Corona Virus/COVID19: Local Impact

[BigDill]

Do you think the larger banks tried to help those company's that owed them the most money? So they wouldn't default on previous loans.

Personally? Yes.

I don't want to get too much into the details because I have been working with clients on these things, but I have seen one of two things happen with respect allocation of the small business PPP and loans:

1. Bring your banking to us and we will approve you. That means existing lines of credit, deposits, mortgages, etc. A full refinance and closing happens. This is usually for people and businesses that have assets and lines that revolve, or in other words, people who have assets. Think private banking.

2. You have an existing banking relationship and we (the bank) want to keep it, so we will approve your loan to keep your business. Think those with existing lines of credit an fee generating transactions, like escrow and trust accounts, and things that move money like wires. They want the assets on hand and they want the fees for moving that money.

Those are the only two scenarios in which I have personally seen funding. I have a much more cynical reason as to why this is happening, but I don't want to speculate.

 

[JDax]

Am I hearing this right? That China still has not provided samples for testing to see how the virus has evolved? The rumors of destroyed evidence and lack of reporting are growing as well.

But it’s a conspiracy to think that China set us up on purpose...?

 

[GolferGal]

I don't want to get too much into the details because I have been working with clients on these things, but I have seen one of two things happen with respect allocation of the small business PPP and loans:

1. Bring your banking to us and we will approve you. That means existing lines of credit, deposits, mortgages, etc. A full refinance and closing happens. This is usually for people and businesses that have assets and lines that revolve, or in other words, people who have assets. Think private banking.

2. You have an existing banking relationship and we (the bank) want to keep it, so we will approve your loan to keep your business. Think those with existing lines of credit an fee generating transactions, like escrow and trust accounts, and things that move money like wires. They want the assets on hand and they want the fees for moving that money.

Those are the only two scenarios in which I have personally seen funding. I have a much more cynical reason as to why this is happening, but I don't want to speculate.

I absolutely believe this. Not so much for the smaller or local banks, but 1000% for the big banks.

 

[MWard]

But it’s a conspiracy to think that China set us up on purpose...?

Well no, we brought the virus to China remember? Clearly they're destroying evidence and not reporting things out of pure spite because they're just so angry at us. /s

 

[Molten]

I don't want to get too much into the details because I have been working with clients on these things, but I have seen one of two things happen with respect allocation of the small business PPP and loans:

1. Bring your banking to us and we will approve you. That means existing lines of credit, deposits, mortgages, etc. A full refinance and closing happens. This is usually for people and businesses that have assets and lines that revolve, or in other words, people who have assets. Think private banking.

2. You have an existing banking relationship and we (the bank) want to keep it, so we will approve your loan to keep your business. Think those with existing lines of credit an fee generating transactions, like escrow and trust accounts, and things that move money like wires. They want the assets on hand and they want the fees for moving that money.

Those are the only two scenarios in which I have personally seen funding. I have a much more cynical reason as to why this is happening, but I don't want to speculate.

Yeah, I believe this completely but it had to be expected.

 

[BigDill]

I absolutely believe this. Not so much for the smaller or local banks, but 1000% for the big banks.

I can't speak for everything everywhere, but this has been my experience with several of the clients I represent. I will say that it covered mid-sized regional banks, and a couple national. Miami is also a world unto itself in many ways. But the deals that I have been involved with have not been "send application, get approved". They have involved moving money, especially if its liquid and semi-liquid.

 

[GolferGal]

I can't speak for everything everywhere, but this has been my experience with several of the clients I represent. I will say that it covered mid-sized regional banks, and a couple national. Miami is also a world unto itself in many ways. But the deals that I have been involved with have not been "send application, get approved". They have involved moving money, especially if its liquid and semi-liquid.

From my personal experience Wells Fargo and BOA have basically said good luck, you aren’t getting money from us. The smaller banks that we have talked to have been much better and one in particular has gone above and beyond to try and help us, but I am not surprised at all that you are seeing what you have, banks overall have been extremely disappointing during this entire process.

 

[BigDill]

I don't want to leave people guessing what I my thought was, but I do want to state that is is just a guess. But if I was a banking executive, and I was concerned with a large default in land-secured lending such as residential and commercial mortgages, and my commercial portfolio had lines of credit connected with those mortgages and 120% DTE defaults, then I would absolutely be trying to get as much liquidity and deposits into the bank in any way possible, especially from new customers, and especially with high wealth individuals. Why? Because any governmental assistance is going to come with a stress test, and as we learned in 2009-2010, you better be able to pass or your bank gets consolidated with a larger lender.

 

[BigDill]

From my personal experience Wells Fargo and BOA have basically said good luck, you aren’t getting money from us. The smaller banks that we have talked to have been much better and one in particular has gone above and beyond to try and help us, but I am not surprised at all that you are seeing what you have, banks overall have been extremely disappointing during this entire process.

