Let me first say want to thank the chairwoman and ranked member mchenry and my colleagues and Ranking Members of the subcommittee and all my other colleagues for their participation in todays discussion on the update for prudential regulators that this is a timely amid the health care and economic devastation of the covid19 pandemic. In queens and other parts of new york city theyve been very hard hit. Plaintiffs suffered more cases more death than most states in the country. When amid the health care crises millions have lost their jobs and lost income compound in the Economic Impact but thanks to the doddfrank wall street reform and their implementation in the decades that followed the financial crisis the Banking Sector has emerged in a bright spot to buffer the initial impact of the crises and restructured mortgages and loans. I have had serious concerns about the implementation of the program in the road some of the banks in privatizing small distances and minority come into that thanks to the hard work of chairwoman waters in chairwoman velazquez the ppp program that seems to appear address the latest installment. I have concerns on how long the banks and Credit Unions can endure the Current Crisis. That last into the fall or even into next year the capacity of the smallest banks to overcome the challenges of this crisis. I hope to hear from the ncua about the portfolio by the new york delegation and i think you would make it harder to impact taxi drivers who are our relaying from the pandemic. It is my pleasure now to yield to mr. Luetkemeyer. Thank you greg and first at like to thank the attendees for being here today and for your tireless efforts over the last humans to help the American People respond to the covid19 crisis. While todays roundtable is not a lesson here is my hope we can have a meaningful discussion on the steps regulators have taken to examine what further steps must be taken to ensure the health of the American Economy to congress and mr. Tett taken drastic measures in responding to an economic crisis coronavirus has presented. Congress has passed for packages that are delivered muchneeded funding to hospitals and Health Care Providers state and local Government Small Business and the American People. The cares that contains numerous provisions to better serve customers. Regulators have been providing needed forbearance and flexibility from Financial Institutions and liquidity to investors and key Credit Partners particular needs a pr provision contained in the cares act would allow institutions to work with customers and restructure their loans without the negative accounting classification. Addition the regulars have stated they will not pay punitive for working with customers through despite this progress i remain concerned about the assets that have been impaired by coronavirus. The cares act provides relief until the end of the year or the Emergency Declaration its clear in Many Industries continue to suffer and as we adjust to the new economic climate regulators will look at it is not accounting an examination by the coronavirus. Specifically for period to use examiners should provide conference on all phones and leases impaired by coronavirus and those should be exempt to county classifications. This will allow institutions the certainty they need to work with customers and get them back to economic health. Regulators work with finance institutions to ensure they can provide customers with forbearance to get through this crisis and we look forward to discussing this and many other issues with you and issues with you and with that i yield back. Thank you. Thank you mr. Luetkemeyer. Now id like to chairwoman maxine waters. See neck thank you chairman meese. Chairman meeks. Welcome to the virtual roundtable. Thank you membership henry and for working with me on these cases. As the nation faces this crisis in which 1. 3 million americans have then infect it with covid19 and more than 28,000 americans have lost their lives its imperative that congress and their regulators and congress start with unyielding focus and energy. Yesterday Speaker Pelosi introduced the heroes act which would add an additional 3 trillion for relief including two were renters and homeowners and Small Businesses. Our financial regulators will do their part to encourage Financial Institutions to help their customers. Protections for consumers small as this is and communities of color. Its unrelated to covid19. We all must take action to respond to this crisis and help those in harms way. It is not acceptable to use this crisis as an excuse for financial deregulation. Thank you. Thank you madam chairwoman. I now recognize mr. Mchenry the Ranking Member of these Financial Services committee. Thank you chairman meeks and i want to thank chairwoman waters and her staff for the work that they have put in to bring out these virtual roundtables in such a professional and thoughtful way. And i hope this can be a model for the rest of congress on how we can collect information for policymaking and get proper input given the nature of the virus that where trying to social distance in and get over the consequences of. Thank you chairman and waters and thank you to the democratic staff in the republican staff that work so hard together to achieve this bipartisan outcome. Thank you for taking your time and i know its quite crucial you stay focused on the task at hand and its an economic crisis. Its about our interest to ensure does morph into any other form of crisis. To that end i think its important you all stay focused on your job of the agenda that you set forward and ensure they are properly regulated and we address regulations that are in the Current Crisis crisis that lets ensure that levelheadedness and working through this crisis and working with congress continues. Thank you for taking the time and thank you for the work you are doing and i hope you will continue to take an aggressive look at regulations that dont fit the current challenges we are facing in the country. With that, my time is up. Thank you mr. Ranking member. I would now like to welcome our panelists and thank each of them for joining us today. First at like to welcome the chairman of the national mr. Hood the 11th ncua chairman and Board Chairman mr. Hood is a devoted member. He also represents the ncua from the federal