'Banks Gave Richest Clients ‘Concierge Treatment’ for Pandemic Aid' diff viewer (4/5)

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Banks Gave Richest Clients ‘Concierge Treatment’ for Pandemic Aid	Banks Gave Richest Clients ‘Concierge Treatment’ for Pandemic Aid
2020-06-16 00:53:05 UTC	2020-06-17 01:27:01 UTC (1 day later)
The federal government’s $349 billion aid program for small businesses devastated by the coronavirus pandemic was advertised as first-come, first-served. As many business owners found out, it was anything but.	The federal government’s $349 billion aid program for small businesses devastated by the coronavirus pandemic was advertised as first-come, first-served. As many business owners found out, it was anything but.
That’s because some of the nation’s biggest banks, including JPMorgan Chase, Citibank and U.S. Bank, prioritized the applications of their wealthiest clients before turning to other loan seekers, according to half a dozen bank employees and financial industry executives who spoke on the condition of anonymity because they were not authorized to discuss the banks’ operations.	That’s because some of the nation’s biggest banks, including JPMorgan Chase, Citibank and U.S. Bank, prioritized the applications of their wealthiest clients before turning to other loan seekers, according to half a dozen bank employees and financial industry executives who spoke on the condition of anonymity because they were not authorized to discuss the banks’ operations.
Customers of Citi’s private bank, where the minimum account size is $25 million, didn’t have to use an online portal to apply for a loan; they could simply submit paperwork to their banker, who would put in an application on their behalf. At Chase, the nation’s largest bank, nearly all private and commercial banking clients who applied for a small-business loan got one, whereas only one out of every 15 retail banking customers who sought loans was successful. Some banks provided highly personalized, so-called concierge service to their richest clients by enlisting representatives to walk them through every step and submit their paperwork.	Customers of Citi’s private bank, where the minimum account size is $25 million, didn’t have to use an online portal to apply for a loan; they could simply submit paperwork to their banker, who would put in an application on their behalf. At Chase, the nation’s largest bank, nearly all private and commercial banking clients who applied for a small-business loan got one, whereas only one out of every 15 retail banking customers who sought loans was successful. Some banks provided highly personalized, so-called concierge service to their richest clients by enlisting representatives to walk them through every step and submit their paperwork.
The two-tiered system paid off for well-to-do customers: By the time the Paycheck Protection Program ran out of money last week, many top clients of national and regional banks had already had their loans approved.	The two-tiered system paid off for well-to-do customers: By the time the Paycheck Protection Program ran out of money last week, many top clients of national and regional banks had already had their loans approved.
Other business owners were left empty-handed, and many had struggled from the start. At Chase, a portal accepting preliminary requests to apply was only sporadically accessible on April 3, the first day of the program. The best that customers could hope for was a call back from a Chase representative — days later — to proceed with the next steps.	Other business owners were left empty-handed, and many had struggled from the start. At Chase, a portal accepting preliminary requests to apply was only sporadically accessible on April 3, the first day of the program. The best that customers could hope for was a call back from a Chase representative — days later — to proceed with the next steps.
And a full week after the program’s introduction, Citi’s website was offering retail customers only a chance to submit their names and contact information to express their desire to apply for the program. The bank then reached out to some, but not all, of those customers to invite them to submit full applications; thousands of people never got to apply. Citi’s private banking clients didn’t have to apply online via the portal, according to a person with knowledge of Citi’s operations.	And a full week after the program’s introduction, Citi’s website was offering retail customers only a chance to submit their names and contact information to express their desire to apply for the program. The bank then reached out to some, but not all, of those customers to invite them to submit full applications; thousands of people never got to apply. Citi’s private banking clients didn’t have to apply online via the portal, according to a person with knowledge of Citi’s operations.
A Citi spokesman said that of the 6,573 loans the bank made in the program, in which it agreed to distribute a total of $1.1 billion, five loans went to private bank clients, worth a total of $25 million. A further 470 loans went to commercial banking clients. The spokesman did not provide the total value of those loans.	A Citi spokesman said that of the 6,573 loans the bank made in the program, in which it agreed to distribute a total of $1.1 billion, five loans went to private bank clients, worth a total of $25 million. A further 470 loans went to commercial banking clients. The spokesman did not provide the total value of those loans.
