What does she have to say?
Subject: Nassauotb.com
Dear Patricia A Wexler and JP Morgan Chase:
Nassauotb.com says "You may now use your JP Morgan-chase Bank credit or debit card to make deposits to your account.". When did the bank enter into a relationship with Nassau OTB? What is the nature and scope of the relationship between the parties? What costs, profits, and or financial consideration is being exchanged by the parties as part of their financial agreement?
Did Nassau OTB apply to the bank for a PPP loan and or other federally supported funding? If so, has their appplication been granted.
Sincerely yours,
nassau otb cashier
Wed. May 20, 2020
cc: Nassau OTB employees
Treasury Secretary Warren
Mnuchin and Powell fear Democratic attacks on business loans.
Treasury Secretary Steven Mnuchin speaks during a cabinet meeting in the East Room of the White House on May 19.
PHOTO: KEVIN DIETSCH/BLOOMBERG NEWS
Senate Democrats on Tuesday lashed Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell for not doing enough to help businesses and workers while warning them not to bail out companies. If you want a prescription for a slow economic recovery, there it is.
Congress has appropriated $500 billion to backstop Federal Reserve lending facilities for mid-sized and large companies as well as local governments, plus $670 billion for Paycheck Protection Program loans to small business. These funds were needed to keep businesses liquid amid government-ordered lockdowns so workers have jobs to return to once the pandemic recedes.
One problem is Mr. Mnuchin has been too willing to bend to Democrats who want to use the business relief to attack the Trump Administration. Following Democratic claims about supposedly unworthy businesses receiving loans, Treasury and the Small Business Administration have rewritten the PPP terms and imposed restrictions not stipulated by Congress.
Chief among these is the requirement that businesses use 75% of loans for payroll to qualify for loan forgiveness. Treasury says this mandate fulfills Congress’s apparent intent that loans be used to retain workers, but it has deterred many small businesses and especially restaurants with high overhead costs from applying. Yet Mr. Mnuchin has refused to relax this requirement, which our sources say is because he doesn’t want to get hammered by Democrats for letting businesses prioritize paying landlords over workers.
Several hospitals that are reorganizing in bankruptcy court want to use PPP loans to retain workers, but the SBA says “PPP loans to debtors in bankruptcy would present an unacceptably high risk of an unauthorized use of funds or non-repayment of unforgiven loans.” Public companies have been warned they could be prosecuted if they apply for loans that the government later determines they don’t need.
Mr. Mnuchin’s low tolerance for risk is also encumbering the Federal Reserve’s lending. A Congressional Oversight Committee report Monday noted that Treasury has disbursed only $37.5 billion of the $500 billion Cares Act funds, which were used for the Fed’s Secondary Market Corporate Credit Facility on May 11.
Treasury and the Fed keep fiddling with the rules for the Main Street lending facilities including the stake that banks are required to retain in loans they issue as well as leverage limits for borrowers. “I think it’s pretty clear if Congress wanted me to lose all of the money, that money would have been designed as subsidies and grants as opposed to credit support,” Mr. Mnuchin said last month. He clarified during Tuesday’s hearing that Treasury is willing to “take losses in certain scenarios.” Such as?
Mr. Powell said the Fed expects to have the Main Street facility up and running by the first week of June. Businesses needed the cash weeks ago. Even now many will be reluctant to borrow because the Fed’s restrictions on dividends and executive compensation continue for a year after the loan is repaid.
Many also won’t want to become political targets. In a McClatchy News op-ed this month, Elizabeth Warren and Joe Biden called the $500 billion a “slush fund for big businesses” that President Trump will use “to reward his political friends and punish his political enemies.” There’s no evidence for their claim.
They also threatened to prosecute business executives and Administration officials who make “wasteful, corrupt deals.” “Every Trump administration official and business executive contemplating such deals should hear us loud and clear,” they warned. This is a great way to chill political contributions to Republicans and the business recovery at the same time. Ms. Warren’s former aide Bharat Ramamurti sits on the Congressional Oversight Commission.
Politicians closed the economy and denied companies their customers. Now some are trying to blame businesses for accepting the loans government offered. This is unfair and destructive, and it would be nice if Mr. Mnuchin or someone in the Administration said so.
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