Financial Institution examination councilman financial and banking information at the start or committee. It merely prior to joining the ncua mr. Had served as a Corporate Responsibility with morgan chase with nonprofit organizations and financial regulators and Community Stakeholders to promote prosperity and underserved communities around the united states. His previous experience includes serving as associate administrator at the u. S. Department of agriculture and in this role he hopes and draft the Housing Needs of rural committees and 43 billiondollar mr. Hood you are recognized for introductory remarks. Semi chairman meeks Ranking Member luetkemeyer chairwoman waters and Ranking Member mchenry and members thank you for the opportunity to discuss the efforts to maintain a safe and sound Credit Union System during a rapidly involving covid19 emergency. The ncua is implemented affecting Credit Unions but the ncua help the Credit Union System successfully navigate the last financial crisis that proved vital in addressing the continue to Credit Unions. The ncua is working with the f. Eight to provide Credit Unions with guidance and resources so they can fully participate in the paycheck protection probe rampage last week i spoke to an nba credit Union Mississippi who made 1000 ppp loans had an average of 13,000. Including one for black colleges. This is just one example that pit mice is the Credit Unions of people helping people at this time. The cares act gives temporary relief of the implementation of methodology pretty sure it concerned to place a burden on credit units that will have a Chilling Effect on future lending thats why of encouraged to you consider providing Credit Unions a permanent extension. The board is providing appropriate measures of regulatory relief to ensure the Credit Unions are personal and equipped so they can continue to serve the 120 million. Credit unions supported the industry in new york city. The ncua completed the sale of a majority of its battalion loam port folio that demonstrate a history of working practically with. It strikes accounts which they minimize losses to have the Insurance Fund and reducing market volatility. In conclusion the ncua has responses decisively to the needs of Credit Unions during the pandemic in fulfilling its Critical Mission of protecting the safety safety of the 5200 or do we oversee. I would like to thank the nt way into 41 employees for their unwavering dedication in the mission. Each and every day they put forth their best efforts to protect an aging system. Ladies and gentlemen thank you for the opportunity to up here before you today. I pray they used your family and staff remain healthy and safe. I look forward to any questions you may have. Thank you. Next effect introduce the honorable governor max williams at the federal deposit insurance corporation. He currently serves as the 21st knott. Previously she was executive Vice President chief officer and corporate secretary of the dash bank in cincinnati ohio. Prior to joining she served the senate and most recently as the chief counsel to staff director from the Senate Committee on banking housing and urban affairs. Previously as assistant chief counsel to assist Small Business and under partnership committee. From 2007 to 2010 she served as a return to the Federal Reserve board. Mcwilliams has three minutes. Thank you very much for a chairman meeks Ranking Member luetkemeyer chairwoman waters Ranking Member mchenry and members of the subcommittee and staff thank you for the opportunity to participate today. I hope that you and your families and staff are able to do the nations work at this time. When it comes to the covid19 pandemic with taking swift Decisive Action to maintain stability in the nations financial system. We have taken action to encourage banks to work with customers and committees increase flexibility for banks to meet the needs of their customers offer Small Business lending and actively monitor the financial system. The brunt of this Economic Impact is the hardest and individual consumers independent contractors lowincome are worse and hourly workers. The fdic remains mindful of those in our community for the most vulnerable because the pandemic and are an economic shock. Particularly those on fixed incomes. As part of our we have contacted all banking commissioners. A number of members of Congress Reached out to consumer groups and maintained regular contact with people of Community Banks. These engagements have helped us better understand this specific challenges of banks across the nation and particularly in rural committees. While the fdic does not have a open rulemaking at this time we continue to focus our efforts on modernizing the financial system. We are focusing on key issues. We are prioritizing roles that are necessary [inaudible] we are actively engaged with regulators as we assess how to proceed on interagency rulemaking. We continue our vital work. Dedicated employees of the tic continue to fulfill the agencies Critical Mission for their employees are working tirelessly to maintain stability and Public Confidence in the national system. I could not be more proud of their efforts and the mission of via tic. Thank you again for the opportunity to participate today and i look forward to questions. Thank you. Thank you. Next id like to introduce the honorable joseph ott can troller of currency. He was sworn in as 31st control of the currency in 2017. As comptroller he serves as the rector of a member of the Financial Oversight Council met federal Financial Institutions in the counties prepare to becoming comptroller he served as the president of cic bank and cac group from august of 2015 to december 2019. Were now recognized for three minutes for your introduction. Thank you very much and hello everybody. Chairwoman waters Ranking Member mchenry chairman meeks and Ranking Member list to meyer and members of the subcommittee thank you for this opportunity to discuss the occ support to the nation during this Public Health emergency. National banks and federal Savings Association that did this pandemic wellequipped for this and her role in facilitating the nations relief programs. O. Quitted the was strong and asset quality was good. Banks have to quickly from a position of strength to provide relief to their customers and communities employed