Money – Templo Do Conhecimento Sun, 26 Sep 2021 06:52:24 +0000 en-US hourly 1 Money – Templo Do Conhecimento 32 32 Biden addresses racial justice, says Trump is adding ‘fuel to the fire’ Mon, 22 Mar 2021 09:38:45 +0000

Now one of those four – Senator Kamala Harris of California – is a leading competitor to be the running mate of former Vice President Joseph R. Biden Jr., the Democratic Congressional Campaign Committee airs an ad in Hindi, and an Indo-American candidate advocacy group announces it will spend $ 10 million in this year’s election.

That group, Impact, will announce its plans on Tuesday with a new executive director, public interest lawyer Neil Makhija, who has called 2020 a “pivotal moment” for American Indians.

The American Indians are the second largest group of immigrants in the United States, after the Mexicans, but they represent only five members of Congress: Ms. Harris, Mr. Bera and Representatives Pramila Jayapal from Washington, Ro Khanna from California and Raja Krishnamoorthi from Illinois, all Democrats. Impact’s investment is an effort to increase that number, and also to elect Indian-American candidates to positions as low as local school boards.

Mr Makhija said in an interview on Tuesday that the group’s efforts would be focused on recruiting, training and supporting candidates, and while it is not explicitly aligned with Democrats, the group’s “values ​​certainly lean in. that Sens”.

According to research firm CRW Strategy, more than three-quarters of Indo-American voters supported Hillary Clinton in 2016, and Mr Makhija said they were also likely to support Mr Biden.

The report was provided by Davey alba, Maggie Astor, Alexander burns, Emily cochrane, Nick corasanitiNicolas fandos, Jacey fortin, Gabriel trip, Katie glueck, Shane Goldmacher, Annie karni, Thomas kaplan, Patricia mazzei, Katie rogers, Rick rojas, Charlie Sauvage, Lynn vavreck, Christopher warshaw and Michel Wines.

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Boeing Gets U.S. Government Approval to Offer F-15EX Fighter Jet to India Mon, 22 Mar 2021 09:38:45 +0000

The Boeing company revealed Thursday that Washington had granted it a license to market its latest heavy fighter, the F-15EX, in India.

Seven of the world’s largest fighter makers have already expressed interest in competing for the Indian Air Force’s (IAF) ongoing acquisition of 114 medium fighter jets, a contract estimated to be worth $ 20-30 billion. .

Fighter aircraft manufacturers who responded to the IAF’s “Request for Information (RFI)” in 2019 include Boeing with its F / A-18E / F Super Hornet; Lockheed Martin with its single-engine F-21; Saab with its single-engine Gripen E / F, Dassault with its twin-engine Rafale, Eurofighter GmbH with its twin-engine Typhoon and Russia with two twin-engine fighters – RAC MiG-35 and Sukhoi Su-35.

Offering the F-15EX would cause Boeing to withdraw the Super Hornet from the competition. “It is impossible for Boeing to field two fighters in the same competition,” said Pratyush Kumar, who heads the F-15EX project in Saint Louis, United States. Kumar said Boeing is waiting to see the performance requirements of the IAF. Boeing will then decide which fighter plane it will offer.

More likely, Boeing will decide to offer the F-15EX to the IAF, while offering the Super Hornet to the Indian Navy, which is separately pursuing the acquisition of 57 fighters for its aircraft carriers. The US military only uses the Super Hornet as a naval aircraft carrier bridge fighter, although it has sold countries like Australia the F / A-18E / F as a ground fighter.

The F-15 Eagle entered service with the United States Air Force (USAF) in its original form more than four decades ago. However, it has been continuously improved to stay on the cutting edge of technology. The USAF’s confidence in the F-15 platform was underscored in July 2020, when it awarded Boeing a $ 23 billion floating contract for up to 144 F-15EX fighters – the latest version of the F-15. This means that the F-15EX’s maintenance and upgrade programs will continue for at least three decades.

The F-15 Eagle, which is flown by several air forces, including that of Israel, has a formidable air-to-air combat record of 104-0. Along the way, Boeing developed a ground strike version called the Strike Eagle. Now equipped with a new cockpit, Active Scanning Electronic Radar (AESA), integrated electronic warfare suite, and fused sensors and data links, the F-15EX has been transformed into a fighter versatile capable of performing the full range of missions.

READ ALSO : Akash NG surface-to-air missile scores in the first test on Republic Day eve

The aerodynamics of the F-15 have always been top of the line. Capable of flying at Mach 2.5 (two and a half times the speed of sound), the F-15EX is the fastest fighter jet in the world. It carried 13.5 tons of weaponry, more than the Rafale or the Sukhoi-30MKI. Its range of 1,200 nautical miles (2,200 kilometers) allows it to strike targets deep inside enemy territory.

