covid pandemic – Tedxyouth Caltech http://tedxyouthcaltech.com/ Sat, 26 Mar 2022 06:48:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tedxyouthcaltech.com/wp-content/uploads/2021/10/icon-5-120x120.png covid pandemic – Tedxyouth Caltech http://tedxyouthcaltech.com/ 32 32 Court of Appeal rejects new argument that victims of fraud should credit the “time value” of money received in a fraudulent transaction https://tedxyouthcaltech.com/court-of-appeal-rejects-new-argument-that-victims-of-fraud-should-credit-the-time-value-of-money-received-in-a-fraudulent-transaction/ Tue, 15 Feb 2022 16:59:00 +0000 https://tedxyouthcaltech.com/court-of-appeal-rejects-new-argument-that-victims-of-fraud-should-credit-the-time-value-of-money-received-in-a-fraudulent-transaction/ In an action brought by the victim of fraud against the perpetrator, seeking damages for the consequent loss of investment opportunities in connection with certain fraudulent transactions, the Court of Appeal dismissed a Fraudster’s appeal on the basis that the victim was obligated to credit not only the money they received in connection with the […]]]>

In an action brought by the victim of fraud against the perpetrator, seeking damages for the consequent loss of investment opportunities in connection with certain fraudulent transactions, the Court of Appeal dismissed a Fraudster’s appeal on the basis that the victim was obligated to credit not only the money they received in connection with the fraudulent transactions, but also the “time value” of that money between the transaction and the trial: Tuke vs. Hood [2022] EWCA Civil 23.

This decision will be notable to financial institutions for the Court of Appeals’ analysis of the proper calculation of damages in deception claims, particularly in the context of misuse litigation, shareholder claims and growing number of fraud claims arising from Covid-19. pandemic. The Court of Appeal concluded that when the measure of damages is reflected by comparing the value of what was sold with the value of what was received, the innocent party must simply give credit for the money (or the value money) that she received as part of the transaction itself, in order to reflect the situation as it would have been if the fraud had not occurred.

The Court of Appeal referred to the classic modern statement of principles applicable when assessing damages for deception in Smith New Court Ltd v Scrimgeour Vickers [1997] CA 254. New Smith Yard confirmed that the time at which credit should be given for benefits received by the innocent party is normally the date of the fraudulently induced transaction (although this is not an inflexible rule and a different date may be adopted if one takes the date of the transaction would under-compensate the victim). The Court of Appeal noted that New Smith Yard said nothing about the innocent party having to attribute the benefits received to the claims for consequential losses.

The suggestion in this case that unless the victim gave credit for the time value of the money received, they would be overcompensated, was novel. The Court of Appeal found it fundamentally wrong and unprincipled. In the court’s view, a plaintiff would not be fully compensated if required to give credit for the time value of the money received.

We examine the decision in more detail below.

Fund

Between 2009 and 2012, the claimant, Mr Tuke, purchased a number of classic cars as an investment from or through a specialist classic car dealer, JD Classics Ltd (JDC), which was founded and run by the defendant, Mr. Hood.

In 2011, at the suggestion of Mr Hood, Mr Tuke completed a deal which required him to borrow £8m from a finance company to buy 5 Jaguar racing cars for £10m. It later transpired that Mr. Hood had tricked Mr. Tuke into buying the cars for far more than they were worth, after providing Mr. Tuke with false appraisals. In order to repay the loan from the finance company, Mr Tuke was forced to sell a number of his classic cars and was enticed to sell all but one to JDC at an undervalued price.

Mr. Tuke later sued Mr. Hood for deception, dishonest assistance in breach of fiduciary duty, knowing receipt and conversion. Mr. Tuke sought damages, including for loss of investment opportunity. Mr. Tuke’s case was that if he had not been defrauded, he would have sought to retain certain cars which would have increased in value considerably.

High Court decision

The High Court found that Mr Hood had cheated on Mr Tuke on numerous occasions over many years, in gross breach of the trust that had been placed in him. The High Court found Mr Hood liable for both deception and dishonest assistance in JDC’s breach of trust in relation to a number of transactions. The High Court also said that but for the fraud, Mr Tuke could have kept many cars until 2020 or at least until 2015/2016, by which time the market had grown significantly.

The High Court quantified ‘basic claims’ for loss suffered on sales at undervaluation in the normal way, comparing the market value of the cars at the date of sale to the actual value of the consideration received for they.

With regard to the claim for consequential loss of investment opportunity, the High Court compared the market value of each car with its 2020 value, which reflected the subsequent increase in the value of the investment, before deciding apply a 25% discount for uncertainties.

Mr Hood appealed against the High Court’s decision. Mr Hood argued that the High Court, when assessing the loss of investment opportunity, should have taken into account the notional benefit that Mr Tuke received over time from the cash element of the consideration he received for the investment cars and that this resulted in Mr Tuke being overcompensated.

Court of Appeal Decision

The Court of Appeal found in favor of Mr. Tuke and dismissed Mr. Hood’s appeal.

The main issues that will be of interest to financial institutions are presented below.

Legal principles on the calculation of damages for deception

The Court of Appeal noted that the purpose of an award of damages for deception is to put the plaintiff in the position he would have been in if no dishonest representation had been made to him.

The Court of Appeal went on to highlight the following key legal principles relating to the assessment of damages for deception:

  • When assessing damages, the plaintiff must take into account all the benefits he received as a result of the transaction. The time at which credit should be given for benefits is normally the date of the fraudulently induced transaction, but this is not an inflexible rule (according to New Smith Yard).
  • A defendant wishing to assert that events subsequent to the breach reduced a recoverable loss must plead and prove it (according to OMV Petrom SA v Glencore International AG (Rev 1) [2016] EWCA Civil 778).

Application of the legal principles on the calculation of damages for deception to this case

The Court of Appeal held that whatever the innocent party is required to do, in order to reflect the situation as it would have been if the deception had not taken place, in a case where the extent of the damages is reflected comparing the value of what was sold with the value of what was received, is to credit the money (or money value) he received as part of the transaction itself.

The Court of Appeal held that Mr. Hood should not be rewarded for his dishonest behavior by reducing his liability, especially if it would result in Mr. Tuke not receiving the full value of the loss. Requiring Mr. Tuke to give credit for the hypothetical “time value” of the money he received from JDC in the relevant transactions would result in him not receiving full credit for the lost opportunity. of investment. This would be directly contrary to the policy of seeking to award the innocent party full compensation for the harm suffered in cases of dishonesty.

The Court of Appeal observed that in this case, but for the fraudulent misrepresentations of Mr. Hood, Mr. Tuke would not have taken out the loan and he would not have had to sell all his investment cars except one to repay the loan. Further, Mr. Hood had not pleaded or proven that post-breach events had reduced a recoverable loss.

The Court of Appeal noted that New Smith Yard said nothing about the innocent party having to attribute the benefits received to the claims for consequential losses. Once the value of the cash benefit received by Mr. Tuke when he sold the cars was taken into account in the basic calculation of the loss, there was no reason to consider its value over time. There was also no reason to consider the “time value” of the cash benefit when assessing the additional loss of the opportunity to realize a capital gain by keeping the cars rather than by selling them.

Further, the Court of Appeal stated that, in principle, a plaintiff is only required to credit a benefit that arises from a transaction and is intrinsic to it. What Mr. Tuke did, or could have done, with the money he received for the cars was irrelevant. Any gain or loss would result from Mr. Tuke’s independent actions and decisions. The time value of the money received was not sufficiently related to the fraudulent transactions and was not a benefit received in connection with these transactions. In any event, the loss of investment opportunities was not time-lapse compensation as such, but a claim for the loss of capital appreciation of the cars.

The Court of Appeal also noted that Mr. Hood’s analogy to interest awards was deeply flawed. Mr. Hood had argued that “time value” should be calculated either in the same way that Mr. Tuke had received compound interest on fair compensation for Mr. Hood’s dishonest assistance in breach of fiduciary duty. of JDC, or in the same manner as discretionary interest under the law. First, the claim for loss of investment opportunity was an alternative to a claim for interest on the basic damages awarded. Second, the discretionary award of debt interest or damages under section 35A of the Superior Courts Act 1981 is purely the creation of law. There is no discretion at common law to award such compensation to a plaintiff for the loss of use of money over time, if the claim is not a claim for “debt or damages within the meaning of Article 35A (in accordance with Odyssey Aviation Ltd v GFG 373 Ltd [2019] EWHC 1980). Third, if interest is claimed at common law as damages for the subsequent payment of a debt, the actual losses must be pleaded and proven (according to Sempra Metals Ltd v Inland Revenue Commissioners and another [2007] UKHL 34). The Court of Appeal found it difficult to see how there could be any power to calculate the alleged “time value” of a receipt by the innocent party and credit it to the dishonest defendant, especially in a vacuum of evidence. The compound interest analogy was even harder to sustain, since compound interest is an equity reward designed to discourage dishonest behavior. There was no reason for the innocent victim of the fraud to be put on the same footing as the fraudster and treated as if they had received compound interest on any money they received under the fraudulent transaction.

Finally, the Court of Appeal stated that policy considerations strongly militated against requiring the aggrieved party to give credit for the notional time value of money. This would encourage the fraudster to lengthen the time between the fraudulent transaction and the award of damages, because the longer this time, the greater the credit. A fraudster should not be encouraged to prevaricate or cover up their wrongdoing.

Accordingly, for the above reasons, the Court of Appeal agreed with Mr. Tuke and dismissed Mr. Hood’s appeal.

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The biggest things the documentary leaves out https://tedxyouthcaltech.com/the-biggest-things-the-documentary-leaves-out/ Thu, 03 Feb 2022 20:30:00 +0000 https://tedxyouthcaltech.com/the-biggest-things-the-documentary-leaves-out/ by Netflix rogue tinder tells the true story of a man who is believed to have cheated people out of $10 million. The man, who went by the name Simon Leviev, posed as the son of a billionaire on the dating app Tinder in order to convince countless women around the world to lend him […]]]>

by Netflix rogue tinder tells the true story of a man who is believed to have cheated people out of $10 million. The man, who went by the name Simon Leviev, posed as the son of a billionaire on the dating app Tinder in order to convince countless women around the world to lend him money. This Netflix documentary tells a fairly comprehensive story of the experiences of three of the victims.

rogue tinder shares the stories of three women, Cecilie Fjellhoy, Pernilla Sjoholm and Ayleen Charlotte, who were all scammed by Simon using a very similar strategy. Simon would slowly develop a relationship with them over months, during which he would demonstrate his wealth using money he had previously scammed from others. Then he claimed to have survived an attack, sending photos of an injury his supposed bodyguard had suffered and claiming that his enemies were following him using his credit cards. These women willingly transferred large sums of money or opened new credit card accounts in their own names to help keep Simon safe. He always promised to pay them back but never did.

VIDEO OF THE DAY

Related: Becoming: What Michelle Obama’s Netflix Documentary Leaves Out

The Netflix documentary ended when Cecilie, Pernilla and Ayleen worked with reporters to get Simon arrested, but sadly he was only charged for the fraud he committed years before in Israel and not for the many schemes he had set up against these unsuspecting women. . rogue tinder is remarkably accurate in telling the stories of these women and retains many of the most important details, but it does not include everything. Here are the biggest things the documentary omits from the story.