It is 100% because the smaller banks value their relationship with people. The credit unions I work with are cool to see, and really part of the community. I can name three national banks that could 100% not give one feathered duck about the customer. I think you may have found two of those. The third is not who you are thinking, but has been mentioned in this thread.

 

[Johan185]

 

[fuffle master]

View attachment 8938906

Very nice. Rule 32 Enjoy the little things

 

[arydolphin]

I am fascinated to see what happens with this Georgia re-opening. Obviously we all should be hoping it goes well, but man it is not the slow re-opening that has been recommended. In person church services and movie theaters? That's a lot of people close together.

Trump said this a few minutes ago:

"I told the Governor of Georgia Brian Kemp that I disagree strongly with his decision to open certain facilities which are in violation of the phase one guidelines for the incredible people of Georgia."

 

[M2Giles]

So Georgia is starting the process of opening up Friday.

I both agree and disagree with a lot of it. I think really the only thing that bugs me about the situation is that local leaders are unable to impose measures inconsistent with the state at the county or city level which seems like an affront to local rule.

I believe a lot of businesses can reopen safely, choose to stay close, or modify enough to start getting cashflow. However, if people don't continue with the social distancing measures and masks I can see this backfiring.

Hopefully cases are receding and there isnt a big second wave. Hopefully, a number of my favorite local businesses are able to survive this.

 

[fupresti]

Trump said this a few minutes ago:

"I told the Governor of Georgia Brian Kemp that I disagree strongly with his decision to open certain facilities which are in violation of the phase one guidelines for the incredible people of Georgia."

Movie theaters was stupid. The rest of it I have no issue with.

 

[VegasMav]

Our local "Covidiot" appeared drunk on CNN w/ Anderson Cooper...what an embarrassment.

 

[Danimal]

Our local "Covidiot" appeared drunk on CNN w/ Anderson Cooper...what an embarrassment.

I saw her yesterday on something else and I was perplexed by some of her logic....she’s a gem.

 

[arydolphin]

Movie theaters was stupid. The rest of it I have no issue with.

I highly question the opening of gyms and exercise facilities....

 

[M2Giles]

I highly question the opening of gyms and exercise facilities....

My gym just sent out they are staying closed.

 

[wubears71]

I don't own a gun or any ammo. I guess I'll throw hard p

Yeah, the banks were shady in their loan practices but I do wonder how much our legislators knew this would happen and were more than OK with it.

my banker friends said it was going to be fraud everywhere before congress passed it. Everything that has been done since 2000 to curb fraud was thrown out the window.

 

[RealPretendPsychic]

Very disappointed to see the end of quarantine wolverine Lee Westwood.

 

[VegasMav]

I saw her yesterday on something else and I was perplexed by some of her logic....she’s a gem.

Thankfully she's terming out this year. She's getting old and senile. Her and her husband, mob lawyer, and former mayor, Oscar have run the city of Las Vegas since 1999. The time has come.

 

[JB]

Guys let’s please keep the politics out of the thread.

 

[Vortex]

There’s a serious game of three dimensional global chess underway and China is losing big.

Forbes article:
https://www.forbes.com/sites/kenrap...s-companies-moving-out-of-china/#8ca448c15bf6

The depth of their loss is something we may be dealing with soon and it probably won’t be pretty. The undercurrent was moving 12 months ago but virus put theoretical plans into immediate action.

***

Benjamin Franklin circ 1775: 'They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.'

 

[rollin]

And so still no golf in NJ.
I understand the state and local golfing associations appealed to Governor Murphy but we hear nothing. Is till diont get it even from the start. I know ive repeated this a few trimes in the thread. But...Golf is extremely friendly to keeping good distancing as its almost built into the nature of the way we play the game. Not to mention helps folks get out, relive some stress and helps cash flow to the economy especially muni's. I was surprised especially for that last part that they didnt leave it exempt to begin with and even more surprised it hasnt yet come back. especially after even NY opened it again.

On another note.....I didnt realize till today they closed all the places to get eyeglasses. My son needs new glasses and our usual place is closed but o come to find out they are all closed. Just how in the world was eyeglasses not considered essential business. This one is the most ridiculous one yet. people need thier eyeglasses to see. When did that become a luxury?

 

[fupresti]

And so still no golf in NJ.
I understand the state and local golfing associations appealed to Governor Murphy but we hear nothing. Is till diont get it even from the start. I know ive repeated this a few trimes in the thread. But...Golf is extremely friendly to keeping good distancing as its almost built into the nature of the way we play the game. Not to mention helps folks get out, relive some stress and helps cash flow to the economy especially muni's. I was surprised especially for that last part that they didnt leave it exempt to begin with and even more surprised it hasnt yet come back. especially after even NY opened it again.

On another note.....I didnt realize till today they closed all the places to get eyeglasses. My son needs new glasses and our usual place is closed but o come to find out they are all closed. Just how in the world was eyeglasses not considered essential business. This one is the most ridiculous one yet. people need thier eyeglasses to see. When did that become a luxury?

It’s Interesting what people deem as essential when it’s essential to them...