Based on publicly available U.S. budget figures, the F-15EX costs $ 80.3 million per fighter, including the cost of its two engines. However, India wants the plane to be built in India, which involves the installation and certification of a new factory and the training of workers. This would greatly increase the cost.

When asked if building the fighter in India would unacceptably increase its cost, Kumar said, “We will sell the F-15EX on the terms and conditions the Indian government wishes to purchase it.”

On Thursday, Boeing also launched the so-called Boeing India Repair Development and Sustainment Hub (BIRDS). This is in effect locating the maintenance, repair and overhaul (MRO) of the Boeing platforms used by the Indian military.

India is one of Boeing’s largest global defense customers. It currently operates 11 C-17 Globemaster III transport aircraft, nine P-8I Poseidon maritime patrol aircraft and three others on order, 22 Apache AH-64E attack helicopters, of which six are on order and 15 CH heavy lift helicopters. -47F Chinooks.

The BIRDS Hub can also provide support, with the consent of New Delhi, to Boeing platforms in service with other countries in the region. This could significantly increase India’s defense export earnings.

Stating that this “would make India a strategic destination for aerospace engineering, maintenance, repair and maintenance services,” Boeing said BIRDS training programs “would increase the skilled workforce by developing sub-tier providers and medium, small and micro enterprises (MSMEs) to build high quality MRO capacities in India ”.

The purchase of 114 fighters by the IAF follows the cancellation in 2015 of its 2007 call for tenders for 126 medium multi-role combat aircraft (MMRCA), and the purchase of 36 Rafale fighters as a measure provisional in 2016. Running out of numbers, the IAF has initiated the purchase of 114 medium fighters in an exercise that closely mirrors the MMRCA tender.

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Affidavit sheds new light on Harvard fencing scandal | New Mon, 22 Mar 2021 09:38:44 +0000

On Monday, court records in support of federal prosecutors’ case against a former Harvard fencing coach and a parent paint a picture of two men in financial difficulty, respectively, determined to gain admission to his son in college.

An affidavit filed on Monday aims to describe the men’s motives for allegedly attempting to play with the college admissions system. Federal authorities arrested parent Jie “Jack” Zhao and former trainer Peter Brand on Monday. on corruption charges.

As part of the program, Zhao reportedly donated $ 1 million to a fencing charity to launder money to the coach, in addition to the direct payments he made to fund the lifestyle. of the coach.

The affidavit indicates that these payments included $ 8,428.66 to pay the tuition fees of the coach’s son; $ 32,339.92 to repay the son’s university loans; $ 119,051.52 to pay off a mortgage on the coach’s house; $ 2,573.45 to pay his water and sewer bills; $ 34,563.25 to pay for his car; $ 50,000 to help the coach buy a condominium; $ 154,626.41 to finance the renovations made to the condominium; and $ 989,500 to buy the old coach house, $ 440,000 more than its market value.

Brand did not disclose to Harvard the payments Zhao made to him, or that Zhao made to fund his expenses, according to the affidavit.

The charges mark the latest development in a track and field admissions scandal that made headlines in April 2019, when the Boston Globe reported that Zhao, a Maryland resident who is the co-founder of the telecommunications company iTalk Global Communications Inc., purchased Brand’s Needham, Mass. house in 2016 for hundreds of thousands of dollars more than its market value. Soon after the transaction, Zhao’s youngest son was admitted to Harvard College as a recruited fencer.

Zhao’s eldest son graduated from college in 2018; her other son is expected to graduate in 2021, according to a Harvard yearbook.

The Dean of the Faculty of Arts and Sciences Claudine Gay launched a investigation in the real estate transaction between Brand and Zhao shortly after it was first reported. Three months later, Harvard fired Brand, believing he had violated the University’s conflict of interest policy. Separately that summer, a federal grand jury also opened an investigation into the 2016 real estate transaction.

Conspiracy to bribe federal programs – the charge against Zhao and Brand – carries a maximum sentence of five years in prison and a fine of $ 250,000 or twice the gain or loss. total financial loss, whichever is greater.

An affidavit in support of the criminal complaint filed Nov. 13 by Elizabeth Keating – a special agent in the Criminal Investigations Division of the Internal Revenue Service – reveals that Brand allegedly accepted around $ 1.5 million to secure the admission of Zhao’s two sons to Harvard. Keating wrote that she had “probable reasons” to believe that Zhao and Brand colluded from 2012 to 2017 to secure the place of Zhao’s sons at Harvard College as recruited fencers in return for financial support. to Brand.

In an emailed statement, Zhao’s attorney, William Weinreb, wrote that Zhao will challenge the charges in court.

“Jack Zhao’s children were high school academic stars and internationally competitive fencers who gained admission to Harvard on their own merit,” he wrote. “Both fenced for Harvard at the Division One level throughout their college careers. Mr. Zhao categorically denies these accusations and will vigorously challenge them in court.”

