Most banks have steered clear of the Federal Reserve’s loan program designed to buoy midsize businesses. One Florida lender is diving in.

Miami-based City National Bank of Florida has embraced the Fed’s Main Street Lending Program, which made its first loan this summer. Of the 252 loans issued through the program in its first three months, City National made nearly 100 of them, extending loans of up to $50 million to companies in states as far away as California and Wyoming.

But otherwise the program, which lets banks make loans to businesses and then sell most of the loan to the Fed, has received a lukewarm reception at best. Fewer than 100 banks have used it, as of the end of September, issuing about $2 billion of loans in a $600 billion program. More than $500 million of that was through City National. None of the nation’s largest banks have made one of the loans.

City National, a subsidiary of Chilean bank Banco de Crédito e Inversiones, said it is confident in its lending. “We’re in the risk management business,” City National Chief Executive Jorge Gonzalez said in an interview. The program’s terms, he said, seem more than reasonable, and the bank has made the loans largely to existing customers.

Using the Main Street program leaves a bank with less additional debt on its books and free to make more loans to other borrowers. Banks also earn fees from borrowers for making the loans.

City National made an early decision to sign up for the program, translating the Fed’s lengthy details into easy guides for customers. Loan officers at the 30-branch bank talked to Fed staffers frequently over the summer.

Miami-based City National Bank of Florida issued

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    A super-cool reveal, the impending WWE draft and behind-the-scenes reports surrounding the Money in the Bank briefcase dominate this week in sports-entertainment overreaction.

    But is any of it warranted or are WWE fans, as they tend to do from time to time, jumping to conclusions and reacting instinctively rather than thinking of the long-term effects of the company’s short-term booking decisions?

    Find out as we dive deeper into those topics.

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    WrestleVotes reported Tuesday night that multiple storylines have been pitched regarding Otis losing the Money in the Bank briefcase, but since he is a personal favorite of Vince McMahon’s, it’s a “no go” for now.

    The responses ranged from “I like Otis but…” to “Otis can’t be taken seriously,” with the one constant theme being he never should have won the thing in the first place.

    And he shouldn’t have.

    Otis got over as a lovable midcard babyface who gyrated and did his Caterpillar finisher to roars from the crowd, like Scotty 2 Hotty or Rikishi before him. And as we found out in 2000 when it came time to push Rikishi to the main event, it fell flat. Why? Because he was perfectly acceptable as a crowd-pleasing comedy act but lacked the tools to hang with the top stars on the show.

    Does anyone believe Otis stands a chance against Roman Reigns? Does anyone think for a second that he could stand toe-to-toe with The Fiend and win the Universal Championship? Braun Strowman? Those three characters are totally different beasts. Their credibility is so much higher than Otis’ that it’s almost inconceivable he could share the ring with them, let alone cash in Money in the Bank for the title.

    None of this is his fault, though.

    It was, ironically enough,

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of the main rated insurance subsidiaries of Zurich Insurance Group Ltd (Zurich) (Switzerland). At the same time, AM Best has affirmed the Long-Term ICR of “a” of Zurich (a non-operating holding company). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Zurich’s consolidated balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, very favourable business profile and appropriate enterprise risk management (ERM).

Zurich’s balance sheet strength is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), at the strongest level. The group’s balance sheet strength further benefits from excellent liquidity and good financial flexibility, with demonstrated access to capital markets. A partially offsetting factor is Zurich’s reliance on soft capital components to support its capital position, which include the value of in-force life business and hybrid debt.

Zurich’s strong operating performance is supported by solid returns from its life insurance operations, consistent risk-free income derived from its non-claims management services for Farmers Exchanges (a leading mutual insurance group operating in the United States), and stable investment yields. Additionally, the underlying performance of the group’s non-life business has improved in recent years, driven by stronger underwriting discipline, material cost reduction and a shift in business mix toward shorter tail and specialty lines. As a result, the group had a five-year (2015-2019) weighted average return-on-equity of 10.2%. Zurich’s operating performance was adversely affected by COVID-19-related claims in the first half of 2020, particularly in the business interruption, workers compensation, and travel insurance lines of business. Nonetheless, the group reported a pre-tax profit, highlighting the benefit of its good diversification of revenue streams.

Zurich is

Press release content from Accesswire. The AP news staff was not involved in its creation.

LOS ANGELES, CA / ACCESSWIRE / September 30, 2020 / ( ) has launched a new online guide that presents the top influential factors for auto insurance premiums.

The life of many would be harder without a car. To legally drive on the public roads of the US, drivers need car insurance. Insurance companies will analyze multiple factors before grating coverage to a driver. Some of these factors are under drivers’ control, while others are not.

The most influential factors that affect car insurance are the following:

  • The car drivers choose to insure. Drivers that have a perfect driving history, excellent credit score and they made no claims for a long time, will still pay a large amount of money if the cars they are driving are not considered safe. To lower their insurance premiums, drivers should avoid insuring expensive sports cars, limousines or cars that are considered unsafe by the insurers. Instead, they should insure slightly used minivans, sedans or SUV’s that are already equipped with several safety devices.
  • Driving experience. Drivers who just begun driving will be considered high-risk by the insurers and they will have to pay a lot on their insurance premiums. On the other hand, mature drivers between 40 and 65 years old that have some experience behind the wheel are considered to be the best drivers. For this reason, mature drivers will pay the lowest insurance premiums.
  • Driving history. Even a parking ticket can increase the price of insurance. Policyholders that didn’t receive any traffic fines or caused any car accidents in the past years will pay significantly lower insurance premiums than drivers that have multiple traffic violations in their driving history.
  • Policy

Banks that had declined to take part in the program mentioned “their ability to provide credit to eligible borrowers without the MSLP, as well as unattractive key MSLP loan terms for lenders as reasons for not registering,” the report said.

The results revealed a wide gap between how banks view the Main Street program and how key Fed officials see it.

Eric Rosengren, president of the Boston Fed, which administers the program, said in a Sept. 23 speech that the terms “should be attractive to banks, both because of the fees collected” and because the Fed buys out 95% of every loan.

He then pointed a finger at larger institutions for not participating. “None of the nation’s largest banks, by this metric, are currently active in the program,” he said.

The Main Street program has come in for criticism and scrutiny from lawmakers for so far lending out only about $2 billion of its $600 billion capacity.

The survey also showed banks expect loan inquiries from businesses of an eligible size to increase over the next three months, but “only a modest share of banks expected their willingness to extend MSLP loans to increase over the same period.”

A majority of banks said that potential qualified borrowers had debt levels too high to meet the program’s thresholds, and the required certifications and covenants were too restrictive for borrowers. The loans’ interest rates, five-year maturity and payback schedule were not as important factors.

Some 68% of banks said the program’s $250,000 minimum loan size was not an important factor in rejecting loans or registering for the program. Several lawmakers pressed Fed Chair Jerome Powell, who testified before several congressional committees last week, to lower this amount, saying there was demand for smaller loans.

One potential reason for the lower demand for