And then limits the healthcare and economic devastation of the coven 18 pandemic some other parts of new york city have been very hard hit and suffering more deaths than other states in the country millions have lost their jobs and incomes with the Economic Impact for things to the wall street reform the nations Banking Sector but the initial impact of the crisis to restructure mortgages but ive had serious concerns of the i heimplementation with a Small Businesses thanks to the hard work of chairwoman waters and velasquez, the ppp program in the latest installment. So how long the nations banks and Credit Unions can endure the Current Crisis. And with a pdf i to overcome the challenge of the crisis. And over the objection of the new york delegations and the impact of the new York City Taxi drivers are already reeling from the pandemic. First i would like to thank you for being here today and your tireless efforts and respond to the covid19 crisis it is my hope we can have a meaningful discussion of whatt steps must be taken to ensure the American Economy so to take drastic measures to the economic crisis Congress Passed for legislative packages with funding to hospitals Small Business and the American People so that cares act contains numerous provisions for unnecessary burdens to better serve the customers and to have needed forbearance and liquidity directly to borrowers and investors with key credit markets. The provision contained in the cares act them out institutions to restructure the loans without the classification. The regulators have stated those Financial Institutions for working with thosess customers so i remain concerned how regulators would be impaired by coronavirus so by the end of the Emergency Declaration as businesses adjust to the new climate. Regulatorti shed look at the examination relief for coronavirus. After two years they should and my judgment those impaired by coronavirus and with those classifications and then do just that. And these institutions to work with the customers to get them back with economic help its vital that you the regulators to ensure they can provide to discuss these with you and i yelled back. Thank you chairman. Welcome to the First FinancialServices Committee virtual roundtable. And with this pandemic crisis and with covid19. And those that have lost their lives it is imperative that congress and regulators respond with a focus for those who are struggling. And then to provide 5 trillion and then with Small Businesses. The financial regulators those for the Financial Institutions to help their customers and that resiliency and those protections for consumers and it is unrelated to covid19 and we all must take action to respond to the crisis and it is not acceptable to use this as an excuse for financialal deregulation. Thank you. I i now recognize mr. Mchenry. Thank you chairman waters and staff and with that virtual roundtable and that this can be a model and then to get proper input given the nature of the virus to social distance and deal with the consequence thank you chairman waters to the republican staff who work so well together and thank you for i taking your time and that you stay focused on the tat a task at hand. And with any other form of crisis. And then stay focused on your job from the agenda. And then to be properly regulated and those that are ill fitting to the Current Crisis to make sure that levelheadedness and to work with congress so thank you for taking time in the work you are doing that you take an aggressive work look at regulations for those challenges are facing as a country. My time is up. Now i like to welcome the panelist. And the chairman of the credit union the 11 ncua chairman and then to also serve with the Oversight Council and the institutions and the financial and Banking Infrastructure Committee prior to joining the ncua. And with those the and and the shared prosperity for the United States and with the soviet administrator with the department of agriculture what the Housing Needs and the agencies 40 milliondollar package and i you arear recognized for your remarks. Members of the subcommittee thank you for the opportunity to discuss the efforts to maintain a safe and sound Credit Union System during the rapidly evolvingg emergency those he a federally insured Credit Unions and with that Credit Facility which helps the system to successfully navigate the financial crisis and improve vital to those liquidity needs of the Insurance Fund and to provide Credit Unions so they can fully participate in the Paycheck Protection Program. Last week i spoke at a credit union in mississippi and with 13000 to businesses that serve low or moderate income or minority communities. And that there peoplef helping people in the cares act. And i share your concerns and then have the Chilling Effect uton future lending thats why i consider providing Credit Unions a perfect exemption. And then to have appropriate measures that Credit Unions are operational for nearly a century the taxi industry in new york city completed the sale that the demonstrated history to work proactively that strikes the ballots with the Insurance Fund and then to reduce market volatility and in conclusion it has responded to fulfill the Critical Mission of the 5200 Credit Unions that we oversee thank you to those 41 employees for their