Douglas S. Brooks, Brand’s attorney, wrote in an email that Brand had not broken the law.

“The students were academic and fencing stars,” he wrote. “Coach Brand did nothing wrong with their admission to Harvard. He impatiently waits for the truth to emerge in court.

Harvard spokeswoman Rachael Dane declined to comment on Monday’s arrests.

‘Co-conspirator 1’

Keating wrote in the affidavit that a Virginia-based fencing trainer who trained Zhao’s two sons while in high school – cited as “Co-Conspirator 1” – facilitated the scheme by using an agency fencing charity he ran to launder Zhao’s payments to Marque. Although “CC-1” initially helped facilitate the deal, he also allegedly siphoned off the money Zhao donated to cover his personal expenses, including his own son’s tuition at Harvard College.

CC-1 provided information to the government regarding the scheme in return for immunity from prosecution, according to the affidavit. Although CC-1 is not named in the affidavit, the Boston Globe identified him as Alexander Ryzhik, director of the Virginia Academy of Fencing and president of the National Fencing Foundation.

Less than two weeks after Brand’s wife informed him that they were “maximizing our line of credit,” Brand suggested to CC-1 in a text message that he would recruit Zhao’s sons in exchange for benefits. personal, according to the affidavit.

“Jack doesn’t need to take me anywhere and his boys don’t need to be great fencers. All I need is a good incentive to recruit them, ”Brand wrote on May 2, 2012.

While Zhao and CC-1 offered to Brand that Zhao contribute to Harvard’s fencing program in exchange for recruiting Zhao’s sons, Brand refused. Instead, Brand asked Zhao to provide him with personal financial benefits, according to an account of the arrangement that CC-1 provided to investigators.

On February 19, 2013, Zhao donated approximately $ 1 million to CC-1 fencing charity. On December 13, 2013, Zhao’s eldest son was admitted to the Harvard Class of 2018. Later that day, Zhao emailed Brand, “Hi boss … It’s official now. I just want to thank you for what you did, really appreciate it, ”according to the affidavit.

On October 10, 2014, CC-1 Fencing Charity donated $ 100,000 to a newly established nonprofit on Brand’s behalf, funded by Zhao’s previous donation. Zhao then asked CC-1 to reimburse him for the remaining $ 900,000 he had donated to the charity. But CC-1 refused to return the money, instead using it for his own personal expenses, including $ 31,571.75 for his son’s tuition at Harvard.

After CC-1 refused to return the money, according to the affidavit, Zhao began making direct payments to Brand, including the 2016 purchase of Brand’s house.

‘That does not make any sense’

In addition to buying Brand’s house at an inflated price, Zhao funded Brand’s car purchase, Brand’s son’s tuition, mortgage for Brand’s residence in Needham, Massachusetts. , and the renovation of his Cambridge condominium, according to the affidavit.

In the summer of 2016, Brand began recruiting Zhao’s youngest son to the Harvard fencing team. Several months later, on May 3, Zhao purchased Brand’s house in Needham, Massachusetts. Brand used the money to buy a condominium in Cambridge for $ 1.3 million.

The inflated purchase price prompted city officials to inspect the home.


On June 24, 2016, Brand emailed an associate director at Harvard Athletics, informing him that he had offered a recruiting position to Zhao’s youngest son and four other potential students, according to the affidavit.

On September 20, 2016, Brand emailed a Harvard admissions official asking if Harvard had made a decision regarding the youngest son’s candidacy and that of another potential recruit. All recruited athletes have their applications reviewed by Harvard’s full admissions committee.

“We’ve looked at these two before and it looks good for both,” the admissions manager replied.

– Editor-in-Chief Ema R. Schumer can be contacted at Follow her on Twitter @emaschumer.

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Thinking of recruiting Falcons players in fantasy football? Read this, first Mon, 22 Mar 2021 09:38:44 +0000

Where does Matt Ryan rank for you among the QBs at the halfway point?

DR: It’s going to sound absurd to Falcons fans, but Ryan isn’t even considered a fantastic top-five quarterback. This is because the alluring fancy flaggers are the ones who rush a lot in addition to the passes. These statistics really add up. Ryan relies on his arm to do damage, so in order for him to catch up with those rushed numbers he has to throw a ton of yards. Fortunately, that’s something I think he can do this season given the Falcons’ receiving body. That’s why he’s actually a fantastic bargain – his average draft position is at the end of Round 6 on CBS, but I’ve taken Ryan up to Round 10 before. Supply and demand suggest waiting for a quarterback in Fantasy, and Ryan is one of the guys I love to draft when he falls on my lap.