Simon’s first crime was stealing checks while babysitting


tinder-crook-simon-plane

rogue tinder confirms that Simon was born as Shimon Yehuda Hayut and was the son of the Chief Rabbi of El Al Airlines. Growing up, he became known for his thefts, and his first recorded crime happened when he was 20 years old. While babysitting a four-year-old child, Simon stole checks from the family. This crime is briefly referenced in the documentary along with countless other people who shared their experiences after Cecilie and Pernilla’s story made headlines. Around the same time, Simon also stole checks from his employer while working as a handyman and convinced a classmate to invest in a business that didn’t exist. The Netflix film does not detail these events or explore Simon’s childhood at all. rogue tinder keeps the focus on Cecilie, Pernilla and Ayleen and doesn’t question what may have led Simon to his criminal lifestyle.


Simon launched a civil suit


tinder-crook-simon-leviev

Even after his arrest and time in an Israeli prison, Simon maintained his innocence regarding the women in the Netflix documentary rogue tinder. He told Israel’s Channel 12 news (via Squire), “I have the right to choose the name I want, I never presented myself as the son of anyone, but people use their imagination… I never took a penny from them.” In response to these accusations, he filed a civil lawsuit against Cecilie and Pernilla. Yet despite her claims of innocence, he continued to threaten Pernilla in jail and told her she would pay for what she had done. Some of Simon’s other victims have also filed lawsuits against him, but so far they have gone nowhere. Simon enjoys his freedom and apparent financial success in Israel after his early release and avoids the many countries that still want him to pay for his plans.


The pandemic contributed to the early release


tinder-crook-simon-arrested

rogue tinder points out that Simon was sentenced to 15 months in prison for his crimes in Israel and was released after only five months. The documentary reveals that he behaved well, which may be partly true, but that’s not the whole story. The COVID-19 pandemic played a role in the early release of Simon and many other inmates around the world who were serving time in overcrowded prisons. In order to slow down the spread of the virus as much as possible, these establishments have released certain individuals deemed to be at low risk or who have shown good behavior. In other words, if it hadn’t been for the pandemic, Simon might have served his full sentence.


Related: Filthy Rich: What Netflix’s Jeffrey Epstein Documentary Leaves Out

Simon falsifies identities again


tinder-scammer-fake-identity

Despite everything Simon went through before and during the events covered in the documentary, including going to jail twice, he doesn’t seem to have learned anything. In December 2020, following his release, Simon made headlines again. He had pretended to be a paramedic in order to get the COVID vaccine early, proving that his tendency to adopt false identities had not gone away. Simon told Israel’s Channel 12 that he was not “someone standing in line,illustrating that he not only continues to fake personas to get what he wants, but he makes no apologies for it, even when caught. Simon’s social media still displays an expensive lifestyle and his latest girlfriend is an Israeli model.While there is no evidence that he is still scamming people into maintaining this lifestyle, at the very least Simon has apparently proven unable to stay honest.


One of Cecilie’s banks has canceled its debt


tinder-crook-cecilie-debt

The women featured in the documentary rogue tinder admitted that they were still struggling to pay off their debt, especially Cecilie, who acquired over $250,000 during her time at Simon’s. She claimed she could not return home to Norway because she feared creditors there, and many banks she took loans from continue to hunt her down for money. Cecilie shared (via SHE) this “she has been sued by four banks, eight creditors are currently suing her for payment and her debt continues to pile up. Not everyone was so indifferent to their situation, however. One of the banks decided to write off its debt to them entirely, and an employee appeared as a witness in one of their court cases. Cecilie remembered explaining to him that the banks had insurance for these kinds of situations, and he couldn’t understand why the other banks were unforgivable.

Simon is apparently inactive on Tinder


account-amadou-crook-simon

Although the Netflix documentary rogue tinder states that Simon has been back on the Tinder app since its release, the company said it doesn’t believe he still uses it. In a statement, Tinder said an internal investigation found no evidence that Simon remains active on the app under known aliases. Of course, it’s quite possible that he simply returned to the site under a new identity or moved to another dating app to continue his schemes, but all of his negative publicity – thanks to the journalists who have first announced story as well as this one documentary – would make its downsides much harder to pull off. There’s no way to know for sure if Simon has actually given up on his lies unless someone else presents a similar story to Cecilie, Pernilla, and Ayleen.


More: What Netflix Doesn’t Do With Cats The Documentary Gets Canada Wrong

Pam and Tommy

Pam & Tommy: The Real Story Behind Tommy Lee’s Talking Penis Scene


About the Author

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Daily Financial Regulation Update –Wednesday, January 19, 2022 https://tedxyouthcaltech.com/daily-financial-regulation-update-wednesday-january-19-2022/ Thu, 20 Jan 2022 07:22:00 +0000 https://tedxyouthcaltech.com/daily-financial-regulation-update-wednesday-january-19-2022/ Federal agencies US Department of Treasury Treasury International Capital Data for November January 18, 2022 The United States Department of Treasury has released Treasury International Capital data for November 2021. The next release, which will report data for December 2021, is scheduled for February 15, 2022. Federal Reserve Board Federal Reserve Board Releases Results of […]]]>

Federal agencies

US Department of Treasury

Treasury International Capital Data for November

January 18, 2022

The United States Department of Treasury has released Treasury International Capital data for November 2021. The next release, which will report data for December 2021, is scheduled for February 15, 2022.

Federal Reserve Board

Federal Reserve Board Releases Results of Survey of Banks’ Senior Financial Officers on their Reserve Balance Management Strategies and Practices

January 18, 2022

The Federal Reserve Board (Board) has released the results of a survey of key financial officers of banks on their strategies and practices for managing reserve balances. The survey is used by the Board to obtain information on the pricing and behavior of deposits, the management of bank liabilities, the provision of financial services, and reserve management strategies and practices. The survey includes responses from banks that held about three-quarters of total banking system reserves at the time of the survey.

Federal Reserve Bank of New York

At a Glance: Results of the December SCE Public Policy Survey

January 18, 2022

The Federal Reserve Bank of New York has released its December 2021 Consumer Expectations Survey. The average probability attributed to an increase in housing benefits over the next twelve months fell to 41% in December, after reaching a high of 52% in August. The decline was widespread across all age, education and income groups.

Conference of State Banking Supervisors

State regulators settle with hundreds of mortgage originators over SAFE Act education requirements

January 18, 2022

Forty-four state financial agencies, led by the California Department of Financial Protection and Innovation, have entered into agreements with more than 400 mortgage originators nationwide who claim to have completed annual continuing education , as required by federal and state law.

Federal Deposit Insurance Corporation

You’re Invited – Advancing Diversity and Inclusion in Financial Services

January 18, 2022

The Federal Deposit Insurance Corporation (FDIC) has a conversation about promoting diversity and inclusion in the financial services industry and the important role of minority depository institutions in job creation, small business growth and Wealth Creation in Low- and Moderate-Income Communities on January 21 at 11 a.m. EST. Leaders from the FDIC and the National Bankers Association will discuss ongoing efforts to preserve and promote minority depository institutions and ensure access to capital and other resources that support economic development and mobility in communities minority.

National Administration of Credit Unions

Letter: NCUA Oversight Priorities for 2022

January 18, 2022

National Credit Union Administration (NCUA) Chairman Todd M. Harper has written a letter to Federally Insured Credit Unions outlining NCUA oversight priorities and other aspects of the NCUA review program for 2022 .

US Small Business Administration

Report: SBA OIG Report 22-07: SBA Oversight of Grantee’s Implementation of the CARES Act Resource Partner Training Portal

January 18, 2022

The Office of Inspector General assessed the management of the Small Business Administration (SBA) grant to train small businesses on available federal resources in the wake of the COVID-19 pandemic and released a report titled “SBA’s Oversight of the Grant Recipient’s Implementation of the CARES Act Resource Partner Training Portal.”

International

European Banking Authority

Document: EBA publishes a working document on its preliminary observations on selected payment fraud data under the Payment Services Directive

January 17, 2022

The European Banking Authority (EBA) has published a working document on its preliminary observations on certain payment fraud data under the Payment Services Directive (PSD2), as reported by the industry for the years 2019 and 2020. The document presents the main findings related to three payment instruments: transfers, card payments and cash withdrawals, and also describes other schemes which seem inconclusive and which would benefit from the comments and views of stakeholders. of the market. The answers to the questions raised in the discussion paper will help the EBA, the European Central Bank and national authorities to interpret the data on fraud that will be reported in the years to come.

EBA confirms continued application of reporting and disclosure requirements related to COVID-19 until further notice

January 17, 2022

Following the uncertainty surrounding the evolution of COVID-19, the European Banking Authority confirms the need to continue monitoring the exposures and credit quality of loans benefiting from various public support measures. To facilitate this monitoring, the guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis continue to apply until further notice.

UK Financial Conduct Authority

FCA confirms its approach to European companies temporarily operating in the UK

January 18, 2022

European companies wishing to remain under the temporary authorization regime must meet the standards of the Financial Conduct Authority to continue to operate in the United Kingdom.

Administrative changes

Vacant jobs

Federal Reserve Board

  • Vice President for Oversight – Sarah Bloom Raskin Appointed January 14, 2022
  • Governor – Lisa Cook appointed January 14, 2022
  • Governor – Phillip Jefferson, appointed January 14, 2022

Federal Deposit Insurance Corporation

  • President – ​​Martin Gruenberg will become interim president effective February 1, 2022
  • Vice-president

Office of the Comptroller of the Currency

  • Controller – Vacant (Michael Hsu is Acting Controller)

Commodity Futures Commission

  • Three (3) vacant commissioner positions

Appointments/Confirmation Hearings

U.S. Treasury Department – Janet Yellen (effective January 26, 2021)

Federal Reserve Board

  • Statement by Federal Reserve Board Chairman Jerome H. Powell on his nomination by President Biden (November 22, 2021)
  • Statement by Governor Lael Brainard on her nomination by President Biden (November 22, 2021)
  • Statement by Treasury Secretary Janet L. Yellen on Federal Reserve Appointments (November 22, 2021)
  • Statement from Secretary Walsh on Federal Reserve Appointments (November 22, 2021)
  • Brown’s Statement on Jerome Powell’s Renomination as Fed Chair (November 22, 2021)
  • Toomey’s Statement on Jerome Powell’s Renomination as Fed Chair (November 22, 2021)
  • Brown applauds Biden’s nomination of Governor Lael Brainard as vice president (November 22, 2021)
  • Brown Applauds Biden Nominees to Fed Board (January 14, 2022)
  • Toomey’s Statement on President Biden’s Fed Nominees (January 14, 2022)
  • Waters applauds appointments of Sarah Bloom Raskin, Lisa Cook and Philip Jefferson to Federal Reserve leadership positions (January 14, 2022)
  • Statement by Treasury Secretary Janet L. Yellen on Federal Reserve Appointments (January 14, 2022)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

Security and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)

Financial Crimes Network

National Administration of Credit Unions – Todd M. Harper

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson

US Department of Education – Dr. Miguel Cardona (effective March 2, 2021)

PH Customer Alerts

Click here to learn more about our Coronavirus series.

Legislation/legislative updates

Click here to view the full text of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), Adopted March 27, 2020.