initiatives such as the Paycheck Protection Program mortgage forbearance in foreclosure relief and lending facilities to provide m. Acquitted eight sour economy can continue to operate. Since early march we been in regular clinic patient with a 1200 tanks we supervise to encourage them to work with borrowers but we navigate the challenges they face another merging issues. With coordinate closely with other regulators to ensure more than 40 pieces of guidance rules and clarify regarding capitol liquidity and customer accommodations. These actions help banks to use their strength to support customers and their communities. Rep. Gregory meeks is allowing us about the orderly flow of credit and Banking Services. Manage the demands o 20 for 95 percent of our staff has worked from home. While the nation plans to return to normal environments, there and planning for its employees to return offices and banks across the country. As we make this transition, we will with health and safety of our employees at the forefront of every decision that we make. We will continue to support them as they deal with that covid19 challenges. Throughout the work, we continue to start the vibrancy of the deposit of the institutions and Community Development institution and the customers. They focus their services with the communities. Across the country for capital and scares and difficult something. We sustained commitment to increase document Protection Program loans, Small Business powers located in the low income areas. They also directly support the Advisory Committee that provides in situ challenges of institutions roundtables that help them with the resources and technology and publishing resources in reference and take a special consistent and consideration in the rules and the guidance we issue so they continued to make the communitys unique needs. Thank you again for holding this roundtable i look forward to answering your questions. You. And finally, i would like to introduce, the vice chairman of the heart of governments of the Federal Reserve system. It was sworn in as vice chair for supervision on october 13th, 2017. As vice chair, for the supervision and this on october 13, 2021. Is also chair of the finance stability board in 2018, three term in a previous term. Prior to his appointment to the board, he was founder and management director of the group. A utah based Investment Firm and before that he was part of another group. From september of 2005 and november of 20 oh six, he served as secretary of the u. S. Department of domestic and prior to serving as undersecretary from april 2002, to august of 2005, he was assistant secretary for the treasury of International Faith and doing his terran year there, and the committee on foreign investmentn the united states. Prior to joining the treasury, he served from august of 2001 until 2002. Rep. Gregory meeks he was the u. S. Director prayed you may now give your introduction ring marks brain. Thank you chairman. Thank you members. Thank you for inviting me. The last two months have been a time of exceptional economic hardships. The congress is displayed an extraordinary willingness to address this hardship. I appreciate your dedication to continuing a common work. Last week, the board posted or report on the regulatory status of the reserve has taken from this attraction. Today i would like to provide you an overview tour wrong approach to supporting the economy. In reducing the economic crisis. The containment measures triggered the deep abrupt and global shock. Is wide spread, families and businesses struggle to pay bills and expenses and sustain their daily lives. Over the past decade, congress and the Financial Institution themselves in the regulatory agencies work to ensure that the Banking System would be a source of strength for the economy during a crisis. As a result of these efforts, Financial Institutions under this new crisis in a position of strength. The Federal Reserve has acted to ensure that they could use this strength. And absorb new deposits and process the flood of transactions from investors and businesses and households. In those efforts have applied to a range of Financial Institutions including those Community Development institutions in the minority institutions. Both of which are important to financing Small Business and Community Development in moderate and low income communities. One example, they are eligible to participate in the Paycheck Protection Program liquidity which will help Small Business but firm. Two weeks ago, extend the eligibility to include loan funds eligible lenders. Outreach to those to better understand the challenges of the day, our communities they serve, based on the Current Crisis and will continue to do so. I would like to also note that the state publish this annual report. In the Banking System the storm is not over. The firms must continue to constructively the bar is offering the possibility to the hardships. They did not expect them or create them. And ultimately, strength of the u. S. Financial sector, will request and depend on the strength of the u. S. Economy. That in turn will depend on the calibrations and effectiveness throughout Public Health systems. With the Federal Reserve are seeking to play a role responsibly and effectively. And the tools we have are the ones that in the country help to me. Your the use. Inaudible. [silence]. Rep. Gregory meeks thank you. And i know will have questioning for myself and then i will going to give this back to the committee will then be to the order of question. I have three minutes so i will ask each of our panelists to be brief in their response. Given that we only have three minutes of questioning today. I will start mature woman. Mcwilliams, german human commitment that you would not sign off any warmth that would not consistent with the laws including a civil Rights Groups do we still have your word in this. As briefly as you would, and please focus on minority banks and what you are doing to support them during the crisis. And through the remainder. Thank you for that question. And yes, i have an unwavering commitment that doesnt change from the last time. On the second question, we are frankly, working extensively in our jurisdiction. We dedicate the primary, 144 under our wings right in the jurisdiction and so we have done our nbis, engaged