement today. Assistant US Attorney Danial Bennett of Lelling’s Worcester branch is pursuing the case.

The details contained in the impeachment documents are allegations. Defendants are presumed innocent unless and until their guilt is established beyond a reasonable doubt by a court.

]]> 0 Free Student and College Loan Cancellation – 10 Ways Biden Can Change Student Loans Tue, 09 Mar 2021 10:56:43 +0000

President Joe Biden can change college debt in at least 10 ways.

Here’s what you need to know – and what it means for your student loans.

Student loans

Call it the pen stroke. Call it stand-alone legislation. Call it a component of the new stimulus package. No matter what you label, there can be upcoming changes to your student loans in 2021. Whether it’s through congressional legislation or executive action, here are some potential ways your student loans could be affected during the Biden administration:

1. Cancellation of student loan

Will your student loans be canceled? The news headlines were dominated by the cancellation of student loans. Whether through executive action or congressional legislation, borrowers and student loan advocates are lobbying for student loan cancellation. Biden wants to cancel student loans immediately. Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA) want Biden cancel up to $ 50,000 in student loans per borrower through executive action. however, Biden says he’s unlikely to do that, which means Congress should cancel student loans to provide student loan relief. Congress May Cancel Student Loans Under New Stimulus Package. That said, Biden did not include the student loan cancellation in his $ 1.9 trillion stimulus package proposal and Congress dropped student loan cancellation from latest stimulus package. Expect a big battle in Congress: While Democrats control Congress, Senate Republicans will oppose the cancellation of student loans and delay any proposed legislation. 0
UK Permanent Loan and Business Loan Programs Extended Again | Morgan lewis Tue, 09 Mar 2021 10:56:43 +0000

British Chancellor Rishi Sunak announced on December 17 that the Coronavirus Job Retention Program (CJRS) was to be extended until April 30, 2021. This represents a further one-month extension.

The Chancellor also announced that the government’s contribution to employee wages for hours not worked will remain at 80% (capped at £ 2,500 per month). The other CJRS eligibility criteria will also remain unchanged until April 30, 2021, on which more details can be found in this LawFlash. To date, the CJRS has paid part of the salaries of nearly 10 million jobs from more than one million companies.

In addition, the Chancellor revealed that business loans against the government guaranteed coronavirus (COVID-19) will be extended until the end of March 2021. These loans were initially scheduled to cease at the end of January 2021.

The Chancellor had indicated in a previous statement in early November 2020 that a decision on any extension of the CJRS would be taken in January 2021. This latest announcement was therefore unexpected. He said the measures have been revealed now to bring “certainty and clarity” to the businesses concerned ahead of the new year. The Chancellor’s announcement coincides with further changes to ‘tier’ allocations in regions of England, with a general picture of tighter restrictions across the country, in particular due to the new variant of COVID-19 primarily affecting London and the South East of England. This situation is likely to put even more pressure on many employers and employees, especially those in the hospitality, travel and leisure sector. Wales, Scotland and Northern Ireland have their own independent rules for coronavirus restrictions.

Finally, the UK budget has been confirmed for March 3, 2021, in which the government will present future plans to support businesses and employees. This means that, for employers planning to lay off 20 or more positions, they will have time to consider any additional support offered in the budget before confirming any layoffs and consulting with employees (with minimum statutory consultation periods of 30. days for 20 to 99 layoffs and 45 days for 100 or more layoffs).

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