The American Factoring Association wrote to Steven T. Mnuchin, U.S. treasury secretary, and Jerome H. Powell, chairman of the Federal Reserve, to state its opposition to a proposal to create a federal program to purchase accounts receivables in the private sector.
The Federal Reserve expanded access to its Paycheck Protection Program Liquidity Facility to additional lenders and expanded the collateral that can be pledged. The Fed also broadened the scope and eligibility for the Main Street Lending Program.
The AICPA called for the Federal Reserve to create a short-term accounts receivable lending facility for small businesses.
The Federal Reserve Board will report information on a monthly basis for the liquidity and lending facilities using Coronavirus Aid, Relief and Economic Security (CARES) Act funding.
The Federal Reserve lowered the target range of the federal funds rate to zero percent to 0.25% over the weekend in response to the potential economic impact of the coronavirus (COVID-19).
The Wall Street Journal reported that U.S. stock market experienced its worst day on record since 1987 despite a move by the Federal Reserve to add $1.5 trillion to the market to curb “ominous” market activity.
The Federal Reserve Open Market Committee decided to lower the target range for the federal funds rate by half a percentage point, to a rate of 1% to 1.25%.
According to Reuters, Federal Reserve Chairman Jerome Powell expressed concern over the rise of business debt in the last few years, but did not believe comparisons to the decade-old subprime mortgage crisis were entirely warranted.
First Midwest Bancorp, the parent company of First Midwest Bank, received approval from the Federal Reserve to acquire Bridgeview Bancorp and its wholly owned subsidiary, Bridgeview Bank Group.
The Federal Reserve raised the target range for the federal funds rate to 2% to 2-1/4% in view of realized and expected labor market conditions and inflation.