Dallas Fed’s Kaplan expects ‘substantial number’ of bankruptcies amid oil crunch

Federal Reserve Bank of Dallas President Robert Kaplan told Yahoo Finance on Wednesday that plummeting oil prices will have to result in some bankruptcies and restructurings. But he clarified that the Fed will not step in to save insolvent companies that had pre-existing credit issues.

“There are a number of companies in this industry, either drillers or service providers, that went into this highly leveraged, and I think they’re going to have to pursue other actions in order to restructure their debt,” Kaplan told Yahoo Finance’s “On The Move.”

Kaplan said creditworthy companies that pass lenders’ cash flow tests will be eligible for loans through the Fed’s forthcoming Main Street Lending facility. 

Last Thursday the Fed expanded the scope of the program to offer low-cost, four-year loans to larger companies with as many as 15,000 employees or up to $5 billion in annual revenue. The loans would allow companies to

Read More

‘Substantial deterioration’ in consumer expectations: NY Fed survey

The month of March saw a “substantial deterioration” in the main driver of the U.S. economy: the American consumer.

According to new data from the Federal Reserve Bank of New York, Americans reported greater concern of being laid off and heightened worries over being able to meet future debt payments.

Weaker consumer sentiment paints a bleak picture of where the U.S. is headed, since consumer activity represents about 70% of the economy. Federal Reserve officials have been saying that the economy is likely already in a recession.

TOPSHOT – Shoppers social distance themselves as they wait in line to get into Costco in Washington, DC, on April 5, 2020. – The number of confirmed coronavirus, COVID-19, cases in the United States has topped 300,000 and there have been more than 8,100 deaths, Johns Hopkins University reported on Saturday. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty

Read More

How Substantial Car Insurance Quotes Are

My car insurance policy was about to lapse but when I contacted GIBL guys took initiatives promptly and renewed it on-line just prior to expiry. You exit onto the primary road but instead of turning left the automobile on the principal road continues straight on and there is a crash. You may possibly have to wait a few minutes to get the ride share to come to you but as soon as you climb in the ride will be as fast as if you owned your personal vehicle. We know that having to discover correct details on all manner of queries about car insurance can be one thing of a minefield. I was in car accident I was driving on the primary road and was more than taking parked automobiles. If you are injured or your auto damaged by an uninsured driver or in a hit and run accident, Uninsured … Read More