Banks, including regional lenders like First Horizon, in Memphis, weren’t entirely driven by financial motives in placing wealthy clients first, even though they stood to make bigger fees from bigger loans. Since banks typically have extensive contact with their wealthiest or biggest clients, who do a lot of business, they already had much of their clients’ financial information, making the paperwork easier. On the other hand, banks had to build new mechanisms for processing loan requests from their retail clients.	Banks, including regional lenders like First Horizon, in Memphis, weren’t entirely driven by financial motives in placing wealthy clients first, even though they stood to make bigger fees from bigger loans. Since banks typically have extensive contact with their wealthiest or biggest clients, who do a lot of business, they already had much of their clients’ financial information, making the paperwork easier. On the other hand, banks had to build new mechanisms for processing loan requests from their retail clients.
Banks typically categorize individuals and small businesses as retail customers, while bigger clients such as professional firms are handled through the commercial operation, where they get more personal attention. Private banks serve extremely wealthy individuals.	Banks typically categorize individuals and small businesses as retail customers, while bigger clients such as professional firms are handled through the commercial operation, where they get more personal attention. Private banks serve extremely wealthy individuals.
At JPMorgan, nearly all of the 8,500 commercial and private banking clients who applied for a loan got one. That included companies like the sandwich chain Potbelly and the pharmaceutical company MannKind. At the same time, only 18,000 of more than 300,000 small-business banking customers who applied through Chase’s retail bank, where they normally did business, got loans, according to the bank. In all, Chase handed out $14 billion through the program — more than any other bank, but still less than half of the $36 billion that customers had sought.	At JPMorgan, nearly all of the 8,500 commercial and private banking clients who applied for a loan got one. That included companies like the sandwich chain Potbelly and the pharmaceutical company MannKind. At the same time, only 18,000 of more than 300,000 small-business banking customers who applied through Chase’s retail bank, where they normally did business, got loans, according to the bank. In all, Chase handed out $14 billion through the program — more than any other bank, but still less than half of the $36 billion that customers had sought.
The first tranche of money was distributed in a way that favored larger businesses, according to data from the Small Business Administration. Loans of more than $1 million made up just 4 percent of those approved, but they sucked up 45 percent of the dollars disbursed.	The first tranche of money was distributed in a way that favored larger businesses, according to data from the Small Business Administration. Loans of more than $1 million made up just 4 percent of those approved, but they sucked up 45 percent of the dollars disbursed.
Banks say they will get to more of their small customers when the program reopens. On Tuesday, the Senate approved $320 billion in fresh funding for the program, which is being administered by the S.B.A. The House is expected to approve the funds on Thursday.	Banks say they will get to more of their small customers when the program reopens. On Tuesday, the Senate approved $320 billion in fresh funding for the program, which is being administered by the S.B.A. The House is expected to approve the funds on Thursday.
This time, $60 billion will be set aside for loans through small banks and community development financial institutions, which reach more mom-and-pop customers.	This time, $60 billion will be set aside for loans through small banks and community development financial institutions, which reach more mom-and-pop customers.
At JPMorgan, the two-tiered system was in place as soon as the S.B.A. began accepting applications. When the Treasury Department released guidance to banks just hours before the program opened, leaders of Chase’s retail bank hosted a nationwide conference call to provide workers with directions on how to handle customers, according to two employees of the retail bank.	At JPMorgan, the two-tiered system was in place as soon as the S.B.A. began accepting applications. When the Treasury Department released guidance to banks just hours before the program opened, leaders of Chase’s retail bank hosted a nationwide conference call to provide workers with directions on how to handle customers, according to two employees of the retail bank.
Chase employees were already getting calls and emails from longstanding customers, who thought that their relationships with branch managers and bankers would get them some personal help. On the call, the bank’s leaders told branch employees who normally dealt with customers not to get involved in the application process. If business owners called to ask about their applications — even if they were well-known customers — employees were to tell them not to worry, that their applications were in a queue and would be processed as quickly as possible.	Chase employees were already getting calls and emails from longstanding customers, who thought that their relationships with branch managers and bankers would get them some personal help. On the call, the bank’s leaders told branch employees who normally dealt with customers not to get involved in the application process. If business owners called to ask about their applications — even if they were well-known customers — employees were to tell them not to worry, that their applications were in a queue and would be processed as quickly as possible.