DK: I like him a lot, he’s one of my favorite quarterbacks in this area, if not my favorite quarterback in this area. If you look back to 2018, he was QB2 overall. We’ve seen his cap, he can be really good at fantasy if the stars line up offensively. I think this year things are going to be a lot better for him. Obviously the offensive line suffered injuries last year and that was a big factor. The struggling racing game last year probably had a little effect on him as well. I think overall the offensive ecosystem is going to be this year, and I think that’s going to really help it. And, like I said, he’s going to have the volume, I think. I could see the Falcons in a lot of shootout-type games, and he has one of the best receiving duos in the NFL to pitch to. I think overall it will be a good situation for him to get back into the top five, potentially the top three among quarterbacks. He’s not one of those double-threat quarterbacks that get the upper hand over fantasy because of the hasty rise. He won’t have that, but I think the passing volume and he’s one of the few guys I could easily see leading the league in touchdowns. I think for where he’s going in the draft, I think he’s a strong value and he’s a guy I’m definitely aiming for this year.

I : It’s kind of a pretty clear line for the way the quarters are. There are the six best guys. The two you know up there [Patrick] Mahomes and Lamar Jackson, then there’s a party of four who are all lucky enough to be special. Three can be the cap if the two guys at the top do what they do, or they can be the No.1 quarterback, but that’s [Deshaun] Watson, [Russell] Wilson, [Dak] Prescott and Kyler Murray. Then there’s the quarterback I call the bridge quarterback in Josh Allen, because you know he’s going to run, which helps him. Then you get to the launchers. What I mean by pitchers is the guys who aren’t moving but they’re going to throw for high volume, lots of yards, lots of touchdowns. Especially when you look at guys like Ryan [Tom] Brady, [Drew] Brees, their receiving bodies are all excellent. So Ryan, for me, is at the top of this group. Once again, if Ridley, Julio, and Hayden Hurst do what they’re capable of, he’ll have the chance to have another great year. I think people are looking at it and wondering why wasn’t Ryan better last year despite the Falcons leading the NFL in passing attempts? If they lead the NFL in passing attempts again, he’s lucky to be in the top 5, even if he doesn’t do anything with his legs.

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BNP profit falls as bad debt provisions rise Mon, 22 Mar 2021 09:38:44 +0000

BNP Paribas SA pledged to cut costs further after first quarter profit fell by a third as French bank set aside more money to cover potentially damaged loans and disruption caused by the pandemic coronavirus disease wiped out income from its equity business, while warning that the health crisis could squeeze profits this year.

Net profit for 2020 could fall by 15% to 20% due to the pandemic, the effects of which have already been felt in the first quarter on both income and provisions for bad debts, the first listed French bank announced on Tuesday. in assets. The lender will step up its efforts to reduce operating costs, but this could be offset by increasing provisioning.

The bank’s bad debt provisions soared 85% to 1.43 billion euros ($ 1.56 billion), more than a third of which was linked to the pandemic.

The increase in provisions, together with the decrease in revenues, resulted in a 33% drop in net profit to EUR 1.28 billion.

Revenue fell 2.3% to 10.89 billion euros.

The pandemic dealt a severe blow of 568 million euros to the bank’s turnover, linked to two one-off impacts on its equity and insurance activities. Income from equities in particular slumped to a negative 87 million euros in the quarter – up from 488 million euros a year earlier – as they were hit by the “extraordinary shocks” in European markets late March, he said. Rate income increased by around 35%.

BNP’s Tier 1 core capital ratio – a key measure of capital strength – was 12% in March from 12.1% in December.

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Virtual art exhibition aims to strengthen ties between India and the Philippines Mon, 22 Mar 2021 09:38:43 +0000

To strengthen diplomatic relations between India and the Philippines, leading contemporary artists from both countries gathered for a virtual art exhibition.

Entitled Kala-Likha, the month-long exhibition which opened on December 15 and designed by the online platforms Arth Art International (India) and ArtisteSpace Inc (Philippines), presents works by 14 artists from each country bringing together Indian and Filipino trends. artistic worlds.

Arth Art International from India and ArtisteSpace Inc from the Philippines have come together for a one-of-a-kind intercultural art exchange to solidify diplomatic relations between countries. It is called “Kala-Likha”, where kala ‘means art in Hindi and likha’ in Tagalog means creation, the organizers said in a statement.

The exhibition, through a virtual art gallery, is nothing less than a true art exhibition and helps to describe a long-term vision of a continuing international platform to present works of different countries through media in the future, they added.

The works presented are inspired by the artists’ real-life experiences, whether they are memories, fears or simply the hope for a better future. The themes of the artwork include nostalgia and history.

Among the participating Indian artists are Brajesh Verman, Kamaljit Bomrah. Dharmendra Rathore, Hemraj, Jagadish Dey, Kalicharan Gupta, Krishan Ahuja, Laxman Aelay, Niren Sen Gupta and Tapan Dash.