Click here to view the full text of the Expanding Paycheck Protection Program Act of 2020, Adopted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Adopted on June 5, 2020.

Click here to view the full text of the Consolidated Credit Law, 2021, Adopted on December 27, 2020.

Click here to view the full text of the 2021 US bailout plan, Adopted March 11, 2021.

Click here to view the full text of the PPP Extension Act 2021, Adopted March 30, 2021.

Click here to see a current list of bills the Senate Committee on Banking, Housing and Urban Affairs, the Senate Committee on Small Business and Entrepreneurship, the House Committee on Financial Services and the House Committee on Small Business.

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Stratus Properties Inc. and Ryman Hospitality Properties, Inc. Extend Scheduled Closing Date for Block 21 Sale https://tedxyouthcaltech.com/stratus-properties-inc-and-ryman-hospitality-properties-inc-extend-scheduled-closing-date-for-block-21-sale/ Tue, 18 Jan 2022 21:15:00 +0000 https://tedxyouthcaltech.com/stratus-properties-inc-and-ryman-hospitality-properties-inc-extend-scheduled-closing-date-for-block-21-sale/ AUSTIN, Texas–(BUSINESS WIRE)–Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) today announced that the expected closing date for its previously announced sale of Block 21 to Ryman Hospitality Properties, Inc. has been extended as both parties continue the process of obtaining consent for the purchaser to take over the existing mortgage from the relevant […]]]>

AUSTIN, Texas–(BUSINESS WIRE)–Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) today announced that the expected closing date for its previously announced sale of Block 21 to Ryman Hospitality Properties, Inc. has been extended as both parties continue the process of obtaining consent for the purchaser to take over the existing mortgage from the relevant loan servicers. The transaction is now expected to close in the first quarter of 2022, subject to the timely satisfaction or waiver of various closing conditions, including the loan servicers’ consent to the buyer’s assumption of the existing mortgage loan, the consent of the hotel operator, an affiliate of Marriott, to the purchaser’s assumption of the hotel operating agreement, no material adverse effect and other customary closing conditions .

Block 21 is a 100% Stratus-owned mixed-use development in downtown Austin, Texas that contains the W Austin Hotel and office, retail and entertainment space.

About Stratus Properties Inc.

Stratus is a diversified real estate company primarily engaged in the acquisition, allocation, development, management and sale of commercial, multi-family and single-family real estate properties, real estate leasing and operation of hospitality and entertainment businesses located in the Austin, TX area and other select fast-growing markets in Texas.

Forward-looking statements

This press release contains forward-looking statements in which Stratus discusses factors that it believes may affect its future performance. Forward-looking statements are all statements other than statements of historical fact, including statements regarding if and when the sale of Block 21 will be completed. The words “anticipate”, “may”, “may”, “could”, “plan”, “believe”, “potential”, “possible”, “estimate”, “expect”, “project”, ” target”, “intends”, “likely”, “will”, “should”, “be”, and similar expressions are intended to identify such statements as forward-looking statements. Stratus cautions readers that forward-looking statements are not guarantees of future performance and that its actual results may differ materially from those anticipated, expected, projected or implied in the forward-looking statements. Important factors that may cause Stratus’ actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, the occurrence of any event, change or other circumstance that could delay the closing of the sale. of Block 21 or result in the termination of the Block 21 sale agreements, the uncertain and continued impact of the COVID-19 pandemic, and other factors described in more detail under the heading “Risk Factors” in the Annual Report of Stratus on Form 10-K for the year ended December 31, 2020 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, each filed with the United States Securities and Exchange Commission.

Investors are cautioned that many of the assumptions upon which Stratus’ forward-looking statements are based are subject to change after the date on which the forward-looking statements are made. Additionally, Stratus may make changes to its business plans that could affect its results. Stratus cautions investors that it undertakes no obligation to update forward-looking statements, which speak only as of the date they are made, notwithstanding any changes in its assumptions, business plans, actual experience or other changes.

A copy of this press release is available on Stratus’ website, stratusproperties.com.

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FEDERAL HOME LOAN HYPOTHÈQUE CORP: Change of Directors or Key Officers (Form 8-K) https://tedxyouthcaltech.com/federal-home-loan-hypotheque-corp-change-of-directors-or-key-officers-form-8-k/ Thu, 18 Nov 2021 21:04:07 +0000 https://tedxyouthcaltech.com/federal-home-loan-hypotheque-corp-change-of-directors-or-key-officers-form-8-k/ [ad_1] Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On November 17, 2021, the Federal Housing Finance Agency (FHFA) released the 2022 Scorecard for Freddie Mac (formally known as the Federal Home Loan Mortgage Corporation). Compensation for each of our named executive officers, […]]]>


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Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On November 17, 2021, the Federal Housing Finance Agency (FHFA) released the
2022 Scorecard for Freddie Mac (formally known as the Federal Home Loan Mortgage
Corporation).
Compensation for each of our named executive officers, other than our CEO, is
governed by the Executive Management Compensation Program. A principal element
of such compensation is deferred salary, a portion of which is subject to
reduction based on corporate and individual performance. One-half of a
participating officer's At-Risk Deferred Salary (or 15% of Target Total Direct
Compensation) is subject to reduction based on FHFA's assessment of Freddie
Mac's performance against the objectives and assessment criteria set forth in
the Scorecard. The Scorecard is set forth below.
                         2022 Scorecard for Freddie Mac
For all Scorecard items, Freddie Mac will be assessed based on the following
criteria:
Assessment Criteria
•Freddie Mac's products and programs foster sustainable and equitable housing
finance markets that support safe, decent, and affordable homeownership and
rental opportunities.
•Freddie Mac conducts business in a safe and sound manner.
•Freddie Mac meets expectations under all FHFA requirements, including those
pertaining to capital, liquidity, and credit risk transfer.
•Freddie Mac continues to manage operations while in conservatorship in a manner
that preserves and conserves assets through the prudent stewardship of Freddie
Mac resources.
•Freddie Mac cooperates and collaborates with FHFA to meet the Conservator's
priorities, directives, and guidance throughout the course of the year.
•Freddie Mac delivers work products that are high quality, thorough, creative,
effective, and timely, and that consider effects on borrowers and renters,
Freddie Mac and Fannie Mae (the Enterprises), the industry, and other
stakeholders.
•Freddie Mac ensures that diversity, equity, and inclusion remain top priorities
in strategic planning, operations, and business development.
Promote Sustainable and Equitable Access to Affordable Housing (50%)
Conduct business and undertake initiatives that support affordable, sustainable,
and equitable access to homeownership and rental housing, and fulfill all
statutory mandates.
Take significant actions to ensure that all borrowers and renters have equitable
access to long-term affordable housing opportunities.
•Develop strategies to support sustainable homeownership and affordable rental
housing.
•Improve availability of small-balance purchase and refinance mortgages.
•Develop high-quality Equitable Housing Finance Plans and take meaningful
actions to achieve the goals and objectives of the plans.
______________________________________________________________________________________________________
Freddie Mac Form 8-K

————————————————– ——————————


•Meet Housing Goals and Duty-to-Serve requirements.
•Identify strategies and activities to facilitate greater affordable housing
supply within the limits of charter authorities and submit recommendations to
FHFA.
•Update the current pricing framework to increase support for core mission
borrowers, while ensuring a level playing field for small and large sellers,
fostering capital accumulation, and achieving viable returns on capital.
•Continue mortgage selling, servicing, and asset management efforts that promote
sustainable home-retention solutions for borrowers affected by the COVID-19
pandemic.
Foster competition and efficiency in housing finance markets.
•Modernize the single-family appraisal process to foster efficiency in mortgage
markets, and address barriers to equitable valuation.
•Complete the final phase of validation and approval of credit score models and
begin planning for implementation.
•Leverage technology and data to further promote efficiency and cost savings in
mortgage processes.
•Research and assess opportunities to increase access for small and regional
lenders to Freddie Mac multifamily products.
Manage new multifamily purchases to remain within the multifamily cap
requirements described in Appendix A, including expanded affordability
requirements.
Operate the Business in a Safe and Sound Manner (50%)
Operate with heightened focus on safety and soundness and with a prudent risk
profile consistent with continued support for housing finance markets throughout
the economic cycle, while minimizing the risk of requiring a draw against the
Treasury commitment in stressed scenarios.
Ensure that Freddie Mac is resilient to operational, market, credit, economic,
and climate risks.
•Address examination and supervision findings promptly.
•Maintain liquidity at levels required by FHFA and sufficient to sustain Freddie
Mac operations through severe stress events.
•Maintain effective risk management systems appropriate for entities that need
to minimize risk to capital as they rebuild their capital buffers.
•Ensure a governance structure exists to prioritize the effects of climate
change throughout Freddie Mac decision making.
•Continue to ensure a successful transition away from LIBOR to approved
alternative reference rates by continuing systems development and announcing
plans for the transition of legacy products.
Transfer a significant amount of credit risk to private investors, reducing risk
to taxpayers.
Ensure Common Securitization Solutions, LLC (CSS) operates in a safe and sound
manner in support of Enterprise securitization activities.
______________________________________________________________________________________________________
Freddie Mac Form 8-K

————————————————– ——————————



Appendix A: Multifamily Definitions
1.Market share target and review of market size
The 2022 Scorecard establishes a $78 billion cap on the multifamily purchase
volume of Freddie Mac applicable for calendar year 2022. Within this cap,
certain loans in affordable and underserved market segments are considered
"mission-driven." The 2022 Scorecard requires that a minimum of 50 percent of
Freddie Mac multifamily loan purchases be mission-driven in accordance with the
definitions herein. Furthermore, the 2022 Scorecard requires that a minimum of
25 percent of Freddie Mac multifamily loan purchases be affordable to residents
at 60 percent of area median income (AMI) or below. Loan purchases that meet the
minimum 25 percent requirement may also count as loan purchases that meet the
minimum 50 percent requirement. FHFA anticipates the $78 billion cap to be
appropriate given current market forecasts; however, FHFA will continue to
review its estimates of market size and mission-driven minimum requirements
throughout the year. To prevent market disruption, if FHFA determines that the
actual size of the 2022 market is smaller than was initially projected, FHFA
will not reduce the caps.
The following sections explain how FHFA will treat mission-driven loans for
purposes of the 2022 Scorecard.
2.Loans on targeted affordable housing properties
Targeted affordable housing loans are loans to properties encumbered by a
regulatory agreement or a recorded use restriction under which all or a portion
of the units are restricted for occupancy by tenants with limited incomes and
which restrict the rents that can be charged for those units. FHFA will classify
as mission-driven a proportionate amount of the loan for properties in the
targeted affordable category, depending on the percentage of units that are
restricted by a regulatory agreement or recorded use restriction. FHFA will
classify as mission-driven 50 percent of the loan amount if the percentage of
restricted units is less than 50 percent of the total units in a project, and
100 percent of the loan amount if the percentage of restricted units is equal to
or more than 50 percent.
The following are examples of loans on targeted affordable housing properties
that FHFA will classify as mission-driven:
•Loans on properties subsidized by the Low Income Housing Tax Credit (LIHTC)
program, which limits tenant incomes at 60 percent of AMI or below;
•Loans on properties developed under state or local inclusionary zoning, real
estate tax abatement, loan or similar programs, where the property owner has
agreed to: a) restrict a portion of the units for occupancy by tenants with
limited incomes in accordance with the requirements of the state or local
program and restrict the rents that can be charged for those units at rents
affordable to those tenants; and b) enforce these restrictions through a
regulatory agreement or recorded use restriction;
•Loans on properties covered by a Section 8 Housing Assistance Payment contract
where the contract limits tenant incomes to 80 percent of AMI or below. FHFA
will not consider a unit that is occupied by a Section 8 certificate or voucher
holder as a targeted affordable housing unit unless there is also a contract, a
regulatory agreement, or a recorded use restriction; and