in teleconference to understand their needs. We have restocked the individuals in preventative stars. How can we be of service for a coordinator has done a number of socalled and personally we are committed as ever during this pandemic that our nbis can survive and continue to help their communities which i believe are going to be some of the hardest pressed communities in the Current Crisis. Rep. Gregory meeks thank you very much. It was a sensible Banking Sector that your monitoring. Risk of another housing collapse. And people struggling to pavements or mortgage. For commercial real estate is a growing lapse. As a recession, are you concerned with this. Honorable Randal Quarles clearly the economic strain will increase the longer this crisis is going on. As we have seen those of the two fractions, they need to expand. At the moment, for level of uncertainty around how this will evolve. Its still great. And i would not want to predict how it will evolve. I think we need to ensure that particularly our Financial Institutions are resilient to a variety of ways in which is evolve given the current level of uncertainty. They are very strong. They entered this crisis and Strong Capital and strong liquidity. And they filled an Important Role in responding to this crisis. Rep. Gregory meeks thank you. You now have three minutes for your question. On think of him was for being here tonight and what to make regards, each of you, mr. Head, you mentioned that you have an exception in the. Inaudible. And theres a joint rule that says you want to postpone and delay it and implement for number three and we thank you for recognizing the disaster. And while i dont want to say i told you so, i told you so. With regards to my opening remarks in the forbearance. I think is going to be vitally important that each of you be able to transmit to your staffs, rather, how important it will be to have programs. In other words we will have a reoccurrence with regards to regulars going in and having entire lines of business and forcing them out of the bank as a result you will describe the businesses and you destroyed the jobs in the local economy. And we will never get our economy back on track if we start without forbearance for the bank. I have a bill that im working working on trying to do that. And have a separate account of the balance sheet. Thats given about a year and a half and two years in forbearance. And you will be able to work with the banks to give them time to get these assets back out again and give the banks time to also reserve this and immediately it can be over a period of time. I would like your reaction. Each of you mentioned flexibility in your opening remarks. How are you going to on your staffs, to execute with your. State regulators and examiners, we have had to make sure that the framework that they have the place whereby modified for the purposes of the pandemic or now classifies. And one of the many compliments i think we have had is to agree with that. End of the covid19 pandemic. And now its our job to intimate that so we have engaged our appointments make sure that we are modified in the interest of both the bank and the customer they are not being treated and looked upon. I appreciate that and i know that in alaska, and the ppe program is supported that we have served the next think in the law offices in the guidance which can be interpreted in so thank you. We will note go to the next person and i now acknowledge you for three minutes for your questions. I want to thank all of our panelists who are with us today. Notice specially want to thank the institute and they have been a portent to a wide range of services, and the owned businesses and underserved communities especially. This is why thought to ensure all of the meaningful participants in the programs in this protection act. They should be proactively inquisitive including to raise awareness and underserved communities so the strong and diversity can benefits in this program. Inaudible. Vice chair, will in public, what are learning to blending to be made to the boat. Yes we will. Vice chair, and the general, made to the district guidance that we can see. Inaudible. And to collect optional information on the application. For the Mainstream Lending Programs will be there. We will certainly supervise this program and the lenders that are involved to ensure that they are complying with the law. And the date are being fair. Thank you. Most of all, will they eliminate this unnecessary barrier to help award Small Businesses. If you look at the structure of the Systems Program that have been established, the ppe program, is for the smallest firm. The Mainstream Lending Program is for the Midsized Firm in our corporate facilities are for the largest firm. And we have lowered the loan size. But we are still, we try to ensure that each facility in each response, is targeted. Inaudible. Thank you very much nine just want to know that the main street as i understand it, that if also they should be able to you know, the loan of having a 500,000 to participate. Thank you granite. And we are certainly open to considering and can sit and continuing to involve. Thank you. And now i recognize mr. Mchenry for three minutes. Thank you. I want to thank all of you for taking the time with the committee. It is informative and helpful. So moisture, i would like to go to you. Last week i saw a letter to all of the financial regulars that we have oversight over. In the committee and i encourage them to finalize a number of rule makings as quickly as possible. Regulatory changes as quickly as possible in light of the choppy waters that we are certainly in. To that end chair, how important is this for our economic recovery. And would additionally, do you think we need to help stimulate the Economic Growth and a and thoughtful way. I do think of it as important that we think are think about the contributions of the framework to ensuring that we are supporting the economy overly. Some of those candy a form of targeted intemperate changes that we proposed or implemented. Others, and those have been developed for some time and supportive of the economy generally as well. And i think that with the crisis responses possibilities that we have, we continue to move forward. What i would commend to all u. S. Regulators, debt during these unprecedented times over