While Verman, a retired IPS officer, displays works of art on wood, black and white marble and acrylic and foil on canvas, Bomrah, a self-taught artist, brought to the table a collection of art. figurative, cartoon and caricature.

I wanted to offer an opportunity to deliver a powerful and stimulating work, which not only attracts the interest of art lovers, but also has an impact on humanity.

These are indeed difficult times and this unique platform to bring together so many international and contemporary artists will help advance a new culture in the art world, said Sushil Shriwastwa, Curator and Founder of Arth Art International. .

Participating artists from the Philippines include Phoebe Beltran Almazan, Thelma Badon, AaronBautista, Nemi Miranda, Raks Molata, August Santiago, YelCast and Lara Latosa.

The show is scheduled to continue until January 15.

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Harvard Law School Students Advocate For Licensure Without Bar Exam | New Mon, 22 Mar 2021 09:38:43 +0000

UPDATE: April 4, 2020, 4:26 p.m.

Nearly 200 third-year Harvard Law School students on Thursday signed a letter to law school administrators asking the school to publicly advocate for an emergency degree privilege – a policy granting students graduate their law degrees without requiring the bar exam.

The letter called on the law school to take four specific actions on behalf of its students. These requests include issuing a public statement supporting emergency diploma privilege across the United States; share the student letter with other law schools; send a statement supporting the privilege to the Massachusetts Supreme Judicial Court; and the organization of a virtual town hall for students to discuss their needs with the administration.

Donna C. Saadati-Soto, co-author of the letter, said she thought it would be unfair to ask students to take the multi-day exam this summer, as the ongoing coronavirus pandemic is limiting the ability of some students to prepare for the coming month.

“I was planning to take the California bar exam which was scheduled to take place in July,” she said. “There is no way people can take an exam administration in July 2020.”

Saadati-Soto said several states have already postponed their reviews in light of the COVID-19 crisis and associated social distancing restrictions. The Massachusetts Supreme Judicial Court announced Monday that it would postpone its July 28-29 review until an undetermined date in the fall.

But the letter from law school students argues that simply postponing the bar exam will jeopardize the job opportunities and financial security of graduates.

“Most HLS graduates planned to start working with employers from late summer or fall 2020,” it read. “If bar exams continue to be postponed, it is not clear whether students will start working, as planned.”

The letter explains how deferred employment could particularly hurt international students, whose immigration status could be affected by unemployment, as well as first-generation and low-income students.

“For students with limited means, it is unclear how they will support themselves financially and their families if their employment begins at a later date,” the letter said. “For all, it is not clear whether students will have to start repaying their student loans this year.”

Saadati-Soto said students who can get jobs before the postponed exam may have to decide whether to work full-time or study full-time for the exam – a decision she said would eliminate traditionally marginalized students of the legal profession.

“People who don’t have the financial security to just be able to quit their jobs and study for the bar at any time – they might choose to forgo the state bar,” she said. “This means that low-income students, immigrant students, people of color are the most likely to have to forgo taking or studying a subsequent exam because they will have to work to support themselves and their families. “

She also said the legal profession is currently facing a mental health crisis and having to pass the bar exam could make the problem worse by adding unnecessary financial and academic stress amid a global pandemic.

Law School spokesman Jeff Neal wrote in an emailed statement that administrators realized that postponing bar exams in several states had disrupted graduate students’ plans. Neal added that administrators appreciate that the students have taken the initiative and come up with a solution to this problem, and that the school will continue to work with the state to “explore” ways to resolve it.

“Our student services offices are also ready to work one-on-one with our students to help them assess their plans and chart the way forward in light of changing events,” he wrote.

Marilyn J. Wellington, executive director of the Massachusetts Board of Bar Examiners, declined to comment on the students’ proposal.

The letter from the students also listed additional concerns about the postponed exams, such as uncertainty over the state of the pandemic in the fall.

“Since vaccinations and preventive medical therapies will not be open on the market for at least a year, the potential for another epidemic is only a matter of time,” it read. “A short-sighted decision to simply postpone the July exam, if accompanied by a high likelihood of a subsequent outbreak and resulting further postponement, will deprive Americans of crucial legal assistance in months to come. “

The letter argues that the large number of people affected by COVID-19 demand that as many lawyers as possible enter the workforce to defend struggling small businesses, recently unemployed people and families facing eviction.

He also alleges that the country may need more lawyers to continue to provide criminal defense and advocate for the interests of detained workers and immigrants – a need he says can only be met if college graduates of law are automatically admitted to the bar.

“We cannot ignore the issues of due process and deprivation of personal liberty, even in times of new national crises,” the letter read. “We, the undersigned, call on Harvard Law School to recognize the imminent need for lawyers and to take the most humane, public health conscious and ethical approach. “

“Just as our colleagues in medical schools have been called to join the front lines of the fight against COVID-19, lawyers are also needed to fight for the rights of those most affected by this pandemic,” he concludes.