________________________________________________________________________________________________________

Freddie Mac Forme 8-K

————————————————– ——————————


•Loans on properties where a Public Housing Authority (PHA), or a nonprofit
development affiliate of a PHA, is the borrower, and where the regulatory
agreement or recorded use restriction restricts all or a portion of the units
for occupancy by tenants with limited incomes and/or restricts the rents that
can be charged for those units.
On a case-by-case basis, FHFA will consider Freddie Mac requests to classify
other loans as mission-driven that meet affordable housing and mission goals but
do not meet the exact definition of targeted affordable housing. Requests may be
submitted for consideration only after meeting with FHFA to discuss the request.
FHFA will not consider Freddie Mac requests on loans where affordability is
predicated on borrower-initiated (or voluntary) rent restrictions.
3.   Loans on other affordable units
FHFA will classify as mission-driven units whose rents are affordable to tenants
at various income thresholds but that are not subject to a regulatory agreement
or recorded use restriction. FHFA will count as mission-driven, the pro rata
portion of the loan amount based on the percentage of units with affordable,
unsubsidized/market rents, as described below.
a. Loans on affordable units in standard markets
Standard markets are those that are not located in rural areas or in designated
cost-burdened or very cost-burdened renter markets. For properties located in
these markets, the income threshold for affordability is 80 percent of AMI or
below.
b. Loans on affordable units in cost-burdened or very cost-burdened renter
markets
In cost-burdened renter markets as designated by FHFA, the income threshold for
affordability is 100 percent of AMI or below. In very cost-burdened renter
markets as designated by FHFA, the income threshold for affordability is 120
percent of AMI or below.
4.   Loans on properties located in rural areas
Rural areas are those areas designated as such in the Duty to Serve regulation.
FHFA will classify as mission-driven, the pro rata portion of the loan amount
based on the percentage of units affordable at 100 percent of AMI or below.
5.   Loans on small multifamily properties
Small multifamily properties are properties that have 5 to 50 units. FHFA will
classify as mission-driven, the pro rata portion of the loan amount based on the
percentage of units affordable at 80 percent of AMI or below in standard renter
markets, 100 percent of AMI or below in cost-burdened renter markets, and 120
percent of AMI or below in very cost-burdened renter markets.
6.   Manufactured housing community blanket loans
Loans to manufactured housing communities are blanket loans secured by the land
and the rental pads. FHFA will classify as mission-driven the share of the loan
amount of a manufactured housing community blanket loan that reflects the share
of units that receives credit under the Duty to Serve regulation.
FHFA strongly encourages the adoption of tenant pad lease protections that meet
or exceed those listed in the Duty to Serve regulation in all manufactured
housing communities.



________________________________________________________________________________________________________

Freddie Mac Forme 8-K

————————————————– ——————————


7.   Loans on seniors housing assisted living properties
For loans on seniors housing assisted living properties, FHFA will classify as
mission-driven, the pro rata portion of the loan amount based on the percentage
of units affordable at 80 percent of AMI or below.
8.   Loans to finance energy or water efficiency improvements
Loans to finance energy or water efficiency improvements are loans funded by
Freddie Mac under its own specialized financing programs for this purpose. For
loans under the Freddie Mac Green Up and Green Up Plus loan programs, 50 percent
of the loan amount will be classified as mission-driven if at least 20 percent
but less than 50 percent of the unit rents are affordable at or below 60 percent
of AMI, and 100 percent of the loan amount if the percentage of affordable units
is equal to or more than 50 percent.
The renovations under the program (including subsequent program enhancements, as
approved by FHFA) must project a minimum 15 percent reduction in annual whole
property energy consumption and a minimum 15 percent reduction in annual whole
property water and/or energy consumption. (Thus, a property projecting 30
percent energy consumption reduction would qualify for mission-driven credit, as
would a property projecting 15 percent energy and 15 percent water consumption
reduction, or 20 percent energy and 10 percent water consumption reduction.)
In addition, prior to Freddie Mac purchase, all Freddie Mac Green Up and Green
Up Plus transactions must have a third-party data collection firm engaged for
ongoing data collection for the life of the loan, in order to receive
mission-driven credit. This third-party firm can be funded by the borrower, the
lender, or Freddie Mac. FHFA will require specific data elements on all
transactions where energy or water efficiency improvements are made for Freddie
Mac to determine the effectiveness of the programs in achieving policy outcomes,
on an annual basis.
For loans funded under the Freddie Mac Green Certified program, FHFA will
classify as mission-driven 50 percent of the loan amount if at least 20 percent
but less than 50 percent of the unit rents are affordable at or below 60 percent
of AMI, and classify 100 percent of the loan amount if the percentage of
affordable units is equal to or more than 50 percent.
9.   Other Scorecard requirements
For purposes of reporting on loan and commitment activity under the 2022 caps,
Freddie Mac must: a) use the definitions for determining unit affordability of
seniors housing assisted living units, coop units, and shared living
arrangements, including student housing, that are included in the housing goals
regulation at 12 CFR 1282.1; b) use affordability data as of the loan
acquisition date; c) report monthly to FHFA on their acquisition and commitment
volumes using a reporting format defined by FHFA; and d) report quarterly on
their acquisition volumes under the caps including detail on mission-driven loan
purchases using a reporting format to be determined by FHFA.

________________________________________________________________________________________________________

Freddie Mac Forme 8-K

————————————————– ——————————

© Edgar online, source Previews

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A significant percentage of borrowers prefer to obtain a loan online: survey https://tedxyouthcaltech.com/a-significant-percentage-of-borrowers-prefer-to-obtain-a-loan-online-survey/ Tue, 16 Nov 2021 11:11:00 +0000 https://tedxyouthcaltech.com/a-significant-percentage-of-borrowers-prefer-to-obtain-a-loan-online-survey/ [ad_1] A significant percentage of millennial-led borrowers prefer the online mode to obtain loans over traditional offline channels, indicating an increase in digital penetration during the COVID-19 period, according to a survey. After the second wave of the COVID-19 pandemic, shows a largely positive trend in consumer borrowing and, therefore, reflects a return to normal […]]]>


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A significant percentage of millennial-led borrowers prefer the online mode to obtain loans over traditional offline channels, indicating an increase in digital penetration during the COVID-19 period, according to a survey.

After the second wave of the COVID-19 pandemic, shows a largely positive trend in consumer borrowing and, therefore, reflects a return to normal as consumer sentiments are positive and dynamic about the economic recovery, according to one annual “How India Borrows” (HIB) survey conducted by financial firm Home Credit India.

Almost 40% of borrowers have expressed their willingness to switch to digital platforms to take out loans. This is in addition to the 15% of customers who have already opted for online lending instead of traditional offline channels.

While technology has been a key enabler, survey results reveal that, like all digital trends, the familiarity and trust of chatbots is governed by the younger customers who run them.

The HIB study was conducted in 9 cities including Delhi, Jaipur, Bangalore, Hyderabad, Bhopal, Mumbai, Kolkata, Patna and Ranchi. The main sample size was over 1,200 respondents (Home Credit clients) in the 21-45 age group, with an income of less than Rs 30,000 per month.

There was a sharp drop in borrowing for current household expenditure to 4 percent in 2021 i.e. 85 percent last year, showing a shift from needs-based borrowing to needs-based borrowing. desire because of the recovery in the economy, the survey report said.

There was a notable increase in borrowing for business creation or expansion accounting for 28%, followed by small loans or credits for the purchase of durable consumer goods to 26% of total borrowing. he declares.

Other positive reasons were home renovation / new construction (13%), medical emergencies (2%), car loan (9%), marriage (3%), education loan (2 %), investments and return from a previous loan, etc. (1 percent).

The survey identified a more than 50 percent increase in borrowing in 2020, however, borrowing to manage households declined, he said.

The pandemic has also led to the acceleration of digitization, as a growing number of borrowers show a preference for adopting an online lending pathway for future borrowing, thus boosting digital empowerment in financial services. , although the penetration of financial literacy is still ongoing, Home Credit India, Marketing Director Vivek Kumar Sinha said.

With many people experiencing job losses, pay cuts, this has resulted in an increased need for consumers to relaunch businesses this year.

At the regional level, survey results indicate that Bengaluru and Hyderabad have recovered more quickly from the pandemic, with 41% of respondents in Hyderabad having taken out loans for business revival and 42% of respondents in Bengaluru for purchases of durable consumer goods.

While states like Bihar and Jharkhand have the lowest internet population at 24% and 29% respectively, digital literacy in terms of cell phone use in Patna and Ranchi has been recorded at 64% and 65%. respectively, he said.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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Senate Approves Buhari’s $ 16 Billion, $ 1 Billion, $ 125 Million Unconditional Loan Request | The Guardian Nigeria News https://tedxyouthcaltech.com/senate-approves-buharis-16-billion-1-billion-125-million-unconditional-loan-request-the-guardian-nigeria-news/ Thu, 11 Nov 2021 08:00:00 +0000 https://tedxyouthcaltech.com/senate-approves-buharis-16-billion-1-billion-125-million-unconditional-loan-request-the-guardian-nigeria-news/ [ad_1] • World Bank report shows massive gaps in poor countries’ debt monitoring systems• The FEC approves the national development plan 2011-2025 with a value of 348.7 tr N• External reserves will exceed $ 42 billion by the middle of next year, according to Emefiele The Senate yesterday approved the sum of 16 billion dollars, […]]]>


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• World Bank report shows massive gaps in poor countries’ debt monitoring systems
• The FEC approves the national development plan 2011-2025 with a value of 348.7 tr N
• External reserves will exceed $ 42 billion by the middle of next year, according to Emefiele

The Senate yesterday approved the sum of 16 billion dollars, 1 billion euros and a subsidy of 125 million dollars in the form of foreign loans to President Muhammadu Buhari to finance the heritage projects of his administration.

The red chamber specifically approved the issue of 500 million euros from the Bank of Industries and 750 million euros of Eurobonds on the international capital market. He asked the President to transmit to the National Assembly the modalities of donor loans.

The implication of Nigeria’s ever-growing debt service, however, is that the government spends almost all of its income on servicing recurring expenses and debts, forcing the federal government to resort to foreign loans, thus increasing again the profile of the country’s external debt.

The federal government revealed in July 2021 that it had spent 1.8 trillion naira on debt service in the first five months of the year, which is about 98% of the total revenue generated during the year. same period.

A total of 4.86 trillion naira was spent by the federal government between January and May 2021. While recurrent expenditure during the reporting period amounted to 3.67 trillion naira, the service of the debt was 1.8 trillion naira.

The Senate yesterday gave its approval following consideration of the report of its committee on local and foreign debts, chaired by Senator Clifford Ordia.