unwavering dedication each and every day they put forth the best efforts ladies and gentlemen thank you for the opportunity to appear before you today i pray you and your families and staff remain healthy and safe i look forward to any questionsns you may have. And safe i look forward to any questions you may have. Like to introduce chairwoman of the fdic. And the executive vice president. From the Cincinnati Bank in ohio most recently to the deputy staff director on banking and housing and urbanan affairs and entrepreneurial ship. 2007 through 2010 the Federal Reserve board theres now three minutes for the introductory remarks. Chairman and Ranking Member thank you for the opportunity to participate today and to work at this time and the idea and with the Financial System and then to work and increase flexibility for the customers and with those Financial Options but the brunt of this impact independent contractors and then to encourage banks to work with customers to be mindful you are the most vulnerable that then to contact all of the commissioners and with those provide institutions for the banks. And then across the nation. And those we continue to focus the efforts to modernize with that Financial System. And appropriate at this time. And with those federal regulators. And with that interagency. And those employees and then from the Financial System without unwavering commission. Thank you again and i look forward to your questions. Thank you to be sworn and the 31st comptroller of the currency and then the Oversight Council and the examination and with that currency of the bank through december 2015. You are now recognize for three minutes for your introduction. Chairman waters and Ranking Member mchenry and members of the subcommittee, thank you for this opportunity to discuss the occ supports are in the Public Health emergency Americas National banks and with these relief programs for that asset quality and acting quickly from a position of strength to their customers and communities such as the Paycheck Protection Program for forbearance and foreclosure relief to provide capital and liquidity select can continue to operate with the 1200 banks that you supervise then to navigate the challenges they face with other emerging issues we have coordinated closely for more than 40 pieces of guidance and rules with capital liquidity and customer accommodations those to support the customers and those that are enhance the Data Collection process Agency Executives facing consumers and banks on the broader Financial Services industry this is realtime awareness of commission of the banks of the oidentifications to allow us to act properly to flow Banking Services nearly 95 percent of staff is work from home. All the nationsns plans to return to a normal Environment Planning for the offices to return across the country. And to be at the forefront of every decision we make continue to support them as they deal with the covid19 challenges the occ continues to start those institutions and Community Development to focus products and services so we all the sustained commitment with the Paycheck Protection Program loans and to Small Business for the moderate and low income areas. And then to have insight and challenges posting collaborative roundtables with those resources of technology to publish resources with special considerations with the rules and the guidance we issue to make to meet the unique needs thank you for holding this roundtable i look forward to answer your questions. Without supervision of the reserve without supervision october 172017 and vice chair from 2021 also at the stability board and the threeyear term founder and managing director the utah Bank Investment firm and the 2005. To serve as the Us Department of the treasury as undersecretary from 2002 with the International Affairs as policy chair of foreign investmentt with the United States and while joining the treasury through 2002 and the us executive director with the imf. You may now give your introductory remarks. Thank you for providing on allowing me to participate. S it has an extraordinary hardship. So last week and then to address the challenges today to have a broader look with the Current Crisis so as you iknow and to adopt the pandemic of the global my families and businesses struggle toto pay bills and the National Institutions work to insure this is a source of strength during a e crisis. And the results of these efforts is that has insured job the credit worthy firm and those household. And then to apply to arrange with Community Developments both of which have Small BusinessCommunity Development so name one example that are eligible to participate in the ppe liquidity facility and two weeks ago to see the loan funds as well from paycheckec Protection Program and then the communities that they serve face the Current Crisis just this morning. Harms must continue with the flexibility that it did not create and ultimately the strength of us Financial Sector and with the strength of the economy depending on the calibration. We at the Federal Reserve seeking to have the role responsibly. And then to require. Thank you i will now yield to t myself and then send it back over to the committees so we will now ask each panelist to be brief in their response. Chairwoman mcwilliams before the committee you made