– Editor Kelsey J. Griffin can be contacted at Follow her on Twitter @kelseyjgriffin.

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EU plans bad Nama-style banks to mop up Covid-hit loans Mon, 22 Mar 2021 09:38:43 +0000

The EU plans to take over several bad Nama-type banks to take over distressed loans resulting from the pandemic, according to officials with knowledge of the plan.

The European Commission is expected to propose next week the creation of regional asset management agencies to allow banks to pool similar bad debts linked to Covid and sell them in batches to vulture funds.

The Financial Stability, Financial Services and Capital Markets Union branch, where Mairead McGuinness became commissioner in October, presented the plan on Tuesday.

The proposals aim to help small and medium-sized banks get rid of non-performing loans and start financing businesses and households again to support economic recovery, according to a senior EU official.

“The biggest problems are in medium and small banks where the lack of resources makes it difficult to focus on loans and non-performing loans,” the official said.

“It makes sense to collectivize the platforms – they find it difficult to move these loans.”

The plan, however, is unlikely to involve Irish banks, which are used to selling portfolios of large loans to vulture funds and have acquired the capacity to do so independently.

The plan is part of the EU’s efforts to tackle a growing pile of delinquent loans and prevent distressed debt funds from buying them at bargain prices, as they have done in Ireland and elsewhere. other countries after the financial crisis.

The EU is trying to find ways to reach a scale where banks can improve their bargaining power with the big private equity funds and the hedge funds that buy back portfolios of distressed loans at very favorable prices.

Officials fear that an increase in bad loans will mean banks will be sidelined as a tool to fund the post-Covid recovery, “so we have to get it right,” an EU official said.

“There will be no miracle cure,” the official said.

“The solutions are structural in nature to make it easier for banks to sell non-performing loans on their own and perhaps at lower discounts. “

The preferred mechanism for achieving better pricing is to first separate failed assets from otherwise clean lenders, and then aggregate loans of a sufficient scale to sell them effectively.

“Demand is concentrated in a small handful of large specialist funds,” said a European official. “We want to balance the concentration on the asset management side to reduce the discount on the sale.”

Officials mentioned Italy as a particular concern due to its high volume of non-performing loans and its fragmented banking system.

The European Banking Authority (EBA) has created standardized models for loan portfolios – including data such as performance history, loan losses, maturity and year – which is considered a milestone preliminary to the creation of a centralized platform.

Creating a more integrated banking system has been a long-term objective of the Commission which has taken on new urgency since the start of the pandemic. Progress had slowed, but Ms McGuinness pledged to inject new energy into the project.

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Financing for used construction equipment soars amid pandemic Mon, 22 Mar 2021 09:38:43 +0000

Ddespite pandemic, some financial institutions are reporting an increase in used equipment lending activities.

Rich Fikis, chairman of Komatsu Financial, said that in April, at the start of the company’s new fiscal year, used equipment loans got off to a slow start, but May saw a big rebound.

“It looks like some people were probably sitting on the sidelines trying to figure out what could happen, but our month of May was actually our strongest May in the last three years when it comes to fundraising. used equipment, ”said Fikis.

Komatsu focused on ending its equipment leasing and launched an aggressive campaign offering 36 months at zero percent interest – the first time in company history for zero percent interest on used equipment. It also offers 90 days without repayment on loans and provides one year guarantees on its used equipment. As the pandemic took hold, these incentives became even more useful for entrepreneurs concerned with preserving their cash flow.

Story3 Pull Quote“Cash flow is definitely a concern right now,” says Fikis. “A lot of the clients we speak with still have a large backlog from before the virus, but are just a little more cautious about cash flow.”

Komatsu offers free maintenance on its new equipment through its Komatsu Care program. Fikis says that regular maintenance performed as part of the Komatsu Care program allows the company to provide a one-year warranty on its certified pre-owned equipment that comes out of rental.

“This generated a good buzz with our used equipment managers,” he says of the company’s incentives. “At times like this, a little extra to get someone over the hump is helpful. If the customer is considering leasing or being new or used, any additional leverage will help them make that buying decision.

John Deere has also seen an increase in loan activity and has offered aggressive incentives for used equipment.

“We have seen a modest increase in the used equipment market this year over the past two years,” said Jayma Sandquist, chief marketing officer and senior vice president US / Canada at Deere.

“Initially, as the states closed, we saw projects suspended or delayed because our dealer network and our customers implemented security protocols,” she adds. “Now, as states begin to ease restrictions, renewed interest is occurring.”

At the start of the pandemic, Deere offered 90 days without payment and zero percent interest on its certified used construction equipment.