During the presentation of the report, Ordia said that the projects, for which funds are requested in the 2018-2020 borrowing plan, are ongoing.

“The projects will stimulate a revival of business and engineering activities and the consequent tax revenues payable to the government as a result of these productive activities will increase.”

“We will recall that the Senate in plenary session in July 2021 approved the funding of projects as recommended by the Committee. Subsequently, on September 15, 2021, the President of the Senate read another communication from the President containing an addendum to the 2018-2020 (sliding) external borrowing plan in the amount of $ 4,054,476,863, € 710,000,000. and a grant element of $ 125,000,000 for various projects and it was also referred to committee for further legislative action.

“The commission noted that out of a sum of more than $ 22.8 billion approved by the National Assembly as part of the rolling external borrowing plan 2016-2018, only $ 2.8 billion, or 10%, were paid to Nigeria, ”Ordia said.

However, some senators raised eyebrows at the lack of general conditions attached to the loan application. Senate Deputy Speaker Ovie Omo-Agege said he was concerned about the issue, saying he was unaware of the terms and conditions attached to the loans.

He said, “We looked at the terms, but there were allegations that they were written in Chinese and at that time it became clear even from the responses given by the budget office officials; but they sent back to us to give our approval.

HOWEVER, at a time when the sovereign debts of the poorest countries have reached dangerously high levels, global and country-by-country monitoring systems are proving insufficient. These gaps make it more difficult to assess debt sustainability and, for over-indebted countries, to quickly restructure their debt and generate a sustainable economic recovery, according to a new World Bank report.

The report, Debt Transparency in Developing Economies, released yesterday, marks the first comprehensive assessment of global and national sovereign debt surveillance systems.

He finds that debt monitoring today depends on a patchwork of databases with different standards and definitions and varying degrees of reliability, cobbled together by various organizations. Such inconsistencies result in large variations in publicly available debt counts in low-income economies – the equivalent of up to 30 percent of a country’s GDP, in some cases.

“Poorer countries will emerge from the COVID-19 pandemic with the heaviest debt burden in decades, but limited debt transparency will delay critical debt reconciliation and restructuring,” said World Bank Group President David Malpass.

“Improving debt transparency requires a strong legal framework for public debt management, integrated debt recording and management systems, and improvements in global debt monitoring. International financial institutions, debtors, creditors and other stakeholders, such as rating agencies and civil society, all have key roles to play in promoting debt transparency.

The study finds that 40% of low-income countries have not published any data on their sovereign debt for more than two years and that many of those that do publish it tend to limit the information to central government debt.

Many developing countries are increasingly relying on asset-backed loans, in which governments secure funding by pledging future sources of income. Natural resource-backed loans accounted for nearly 10% of new borrowing in sub-Saharan Africa between 2004 and 2018. More than 15 countries have such debts, but none provide details on guarantee agreements.

In addition, the World Bank’s chief economist Carmen Reinhart said that the existing systems for tracking the sovereign debt of the poorest countries are inadequate and mask hidden debts, as they are likely to owe much more than the poorest countries. currently estimated record levels.

The Multilateral Development Bank yesterday released the first comprehensive assessment of global and national debt surveillance systems, saying it had found “huge gaps” in the ability to track how much each country owes – and to whom.

The World Bank, which has long criticized the lending practices of China, the world’s largest creditor, said last month that the debt burden of low-income countries rose 12% to a record 860 billion in 2020, and called for comprehensive efforts to help low-income countries. and middle-income countries achieve more sustainable debt levels.

Reinhart said the actual number could be “significantly higher” as the new study highlighted the need for reforms to ensure better debt statistics, coordinated data collection and integrated debt management systems.

She said the opaque nature of many debt contracts and the utter failure of the private sector to participate in a G20 debt relief initiative clouded the prospects of countries for timely debt restructuring efforts. low and middle income.

Reinhart said his previous research on loans from China showed that official debt statistics captured about half of actual debt, and that fluctuating commodity prices and the continued impact of the COVID-19 pandemic could push debt levels further up.

Possible interest rate hikes on the horizon in richer economies could exacerbate challenges for developing countries, she said, as they could divert investment and increase the already high cost of the loan.

Debt service payments, linked to exports, have doubled to over 20% in 2020, she said, reflecting the growing toll that increased borrowing is taking on poorer countries.

Meanwhile, the Federal Executive Council (FEC) yesterday approved the National Development Plan (PND) 2011-2025, which succeeds the Economic Recovery and Growth Plan (ERGP). The plan has an investment size of 348.7 trillion naira to be contributed by the federal government, state governments and the private sector.

Informing reporters after the meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja, Minister of Finance, Budget and National Planning, Ms. Zainab Ahmed, explained that the plan is structured on growth and economic development, infrastructure, public administration, human capital development, social development and regional development.

She revealed that for the size of the investment, the public sector would contribute 49.7 trillion naira while the private sector will contribute 298.3 trillion naira.

According to her, the financing strategy includes broadening the tax base and building the capacity of the private sector by creating investment opportunities and providing quality commitments and incentives.

“The federal government’s expenditure component is N29.6 trillion, or 8.5% of the total spending size, while the states will contribute N20.1 trillion, or 5.8%.”

Also speaking, Minister of State for National Planning, Clément Agba, said that by proposing the NDP, the government had taken into consideration the criticisms against the NDP, including the fact that it was not not inclusive enough.

Central Bank of Nigeria (CBN) Governor Godwin Emefiele said yesterday the country’s external reserve would hit $ 42 billion by the middle of next year, even as he expressed confidence in the continued recovery of the economy. the economy. Emefiele said this at the France-Nigeria Security and Economy Summit in Paris.

The external reserve fell to about $ 33 billion, the lowest in recent times, in the second quarter of the year as the economy struggled under the weight of the impacts of COVID-19 and other structural challenges. It recovered remarkably with a gross figure of $ 41.8 billion.

Yesterday, the governor of the umbrella bank admitted that the economy was not completely out of the COVID-19 strain, but noted that the country had seen the worst, as the future looked brighter. radiant.

“Nigeria’s external reserve is expected to exceed $ 42 billion by mid-2022. This is due to the sustained increase in the price of crude oil, the impact of the issuance of Eurobonds and the stability of the exchange rate, ”said Emefiele.

He was optimistic about the continued deceleration in the rate of inflation. He expects headline inflation to moderate to 15.35% by December and 14.91% by February 2022.

Stressing that “confidence in the Nigerian business environment is increasing,” the governor said that the overall business confidence index is projected at 37.7 index points this month and 57.6 points. index by mid-2022.

He cited the creation of InfraCo PLC and eNaira as some of the catalysts for the next phase of growth. He said the digital currency, which was rolled out recently, would improve the monetary management framework.

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PCSB FINANCIAL CORP Discussion and analysis by management of the financial position and results of operations. (form 10-Q) https://tedxyouthcaltech.com/pcsb-financial-corp-discussion-and-analysis-by-management-of-the-financial-position-and-results-of-operations-form-10-q/ https://tedxyouthcaltech.com/pcsb-financial-corp-discussion-and-analysis-by-management-of-the-financial-position-and-results-of-operations-form-10-q/#respond Fri, 05 Nov 2021 20:34:15 +0000 https://tedxyouthcaltech.com/pcsb-financial-corp-discussion-and-analysis-by-management-of-the-financial-position-and-results-of-operations-form-10-q/ [ad_1] General Management's discussion and analysis of financial condition at September 30, 2021 and June 30, 2021, and results of operations for the three months ended September 30, 2021 and 2020 is intended to assist in understanding the consolidated financial condition and results of operations of the Company. The information contained in this section should […]]]>


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General


Management's discussion and analysis of financial condition at September 30,
2021 and June 30, 2021, and results of operations for the three months ended
September 30, 2021 and 2020 is intended to assist in understanding the
consolidated financial condition and results of operations of the Company. The
information contained in this section should be read in conjunction with the
unaudited consolidated financial statements and the notes thereto appearing in
Part I, Item 1, of this quarterly report on Form 10-Q and with the audited
consolidated financial statements included in the annual report on Form 10-K for
the fiscal year ended June 30, 2021.

Caution Regarding Forward-Looking Statements


This quarterly report contains forward-looking statements, which can be
identified by the use of words such as "estimate," "project," "believe,"
"intend," "anticipate," "plan," "seek," "expect," "will," "may" and words of
similar meaning. These forward-looking statements include, but are not limited
to:

• statements of our objectives, intentions and expectations;

• statements regarding our business plans, outlook, growth and operations

strategies;

• statements regarding the quality of our loan and investment portfolios; and

• estimates of our risks and our future costs and benefits.



These forward-looking statements are based on current beliefs and expectations
of our management and are inherently subject to significant business, economic
and competitive uncertainties and contingencies, many of which are beyond our
control. In addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and decisions that are
subject to change.

The following factors, among others, could cause actual results to differ materially from anticipated results or other expectations expressed in forward-looking statements:

• extent, duration and severity of the COVID-19 pandemic and government action

in response to the pandemic, including their impact on our business and

operations, including the impact on the loss of fee income and operating expenses,

as well as their effects on our clients and issuers of securities,

including their ability to make timely payments on bonds, service

suppliers, and more generally on economies and markets;

• general economic conditions, whether at national level or in our market areas, which

are worse than expected;

• changes in the level and direction of delinquencies and loan write-offs and

changes in estimates of the adequacy of the allowance for loan losses;


  • our ability to access cost-effective funding;

• fluctuations in real estate values ​​and residential and commercial real estate

      estate market conditions;


  • demand for loans and deposits in our market area;


  • our ability to continue to implement our business strategies;


  • competition among depository and other financial institutions;

• inflation and changes in the interest rate environment that reduce our

margins and returns, reduce the fair value of financial instruments or reduce

origination levels in our lending activities, or increase the level of

defaults, losses and prepayments on loans we have made and made, whether held

      in portfolio or sold in the secondary markets;


  • adverse changes in the securities or credit markets;

• changes in laws or regulations or government policies affecting

institutions, including changes in regulatory fees and capital requirements;

• our ability to manage market risk, credit risk and operational risk in the

      current economic conditions;


                                       30
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   •  our ability to enter new markets successfully and capitalize on growth

Opportunities;

• our ability to successfully integrate all assets, liabilities, customers,

the management systems and personnel that we can acquire in our operations and our

      ability to realize related revenue synergies and cost savings within
      expected time frames and any goodwill charges related thereto;


  • changes in consumer spending, borrowing and savings habits;

• changes in accounting policies and practices, as may be adopted by the bank

      regulatory agencies, the Financial Accounting Standards Board, or the
      Securities and Exchange Commission;


  • our ability to retain key employees;

• our compensation expense associated with equity allocated or allocated to our

      employees; and


   •  changes in the financial condition, results of operations or future
      prospects of issuers of securities that we own.

Additional factors that may affect our results are discussed in the annual report on Form 10-K for the year ended. June 30, 2021, under the heading “Risk factors”.

As a result of these and other uncertainties, our actual future results may differ materially from the results indicated by these forward-looking statements. The Company assumes no obligation to update forward-looking statements, except as required by applicable law or regulation.