a commitment you would not sign at noff that is not consistent and as briefly as you would to focus on the minority banks and to support them during the crisis. And with that unwavering commitment and the second question so with that opportunity as a primary regulator and with the teleconference to reach out to the individual and how we can be of service but the coordinator has the number of those goals as well. And that they can survivewain ad to help their communities which i believe will be the a hardest from the crisis. And with that housing collapse and then with that collapse. Clearly the economic strain will increase the longer it continues and as we have seen those situations evolve. And then continue to expand the level of uncertainty it is great but i would not want to predict how that would evolve. F right of ways in which this evolve given at the current level of uncertainty but they are very strong. They entered this crisis sufficient of strong capital, strong liquidity, and they have filled an Important Role in responding to the crisis. Thank you. I now go to the committee staff. Thank you, chairman meeks. Mr. Luetkemeyer, you will now have three minutes of for your questions. Thank you. Just what you think the panel for being here and say i want to make, with regards to cecl. Each of you, mr. It comes to making any opening remarks you have an exception now with the fed, comptroller and fdic. March 24 [inaudible] theres a joint interim rule is a joy to postpone and delay it, if a we thank you for recognizing the disaster that cecl is. I dont want to say i told you so, i told you so. With regards to it opening remarks from the forbearance i think its going to be important that each of you be able to transmit to your staffs, your other regulators under you, how it will be to have forbearance, otherwise we will have in my estimation of the occurrence of 09 with regard to the regulars going in and attire lines of business forcing them out of the bank and the end result you destroy the jobs, local economy and will never get our economy back on track if you start without forbearance for the bank. To that end i have built on working on were put assets in a separate account on the balance sheet. Give it about two and a half years of forebears and gives you the tools to be able to work with the banks to give them time to get the assets back out and gives the banks time to also reserve this immediately that can reserve or repetitive time. I would like a reaction each of you mentioned flexibility in your opening remarks. Ms. Mcwilliams, i know we talked about this before. How are you going to impart this on your staffs the need for and execute the forbearance with your members . Thank you for the question. Weve done extensive state regulators and with examiners come weve had webinars to ensure that this new framework that we have in place whereby loans that are modified for purposes of the endemic are not classified. One of the greatest accomplishment weve had is [inaudible] that modifying loans for the covid19 pandemic. Now its on us to make sure engaged and make sure we will modify in interest of both the bank and the customer are not being mistreated in our view and looked upon when they shouldnt be. I appreciate that. I know in the last four months in the ppp program is important with certainty to the banks and i think law, guidance which can be interpreted so thank you for your contributions. Thank you. We will now go to ms. Waters. You are now acknowledged for three minutes for your questions. I want to thank all of our panelists who are with us today. Ice chair quarles, and communities have been an important conduit alone for a wide range of consumers, Small Business and minorityowned businesses. And underserved communities especially. This is why i thought to ensure that all been meaningful participants in programs in the paycheck protection act. That should be proactively inclusive including nonbank should raise awareness in underserved communities so that strong and diversity can benefit. This program should be [inaudible] so we know whos lending the money and who is getting the money. Vice chair quarles, will the fed track and published regular updates for what size and kind of lenders are lending to the main street loans . Yes, we will. Vice chair quarles, urge the sp to issue guidance so we can see lenders require [inaudible] and to collect optional information on the application. Will the fed to the same for the main Street Lending program . We will, we will certainly supervise the main Street Lending program and alleged that involve in this to ensure that they are complying with the law and that they are lending fairly as well. Thank you. Most of all, will the fed eliminate this unnecessary barrier to help more Small Businesses . Well, if you look at the structure of Assistance Program that have been established, ppp program is for the smallest firm. The main Street Lending program is for the midsize firm, and our corporate for the largest firm. We have lowered the loan size for main street [inaudible] but we are still i think the system as a whole will operate tried to ensure that each facility and each response is targeted [inaudible] thank you very much, chair quarles. I just want to know that main street as understand is supposed to be for medium and small. If