that the American People want to see our institution of government move confidently and effectively. You all had quite a full plate of regulatory changes. Your attempted to make and i think it is important that you can fill those responsibilities that you have to see those things through. And to take necessary measures to the Current Crisis. I would encourage you to move quickly. Even though we have a workforce that is widely distributed at the moment. I think it is incumbent, incumbent upon us to show that we connect smartly, and judiciously in these unprecedented times. And i would also hence in the letter to the fdic the occ related to Cyber Security threats pretty and the regulators into the Financial Institution and i would encourage you to be mindful of those things as well. Thank you for taking time here and that completes my question. Thank you mr. Mchenry. And i recognize the next person for three minutes. Thank you vice chairman call, the quantity, is designed to support the states and municipalities and other entities. However, when assigning the facility that its completely excluded all the territories including puerto rico to participate with congress inclusion of the territory of eligible Participants Program under the scarce act for canoeincan youplease explain to. Yes think it without question. So the facilities including the there presently designed to help have a cash flow problem. And therefore can on appropriate i know that pretty can you explain to me why puerto rico are included. Yes maam, that is what i am doing. In the territory, their problems really are not induced cash flow issue. It is not clear that their position would be that. Inaudible. I am losing you. Can you hear me now. Now granit. A substantial amount, that is not going to improve their situation. Instead, i heard you. Can you please answer to me, to make such a statement, that the territories would not be made into covid19. Will certainly, the situation of covid19. Will the response of that they are taking on Additional Debt. Or should other programs such as the program occurred to rico seem are fema a program that is available to the territory have forgivable plants. There better tools for the situation. And i think you probably are. Rather than to take Additional Debt. Are you willing to update your plan in the near future to include the system. They are a colony. And Congress Needs to recognize them as a territory. I do think that question of whether Additional Debt is the right thing for them is an important thing to reference. Thank you. Thank you. I will now recognize an express in for three minutes for your questions. First question is to chairman mcwilliams. And thank you to the chairwoman for opening this. They sing that the fdic announced yesterday proposed rule to mitigate participation in ppe. What do they plan in those provisions to ensure that the banks do not receive adverse treatment for the participation in the place programs that congress authorized through the cares act. Thinking for the question. We are working hard to make sure that they they are implementing on the regulatory side of translated. And implemented on the supervisory side as well. And as you can imagine, some of the departure from the things that we have done in the past we have we troubleshoot that in how we are going to look at some of the other regulatory side because we have to do what we can and provide stability for banks for the consumers. Its really for the consumer. We want to during the 2008, on the regulatory side, for the consumer, the cases when the bank wanted the loans in the consumers were asking them for them and they couldnt. They were making sure that the examiners will could be done and how they can move forward with a different approach. It and its all of making sure that they go out and that they are modifying and they are available to the customers moving forward. Thank you and as the Ranking Member point to doubt, the need to be lot of forbearance by the examiners given everything that the government has put in the banks particularly as the ppe programs and the lenders management of that. Now that they have them under the the books. The last question i would like to ask is, vice chair, i am a little concerned about what i am hearing in the Virtual Real Estate especially retail and shopping centers. The ppe and main street progra programs, stop supporting the rent payments. In the putting considerable pressure on real estates. I would would like for you to comment on foreclosures or whether considering and additionally liquidity facility that would unlock the commercial Mortgage Market and allow people to provide forbearance to commercial Property Owners owners. Were not currently. We are monitoring, areas with significant strength airplane and of those continue to develop. We will consider the appropriate response. Not inherently. My time has expired but that is a time sensitive issue. I recognize you for three minutes of questioning. Vice chairman, you said one of the goals of the Federal Reserve, the liquidity facility, what about the states borrowing directly. In the slope the locality of which the relations, and you mentioned the facilities directly. But my state of georgia has the constitutional impediment that prevents us from engaging in downstream lending. I wanted to call that to your attention. But perhaps that is something that you can to help and maybe go quickly to miss mcwilliams. Concerning your efforts, the fact that right now we have over 3m americans without jobs. The families. Their homes are approaching foreclosure. Many of them already foreclosed on. So ms. Waters, and her colleagues are working on a 75 billion thing in this package to assist. Inaudible. To help make sure that there on the money goes directly to the states. Inaudible. Inaudible. I will make sure that you are aware of that and that you all will be able to help without funding. Ill make sure. Inaudible. Regarding the financial system. This is key. But first, what about that thing that you cant do it with the constitution amendment. What can we do for that and can you, to make sure that as you are as partners, working with the Banking System, to make sure that money is given to this banks and be able to save our economy. We are continuing to look at administrative issues. To make sure they can work effectively. The