Risk Rap

Rapping About a World at Risk

Conference Call with Hank

National Federation of Independent Business (NFIB) members had an opportunity to participate in a conference call with Secretary of the Treasury Henry Paulson. Mr. Paulson was keen to solicit the support of NFIB members for the passage of the Emergency Economic Stabilization Act, (EESA).

NFIB members are small business owners who are generally very conservative, free market advocates who vigorously support tax relief, oppose regulatory oversight and large governmental spending programs. NFIB member firms are the entrepreneurs, shopkeepers, service providers and small business risk takers who populate the small stores and office space on Main Street USA.

Small business owners are a politically vocal and influential constituency whose support proponents need to gain passage of EESA. Last night EESA passed the Senate. It will now return to the House of Representatives for a vote. Secretary Paulson asked NFIB members to contact congressmen, senators and media to urge support of EESA passage.

Key points raised were as follows:

FDIC deposit insurance limit was raised to $250,000

EESA Bill included riders with tax cuts and other rebate incentives

EESA has a recoupment provision “put” that allows Treasury to sell assets back to banks at a previously agreed upon price

Failure of EESA will curtail community bank lending activity to small businesses

Large businesses and municipalities dependent on credit markets for short term funding will scale back purchases with small businesses

Current Treasury tools are not sufficient to deal with problem

EESA funding (Federal Budget program cuts) will need to be addressed in next budget cycle

Regulatory frameworks of financial services industry need to be streamlined, strengthened and reformed

Mark to Market of toxic bank assets will help to temporarily address bank solvency and capitalization ratios

Music Video: Blondie, Hangin on the Telephone

Risk: bank solvency, credit, interest rates, recession

October 2, 2008 Posted by | credit crisis, EESA, Paulson, pop, TARP, Treasury | , , , , , , | Leave a comment

National Small Business Summit and the Credit Crisis

Sum2 will be participating in this year National Small Business Summit in Washington DC.

The summit sponsored by the National Federation of Independent Businesses, calls together NFIB members and friends to examine and discuss pressing issues and concerns that affect small businesses.

Sum2 will voice a shared concern of many of its clients about the necessity of small businesses to be assured that access to capital during this credit crisis not be threatened. Community banks have an important role to play and government representatives need to be aware of their significance as a primary credit channel for small and mid-size businesses.

Leaders from the world of business and government will be brought together so that a concerted voice that represents the interests of small business can be heard by our elected representatives in the congress and senate.

This years conference will feature key note addresses by, Senator John McCain, Senator John Kerrey, former Press Secretary Tony Snow, former ebay CEO Meg Whitman and Hall of Fame Quarterback and business person Rodger Staubach.

The full summit’s agenda can be viewed here.

Sum2 is a recognized leader in providing risk management innovative solutions to small and mid-size businesses. We are very pleased to be participating in this event and look forward to voicing the concerns of our clients, partners and friends to the elected officials of our representative democracy.

If you have any ideas or suggestions that you would like us to raise please send us a note.

We look forward to hearing from you.

And we’ll keep working for you and our shared interests.

You Tube Video: Vanessa Williams, Work To Do

Risk: small business, political, credit, community banking, representation

June 5, 2008 Posted by | commerce, credit crisis, risk management, SME, Sum2 | , , , , , , | Leave a comment