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Coronavirus !!! Very Political Thread !!!

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JuiceCrewAllStar said:
I get that

but what are the penalties relative to the mistakes?
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Well evidently during the last financial crisis we paid out $8B in fines related to certain gov backed programs that we participated in. I think the risk is we either (a) allow clients to borrow too much based on false or misleading financial info or (b) misuse of proceeds or falsification of use of funds could open us up to fraud risk. Again, I expect that the gov will ultimately reach a formal or informal agreement to indemnify the banks against this kind of risk. And I know they pushed hard for it. But due to the speed of the process and pressure from the fed we had to get on board.
 
WRS said:
Well evidently during the last financial crisis we paid out $8B in fines related to certain gov backed programs that we participated in. I think the risk is we either (a) allow clients to borrow too much based on false or misleading financial info or (b) misuse of proceeds or falsification of use of funds could open us up to fraud risk. Again, I expect that the gov will ultimately reach a formal or informal agreement to indemnify the banks against this kind of risk. And I know they pushed hard for it. But due to the speed of the process and pressure from the fed we had to get on board.
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The first part wouldn't be that big of a deal, but yes, if they end up applying for forgiveness for non payroll/rent related costs, that would be the risk. But still, I think your take on "not profiting from it" is way off. But it IS a lot of overtime/stress for it. But the C suite crowd will happily take it.
 
I'm enjoying the Palma awakening. Glad that you're on board with the realization that almost everyone in power is full of shit and only cares about themselves. Makes the world a lot easier to understand.
 
palmab03 said:
The first part wouldn't be that big of a deal, but yes, if they end up applying for forgiveness for non payroll/rent related costs, that would be the risk. But still, I think your take on "not profiting from it" is way off. But it IS a lot of overtime/stress for it. But the C suite crowd will happily take it.
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That’s fair. We will make money. There will be effectively zero margin on the credit piece but the origination fees will be substantial as you noted. Biggest issue is probably resource drain.
 
WRS said:
That’s fair. We will make money. There will be effectively zero margin on the credit piece but the origination fees will be substantial as you noted. Biggest issue is probably resource drain.
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I mean, they're forgiveable loans with government money

why should banks make money on interest?
 
JuiceCrewAllStar said:
I mean, they're forgiveable loans with government money

why should banks make money on interest?
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That's what banks do. That's why it's just fine that they're making a bunch of money off origination. They're going to lose on the processing and servicing.
 
WakeForestRanger said:
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The Dems have so much ammunition from this crisis to use for November. I hope they can package and present it effectively. Fuck those requesting that we not politicize this. The politicians handled this with incredible incompetence and dishonesty. They should be held accountable. Elections are the way to do that.
 
If it was the other way around, Republicans wouldn't have worked with Democrats on a bailout and would be criticizing every thing.
 
JuiceCrewAllStar said:
I mean, they're forgiveable loans with government money

why should banks make money on interest?
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Well we are serving a valuable role as intermediary/verification channel so it stands to reason that we would get some compensation for that service. Obviously the SBA and/or Treasury wouldn’t be able to just originate these loans directly to millions of prospective borrowers. Again I think it’s fine just pointing out that administering the program requires a significant amount of investment on the backend so not quite the huge profit windfall some are imagining.
 
Tobacco Road said:
The Dems have so much ammunition from this crisis to use for November. I hope they can package and present it effectively. Fuck those requesting that we not politicize this. The politicians handled this with incredible incompetence and dishonesty. They should be held accountable. Elections are the way to do that.
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Biden is a mortal lock to win the election. A lock.

As for Congress, D or R if you are in a "purple" district or on the other side of the ledger from where your district leans you are either toast or in for a big dog fight. Have no idea how that shakes out.
 
WRS said:
Well we are serving a valuable role as intermediary/verification channel so it stands to reason that we would get some compensation for that service. Obviously the SBA and/or Treasury wouldn’t be able to just originate these loans directly to millions of prospective borrowers. Again I think it’s fine just pointing out that administering the program requires a significant amount of investment on the backend so not quite the huge profit windfall some are imagining.
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Yeah, it's not like we have some uber efficient way to move capital from a centralized source for the whole country. It would take months to set up a means to process all the applications otherwise.
 
DeacMan said:
Biden is a mortal lock to win the election. A lock.

As for Congress, D or R if you are in a "purple" district or on the other side of the ledger from where your district leans you are either toast or in for a big dog fight. Have no idea how that shakes out.
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I have never heard anything so absurd. A "lock"?

I want what ur smoking.
 
WRS said:
Well we are serving a valuable role as intermediary/verification channel so it stands to reason that we would get some compensation for that service. Obviously the SBA and/or Treasury wouldn’t be able to just originate these loans directly to millions of prospective borrowers. Again I think it’s fine just pointing out that administering the program requires a significant amount of investment on the backend so not quite the huge profit windfall some are imagining.
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right

that's what origination fees are
 
DeacMan said:
I've run a graph of new cases by day for the US and the following countries in Europe (Italy, Spain, Germany, UK, France, Holland). The trend lines look remarkably similar. We are 6-10 days behind their curve and likely their "flattening" on new cases. As such our line looks slightly steeper - i.e. if I time adjusted for when each set first recorded say 5,000 new cases in a day, they'd look virtually the same. Now that could still be off because of differences in testing, reporting, etc. - but it is indicative of where we are headed IMO. Doing that chart shows those Euro nations collectively have started to trend down ever so slightly on new cases.
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So I actually went back and ran a chart that compares the day those 6 nations in Europe first hit 6,000 new cases in a day with the trajectory of the US from the day it first hit that number. In that comparison our slope is actually a bit lower, but still very similar to that of the 6 nations combined. In short, highly mobile societies, we implemented social distancing a bit sooner on the overall curve bc they were our warning and we are fairing slightly, not massively, better. Again, it's a crude analysis given testing rates and a host of other demographics, but gives us a rough sense of how we'll likely fair. At least to date our death rate is significantly better than that of those 6 nations combined, but to get that squared I'll have to go back and look at deaths each day - which I'll try to do later. Wish there was a way to just transfer the graph from my computer to this damn page without posting it somewhere on line first.
 
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