strategy is plan to sort of a larger jurist direction. Jurisdiction. So we dont have to develop a structure to deal with all 50000 local jurisdictions of various sorts around the country. But issues like yours, input about that and how we can continue to evolve the administration to make sure that thats in place. Thank you mr. Scott. We will now go to next person for three minutes for his questions. I would like to think you for taking the time to be with us today. I noted your response yesterday regarding broker to product. Do you think now would be an appropriate time for congress to swap out the current broker regime for an asset looked at. I believe that whenever you can as that, because things are getting penalized for their inability to engage with the broker deposits if they are in a good position. Its the best way to look at the banks or their ability to increase deposits on brookside. I would suggest if you recommend, if you have an opportunity to give us more flexibility the broker deposits that you act within your jurisdiction as you can read. In colorado, Financial Institutions about the impact of ppe loans, the treasuries unworkable. Inaudible. Inaudible. They do proactive things. And to discuss the potential issue. Would you like to start. Covid. Inaudible. [silence]. Did that information come from. Im sorry, it is breaking up really bad. In terms of being proactive, regards, is the upside, potential cancellation going forward. On the basis to discuss exactly how to treat ppe, we know that banks are having liability issues. The intent west t the public and businesses as soon as possible. We will continue to think about potential liability issues or any obstacles meant that may get in the way of the banks that may act as a vehicle here. I can quickly confirm that we have been working on things to address the issue. Inaudible. Statement i just want to concur that we too are working with them to be identified and encouraging or Credit Unions to be active supporters for mainstream businesses. Weve also issued guidance on how the risk is treatment approach can be taken into consideration on the balance sheet. Thank you. Mr. Clay, i will not turn it over to you for three minutes for your question. Thank you so much. Committee chairman makes as well as Ranking Member, for our first round table. Lets meet start. Now that the Federal Reserve has opened up the ppe liquidity facility to all lenders including nonbanks, they have utilized the facility today. And what step is date proactively taking to ensure that non cfi banks are able to fully utilize the facility. Will there are approximately 80 non depository who are eligible to use these facilities. And they are in the very early days and being set up and operating. So i dont have the figure for you today on the exact number that its taking advantage of but i will certainly be able to get those to you. Theres about 80 nonbanks that are eligible. Thank you for that and hopefully you can get up or get us the information when it cut to you. Let me move to mr. Hud real quick. The Credit Union Customers including consumers, make Small Businesses are facing numerous challenges. What steps are they taking to ensure the Credit Unions provide flexibility for this customers including providing forbearance, waiving fees and insurance and ensuring that no harm is done to these people when they apply for a loan. Can you go over some of that quickly. It. Yes sir, inc. You for your question. First, its important that they have reaffirmed that us longstanding practice of encouraging Credit Unions to work constructively with their borrowers and owners who are experiencing financial hardship. So please know that we are encouraging those Credit Unions to adjust predict Loan Modifications to look and confirm payments abusing predeterminetoimprove the prospa repayment of the loan. My written testimony guided and repeat this message. As the one passage i would also like to share and guide the examiners that they are to work with us borrowers and restructure those loans. We want you to know will be nothing held against them right springtime of this pandemic. I think you for that response. And the ability to work with the customer. My time is up. So thank you. I have been calling Credit Unions in your area and from the report that they are participating a lot of our modification efforts but also making sure that there making the ppe loans. Very good and thank you sir. Thank you mr. Clay. I will now go to mr. Williams, your knowing knowledge for three minutes. Thank you is good to see everybody back doing the work that we need to be doing. Spending trillions of dollars is not a Sustainable Way to try to get an economy back on track. We need to look for regulatory figures and solutions that will help stimulate the economy than breaking the bank. Some of the largest banks already have inhouse capabilities to deliver the Banking Services but many small banks do not have the things to deliver. Consumers of expectations and behavior. We need to work with that. German back in december coming spot at the Brookings Institute brothers family you stated that a cap on that, with troubled institutions would be part of your regime for the fdic to administer and more directly address the current statutes to prevent troubled institutions fm making deposits to try to grow their way out of financial trou. My question is im going to be pushing for a framework the address in your routines institute so that Community Banks can compete on the living plane filled with the big guys we are short in times of chairman flames i just want to get a civil yes or no answer. Would you be able or supportive of an asset growth cap on troubled institutions was included in the future covid19 legislation. You touch on that earlier. Yes to the extent that in lieu of the current restrictio restrictions. Yes. Now before i yelled back, i want to give some credit where credit is due. Vice chairman, do you know i have been critical of the International Association of insurance supervisors in the past. And often reviewed to not agree and some of the regulatory proposals that i think not fit our insurance system. However, i have came out and said it would be devastating to retroactively alter business interruptions insurance policy to cover covid19 related losses. I totally agree and commend them