Yesterday, Sen. Elizabeth Warren, D-Mass., released a modified version of her comprehensive housing reform bill, the American Housing and Economic Mobility Act of 2019. While the updated legislation would not subject credit unions to Community Reinvestment Act (CRA) regulations, the bill would introduce new regulatory burdens for some community chartered credit unions and credit unions that seek to add underserved areas.“We thank Senator Warren for updating her legislation to no longer subject credit unions to CRA regulations, which were designed to prevent banks from engaging in discriminatory lending practices,” said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. “Additionally, we appreciate that the bill seeks allow all types of credit unions to add underserved areas to their fields of memberships. However, we have concerns about the new regulatory and examination burdens that would be placed on credit unions that add underserved areas.“While the bill makes improvements over the previous version, NAFCU continues to have concerns about some of the language as we want to ensure that credit unions that want to assist communities that other institutions have left behind are not subject to new CRA-like regulations, just under a different name. There’s absolutely no reason for credit unions to be subject to new regulations.” ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading »
continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr It seems like every time a sudden and severe shock hits the financial markets, all the fancy hedge fund investment strategies that use monikers like, “Enhanced Return,” or “Alpha Plus” go from being perfectly fine to gone within a month. This has happened in the major market blow-ups in 1998, 2001, 2008, and 2020, with a few notable semi disasters (2002, 2013, 2016) thrown in between. Then, when the dust clears, investors are pulverized, and fund managers close up shop so as not to have to work the next 5 years for free to make up remaining investors’ losses.Naturally, with 2020 being easily the worst economic disaster to hit in nearly a century, the “Alpha” and “Enhanced” hedge fund story has been no different. Recently, one fund run by a very prominent money manager dropped a cool 75% in March. You almost have to try to lose 75% in a month, kind of like Max Bialystock and Leo Bloom in “The Producers.” Many other hedge funds have followed suit, only losing 25% or so. What we find is the same, old story. We find out that the managers with their rocket scientist degrees were, when it comes down to brass tacks, selling puts and calls on an index like the S&P 500 and collecting premiums every month –which was great until the market blew up. Sure, they may have been trading fancy things like “Skew Vol” vs. “VIX” or some other attributes with Greek letters, and no doubt, there were some cool algorithms, but in the end, it was simply selling volatility that blew them up. We call this, “The Picking up Nickels in Front of the Steamroller” strategy.So much of the selling volatility strategies are part of “The Fed has my back” approach to market investing. Let’s face it; the Fed has been supportive of risk for far too long. The increase in their support has been parabolic. This is what leads to long periods of declining volatility and price inflation for risk assets like equities and corporate credit. Pressure builds, as the degree of Fed support increases, and each blow-up tends to be more spectacular than the last. That is why, before the Fed and Treasury came in the markets in March with the message of, “Put the sell button down, we’re going to be buying everything!” the most liquid markets in the world, US Treasury and Agency Mortgage-Backed Securities markets were simply broken. Anyone who relied on leverage through borrowing was being margin called out of existence.
JEFF SCHORFHEIDE/Herald photoAs the second quarter wound down Saturday afternoon, Wisconsin sophomore wide receiver Kyle Jefferson was hit by Minnesota linebacker Simoni Lawrence after receiving a pass over the middle. Jefferson was unconscious when the Wisconsin medical staff reached him. He was taken off the field via ambulance on a stretcher but was able to speak and move his arms and legs by the time he was taken away.“Any time one of your players is injured the way that Kyle was, you become very afraid of bad news and results that may come soon after,” head coach Bret Bielema said. “But preliminary reports are very, very encouraging.”Jefferson was tested for head and neck injuries following the hit. He was released from the hospital Sunday after it was determined he suffered a concussion.Anderson has career dayLast week, sophomore wide receiver Isaac Anderson was praised by his coaches for his impressive downfield blocking abilities. Saturday, Anderson did a little more than just block. He finished the game with a career-high 114 yards on six catches.“Any receiver is waiting for a game where he can break out for 100 yards,” Anderson said. “It’s just a blessing to have this opportunity to make plays.”His teammates weren’t surprised with the breakout game.“I definitely knew Isaac had this in him,” cornerback Allen Langford said. “Isaac is a guy who’s always working hard. Even when I’m staying after practice, Isaac wants to come and work with me.”Anderson dropped a ball in the second quarter that could have been a 63-yard touchdown.“I just dropped it, flat-out,” he said. “No excuse. It’s a ball I should have caught.”But he rebounded on the very next snap, converting a first down on a pass over the middle.“I just really thank the coaches for giving me another opportunity to make another play,” Anderson said. “I appreciate the opportunity that (offensive coordinator Paul) Chryst gave me the very next play, gave me a nice little slant pattern. I got a confidence boost from that also.”Anderson also connected on a fourth-quarter 39-yard strike from Dustin Sherer that was initially called a touchdown, but was overturned after further review.“We lined up and (wide receiver David Gilreath) said, ‘This ball’s coming to you,’ and luckily it did,” Anderson said.Jump Around battleDuring the famous Jump Around tradition between the third and fourth quarters, both the Wisconsin and Minnesota sidelines started to get riled up, almost egging each other on.“(Defensive line) coach (Charles) Partidge told us, ‘If they’ve got more guys jumping around than we do, it’s a problem,’ so we all were jumping around,” defensive end O’Brien Schofield said. “Coach Partridge started jumping around, and it just became a battle from sideline to sideline.”“It was almost like we were competing,” safety Chris Maragos added. “Everybody kept inching closer.”Although Bielema had to settle things down, the scuffle did seem to light a fire under the home team, which outscored the visiting Gophers 18-8 in the final frame.“The way that crowd reacted to start the fourth quarter was huge and something our kids really fed off of,” Bielema said.