its for small also they should be able to obtain the loan and not have 500,000 requirement in order to participate. Thank you. We are certainly open to considering additional evolution. As the this continues to evolve. Thank you. Thank you, ms. Waters. Mr. Mchenry, three minutes. Well, thank you. I want to thank all of you for taking the time with the committee. Its informative and helpful. Vice chair quarles, id like to go to you. Last week i sent a letter to all the financial regulators that weve oversight over as a 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 quarles, how important is rightsizing for economic recovery . And what additional regulatory arms to think we need to stimulate Economic Growth in ia smart, thoughtful way . So i do think of it, its important we think about the contribution of the Regulatory Framework to ensuring that we are supporting the economy currently. Some of those can be in the form of targeted and temporary changes that we propose or implement it such as changes to the supplemental leverage ratio. Others in developing for some time, and they can be supportive of the economy generally as well. I think that where that is consistent with the crisis response, response does we have, we should continue to move forward with those efforts. Thank you. What i would come in to all of you as regulators is that in these unprecedented times i think the American People want to see our institutions of government move competently and effectively. Youll had quite a full plate of regulatory changes. I think its important you fulfill those responsibilities that you have to see those things through, and to take necessary measures related to the Current Crisis. So i would encourage you to keep moving and moving quickly even though we have workforce that is widely distributed at the moment. I think whats incumbent, incumbent upon us to show that we can act smartly and judiciously in these unprecedented times. To that end i also sent a letter to the fed, fdic and occ relived to cybersecurity threats, to regulators into the Financial Institutions 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. Mckinley. I will now go to ms. Velazquez for three minutes for her questions. Thank you vice chairman quarles, decide to support lending the states, municipalities and other entities. However, when designing the facility, the fed completely excluded all the u. S. Territories, including puerto rico from participate despite congress inclusion of the territories as an eligible participant in program under this act. Can you please explain to me why puerto rico and other territories were excluded by the fed . Yes. Thank you for that question. So the fed facilities including a municipal facility are presently designed to help entities that are having a a ch flow problem because of crisis. And, therefore, can [inaudible] sir, i know that. Excuse me. Can you please expect to me why puerto rico and the u. S. Territories were not included . Yes, maam, that what im doing. And the territories are, their problems really are not a covid induced cash flow issue. Its not clear that the position would be [inaudible] so we [inaudible] i dont know. Im losing you. [inaudible] can you hear me now . Hello . Now. Okay. So the concern that we have would be if the territories were taken on a substantial amount of Additional Debt, thats not going to improve their situation. Instead i heard you. Can you please answer to me, what data do you have to make such a statement or a comment that the situation in the territories was not related to covid19 . Well, certainly. The situation in territories [inaudible] will the response of the taken on Additional Debt improve their situation, or should other programs such as the program that puerto rico participates in, the fema program that allow for get forgivable grants, they are tools to address the situation i think they probably are rather than taking on Additional Debt. Are you willing to update your plan in the near future to include the territories . You know, they are, congress [inaudible] [inaudible] but but i do think that questiof whether Additional Debt is the right thing for them, is an important principle thing to keep in mind. I yield. Thank you. Thank you, ms. Velazquez. Mr. Barr, i will now turn over to you for three minutes for your questions. First question is to chair mcwilliams, and thanks to chairwoman waters for hosting this. Chair mcwilliams, i was pleased to see the fdic announced yesterday a proposal to mitigate participation. [inaudible] what steps you have to ensure that banks do not receive adverse treatment for the participation in the relief programs that congress authorized . Thank you for the question, congressman. We are working hard to make sure that what implementing on the right countryside just transferred and, frankly, permitted on the supervisory side as well, and as you can imagine some of the departure from the things that weve done in the past in terms of how we looking at restructure have a look at some of the other actions we take on the right countryside. Because we want to do will begin to provide us more stability for banks to modify the loans for the consumers. Its really for the consumer in mind. We know during the 2008 crisis, banks had a lot of problems on the account invite shoreside try to modify old