on those statements. And give them praise when they get something right. I hope you continue to share the position on the issue because like we say in texas, the deal the deals. You stand the same way. Yes. Thank you for that question. After working closely together with those issues, and while we have given direct consideration to the because is largely out of our purview, they are a north coordinating. Will be appreciated and i think its good position to be in. I appreciate the work and appreciate all of you been on the call today. Thank you. I will now turn it over to the next person for three minutes. First, i would like to extend my appreciation to you and the rest of the members of the staff of the aggressive actions from protecting this economy from falling into a second recession. Regarding the intra commercial real estate. Here is how i see this. There are a whole bunch of restaurants, and bunch of hotels and retailers, theyre going to fail. And there is no amount of getting around that frankly pretty thats eventually what will happen unfortunately. And when they do, the students are going to stop paying the Property Owners and when they do, the Property Owners to going to have a difficult time paying the banks and when that happens, by the way, when the situation at the banks becomes more difficult than the people that are the most vulnerable in the highest risk for banks are likeliest to be first victims of that predict lastin and firstout as a sacred suit in response to mr. Meeks of this risk going forward. Is there is a risk, we dont know how big. They are monitoring it. I guess my question is, isnt there something more than monitoring that the regulators should be doing or preparing for if my projection is accurate and were going to have severe stress in this part of the economy because it will have a significant domino effect. Well monitoring is not a passive or casual activity. We are in the process of and right now, conducting a stress test on our larger institutes. Which will include Sensitivity Analysis and taking into account projections of the possible outcomes both with respect to potential commercial real estate losses well is a broad variety of losses. In existing assets. And again while there a great deal of uncertainty around that, we owe it to the country in order to make the most careful granular analysis that we can of the current resilience of the financial industry in light of the potential outcomes of this event. And then make decisions based on that. While conducting a stress test and will be able to have the results on an accelerated basis then passed and we have major which is usually towards the end of june. And think that will be available faster than that so that we can make the decision promptly. Does not mean that if there are alarm signs and the amber light is going if not flashing that you will also develop plans of action for us to deal with this. Absolutely. Thats the purpose of this test undone. Thank you, i will now turn it over to you for additional questioning. Thank you mr. Chairman. I finally got unneeded here. We dont have a lot of time in this forum but i do appreciate all the work that the fed has done on all of the liquidity facilities last month 14 bipartisan member sent a letter to the bed asking about the security Loan Facility be expanded to include securities made up of unsecured consumer loans start typically made with Companies Banking or partnering with unions. News articles are claiming that their develop in these loans are unregulated. That could not be further from the truth. They will provide liquidity to investors which will be fully repaid these consumer loans are well regulated on both federal state levels pretty my question is what are your thoughts on the securities and which are backed by consumer loans ineligible collateral. [silence]. I think you may be commuted. So sorry, the sound was muted. Sorry. I was so eager to answer. We are continuing to look at these issues of the consumer finance. And with all of the facilities enrolling, and deployment. Inaudible. So that they can be with input to further be defined and we are getting a lot of answers on it. And underlying common we are looking at it. Went to make a final decision either to reject or accept. And we would be happy to work with you. I would appreciate you doing it as expeditiously as you can bring a lot of businesses are getting to the point where they have to make some crucial decisions on going forward. A lot of times these Financial Institutions, they actually are some of the most vulnerable consumers out there. So i appreciate moving as quickly as you can on that predict williams. Quickly. Small dollar loans. There right now. Inaudible. Banks and Credit Unions should be able to make the small dollar consumer loans. Absolutely do believe that being able to secure these things provides more for the consumer which is generally good. And also gives us an opportunity for the regulatory side to for the Consumer Protection laws to make sure its well served and also protected. Thank you mr. Chairman for the time. Mr. Foster. I will now turn to you for three minutes for your questions. Thank you not like to think our panelists here today. Last year, i saw the recently released the pricing pathology for the Municipal Bonds that will be purchased by the id. The pricing frankly, is rather expensive. Bonds within investment will carry spreads his highest 380 basis points. So my question is, how did you arrive at the pricing. Is that list face or are there other considerations and business comparable to the pricing in which you will be forging corporate funds and comparable to the primary corporate authorities. Yes well all of our facilities will provide attacks on to private finance for that is available. If they. Inaudible. So much higher at the time of issuance. In order to achieve. Simply by the risk involved to ensure because the market yields a lot. In part because of the announcement of the availability. There are still issues that i have with longstanding issues having to do with Community Bond pricing and Credit Ratings. Versus corporate funds. It was an apple riskbased icing, you get very different results. The result of of this is of course on the municipalities these are struggling and have been for years. The higher rate and i think they should be