U.S. consumer borrowing rose by a solid 3.6% in July, the second monthly gain after the coronavrius pandemic had sent consumer borrowing down sharply in the previous three months.
Kevin Hipskind, Fifth Third’s Indianapolis-based market president since 2018, has been promoted. His successor comes from Louisville, where he has been market president since 2015.
The road to recovery for the U.S. economy will be uneven, unclear and uncertain as the coronavirus retains its hold on business and Americans’ everyday activities, according to the heads of the nation’s biggest banks.
The announcement of the easing of regulations know as the “Volcker Rule” gave an immediate boost to bank stocks because the rule change could free up billions of dollars in capital in the banking industry.
A borrower who took out a 30-year, $200,000 mortgage in 2018 at an interest rate of 4.55% would have a monthly payment of $1,019. By refinancing into a 30-year mortgage with a 3.46% interest rate, the monthly payment would drop to $865.
Amid the widespread economic disruption caused by the pandemic, banks have already granted payment deferrals of up to six months to a significant number of commercial and individual borrowers.
SBA temporarily stops taking PPP applications from big banks to focus until midnight on smallest lenders
For an eight-hour period that began at 4 p.m. Wednesday, the PPP loan application portal is being reserved only for the nation’s smallest lenders: those with assets of less than $1 billion.
The Paycheck Protection Program began accepting applications again Monday with an additional $310 billion. But local business owners who were shut out during the first round were uncertain whether they’ll fare any better this time.
The banks approved 35,990 individual loans for companies and organizations in Indiana before the program ran out of money.
Banks say they’re seeing overwhelming demand for Paycheck Protection Program coronavirus relief loans, and the Small Business Administration’s website is getting bogged down when they attempt to submit loan applications.
Chase has temporarily closed a few of its local branches, while many others are moving to appointment-only service and drive-through service in response to the outbreak.
Stocks fell from the opening of trading in New York, including a 3.7% loss for the S&P 500. The losses deepened as the day progressed, and the Dow Jones industrial average was down more than 1,000 points in the early afternoon.
The former bank branch, which closed in late 2016, will reopen as a co-working space called Vault.
President Trump said that the Fed’s high level of interest rates in comparison to other countries was keeping the dollar too strong and making it more difficult for U.S. manufacturers to compete.
Clark Kellogg, a first-round draft pick for the Indiana Pacers in 1982 and current lead basketball analyst for CBS Sports, has been a member of the bank’s advisory board since 2001.
The rate reduction was the first since December 2008, when the Fed dropped its benchmark effectively to zero as it battled recession and financial crisis.
Under Chairman Jerome Powell, the Fed has faced pressure to ease credit since it raised its key rate in December for the fourth time in 2018 and hinted that additional rate increases were likely this year.
Elizabeth Warren’s plan, the latest in a series of policy ideas that have propelled the Massachusetts senator to the top tier of the 2020 Democratic presidential primary field, would hold private equity firms liable for debts and pension promises made by the companies they acquire.