Bank of America CEO says struggling customers can defer loan payments online with ‘two-clicks’
Bank of America CEO Brian Moynihan said that retail customers who are struggling because of the coronavirus pandemic can defer loan payments online with a simple two-click process.
“What we’ve told people is we’ll defer payments,” Moynihan told CNBC’s Jim Cramer. “If you have a cash flow interruption because of your employment and you need to defer your payments for 30, 60, 90 days, call us up.”
The second-largest U.S. bank by assets has had 150,000 requests for payment deferrals since the coronavirus crisis began in earnest in the U.S. this month, Moynihan said. To streamline the process, which can tie up call center lines, the bank is ramping up a way to apply for relief online, he said.
Mnuchin says taxpayers will be ‘compensated’ for airline relief
U.S. Treasury Secretary Steve Mnuchin said that the coronavirus economic stimulus bill before Congress is not an airline bailout and that taxpayers will be compensated for relief given to companies hobbled by the global pandemic.
At the same time, Mnuchin said in an interview with Fox Business Network that plane-maker Boeing has not requested government help.
“I’ve been very clear this is not an airline bailout,” Mnuchin said. “And that taxpayers need to be compensated for relief they’re giving to airlines.”
U.S. airlines are preparing to tap the government for up to $25 billion in grants to cover payroll in a sharp travel downturn triggered by the coronavirus, even after the government warned it may take stakes in exchange for bailout funds, people familiar with the matter said. —Reuters
‘This will not be licked by Easter,’ doctor warns in call for two-week US lockdown
President Donald Trump wants the country to “open up,” but a growing number of health experts want a nationwide lockdown to stop the spread of the coronavirus pandemic.
Those experts are saying the United States needs to impose a two-week or longer pause of non-essential activity before federal and state governments can even think about economic and social life starting to return to normal.
Far stricter restrictions on businesses and individuals need to be adopted - and not the loosening of restrictions called for by some, including Trump, the experts say.
“This will not be licked by Easter,” said Dr. Aaron Carroll, a professor of pediatrics at the Indiana University School of Medicine, who is one of the loudest voices calling for a shutdown.
America’s department stores can make it as much as 8 months with closed stores, analyst says
With stores temporarily shut due to the coronavirus pandemic — and a slim-to-zero chance of opening in the near future — America’s department stores are facing a cash crunch.
Department store chains have enough liquidity to make it about five to eight months, with their stores sitting dark, in this coronavirus pandemic, according to an analysis by Cowen & Co. It says that is “better than feared” because the firm does not anticipate the temporary store closures will drag on for that long.
In making these assumptions, Cowen is measuring liquidity as cash plus revolvers, relative to key expenses such as rent, labor and promised dividend payments. Cowen said labor costs are about 10% of annual sales, while rent is about 3%, to give a sense of what some of these expenses look like.
Digital divide of US households without internet
Data from Pew Research Center shows large swaths of the U.S. are trying to cope without a household internet connection while much of the country hunkers down to work and shop from home.
Before coronavirus hit the U.S., about 7% of private-industry workers had access to a flexible workplace benefit, according to the Bureau of Labor Statistics. Those jobs tend to pay well, which helps explain why access to telework varies sharply by income, according to the Pew Research Center.
Lack of internet access has also left millions of households cut off from vital services and information during the pandemic.
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