COVID-19 Updates 5/19

On the Hill

Today, the Senate Banking Committee held the first quarterly CARES Act oversight hearing, with testimony from Treasury Secretary Steven Mnuchin and Federal Reserve Board Chairman Jerome Powell. Chairman Powell stated the liquidity and lending facilities created by the Fed would be stood up by the end of May or possibly into the first couple days of June. Chairman Powell acknowledged that while the TALF would purchase CMBS, there are terms in place to ensure the CMBS is highly rated and that large haircuts are applied. Separately, Secretary Mnuchin was asked about whether newly issued RMBS or CMBS or assets rated below AAA might be included in the TALF program. Secretary Mnuchin stated they continue to look at expanding the assets included based on market impact. Click here for a more detailed summary of today’s Senate Banking Committee hearing.