Critical accounting policies


Critical accounting estimates are necessary in the application of certain
accounting policies and procedures and are particularly susceptible to
significant change. Critical accounting policies are defined as those involving
significant judgments and assumptions by management that could have a material
impact on the carrying value of certain assets or on income under different
assumptions or conditions. For additional information regarding critical
accounting policies, refer to the section captioned "Critical Accounting
Policies" in Management's Discussion and Analysis of Financial Condition and
Results of Operations included in the June 30, 2021 Form 10-K. There have been
no significant changes in our application of critical accounting policies for
the three months ended September 30, 2021.



Loan Payment Deferrals



The COVID-19 pandemic has created extensive disruptions to the local economy and
our customers. Through September 30, 2021, the Company has granted loan payment
deferrals on 330 consumer and commercial loans whose borrowers have demonstrated
financial hardship caused by COVID-19 with loan balances totaling $220.2
million. As of September 30, 2021, 11 loans totaling $18.5 million were still on
deferral. Of those loans still on deferral as of September 30, 2021, $3.5
million are scheduled to resume payments prior to December 31, 2021, with the
remainder scheduled to resume payments prior to January 31, 2022, however as we
continue to assess our borrowers' financial condition and individual
circumstances in the coming weeks and months, additional payment deferrals may
be granted.


The table below provides additional details on deferred loans as of
September 30, 2021 (amounts in thousands of dollars):

                                       31

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                                                                                                                     Weighted
                                                    Recorded           % secured by                                   average
                                  Number of      Investment (1)        real estate         Loan-to-Value % (3)        term of
                                    loans              (2)              collateral                                   remaining
                                                                                                                     deferral
Industry Sector:                                                                                                    (in months)
Retail                                   3       $        11,590                100.0 %                    59.8 %           3.1
Hotels and accommodation services        1                 2,013                100.0                      54.8             0.1
Food service                             2                 3,018                100.0                      48.7             1.7
All other commercial                     5                 1,903                 89.2                      70.0             2.7
Total                                    11      $        18,524                 98.9 %                    58.3 %           2.5

(1)    Includes loans classified as special mention and substandard of $1.7 million and $8.6 million, respectively.
(2)    Includes $3.6 million of nonaccrual loans. All loans are considered current.
(3)    Generally based on collateral values upon origination.



The table below provides additional details regarding the type of deferral granted for deferred loans from September 30, 2021 (amounts in thousands of dollars):




                        Total
Principal only         $ 10,412
Interest only             1,513
Principal and interest    6,599
Total                  $ 18,524



Comparison of financial position to September 30, 2021 and June 30, 2021




Total Assets. Total assets decreased $1.8 million, or 0.1%, to $1.87 billion at
September 30, 2021 from June 30, 2021. The decrease is primarily the result of
decreases of $18.8 million in net loans receivable and $11.3 million in cash and
cash equivalents, partially offset by a $28.6 million increase in total
investment securities.

Cash and Cash Equivalents. Cash and cash equivalents decreased $11.3 million, or
7.1%, to $148.0 million at September 30, 2021 from $159.3 million at June 30,
2021. The decrease is primarily due to a $28.5 million increase in total
investment securities, an $11.1 million decrease in other liabilities and a $3.7
million decrease in mortgage escrow funds, partially offset by an $18.8 million
decrease in loans receivable and a $13.0 million increase in deposits.

Securities Held to Maturity. Total securities held to maturity increased $40.9
million, or 12.1%, to $378.5 million at September 30, 2021 from $337.6 million
at June 30, 2021. This increase was primarily due to increases of $27.1 million
in municipal securities, $6.3 million in mortgage-backed securities, $5.5
million in corporate bonds and $2.0 million in U.S. government and agency
obligations.



Securities Available for Sale. Total securities available for sale decreased
$12.4 million, or 21.6%, to $45.0 million at September 30, 2021 from $57.4
million at June 30, 2021. This decrease was primarily due to decreases of $11.0
million in U.S. government and agency obligations, $1.2 million in
mortgage-backed securities and a $187,000 decrease in net unrealized gains.



Net Loans Receivable. Net loans receivable decreased $18.8 million, or 1.5%, to
$1.21 billion at September 30, 2021 from $1.23 billion at June 30, 2021. The
decrease in loans receivable was the result of decreases of $28.6 million in
commercial loans, $2.6 million in residential mortgage loans, partially offset
by increases of $11.4 million in commercial mortgage loans and $1.5 million in
construction loans. The decrease in commercial loans includes a decrease of
$17.3 million in PPP loans, driven by paydowns and forgiveness.



Deposits. Total deposits increased $13.0 million, or 0.9%, to $1.50 billion at
September 30, 2021 as compared to $1.49 billion at June 30, 2021. This increase
primarily reflects increases of $30.2 million in money market accounts, and $4.3
million in NOW accounts, partially offset by decreases of $13.3 million in time
deposits, $5.6 million in savings and $2.6 million in demand deposits.



                                       32

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Federal bank advances for home loans. FHLB advances have declined $ 33,000 To $ 65.9 million To September 30, 2021 compared to June 30, 2021. This decrease is due to repayments of long-term amortizing advances.




Total Shareholder's Equity. Total shareholders' equity increased $168,000 to
$274.7 million at September 30, 2021 from $274.6 million at June 30, 2021. This
increase was primarily due to net income of $3.6 million and $1.3 million of
stock-based compensation and reduction in unearned ESOP shares for plan shares
earned during the period, partially offset by the repurchase of $3.7 million
(204,335 shares) of common stock and $876,000 of cash dividends declared and
paid. On February 3, 2021, a repurchase plan was authorized to repurchase up to
801,856 shares, or 5% of the Company's then outstanding common stock. As of
September 30, 2021, the Company repurchased 462,028 shares of common stock at an
average cost of $17.97 per share. At September 30, 2021, the Bank was considered
"well capitalized" under applicable regulatory guidelines.

Comparison of operating results for the three months ended September 30, 2021
and September 30, 2020




General. Net income increased $886,000, or 32.5%, to $3.6 million for the three
months ended September 30, 2021 compared to $2.7 million for the three months
ended September 30, 2020. The increase was primarily due to a $958,000 increase
in net interest income, a $96,000 decrease in provision for loan losses and a
$19,000 increase in noninterest income, partially offset by a $187,000 increase
in income tax expense.



Net Interest Income. Net interest income increased $958,000, or 8.3%, to $12.5
million for the three months ended September 30, 2021 compared to $11.6 million
for the three months ended September 30, 2020. The increase primarily reflects a
$62.8 million, or 3.6%, increase in average interest-earning assets and a 13
basis point increase in the tax equivalent net interest margin to 2.82% for the
three months ended September 30, 2021 compared to 2.69% for the three months
ended September 30, 2020. The increase in average interest-earning assets
reflects an $89.3 million increase in average investment securities and a $2.6
million increase in other interest-earning assets, partially offset by a $29.1
million decrease in average of loans receivable.



Interest and Dividend Income. Interest and dividend income decreased $301,000,
or 2.1%, to $14.2 million for the three months ended September 30, 2021 compared
to $14.5 million for the three months ended September 30, 2020. The decrease
primarily reflects a 17 basis point decrease in the yield on total
interest-earning assets, partially offset by a $62.8 million increase in total
average interest-earning assets. The decline in asset yields (excluding the
effect of PPP income), which resulted from lower market interest rates, has
slowed in recent quarters due to a more stable yield curve and a more favorable
earning asset composition.



Interest income on loans receivable decreased $440,000, or 3.5%, primarily due
to a 5 basis point decrease in the average tax equivalent yield on loans
receivable to 3.96% for the three months ended September 30, 2021 from 4.01% for
the same period last year and a $29.1 million, or 2.3%, decrease in the average
balance of loans receivable to $1.22 billion for the three months ended
September 30, 2021 from $1.25 billion for the same period last year. Decreases
in market interest rates have resulted in a decreased yield on loans receivable.
The Company recognized PPP loan interest income and origination fee income (net
of costs) of $381,000 in the current quarter, compared to $217,000 in the prior
year quarter. Unearned origination fees (net of costs) on PPP loans totaled
$698,000 as of September 30, 2021 and will be recognized in income over the
remaining lives of the loans and the timing of such recognition is largely
dependent on the timing of forgiveness.



Interest income on investment securities increased $155,000, or 8.4%, primarily
due to an $89.3 million increase in the average balance of investment securities
to $404.6 million for the three months ended September 30, 2021 from $315.3
million for the same period last year, partially offset by a 31 basis point
decrease in the average yield on investment securities on a tax equivalent basis
to 2.07% for the three months ended September 30, 2021 from 2.38% for the same
period last year. The increase in the average balance of investment securities
is the result of the Company utilizing excess liquidity to fund securities
portfolio growth. The decrease in yield is a result of lower market interest
rates.



Interest income on other interest-earning assets, primarily consisting of cash
balances at correspondent banks including the Federal Reserve, decreased
$16,000, or 12.8%, primarily due to a 4 basis point decrease in the average
yield on other interest-earning assets to 0.27% for the three months ended
September 30, 2021, from 0.31% for the same period last year, partially offset
by a $2.7 million increase in the average balance of other interest-earning
assets to $160.7 million for the three months ended September 30, 2021 compared
to $158.0 million for the three

                                       33

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months ended September 30, 2020. The decrease in yield on other interest-earning
assets was primarily due to is a decrease in market interest rates, specifically
Fed Funds.



Interest Expense. Interest expense decreased $1.3 million, or 42.7%, to $1.7
million for the three months ended September 30, 2021 compared to $3.0 million
for the three months ended September 30, 2020. The decrease primarily reflects a
40 basis point decrease in the average cost of interest-bearing liabilities to
0.49% for the three months ended September 30, 2021 from 0.89% for the three
months ended September 30, 2020, partially offset by a $54.6 million increase in
the average balance of interest-bearing liabilities to $1.36 billion for the
three months ended September 30, 2021 from $1.31 billion for the same period
last year.



Interest expense on interest-bearing deposits decreased $1.1 million, or 44.3%,
primarily due to a 39 basis point decrease in the average cost of
interest-bearing deposits to 0.41% for the three months ended September 30, 2021
from 0.80% for the same period last year, partially offset by a $94.7 million
increase in the average balance to $1.30 billion for the three months ended
September 30, 2021 from $1.20 billion for the three months ended September 30,
2020. The decrease in the average rate paid on interest-bearing deposits was
primarily caused by a decrease in market interest rates affecting most
significantly the average rates paid on time deposits and money market accounts,
which decreased 64 and 17 basis points, respectively, when compared to last
year. During the remainder of the current fiscal year, the Company has $27.5
million of wholesale funding maturing, comprised of FHLB advances and brokered
time deposits, with a weighted average cost of 2.43%.



Interest expense on FHLB advances decreased $181,000, or 34.9%, primarily due to
a $40.2 million decrease in the average balance to $65.9 million for the three
months ended September 30, 2021 from $106.1 million for the three months ended
September 30, 2020, partially offset by a 9 basis point increase in the average
cost to 2.03% for the three months ended September 30, 2021 from 1.94% for the
three months ended September 30, 2020. The decrease in the cost of FHLB funds is
due to the maturity of higher-costing advances.