Meanwhile, far wealthier clients in another part of JPMorgan’s sprawling operations were getting the kind of personal attention that the small-business banking customers had sought. These were clients of the private bank — people with at least $10 million in assets — or customers who had gotten loans through JPMorgan’s commercial bank.	Meanwhile, far wealthier clients in another part of JPMorgan’s sprawling operations were getting the kind of personal attention that the small-business banking customers had sought. These were clients of the private bank — people with at least $10 million in assets — or customers who had gotten loans through JPMorgan’s commercial bank.
A JPMorgan employee was assigned to those customers to shepherd their applications through the process, providing what one person familiar with the operation called “concierge treatment.” They never had to wait for an online portal. They never found themselves in a backed-up queue.	A JPMorgan employee was assigned to those customers to shepherd their applications through the process, providing what one person familiar with the operation called “concierge treatment.” They never had to wait for an online portal. They never found themselves in a backed-up queue.
“We worked as quickly as possible in a race against time, volume and manual processes,” said Patricia Wexler, a JPMorgan spokeswoman, in response to questions about how the bank handled customers’ loan requests. “We will work diligently with the S.B.A. and Treasury to serve as many small businesses as possible.”	“We worked as quickly as possible in a race against time, volume and manual processes,” said Patricia Wexler, a JPMorgan spokeswoman, in response to questions about how the bank handled customers’ loan requests. “We will work diligently with the S.B.A. and Treasury to serve as many small businesses as possible.”
“The banks should be prevented from giving preference,” said Marc Morial, the chief executive of the National Urban League, a civil rights group based in New York. Mr. Morial noted that 80 percent of all small businesses had just one employee, the owner. For African-American-owned businesses, that percentage was closer to 90 percent.	“The banks should be prevented from giving preference,” said Marc Morial, the chief executive of the National Urban League, a civil rights group based in New York. Mr. Morial noted that 80 percent of all small businesses had just one employee, the owner. For African-American-owned businesses, that percentage was closer to 90 percent.
“They’re family-owned and they don’t have C.F.O.s, financial advisers and lawyers,” he said. “It’s not fair that this is about who has the best connection with their banker.”	“They’re family-owned and they don’t have C.F.O.s, financial advisers and lawyers,” he said. “It’s not fair that this is about who has the best connection with their banker.”
~~Updated June ~~12,~~ 2020~~	Updated June 16, 2020
	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Nadeige Choplet, who owns a ceramics studio and gallery in Brooklyn, discovered that Santander had a separate system for some clients only after she informed a business banker there that she was closing the account she’d had for 15 years. Ms. Choplet told the banker she was planning to move her money to another bank, where she thought she might actually have a shot at applying for aid.	Nadeige Choplet, who owns a ceramics studio and gallery in Brooklyn, discovered that Santander had a separate system for some clients only after she informed a business banker there that she was closing the account she’d had for 15 years. Ms. Choplet told the banker she was planning to move her money to another bank, where she thought she might actually have a shot at applying for aid.
For two weeks, she had been calling and making in-person visits to her local Santander branch and speaking with employees, including the branch manager, who knew her well, she said. All of them told her that Santander was not yet ready to take applications. That changed after Ms. Choplet emailed her banker to say she was leaving.	For two weeks, she had been calling and making in-person visits to her local Santander branch and speaking with employees, including the branch manager, who knew her well, she said. All of them told her that Santander was not yet ready to take applications. That changed after Ms. Choplet emailed her banker to say she was leaving.
“All of a sudden the door opened,” she said. Her banker told her she had escalated Ms. Choplet’s file and that the bank would take her application manually. Ms. Choplet said she called the branch manager who had earlier told her repeatedly that no applications were being accepted and asked him if he had known they could be done by hand, in person. He said yes.	“All of a sudden the door opened,” she said. Her banker told her she had escalated Ms. Choplet’s file and that the bank would take her application manually. Ms. Choplet said she called the branch manager who had earlier told her repeatedly that no applications were being accepted and asked him if he had known they could be done by hand, in person. He said yes.