“We believe contractors are looking for options to protect and maintain cash flow in response to pressures in the construction space, as well as in the energy segment,” she says. “As states begin to open up, our dealer network is focusing on the availability of equipment with different financing and / or lease options to help customers. “

Story3 sidebarEntrepreneurs with credit problems

The various incentives offered by large equipment manufacturers and lenders are often tied to a contractor’s credit rating. And those with poor credit or new businesses that haven’t established a credit history might have to seek other lending options, if traditional banks and finance companies turn them down.

This is where YES Leasing found its place. The company offers lease options with an option to buy to its customers and does not consider credit history. (YES means your equipment specialists.)

“A lot of companies look at companies’ credit history,” says Cory Cataldo, director of development for the Miami-based company. “We are looking at your business. We want to know you, to know what you are doing.

Cataldo says the company’s business has remained strong during the pandemic, especially as some traditional financial institutions have tightened lending standards.

Corporate leases are actually more similar to loans than traditional leases, but with a few differences. Instead of a down payment, customers provide a down payment. But the deposit is used to purchase the equipment. At the end of the lease, the customer owns the machine, instead of traditional leases in which the equipment returns to the finance company. Leases do not have an interest rate like loans. But they come with a hefty price tag.

As an example, explains Cataldo, buying a piece of equipment for $ 100,000 over three or four years with a deposit of $ 20,000 would cost the customer about $ 180,000 over the term of the lease. “And that’s a lot, 180 out of 100,” he says. “But at the end of the day, with the equipment that we fund, you’re usually going to make between $ 800,000 and over a million dollars to have it.”

“We take a lot of risks. We charge a lot of money, but we are not sharks, ”he adds. “We do things that make sense to our customers. And we like to say, “We’re the best of the bad options. “

He says leasing with the company will cost less than leasing a piece of equipment for the same length of time. “On a price of $ 100,000, we’re typically $ 150,000 cheaper than leasing over a three-year period.”

The company limits its exposure to $ 150,000 per used machine and up to $ 200,000 for a used directional drill due to higher prices for good used drills. Deposit requirements vary from 15 to 20 percent of the purchase price. The deadlines are generally 36 to 48 months.

Graphic Story3Most of his clients are either small businesses that generate $ 20,000 in revenue per month and have a few employees, or businesses that make $ 200,000 per month with 30 to 40 employees, Cataldo explains.

“We work with guys who generally would have struggled to finance themselves. This is usually a contested credit, ”he says. “We look a lot at cash flow and what it brings in, and we look a lot not only at their equipment needs, but also our knowledge that they are going to earn more with this equipment than they pay us for it, so that it is worth it for them to keep paying.

Rather than looking at credit scores, the business looks at an entrepreneur’s cash flow. “Usually if what they gross gross is about 50% of the cost of the machine they want to buy, we approve that person 90% of the time,” Cataldo explains. “Now if they meet that metric about half the time they end up being approved for a 15% deposit. ”

The business requires an application and for the applicant to show the last three months of the business bank statements. The company also takes a questionnaire with its candidates to get a better idea of ​​the company, its plans and why it needs the equipment. If the request is successful, the company wants to verify contracts and bank statements. He does not perform a credit check, which could adversely affect a customer’s credit rating.

YES will fund the auction purchases and may give approval before the auction occurs, Cataldo said. It will fund contractor-to-contractor sales, but instead will try to direct buyers to approved equipment dealers. Sales to individuals can run into title issues on the equipment, in which the seller may not even be authorized to sell it. This can also be a problem if the equipment turns out to be a lemon.

“The advantage of buying from an authorized dealer is that if you get a piece of junk, they have to care,” he says. “… And they have staff who could at least work on it and fix it for you.” “

Ditch Witch of Florida Caribbean refers its clients to YES Leasing when they are not eligible for further financing.

Story3 Pull Quote B“YES is a great option for people with a good business, they just have challenges elsewhere,” says Gary Landry, Territory Sales Manager for the Plant City-based dealership. “It’s a more expensive product, but it can put equipment in their hands.”

“Is this a great option? No, ”he adds,“ but it’s an option that if you can get a piece of equipment that you can make a lot of money with on a monthly basis then it’s worth it. “

Hitting financial trouble

Financial institutions are reporting an increase in the number of entrepreneurs seeking new terms for financing their equipment and, in some cases, defaulting on loans during the pandemic.

“We have seen a historic number of requests for payment relief and have been able to accommodate the vast majority to help our customers through these difficult times,” says Deere’s Sandquist. “We have also proactively called many of our construction clients to assess their confidence in their financial situation, and we have worked with them to revise schedules as necessary and appropriate. “

Komatsu’s Fikis said the company has also seen an increase in restructuring requests. “It’s certainly not unprecedented or unexpected,” he says. “We have learned a lot from 2008-2009. We helped a lot of our customers then, but we also realized very quickly that this leads to great customer loyalty after we were ready to help at that time. So we were proactive in March in reaching out to customers to offer assistance as needed during uncertain times. “

Communication is key – and sooner rather than later – for entrepreneurs who anticipate difficulties with payments.