for the consumer and even case with the banks wanted to modify the loans and the consumers were asking for the loan to be modified, they could. Were making sure that all examiners are aware of what needs to be done and not look at the portfolios. Because this can be different weve taken in 2008 and its all done with the goal of making sure that banks go out and into the economy, or modifying loans and their available to the customers. Thank you, and as Ranking Member luetkemeyer pointed out theres going to be, going to need to be a lot of forbearance by examiners given everything that the government has put on the banks, take as you look at the ppp program and lenders management of that. Now that they have them on their books. Last question id like to ask is to mr. Quarles. Vice chair quarles, im a little concerned about what inherent in the commercial real estate, especially retail and Shopping Centers here the ppp and main street programs supporting rent payments. Pressure on commercial real estate owners. I do like for you to comment on what he believed forestall foreclosure what youre considering an additional liquidity facility that would unlock the commercial Mortgage Market and allow Service Persons to provide forbearance to commercial Property Owners. We are not currently considering [inaudible] we are monitoring the rep. Barr concerning the, your efforts in the fact that right now, we have over 30 million americans without jobs. In the families. Their homes are approaching foreclosure. Rep. Scott any of them are foreclosed on. So myself and her colleagues are working on extending the 5 billiondollar launch in this package to assist. Inaudible. To help make, the money goes directly to the states. Inaudible. Inaudible. Inaudible. And that you will all be helping us get this funding. To help make sure and save our Financial System. This is key. What about if you cant do it because of the constitution. What can we do for that and, we want to make sure youre using it as you are. As partners, working with the Banking System spread to make sure that that money gets to the banks and save our economy. We are continuing to look at the municipal facility. And that it can work effectively. The strategy is to the sort of larger jurisdiction. In order to provide for them key to deployment. So that we dont have to develop the administrative jurisdictions various source around the country. But as issues like yours arise. We will definitely have input about that and how we can continue to evolve in the administration to ensure the agency. Thank you mr. Scott. We will now go to the next person for three minutes for the question. I would like to think the panel to be with us. I noticed your response yesterday regarding the brokerage, do you think that now would be an appropriate time for congress to swap out the regime for cap. Chairman mcwilliams i believe that when you can access things, because frankly these are getting penalized. For their inability to engage from brokered deposits. And they under certain conditions. In their ability to increase the rubber ties. I would suggest and recommend, that if you have an opportunity to give us more flexibility in how we look at brokers, active in your jurisdiction as much as you can to provide us the flex ability. Thank you. In colorado, a lot of our Financial Institutions about the impact of ppe loans and guidance held steady. And for the entire panel. Inaudible. Proactive. Inaudible. Discussed the potential issue. Would you like to start. [silence]. Inaudible. Im sorry, my on my end, i did not hear the question. Could you repeat it place. Proactive interns regards to the pbo loan forgiveness and the upside is actually going forward. Basically to discuss how exactly to treat these loans. To know the banks are concerned about liability issues that may be attached to them. This was to get the public in the businesses out of this as soon as possible. We will continue to think about potential liability issues that may be in the way of thanks. In the may act as a vehicle to congressional action. I can quickly confirm that we have been working on this to address that issue. Inaudible. I concur, also working with them, they have identified an encouraging of Credit Unions to be active supporters. Weve also issued guidance around how the risk of treatment should be taken into consideration on the Credit Unions balance sheets. Thank you. Mr. Clay, i will now turn it over to you. Thank you so much. Rep. Clay thank you for first roundtable. Let me start, the now that the Federal Reserve has opened up the ppe liquidity facility to the lenders, including nonbanks, i think the nonbanks have utilized the facilities and what step that proactively taking to ensure no one for example to able fully utilize the facility. For approximately 80 non depository who are eligible to use the facility. Now these facilities are in their very early days. Vice chair quarles there being set up. So dont have that figure for you today on the ways to take advantage of it but i will certainly be able to get those to you. Make sure those for the non eligible ones buried. Rep. Clay but let me move to mr. Lewis real quick. Credit Union Customers including consumers, and Small Businesses are facing numerous challenges. What step are you taking to assure that Credit Unions have flexibility