Newsroom
5 things to know on coronavirus
NAFCU's widely-read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources related to the economy and recent Fed actions, retirement investments, and more.
But first, some good news
Although the coronavirus pandemic sidelined the 2020 Long Island Special Olympics, through the support of Jovia Financial Credit Union and others in the Long Island community, the New York State chapter of the organization will provide an "at home" competition for athletes to train and compete against one another.
As a long-time sponsor of the Long Island chapter and Silver Partner to the Special Olympics New York, Jovia has provided needed funds to help create training and competition components.
1 in 5 laid off, furloughed due to coronavirus
More than one in five Americans have reported being laid off or furloughed since the onset of the coronavirus pandemic according to the latest Financial Times-Peterson Foundation US Economic Monitor. The poll also found one-third of respondents don't expect to be rehired or retained, with more than three in four indicating its's important for their personal financial situation
Additionally, a growing number of Americans, represented in 58 percent of respondents, think it will take a year or longer for the U.S. economy to fully recover. NAFCU Chief Economist and Vice President of Research Curt Long is monitoring the economic impacts of the pandemic (see recent economic reports here) and has a report available to member credit unions to help identify jobs in their communities that are most vulnerable.
Fed expands horizons
In a 5-0 vote, the Federal Reserve Board Wednesday approved to expand its $500 billion emergency program to support state and local governments. Under the expansion, all states will be allowed to have at least two cities or counties eligible to access the program regardless of population.
NAFCU has continuously advocated for measures that would provide credit unions with relief related to liquidity during the coronavirus pandemic. Following the NCUA's interim final rule to enhance credit unions' ability to access and use the agency's central liquidity facility, the association urged Congress to make the changes permanent.
DOL issues letter on private equity investments
The U.S. Department of Labor has issued a new letter under the Employee Retirement Income Security Act (ERISA) related to private equity investments as a part of professionally managed asset allocation funds offered as an investment option for 401(k) participants.
“This Information Letter will help Americans saving for retirement gain access to alternative investments that often provide strong returns,” said U.S. Secretary of Labor Eugene Scalia in a statement. “The Letter helps level the playing field for ordinary investors and is another step by the Department to ensure that ordinary people investing for retirement have the opportunities they need for a secure retirement.”
Access the information letter.
Could this be the end of one movie theater giant?
In a public filling earlier this week, AMC, the world's largest movie theater chain, indicated the economic effects of the coronavirus pandemic have significantly undermined its finances and resulted in profound uncertainty regarding the future.
A USA Today article clarifies that the statement does not guarantee that the company will go out of business, but serves as a warning "typically required of publicly traded companies that are facing dire circumstances that jeopardize their business, though many live on." The company has not yet filed for Chapter 11 bankruptcy protection.