paying. And also particularly issue an now. Do you feel that you can, the legislative authority to lower that rate. From the Community Bonds if necessary. By using the funds of the number already appropriated by the cares act. Yes, i would say that the question of, is not a question of the legislation. As a question of trying to ensure not too distant make sure that they achieve that for the private finance. We make those again, that they rolled out a relationship of that pricing. And then at the market because the markets have improved materially for luminescent full market improvement material with less well, the pricing may seem higher than originally but its actually an indication on investment. Okay thank you. Thank you. I went out turn it over to you or three ministry questions pretty. Thank you and vice chair, i want to confirm that you can hear me okay. I can hear you clearly. Ive been told that you cant toys been hurt. Same here. Not being able to hear. We should force the insurance to pay for covid19 interruption claims of not really built into the policies before the pandemic. Now that iai as sin that such a move would be significantly undermine the ability of insurance debate other types of claims. Not related to covid19. And ultimately throughout the policyholder protection and financial stability, of the Insurance Companies pretty. I agree with them on this. And i have a letter on an issue of this writing and i signed on to this with me. The treasury men stated that while insurers should pay valid claims, we share your concerns and that these are proposals are fundamentally conflict with the contractual nature of insurance obligations and can introduce stability issues which has risk to the industry. What are your thoughts on that. If you agree with that. I would love to hear take on this. Thank you for that question. So, with the Federal Reserve, the vent is not the insurance regulator. So we have not taken a condition on that question directly. In my role, as chairman of the fcc, does work closely with the ai after developing these issues they can have obviously the solvency of the insurance industries. And then i think that you by that standard, it has been reached by and in the process that is consistent with the processes. Very good. I think there was a pause there. Im hearing about 80 percent of what youre saying. I heard some of that. Pardon me, if im overlapping what youve already answered. But its hard to hear. There is a negative impact on the negative stability. So it has not discussed it directly. At the principal level but, there is an issue that on this basis, that the members certainly are. Very good. Thank you and if you continue to keep an eye on that, we dont want to introduce additional risk into policies especially once that were not already calculated in beforehand. So thank you for your time and for me on the call today. Thank you. This will be our last question. You have three minutes for your questions. [silence]. If not, i will go to ms. Rivers. [silence]. [silence]. If not, i will go to the next person for three minutes. This will be our last question. Thank you, i am here. My question would be for vice chair regarding the corporate crimes facilities. Any officer by the fed from the investment in the fed retains, i believe it was black, makes decisions about which Corporate Bond the fed decides to have through the secondary facilities. Are they using something in addition to that term sheet. We have added that we are buying abroad and next. I think it is important to note that the criteria set by the treasury of the Federal Reserve, investment manager is really the Administrative Agent and does not make any of the policy decisions around the execution. We use Credit Ratings in order to determine who is eligible rate we will generally lend to all of those of term sheets. Do you anticipate holding these investments for the life of the purchased bonds. Anticipate them selling them in a date later date. Our intentions is to buy them. Okay. And i realize that this processes being developed. Notice that already the prospect of this has created from liquidity in the market and appears to be having the desired impact. What level of transparency do you believe is appropriate on those terms of that the American Public to better understand how and why the fed is making various investment decisions. We are never the terms of the facilities, and i think that is quite appropriate. We have monthly disclosures. That will be for the borrowers. In many cases, theres a structure that was created, would not be subject under these and we are going to and we believe that transparency is important. And the public rent transparency an. To this pandemic all of you have got big jobs to do in regards to continuing to protect our economy, to enable our people and businesses to live their lives and get back to normal. We want to be a partner with you in that. We believe we need to Work Together to foster a Good Environment for our economy to come back in. Whatever we can do let me know and want to be able to be there and get things back up and running. Again mr. Chairman, thank you for putting this together and i yield back. Thank you want to thank everyone for their participation today and thank our panel for this discussion. We have been living their historic dark times along with the Great Depression is critical and urgent we all Work Together as members of congress and the administration to protect our Financial Sector which this strongly deserved and that robust framework with the strain on the crises. This is key to averting a systemic crisis to assure American Families and Small Business continue to have credit and help lay a foundation for strong recovery. I look forward to this working with all of you in achieving these goals and affecting this great economy from further harm and offering family engine sound is across this country for what they deserve is a weather the storm together. Thank you all for participating which is now concluded. With the federal government at work in d. C. And throughout the country use the congressional directory for Contact Information for members of congress, governors, and federal agencies. Order your copy online today at cspan store. Org. Longtime Technology Journalist steven baker is the coauthor of this new book it is called hop, skip, go