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Stock impact report

An Obscure Government Memo Provides A First Glimpse At U.S. Banks Most At Risk [Seeking Alpha]

Value Line, Inc. (VALU) 
US:NASDAQ Investor Relations: valueline.com/about/investorrelation.aspx
Company Research Source: Seeking Alpha
SummaryWhile the Payroll Protection Program loans got all the headlines, banks were quietly busy with a similar-sized loan program for existing borrowers.On March 22, 2020, bank regulators issued unprecedented guidance allowing banks to defer payments by borrowers for up to six months.In the last 30 days, millions of commercial and consumer loans have had payments deferred up to six months.Since it's too early to see large amounts of charge-offs or even delinquencies, this was our first peek at which banks are most at risk.Caution is strongly advised toward those banks with the highest levels of deferred loan payments.BackgroundThe majority of banks just reported first-quarter earnings and showed little increase in problem loans, non-accruals or charge-offs. Of course, the lockdowns from the pandemic had just started on March 31, too early to see loans even 30 days past due. Normally I would say, it's too early to see which banks are swimming naked. That is, which ones had loose under Show less Read more
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