Financial Daily Dose 5.20.2020 | Top Story: Fed Chair and Treasury Secretary Urge Action to Support U.S. Economy

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In testimony to the Senate Banking Committee on Tuesday, Fed Chair Powell and Treasury Secretary Mnuchin both “offered a stark assessment of the fragile state” of the U.S. economy, though they differed in a solution. Powell stressed the need for additional monetary support from Congress and the Fed for states and businesses, while Mnuchin focused on “an expeditious reopening” – NYTimes and WSJ and Bloomberg and Law360 and Marketplace

How about this for a new Too Big To Fail conundrum: what happens if it’s the entire private sector in that category?  – NYTimes

OCC chief Joseph Otting is “expected to step down this week after completing his overhaul of rules governing billions of dollars of lending in low-income neighborhoods” associated with the Community Reinvestment Act. Otting has drawn some criticism for his rewrites, which some saw “could allow banks to meet their obligations with investments in a few large projects, inadvertently restricting community lending” – WSJ

Low-cost carrier EasyJet revealed yesterday that a “highly sophisticated” cyberattack exposed the email addresses, personal travel plans, and some credit card numbers of 9 million of its customers – NYTimes and Law360

Santander Consumer USA Inc., one of the largest subprime auto lenders in the country, has “reached a $550 million deal with nearly three dozen states to settle charges of predatory auto lending to low-income and subprime borrowers.” The deal resolves charges that the company “made loans borrowers couldn’t afford to repay” and “failed to monitor dealers that falsified borrowers’ incomes and other information when submitting loan applications” – WSJ and Law360

US airlines are showing small signs of recovery after a dismal April, though some are cautioning against “false starts” – Bloomberg

Sony is spending $3.7 billion to assume “full control of its banking and insurance unit, calling the Japan-centered business a hedge against uncertainty caused by the new coronavirus and global tensions.” Hedge fund Third Point LLC criticized the move, urging Sony to sell its 65% stake in the unit instead – WSJ and Law360

Nasdaq is delisting the scandal-plagued Luckin Coffee, citing “concerns over Luckin’s fabricated transactions and the company’s past failure to publicly disclose material information” – Bloomberg

The Upshot on why it’s best to take a closer look at any outsized percentages being bandied about when it comes to the economy these days – NYTimes

Care to test that advice? Target reported this week that its comparable sales (those coming either through stores or digital channels) rose 10.8% in the quarter ending May 2, with booming digital sales (up 141%) making up the bulk of that surge – WSJ

Come for the Sports in the time of Coronavirus update, definitely stay for the marbles – LastWeekTonight

Stay safe,
MDR

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