Federal Reserve

Small business lending

Banks have a mountain of deposits, so they don’t need PPP funding

The Federal Reserve set up a liquidity facility to help banks meet demand for emergency small-business loans through the Paycheck Protection Program, but it's gone largely unused.

June 1

Among the top U.S. firms, only Citigroup's name showed up on the list of 574 banks that used the Fed’s lending facility as of May 6.

Federal Reserve

How coronavirus could alter Fed’s thinking about stress tests

The general structure of this year’s reviews is unchanged despite the pandemic. But a supplemental analysis of banks' response to the downturn could weigh heavily in evaluating 2020 capital distributions and making adjustments to the tests over the long run.

By Hannah Lang

May 28

Federal Reserve

Fed takes big step toward launch of Main Street Lending Program

The Federal Reserve Bank of Boston published details on the terms for lenders and borrowers to participate in the facility intended to provide coronavirus relief funds to middle-market firms.

By Hannah Lang

May 28

The central bank has not announced when the program will officially be up and running, but Boston Fed President Eric Rosengren said Sunday that he expects businesses to begin receiving loans through the program within two weeks.

Small business lending

Fed receives bipartisan critique for stalled Main Street lending

The Federal Reserve received a bipartisan critique Wednesday from members of a congressional oversight panel who said the central bank has been slow to launch a key emergency lending program for midsize companies.

May 21

Federal Reserve

Fed warns corporate debt risk could soar as pandemic stretches on

The central bank's Financial Stability Report said companies may face difficulties repaying debt given lower earnings, “which could trigger a sizable increase in firm defaults."

By Hannah Lang

May 15

CLOs

Fed expands CLO assistance with TALF revision

But market observers remain unsure whether changes to the $100 billion Term Asset-Backed Securities Loan Facility program will boost CLO investor demand or new-deal issuance, given key restrictions that remain in place.

By Glen Fest

May 13

Federal Reserve

Fed can do only so much to limit pandemic's economic hit: Powell

The head of the U.S. central bank said its emergency credit programs were not designed to prop businesses up over the long term.

By Hannah Lang

May 13

“The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems,” said Fed Chairman Jerome Powell.

Federal Reserve

Fed to release more details on participants in emergency programs

The central bank will disclose information on a monthly basis about its Term Asset-Backed Securities Loan Facility and its Paycheck Protection Program Liquidity Facility.

By Hannah Lang

May 12

Federal Reserve

Is Fed taking too long on middle-market loan relief?

The agency is being methodical in its rollout of the Main Street Lending Program in hopes of avoiding missteps that followed the launch of other coronavirus relief efforts. But observers say delaying aid brings its own risks.

By Hannah Lang

May 11

Lending

Loans, deposits soared in March, but banks' health is weakening: Fed

The Federal Reserve also said in a supervisory report released Friday that it would conduct stress tests this quarter as planned, taking into account sudden deterioration in the economy brought on by the coronavirus pandemic.

By Hannah Lang

May 8