for those customers including and providing forbearance and waiving fees, and ensuring that no harm is done to these people. Can you go over some of that. Is sir, thank you for your question. First and foremost, we joined the pandemic, they have reaffirmed his longstanding practice of encouraging people to work constructively with their borrowers. And especially those who experiencing hardship. We encouraging this Credit Unions to adjust, prudent Loan Modifications to look at the payment and even credit terms and safe and sound manner. To improve the prospects of a repayment of a loan. The testimony has a lot of the letters that have been sent, and that it is repeated this message. I would also like to share the guidance that we are sending is that they are to know such efforts against the Credit Unions. And to refer to the loans. Want them to know that there will be no actions held against them. And what we modified vacations have been made during the time of pandemic. I thank you for the ability to work with them. And my time is up so thank you. And circum i have been calling Credit Unions in your area. Im proud to report that the small Credit Unions are participating in our modification efforts and also making these loans. Rep. Clay very good and thank you sir. Thank you mr. Clay. I will now go to mr. Williams. I acknowledge you for three minutes. Thank you very much and it is good to see everybody back doing the work that we need to be doing. A lot of think the leadership for putting this altogether. Spending trillions of dollars is not a Sustainable Way to try to get the economy back on track. We look for things to stimulate the economy instead of breaking the bank. Some of the largest banks already have the capability to deliver their banking Services CommitteeSmaller Community banks do not have the budgets to deliver. The consumers have expectations. We need to work with that. So chairman mcwilliams, back in december you spoke at the Brookings Institute, brokers, and the events pretty you stated that a cap on asset growth could then financially, would be far easier regime for the fdic to administer brain and more directly address the current statutes original intent to prevent institutions from using insured deposits to try to grow their way out of this financial challenges. So will my question would be as i am going to be pushing for a legislative fix with this plan like when you addressed in your Brookings Institute remarks. So that the Community Banks can compete with the guys. For sure in time. So just what are you getting some i guess answer. Would you be able or would you be supportive if asked to grow the cap on troubled institution, was included in future covid19 legislation. Can you touch and you touch on that little bit earlier pretty. Chairman mcwilliams yes to the extent in lieu of the current restrictions. But yes. Before he come back, i would give her credit is due. The vice chairman, you know i have been critical of the International Association of insurance supervisors in the past. And of often urge you to moderate and some of the regulatory proposals that i think would not fit our american insurance system. However, i asked f came out and said that it would be devastating to retroactively alter Business Interruption insurance policies to cover covid19 related lawsuits. I totally agree and i commend them on the statements in a given praise when they get something right. So i hope you continue to share the position on the issue because like we say in texas, a deal is a deal. So you stand the same way . Yes. And thank you for that question. An interesting work and working closely together on this issues. Deposition as one where we have an given directed consideration to that. What we appreciate it and we think its a good position to begin. I appreciate the work and appreciate all you are doing on the call today. Thank you mr. Williams. I now turn it over to the next person for three minutes. Mr. Quarles, first i would like to extend my appreciation to you for the aggressive actions they have taken to try to prevent this economy for falling into a second great depression. Some think is there. Separately like to associate myself to some degree with remarks my friend congressman andy for the flight and future of real estate. Here is how i see this. There a whole of restaurants and hotels and retailers that are going to fail. There is no amount of getting around that that is eventually what will happen unfortunately. And when they do, those tenets are going to stop paying the Property Owners and when they do, the Property Owners are going to have a difficult on paint the banks and when that happens by the way, when the situation of the banks become more difficult than the people that are the most vulnerable in the highest risk for the banks are likely is to be the first victims of that. Lastin in first out as they say. So in response to mr. Meeks question about this going forward, is that there is a risk and we dont know how big and we are monitoring it. I guess my question is isnt this something more than monitoring. If the regulator should be doing to prepare for if my projection is accurate. If we will have severe stress is in this the economy because it will have a significant domino effect. Monitoring is not a passive or casual activity. We are in the process