Provision for Loan Losses. The provision for loan losses was $13,000 for the
three months ended September 30, 2021, compared to $109,000 for the three months
ended September 30, 2020. The decrease is primarily due to a decrease in the
loan portfolio. Recoveries, net of charge-offs, were $265,000 for the three
months ended September 30, 2021 compared to charge-offs, net of recoveries, of
$76,000 for the three months ended September 30, 2020, respectively.
Non-performing loans as a percent of total loans receivable (excluding PPP
loans) were 0.48% as of September 30, 2021, unchanged compared to June 30, 2021.
Loans on a COVID-19 related payment deferral totaled $18.5 million, or 1.52% of
gross loans, as of September 30, 2021, compared to $27.3 million, or 2.21% of
gross loans, as of June 30, 2021.



Noninterest Income. Noninterest income increased $19,000, or 3.2%, to $613,000
for the three months ended September 30, 2021 compared to same period last year.
The increase was caused primarily by increases of $79,000 in fees and service
charges, $60,000 in bank-owned life insurance income and $9,000 in all other
noninterest income, partially offset by a $129,000 decrease in swap income. The
increase in fees and service charges compared to the same period last year was
partially the result of the waiver in the prior year of certain overdraft fees,
ATM usage fees, wire and CD early withdrawal fees in response to COVID-19, as
well an increase in debit card and interchange income. For the three months
ended September 30, 2021, noninterest income includes net gains on the sale of
loans of $6,000, compared to none for the same period last year.



Non-interest charges. Non-interest charges of $ 8.6 million for the three months ended September 30, 2021 has remained unchanged from the three months ended
September 30, 2020.




Income Tax Expense. Income tax expense increased $187,000, or 26.3%, for the
three months ended September 30, 2021 in comparison to the three months ended
September 30, 2020. The increase was caused by higher pre-tax income, partially
offset by a lower effective tax rate. The effective income tax rate was 19.9%
for the three months ended September 30, 2021 as compared to 20.7% for the three
months ended September 30, 2020, with the decrease largely driven by an increase
in tax-exempt interest income on municipal investments.




                                       34
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Average balance sheet and interest rate.


The following table presents information regarding average balances of assets
and liabilities, the total dollar amounts of interest income and dividends from
average interest-earning assets, the total dollar amounts of interest expense on
average interest-bearing liabilities, and the resulting annualized average tax
equivalent yields and costs. The yields and costs for the periods indicated are
derived by dividing income or expense by the average balances of assets or
liabilities, respectively, for the periods presented. Average balances have been
calculated using daily balances. Nonaccrual loans are included in average
balances only. Loan fees are included in interest income on loans and are not
material (dollars in thousands).



                                                             Three Months Ended September 30,

                                                    2021                                          2020
                                    Average        Interest/       Average        Average        Interest/       Average
                                    Balance        Dividends        Rate          Balance        Dividends        Rate
Assets:
Loans receivable (1)              $ 1,223,532     $    12,107          3.96 %   $ 1,252,595     $    12,547          4.01 %
Investment securities (1)             404,565           2,011          2.07         315,292           1,856          2.38
Other interest-earning assets         160,659             109          0.27         158,038             125          0.31

Total remunerated assets 1,788,756 14,227 3.20

       1,725,925          14,528          3.37
Non-interest-earning assets            76,375                                        71,926
Total assets                      $ 1,865,131                                   $ 1,797,851

Liabilities and equity:
NOW accounts                      $   182,531              70          0.15     $   149,466              89          0.24
Money market accounts                 350,575             186          0.21         250,297             238          0.38
Savings accounts and escrow           397,292             113          0.11         360,091             202          0.22
Time deposits                         367,641             985          1.06         443,487           1,903          1.70
Total interest-bearing deposits     1,298,039           1,354          0.41       1,203,341           2,432          0.80
FHLB advances                          65,935             338          2.03         106,067             519          1.94
Total interest-bearing
liabilities                         1,363,974           1,692          0.49       1,309,408           2,951          0.89
Non-interest-bearing deposits         207,806                                       184,085
Other non-interest-bearing
liabilities                            19,943                                        28,958
Total liabilities                   1,591,723                                     1,522,451
Total shareholders' equity            273,408                                       275,400
Total liabilities and
shareholders' equity              $ 1,865,131                                   $ 1,797,851

Net interest income                               $    12,535                                   $    11,577
Interest rate spread - tax
equivalent (2)                                                         2.71                                          2.48
Net interest margin - tax
equivalent (3)                                                         2.82                                          2.69
Average interest-earning assets
to interest-bearing liabilities        131.14 %                                      131.81 %



(1) The tax-exempt return is shown on a tax equivalent basis for a proper comparison

using the statutory federal tax rate of 21% for all periods shown. See

reconciliation of GAAP and non-GAAP measures in the table below.

(2) The net interest rate differential represents the difference between the average yield

on average interest-bearing assets and the average cost of

interest bearing liabilities.

(3) Net interest margin represents annualized net interest income divided by

    average interest-earning assets. See reconciliation of GAAP to non-GAAP
    measures in the table below.


















                                       35
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The following table presents information regarding the tax equivalent adjustment used in the calculation of certain financial measures (in thousands).



                                                      Three Months Ended September 30,
                                                        2021                    2020
Total interest income                             $          14,227       $          14,528
Total interest expense                                        1,692                   2,951
Net interest income (GAAP)                                   12,535                  11,577
Tax equivalent adjustment                                        89                      33

Net interest income – tax equivalent (non-GAAP) $ 12,624

11 610




Rate/Volume Analysis. The following table sets forth the effects of changing
rates and volumes on our net interest income. The rate column shows the effects
attributable to changes in rate (changes in rate multiplied by prior volume).
The volume column shows the effects attributable to changes in volume (changes
in volume multiplied by prior rate). The net column represents the sum of the
prior columns. Changes attributable to changes in both rate and volume that
cannot be segregated have been allocated proportionally based on the changes due
to rate and the changes due to volume (in thousands).



                                          Three Months Ended September 30,
                                                  2021 versus 2020
                                         Rate            Volume          Net
Interest income:
Loans receivable                      $     (251 )     $     (189 )    $   (440 )
Investment securities                       (343 )            498           155
Other interest-earning assets                (16 )              -           (16 )
Total interest-earning assets               (610 )            309          (301 )

Interest expense:
NOW accounts                                 (36 )             17           (19 )
Money market accounts                       (127 )             75           (52 )
Savings and escrow accounts                 (107 )             18           (89 )
Time deposits                               (630 )           (288 )        (918 )
FHLB advances                                 22             (203 )        (181 )
Total interest-bearing liabilities          (878 )           (381 )      

(1,259)

Net increase in net interest income $ 268 $ 690 $ 958






Management of Market Risk

General. The majority of our assets and liabilities are monetary in nature.
Consequently, our most significant form of market risk is interest rate risk.
Our assets, consisting primarily of loans, have longer maturities than our
liabilities, consisting primarily of deposits. As a result, a principal part of
our business strategy is to manage our exposure to changes in market interest
rates. Accordingly, we have established a management-level Asset/Liability
Management Committee, which takes initial responsibility for developing an
asset/liability management process and related procedures, establishing and
monitoring reporting systems and developing asset/liability strategies. On at
least a quarterly basis, the Asset/Liability Management Committee reviews
asset/liability management with the Investment Asset/Liability Committee of the
Board of Directors. This Committee also reviews any changes in strategies as
well as the performance of any specific asset/liability management actions that
have been implemented previously. On a quarterly basis, an outside consulting
firm provides us with detailed information and analysis as to asset/liability
management, including our interest rate risk profile. Ultimate responsibility
for effective asset/liability management rests with our Board of Directors.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. We have implemented the following strategies to manage our interest rate risk:

                                       36

--------------------------------------------------------------------------------


loans with adjustable interest rates; utilizing interest rate swaps, promoting
core deposit products; and adjusting the interest rates and maturities of
funding sources, as necessary. By following these strategies, we believe that we
are better positioned to react to changes in market interest rates.

Net Portfolio Value Simulation. We analyze our sensitivity to changes in
interest rates through a net portfolio value of equity ("NPV") model. NPV
represents the present value of the expected cash flows from our assets less the
present value of the expected cash flows arising from our liabilities. The NPV
ratio represents the dollar amount of our NPV divided by the present value of
our total assets for a given interest rate scenario. NPV attempts to quantify
our economic value using a discounted cash flow methodology while the NPV ratio
reflects that value as a form of equity ratio. We estimate what our NPV would be
at a specific date. We then calculate what the NPV would be at the same date
throughout a series of interest rate scenarios representing immediate and
permanent, parallel shifts in the yield curve. We currently calculate NPV under
the assumptions that interest rates increase 100 and 200 basis points from
current market rates and that interest rates decrease 50 and 100 basis points
from current market rates.

The following table presents the estimated changes in our NPV that would result
from changes in market interest rates at September 30, 2021 and June 30, 2021.
All estimated changes presented in the table are within the policy limits
approved by our Board of Directors (dollars in thousands).



                                                                            NPV as Percent of Portfolio
                                            NPV                                   Value of Assets
Basis Point Change in      Dollar         Dollar         Percent             NPV                  Change
Interest Rates             Amount         Change         Change             Ratio                (in bps)
September 30, 2021:
200                      $  269,318     $  (39,868 )         (12.9 ) %           15.21 %                (132 )
100                         290,936        (18,250 )          (5.9 )             15.98                   (55 )
-                           309,186              -               -               16.53                     -
(50)                        329,936         20,750             6.7               17.35                    82
(100)                       356,452         47,266            15.3               18.45                   192

June 30, 2021:
200                      $  270,679     $  (37,814 )         (12.3 ) %           15.21 %                (122 )
100                         291,715        (16,778 )          (5.4 )             15.95                   (48 )
-                           308,493              -               -               16.43                     -
(50)                        324,999         16,506             5.4               17.06                    63
(100)                       346,539         38,046            12.3               17.94                   151




Certain shortcomings are inherent in the methodologies used in the above
interest rate risk measurements. Modeling changes require making certain
assumptions that may or may not reflect the manner in which actual yields and
costs respond to changes in market interest rates. The above table assumes that
the composition of our interest-sensitive assets and liabilities existing at the
date indicated remains constant uniformly across the yield curve regardless of
the duration or repricing of specific assets and liabilities. Accordingly,
although the table provides an indication of our interest rate risk exposure at
a particular point in time, such measurements are not intended to and do not
provide a precise forecast of the effect of changes in market interest rates on
our NPV and will differ from actual results.

Liquidity and capital resources


Liquidity. Liquidity is the ability to meet current and future financial
obligations of a short-term nature. Our primary sources of funds consist of
deposit inflows, loan repayments and maturities and sales of securities. While
maturities and scheduled amortization of loans and securities are predictable
sources of funds, deposit flows and mortgage prepayments are greatly influenced
by general interest rates, economic conditions and competition.

We regularly review the need to adjust our investments in liquid assets based
upon our assessment of: (1) expected loan demand, (2) expected deposit flows,
(3) yields available on interest-earning deposits and securities, and (4) the
objectives of our asset/liability management program. Excess liquid assets are
invested generally in interest-earning deposits and short- and intermediate-term
securities.