“Communication is 100% the most important thing in this situation,” says Fikis. “We always know there will be peaks and valleys where customers struggle. But if they tell us about these struggles, the vast majority of the time we can find a way to help them and help them get through this difficult situation.

“I can’t repeat enough that proactive communication is by far the most important aspect of this. “

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Nervous Treasury hampers small business loan plan | American Institute of Business Mon, 22 Mar 2021 09:38:43 +0000

The Trump administration is hampering a Federal Reserve loan program that could help keep small and medium businesses afloat during the coronavirus recession. To correct this error, the US Treasury Department must allow the program to take more risk.

There are disturbing signs that Treasury Secretary Steven Mnuchin doesn’t see it that way. His testimony before a key Senate committee on Tuesday morning reinforced that.

The Fed’s “Main Street” loan program is intended to help businesses that were productive before the pandemic survive until the economy recovers. Businesses with up to 15,000 employees or 2019 annual revenues of less than $ 5 billion would get a loan from a bank, which would allow them to to sell part of the loan – 85% to 95% – to the Fed. This would allow the banks to make more loans.

The challenge for the Treasury is to determine the level of risk to be taken in these loans. It is the Treasury’s decision, not the Fed’s, as it is required by law to provide capital to cover losses and to approve the terms of the program.

It is certainly a difficult call. The Fed cannot grant grants and therefore must reasonably expect that the loans can be repaid. But lending always carries a risk of default. If the Main Street program is too conservative, the money will not go to the companies that need it most, jeopardizing the recovery.

There are disturbing signs that Mnuchin is being more cautious than Congress anticipated and that the economy does not need it. He recently declared, “If Congress wanted me to lose all the money, this money would have been designed as grants and subsidies as opposed to credit support.”

It is misguided. Of course, Congress had no intention of losing all the money. But there’s a long way to go between that and putting some of the money at risk. Congress clearly expected the economy to benefit if the Treasury tolerated some losses in exchange for putting the money in the hands of the types of crippled businesses that need it most.

Asked about this by Senator Mark R. Warner, a Democrat from Virginia, during a banking committee hearing on Tuesday, Mnuchin heightened concern. He said he expected the Main Street program to suffer losses, a turn in the right direction. But he gave no details on how the program would change.

The Main Street program has $ 75 billion in treasury capital designed to support $ 600 billion in Fed loans. This allows for a fault rate of around 13%. This loss rate implies that the program’s portfolio will be heavy on companies whose solvency is not in question. But economic recovery is the goal and solvency is the problem. If the Treasury and the Fed are serious about solving the problem, then losses are inevitable.

Indeed, under the terms of the program put in place by the Fed and the Treasury, it is not clear which companies would qualify for assistance that could not already access a standard business loan. By forcing banks to hold 5-15% of loans, the program encourages banks to use normal credit standards. In addition, the Main Street program requires borrowers to show that they have well-rated debt, with an internal risk rating equivalent to “pass”.

By forcing banks to use normal commercial lending standards, the Treasury can discourage borrowers and lenders from participating in the Main Street program.

A new Congressional Oversight Commission created by the March relief legislation known as the Cares Act published his first report on Monday. He revealed that virtually no money earmarked for the treasury had been loaned under any of the Fed’s pandemic response programs.

Mnuchin may be wary of taking risks in the Main Street program to avoid the public perception of corporate bailouts. If so, he over-learns the lessons of the 2008 financial crisis, when voters rebelled against bank bailouts under the Troubled Asset Relief Program, even though the government clawed back almost all of the money it did. ‘he paid. Business loans today are going to be much riskier because of the closure.

He may also under-learn a different lesson. After the 2008 crisis, the Fed suffered a political backlash, believing it had saved the financial system but had not done enough for Main Street. If today’s Main Street program does not work – so few loans are made or if program funds do not reach the businesses that need them most – the political ramifications could be more serious as the blockages put in place. in place to slow the spread of Covid-19 have created a true Main Street recession.

To reach mom and pop stores, and not just the much larger midsize businesses, other changes will need to be made. For example, the program has a minimum loan size of $ 500,000. Many small businesses that need funds are not able to take on such a large loan. And the four years given for loan repayments under the program are not enough for many low-margin businesses.

Congress allocated $ 454 billion in the Cares Act to support the Fed’s lending programs. According to Mnuchin testimony, only $ 195 billion was committed to a program, the rest being held in reserve. And only $ 75 billion of that credit, 17%, went to the Main Street program. Additional capital would allow the program to grant riskier loans. The treasury has the money and the authority to make this change immediately.

Economic recovery requires taking risks.

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