right now of conducting a test on the larger facilities which will include sensitivity analysis, taking into can account the projections of a possible outcome. Vice chair quarles both in respects to the real estate bosses as well as the broad variety of other losses in existing assets. And again, while there is a great deal of uncertainty around that, i think we owe it to their country in order to make the most cheerful granular analysis that we can. In the current resilience of the industry in light of the outcomes of this event. And then they can say something. We are continuing to conduct the stress test. I believe it will be able to have the results on an accelerated basis faster than we have been each year. Is usually towards the end of june. I think they will be available faster than that so we can make these decisions promptly. Does that mean, that the available list there are alarm signs and is glowing are flashing that you will also develop a plan of action to deal with this. Thank you sir. Very much. That answer was absolutely. Will not turn it over for three minutes. Thank you mr. Chairman. I think i finally got admitted here. Mr. Quarles, i know we dont have a whole lot of time in this forum but i appreciate all of the work the fed has done in on the liquidity this ability. Last month, 14th bipartisan members of this committee has to the letter to the feds asking that the term assetbacked facility be expanded to and including securities made up of unsecured consumer loans which are typically made by synthetic companies partnering with banks or Credit Unions. There have been some news articles for the last two days claiming that there is a bailout that these loans are unregulated which could not be further from the truth. They will provide liquidity to investors which must be fully repaid in these consumer loans are backed. The question is what are your thoughts on including this securities which are backed pretty. Vice chair quarles [silence]. I think he may still be muted. Vice chair quarles the sound only picked up part of this. I was so eager to answer. We are continuing to look at the issue of consumer finance. With all of the facilities and rolling them out eventually. Inaudible. With getting input on how they can be further refined. There is an issue that we are getting underlying issues. We are looking at it. We have not made a final decision either to accept or reject. And we would be happy to give advice. I would appreciate it. Exhibitioexpeditiously as you ct of businesses are getting to that point where they have to make a decision and a lot of time these Financial Institutions actually are some of the most vulnerable consumers out there. So i appreciate you moving as quickly as you can that. Mcwilliams real quickly, small dollar loans. Despite the way they are going out. Inaudible. The banks and Credit Unions should be able to make these small dollar consumer loans. Chairman mcwilliams absolutely and i believe that being able to secure and provide more confidence for the consumer. As regarding the pricing of these loans. And also the opportunity and the regulatory side, to make sure also protected. Thank you for the time. I will not turn it to you for three minutes for your questions. Thank you and i would like to thank our chairman Ranking Member panel today. Place your am a i saw the you recently released the pricing for the municipal bonds. The pricing quickly, but rather experience pretty Million Dollars within vestments, will carry spreads as high as 380 basis points pretty so my question is, how did you arrive at the pricing pretty is it riskbased or are there other considerations. And his is comparable to the pricing in which you will be purchasing funds on comparable risk under the primary corporate liquidity. Yes. Well, all the facilities, to the what is available. If they cap. Inaudible. Somewhat higher at the time of issuance pretty in order to achieve that. Inaudible. Risk involved regarding the facilities perhaps a little high now because of the market yields a lot. This past week. In part because of the announcement of the availability. There is still issues having to do with the longstanding having to do with Community Bond pricing and Credit Ratings. Versus the Corporate Bonds where if it was an apple to apple riskbased pricing, you would give very different results pretty and then the result of this of course is the municipalities and bonds. There struggling, and they have been for years. With a higher rate. I think than they should be paying and also particular issue now. And you feel that you have the legislative authority to lower that rate pretty if necessary by using the funds that are already appropriated by congress for the care zach. Yes and i would say that the question of setting the right is not the question to the legislation. His try to ensure to make sure that they achieve that goal of private demands. We make those adjustments from time to time. As the facilities are rollout, the relationship about, they very then and because the market has improved materially from Municipal Market over the last while, the pricing may seem higher than originally but is actually an indication. Okay, thank you. Thank you. Three minutes for your questions thank you. And vice chair for us, i just want to confirm that you can hear me okay. Vice