                                       37

————————————————– ——————————



Our most liquid assets are cash and cash equivalents. The levels of these assets
are dependent on our operating, financing, lending and investing activities
during any given period. At September 30, 2021, cash and cash equivalents
totaled $148.0 million, a decrease from $159.3 million as of June 30, 2021.
Unpledged securities classified as available for sale, which provide an
additional source of liquidity, totaled $27.9 million at September 30, 2021, a
decrease from $28.9 million as of June 30, 2021.

We had the ability to borrow up to $368.1 million from the FHLB of New York, at
September 30, 2021 of which $65.9 million was outstanding as of September 30,
2021. Additionally, as of September 30, 2021, we had an available line of credit
with the FRB of New York's discount window program of $100.3 million, and $25.0
million of fed funds lines of credit, neither of which had outstanding balances
as of September 30, 2021.

We have no material commitments or demands that are likely to affect our
liquidity other than as set forth below. If loan demand was to increase faster
than expected, or any unforeseen demand or commitment was to occur, we could
access our borrowing sources detailed above.

We had $63.1 million of loan commitments outstanding as of September 30, 2021
and $176.6 million of approved, but unadvanced, funds to borrowers. We also had
$3.2 million in outstanding letters of credit at September 30, 2021.

Time deposits due within one year of September 30, 2021 totaled $220.6 million.
If these deposits do not remain with us, we will be required to seek other
sources of funds, including other time deposits and FHLB of New York advances.
Depending on market conditions, we may be required to pay higher rates on such
deposits or other borrowings than we currently pay on the time deposits at
September 30, 2021. We believe, however, based on past experience that a
significant portion of our time deposits will remain with us. We have the
ability to attract and retain deposits by adjusting the interest rates offered.

The Holding Company is a separate legal entity from the Bank and must provide
for its own liquidity to pay any dividends to its shareholders, to repurchase
shares of its common stock and for other corporate purposes. The Holding
Company's primary source of liquidity is dividend payments it may receive from
the Bank. The Bank's ability to pay dividends to the Holding Company is governed
by applicable law and regulations. At September 30, 2021, the Holding Company
(on an unconsolidated, stand-alone basis) had liquid assets of $22.7 million.

Capital Resources. The Bank is subject to various regulatory capital
requirements administered by the NYSDFS and the FDIC. At September 30, 2021, the
Bank exceeded all applicable regulatory capital requirements, and the Bank was
considered "well capitalized" under applicable regulatory guidelines. See Note 8
to the accompanying unaudited consolidated financial statements.

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The Underworld of Debt Collection in South Korea: NPR https://tedxyouthcaltech.com/the-underworld-of-debt-collection-in-south-korea-npr/ https://tedxyouthcaltech.com/the-underworld-of-debt-collection-in-south-korea-npr/#respond Wed, 20 Oct 2021 20:12:00 +0000 https://tedxyouthcaltech.com/the-underworld-of-debt-collection-in-south-korea-npr/ [ad_1] ARI SHAPIRO, HTE: The hit Netflix show “Squid Game” is a dystopian fantasy where the poor are pitted against each other in a childhood game series with a life or death outcome. (SOUNDBITE FROM THE TV SHOW, “SQUID GAME”) UNIDENTIFIED SINGER: (Singing in a language other than English). SHAPIRO: All for the purpose of […]]]>


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ARI SHAPIRO, HTE:

The hit Netflix show “Squid Game” is a dystopian fantasy where the poor are pitted against each other in a childhood game series with a life or death outcome.

(SOUNDBITE FROM THE TV SHOW, “SQUID GAME”)

UNIDENTIFIED SINGER: (Singing in a language other than English).

SHAPIRO: All for the purpose of paying off their crushing debts. And debt is a real problem in South Korea, where an underground world of usurers and debt collectors is fueling an economy of desperation.

Victoria Kim spoke about it for the LA Times and is joining us from Seoul. Hi.

VICTORIA KIM, BYLINE: Hello.

SHAPIRO: Tell us about the man who opens your article. He’s a cafe owner who was sucked into this world.

KIM: Yeah, it’s a gentleman named Mr. Park that I interviewed about a lending experience he had over the last three years or so. And it works very differently from a traditional bank loan. He turned to it when he had exhausted all other options in terms of where he could borrow money. And he discovered it thanks to a business card that was thrown at his feet from a motorbike speeding down the street.

SHAPIRO: This detail is so vivid – right, a motorbike is speeding by and a business card is thrown at its feet.

KIM: Yeah. And in some ways, it also reflects the spectacle and the business card openings. But the money was handed over to him in cash, and these gentlemen with tattooed sleeves and shaved heads began to walk past his door every day to collect the debt. And the interest rates were around 200% per year, about 10 times the legal limit here in South Korea.

SHAPIRO: Now predatory loans and aggressive debt collectors exist in many places, including the United States, but it seems to be a particularly prevalent problem in South Korea. How widespread is it?

KIM: It’s hard to say how exactly that is because it’s an illegal business. But that definitely seems to have increased in recent times, with economic instability due to the COVID-19 pandemic. It is a long-standing problem in South Korea. And the reputation is that these lenders are from the underworld, and the advertisements for these types of loans can really be seen on the doors of the subway, glued to the benches of the buses, just everyday on the streets.

SHAPIRO: You write that according to the Bank of Korea, citizens in their 30s have borrowed on average over 260% of their income. I mean, that’s not all about these underground moneylenders. But still, it’s a shocking number.

KIM: It’s actually the legal loans that have happened, and they’ve really increased over the last year. There was a spike in house prices and a lot of economic insecurity that really made a lot of young adults really feel like they didn’t have a solid economic future in a traditional job like their parents did. , and that they take out these loans to bet on things like the stock market or cryptocurrency.

SHAPIRO: And what did that mean for Mr. Park, the man who opens your story and has been dealing with this for three years?

KIM: Mr. Park tells me that while it’s a shadow industry that’s illegal, for him it was really a last resort, and it was a lifeline. This has helped him keep his business afloat and his employees working during the pandemic. He doesn’t know how long he will be able to continue, but for him – for him, it was an option that the South Korean economic system did not offer him otherwise that he really needed.

SHAPIRO: Whoa. How do you balance this frightening whirlwind of debt that people are sucked into with this man telling you that for him was a lifeline?

KIM: I think that really lays bare South Korea’s economic problems. It is certainly not unique to South Korea that there really are blind spots in the social safety net. And for many people, it’s the only option left for them.

SHAPIRO: Victoria Kim is an LA Times writer based in Seoul. Thank you so much.

KIM: Thanks.

(MUSIC EXTRACT)

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US housing construction stumbles as supply constraints increase https://tedxyouthcaltech.com/us-housing-construction-stumbles-as-supply-constraints-increase/ https://tedxyouthcaltech.com/us-housing-construction-stumbles-as-supply-constraints-increase/#respond Mon, 18 Oct 2021 07:00:00 +0000 https://tedxyouthcaltech.com/us-housing-construction-stumbles-as-supply-constraints-increase/ [ad_1] Tuesday’s Commerce Department report also showed that the gap between homes completed and those still under construction was the largest on record last month. Strong demand as global economies emerge from the COVID-19 pandemic is facing labor shortages, straining supply chains and stoking inflation. Almost all industries in the United States are experiencing shortages. […]]]>


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Tuesday’s Commerce Department report also showed that the gap between homes completed and those still under construction was the largest on record last month. Strong demand as global economies emerge from the COVID-19 pandemic is facing labor shortages, straining supply chains and stoking inflation. Almost all industries in the United States are experiencing shortages.

“Demand dynamics still look positive,” said Rubeela Farooqi, chief US economist at High Frequency Economics in White Plains, New York. “But supply is struggling to catch up given higher input costs and shortages that remain headwinds for builders.”

Housing starts fell 1.6% to a seasonally adjusted annual rate of 1.555 million units last month, the lowest level since April. Data for August has been revised down to a rate of 1.580 million units from 1.615 million units previously reported.

Economists polled by Reuters had predicted that housing starts would rise at a rate of 1.620 million units. Lumber prices are on the rise again after falling from their record highs in May. Building materials, such as windows and electrical circuit breakers, are scarce.

The prices of copper, another essential material in housing construction, have climbed more than 16% since the end of September, supported by low supplies for decades. The pandemic has disrupted the dynamics of the labor market, resulting in shortages of the workers needed to produce and get raw materials and finished products to market.

Housing starts fell from the 1.725 million unit pace level recorded in March, which was more of a 14-and-a-half-year high.

Single-family home starts, which account for the largest share of the housing market, were unchanged at a rate of 1.080 million units last month. Single-family home construction increased in the West and Midwest, but declined in the Northeast and the densely populated South, also likely depressed by Hurricane Ida, which caused unprecedented flooding. Starts of buildings with five or more units fell 5.1% to 467,000 units last month.

A survey by the National Association of Home Builders on Monday showed that builders’ confidence of single-family homes rose again in October, but noted that “builders continue to face ongoing supply chain disruptions and shortages of labor that delay completion times “.

Wall Street stocks were trading higher as upbeat results from Johnson & Johnson and Travelers boosted risk appetite. The dollar fell against a basket of currencies. US Treasury prices were mixed.

DELAY IN COMPLETION

Last month’s drop in housing construction followed news on Monday that production at US factories fell the most in seven months in September. Residential investment likely remained weak in the third quarter after contracting in the April to June quarter.

Estimates of gross domestic product growth for the third quarter are mostly below an annualized rate of 3%. The economy grew at a pace of 6.7% in the second quarter.

The housing market was boosted at the start of the coronavirus pandemic by an exodus from cities to suburbs and other low-density locations as Americans sought more spacious housing for home offices and online education , leading to three consecutive quarters of double-digit growth in residential spending. That tailwind fades as workers return to offices and schools reopened for in-person learning, thanks to COVID-19 vaccinations. High inflation also pushes up mortgage rates.

The 30-year fixed mortgage rate rose to an average of 3.05% last week, from 2.99% the week before, according to data from mortgage giant Freddie Mac. While still low by historical standards, rising borrowing costs may make homeownership less affordable for some first-time homebuyers. House prices registered double-digit growth on an annual basis in July.

A separate Mortgage Bankers Association report released Tuesday showed mortgage applications for new home purchases fell 16.2% in September from a year earlier. Requests were down 4% month over month. The average loan amount reached a record high of $ 408,522, underscoring higher construction costs.

With rising construction costs, permits for future home construction plunged 7.7% to a rate of 1.589 million units last month, the lowest level since September 2020. Home permits Single-family homes fell 0.9% to a rate of 1.041 million units.

Permits for buildings with five or more units fell 21.0% to a rate of 498,000 units.

Deliveries of homes fell 4.6% to a rate of 1.240 million units, the lowest level since August 2020. Deliveries of single-family homes remained unchanged at a rate of 953,000 units.

The stock of housing under construction rose 1.3% to 1,426 million units last month, the highest since February 1974. This led to a record gap between homes completed and homes under construction.

Also highlighting supply constraints, the number of homes cleared for construction but not yet started hit a record high last month.

“The backlog of housing starts – which reflects many constraints on the supply side, including high input costs and difficulty attracting skilled workers – should support housing construction in the coming months,” said said Nancy Vanden Houten, chief US economist at Oxford Economics in New York.

(Reporting by Lucia Mutikani; Editing by Paul Simao and Andrea Ricci)

By Lucia Mutikani

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