A number of businesses linked to prominent lawmakers including Speaker Nancy Pelosi, D-Calif., have accessed government support though the Paycheck Protection Program, according to details released by the Small Business Administration. The information comes as questions grow in some quarters over whether PPP loans are reaching businesses most in need of support during the coronavirus pandemic.
Economists believe it's unlikely that the US will follow through with actions that would undermine Hong Kong's peg to the dollar because it would be a challenge to execute and hurt US interests. The US would likely have to impose sanctions on Chinese banks and limit the selling of dollars to implement such a policy, said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered in Hong Kong.
US lenders stand to collect as much as $24.6 billion in fees from their role in administering the federal Paycheck Protection Program, an analysis of loan data finds. Some banks, including JPMorgan Chase, Bank of America and Wells Fargo, have pledged to donate profits from their involvement to support community and non-profit organizations.
A Financial Action Task Force report prepared for G-20 finance ministers and central bank governors calls for cryptocurrency stablecoins to comply with standards to guard against money laundering and terrorism financing. The move would mean entities supporting stablecoins would need to verify their users' identities.
International investors including a private bank were duped into buying around €1 billion of bonds issued by front companies linked to Italian organized crime syndicates, according to documents seen by FT.
The Consumer Financial Protection Bureau eased restrictions on small-dollar lending, a move that will help banks offer loans of less than $2,500 to consumers. "This new rule will prevent more Americans from turning to less consumer-friendly alternatives to fund their short-term liquidity needs," said Richard Hunt, president and CEO of the Consumer Bankers Association.
BBVA is using a proprietary, data-driven model to decide where and when to reopen branches, based on the spread of COVID-19 and staff availability. The company will require employees to wear masks and take steps to control the flow of visitor foot traffic.
PNC Bank has promoted Richard Bynum, a graduate of CBA's banking school, as chief corporate responsibility officer, and Carole Brown has been chosen to lead the bank's asset management group. They are the first African-Americans to join the bank's executive committee.
Details released on Paycheck Protection Program loan recipients have sparked allegations that a disproportionate amount has gone to affluent companies with connections to senior politicians and elite US bodies. More than 4 million companies have benefited from the PPP, but 15% of recipients have received $3 out of every $4.
Modern Money Murmurs: Of all the articles out there covering which entities got these government funds, this one is definitely my favorite. A close second was learning that Kanye West's Yeezy LLC got between $2 million and $5 million.
Bankers say companies have paused their record-breaking dash to secure funding lines and are reviewing the coronavirus pandemic's impact on their operations before embarking on fresh fundraising efforts.