chair quarles i can hear you clearly. But i have been told that i have been spotty at times. Same here. Sufficed year, i think congress has suggested. That we should force insurers to pay for covid19 funds that were really built into the policies before the pandemic. Such a move would significantly undermine the ability of insurers to pay other types of claims not related to covid19. And ultimately threaten policyholder protection and financial stability. Of the insurance market. Vice chair quarles i agree with them on this and i wrote a letter on the issue. A lot of members signed onto this with me. In treasury, even stated that while insurers should play valid claims, we share your concerns that these proposals are fundamentally with the contractual nature of insurance obligations and could introduce stability issues. Our risk into the industry. What are your thoughts on that. Do you agree with that. And i would love to. Check on that. Thank you for the question. Regarding the Federal Reserve, then its not the insurance regulator. So we have not taken the position on the question directly. In my role as chairman of the cc, we do work closely with them. In developing these issues they can happen and obviously the solvency of an insurance companies. In the implications and that i think by that standard, it has been reached in a process that is consistent. Very good. I think it was a pause there. Im hearing about 80 percent of everything your saying. I heard fcc. But is the other, pardon me if i am over lapping what you have already answered. Are they looking this in terms of the negative impacts of this stability. If. So they have not discussed it directly. At the principal level but there are issues that the members are very good way to continue to keep an eye in that. Want to introduce additional risks. Into the policies especially ones that were not already calculated in before hand. So thank you for your time and being on the call today. Thank you mr. Bud. This will be our last question. You have three minutes for you question. [silence]. If not, i will go to the next person. [silence]. If not i will go to the next person. This will be our last question. Thank you, i am here. My question would be for the vice chair corals as well regarding the stability pretty you walk us through the fed or investment management, makes decisions about which Corporate Bond this defense decide to purchase between the or from the primary or secondary. Underwriting by terry that the fed is using. Vice chair quarles so according to the terms you have, we have added that we are buying abroad indexed. I think its important to note that the underwriting criteria are set by the treasury federal preserve. He investment manager really truly is the administrator. It does not make any of the policy decisions are underwriting decisions around them. Though we use Credit Ratings in order to determine who is eligible we will generally lead to all of those who meet the term sheet criteria. Do ands expect these to be through the life of the bond. Vice chair quarles our intention is to blindfold. Okay. I realize that this process is being developed. We commend you on the work you have done. And notice that already, the prospect of this has created from the liquidity in the market. Peers to be having desired impact. At what level of transparency do you believe in the appropriate on those terms so that the American Public can better understand how and why the fed is making various investment decisions. Vice chair quarles well, we are never on the term of the facilities, quite appropriate. We have monthly disclosures. They come from the borrowers. In the structure of this. Its obviously created not be subject for these disclosures. Because we do think that its important. Its a deep commitment. Public transparency and accountability. I appreciate that response. Thank you rated. Mr. Weeks, i will not turned back over to you for your opening remarks. Inaudible. Thank you. And they are just for being here today. Very informative and i appreciate your approach to this pandemic. All of you, you have big jobs to do with regards to continuing to protect our economy. Unable our people and in businesses to live their lives and get back to normal. And we want to be a partner with you and thats pretty we believe we need to Work Together to be able to foster a Good Environment for our economy to go back and read and if theres anything we can do, i want to be there to be helpful to get things back up and running. Again mr. Chairman thank you for bring together this and i will come back. Thank you. What to think everyone for their participation today. They are panel for their discussions. And once again this historic our time, and fall into a great depression. Is critical that we all Work Together. Members of congress and this administration to protect our financial which injured into this crisis as strong and robust. Helping banks and Credit Unions are key to ensure that a market families and Small Businesses continue to have access to credits and help lay the foundation for a strong economy. Look forward to working with all of you. In protecting this great economy for further harm. And to help our great nation and constituents and partners as we weather the storm together. Thank you all for participating. In the roundtable is now