U.S. Justice Department subpoenas Wall Street banks for small business loans info: report

The program allows small businesses hurt by the pandemic to apply with lenders for a government-backed loan which can be forgiven provided at least 75% is spent on payroll costs.Policy-makers worry that the huge pot of cash has been a magnet for fraudsters, and U.S. Treasury Secretary Steven Mnuchin has warned that companies found to have lied to secure loans could face prosecution.

Grand jury subpoenas allow prosecutors to get their hands on a range of private financial and personal records and to hear witness testimony as part of a criminal investigation.“Right now, we don’t think banks are 100% the target,” said one of the sources, but added: “There are concerns that there will be a boomerang effect six months down the road on banks that they didn’t do enough.”

The agencies subsequently agreed that lenders could rely on borrower certifications and specified documents to determine their eligibility and use of the loans. Banks would be “held harmless” if borrowers broke the rules or lied. The third source said Wall Street banks are also worried that a Democratic administration would rip up their agreement with the current administration and launch a crackdown on lenders if they win the presidential election on Nov. 3.

cravattari

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

‘Stocks are overvalued’: Wall Street heavyweights sound the alarm about marketsLegendary investors Stan Druckenmiller and David Tepper the latest to weigh in, saying risk-reward of holding shares worst they’ve seen in years We will likely need outside the box strategies to bring the market & economy back. Even better is building the sustainable economy while doing so. Current “overvalued” prices have nothing to do with them? Just how “heavy” are they really? Meanwhile they have all the mechanisms ready to profit from the fall after “light” weights jump on their words. 🤑🤑 Yada yada yada. One says they are over priced, one says they are not. One will be a hero depending on what happens next. Neither has any real idea.
Fuente: nationalpost - 🏆 10. / 80 Leer más »

Bank of Canada warns of excess business, household debt from COVID-19The Bank of Canada says there are signs in the country's financial markets that suggest concern about the ability of companies to weather the COVID-19 economic crisis. Hang on, could there be a correlation between rising debt and shutting down the economy? Hmmm, Trudeau better put together a committee to study this. In other breaking news, Fisheries and Oceans warn that water is wet. More to come... Yeah...Bank of Canada better contact Trudeau instead of harassing good people just trying to make ends meet in an impossible situation
Fuente: CTVNews - 🏆 1. / 99 Leer más »