Author: Mary Pat Campbell

Citi Can’t Have Its $900 Million Back

Mary Pat Campbell

Link: https://www.bloomberg.com/opinion/articles/2021-02-17/citi-can-t-have-its-900-million-back

Excerpt:

I wonder how many Highly Regulated Excel Spreadsheets there are in the financial industry. Thousands, surely. There you are, doing your job, in your Highly Regulated Excel Spreadsheet. And you get some result you don’t like and you say, well, I dunno, I’ll just multiply everything by 1.02, that seems fine. And then years later regulators are like, no no no, that was a Highly Regulated Excel Spreadsheet, the column labels were sacrosanct, you can’t just type whatever you want there. But of course you could just type whatever you wanted there, because it was in Excel and that’s how Excel works.

Author(s): Matt Levine

Publication Date: 17 February 2021

Publication Site: Bloomberg

Memo To Congress Re Pending Aid To States: America Cannot Bail itself Out – Wirepoints

Mary Pat Campbell
Memo To Congress Re Pending Aid To States: America Cannot Bail itself Out – Wirepoints

Excerpt:

In all the debate about the pending federal aid package for cities and states, you’d think something so obvious would have been said often, but it hasn’t been: America cannot bail itself out.

Bailing the nation as whole out is exactly the idea behind the $350 billion package of federal aid proposed in the American Rescue Plan now pending in Congress. It would provide $220 billion to state governments and $130 billion to local governments.

The allocation is based on population – so far, at least, in the pending bill. For example, Illinois has about 3.9% of the nation’s population, so it would get about $13.6 billion of state and local money, which is about 3.9% of the $350 billion.

Author(s): Mark Glennon

Publication Date: 17 February 2021

Publication Site: Wirepoints

Underwriting in China – A Digital Transformation

Mary Pat Campbell

Link: https://www.genre.com/knowledge/publications/ri21-2-en.html

Excerpt:

The Life insurance market in China has grown tremendously with premiums increasing nearly three-fold from RMB1.06 trillion in 2010 to RMB2.96 trillion in 2019. With a population now close to 1.4 billion, the insurance penetration – which has grown to 4.6% – is still far from that of developed countries. Together this represents a business development opportunity because we expect the trend of growth in the insurance market to continue.

In anticipation, insurers in China began to move their underwriting from a paper process to an online one approximately three years ago. Today the bulk of transactions are paperless, except for a small volume of bank channel applications. However, given the huge daily volume of new business, insurers still have an urgent need to improve their processes further. While we are not suggesting a major overhaul of underwriting is needed, there is room to incorporate innovative ideas that address various pain points, provide a smoother customer experience while still balancing risk management needs.

Author(s): Orchis Li, Life/Health General Manager, Hong Kong; Dr. Celia Zhang Ying, Life/Health Regional Chief Underwriter & Senior Medical Officer, Shanghai

Publication Date: February 2021

Publication Site: Gen Re

As Federal Aid Stalled, State And Local Governments Issued Bonds To Pay Current Bills

Mary Pat Campbell

Link: https://www.forbes.com/sites/lizfarmer/2021/01/30/as-congress-stalled-on-a-relief-package-governments-relied-on-borrowing-to-pay-the-bills/?

Excerpt:

Between August and mid-December of 2020, at least one-quarter of large bond issuances in the municipal market involved some form of deficit financing, according to an analysis by Municipal Market Analytics (MMA). The firm analyzed 442 municipal bond issuances that totaled at least $100 million.

MMA’s Matt Fabian and Lisa Washburn added that their tally was conservative and that as many as half of those 442 issuances may have involved deficit financing because the ultimate use of the money wasn’t always clear.

“These are not typical uses of the municipal bond market, where an overwhelming majority of financing is for long-term infrastructure projects,” they told the Pew Charitable Trusts. “But last year, with state and local governments seeking as much as possible to avoid cutting spending, raising taxes, or postponing pension payments, they shifted their emphasis to short-term and temporary solutions. As the pandemic continued and federal stimulus money dried up, they increasingly took on debt for budgetary help.”

Author(s): Liz Farmer

Publication Date: 30 January 2021

Publication Site: Forbes

Bitcoin Trades Above $50,000 for First Time

Mary Pat Campbell

Link: https://www.wsj.com/articles/bitcoin-trades-above-50-000-for-first-time-11613479752?st=5sdazs17y4me06r&reflink=article_gmail_share

Graphic:

Excerpt:

Bitcoin topped $50,000 for the first time Tuesday, doubling in value in less than two months.

The digital currency traded as high as $50,584.85, before closing at $48,642.45, according to CoinDesk, up 0.95% for the day and 68% for the year, with a total market value in circulation close to $909 billion.

The $50,000 level is an “emotional level for people in the space,” said Brian Melville, head of strategy at trading firm Cumberland. But it is also a simple result of supply and demand, he added.

From August through December, about 150,000 new bitcoins were minted, he estimated. The firm calculated that about 359,000 bitcoins were bought in the same period, and that imbalance has continued in 2021. “It’s a really important metric to watch,” he added.

Author(s): Paul Vigna and Caitlin Ostroff

Publication Date: 16 February 2021

Publication Site: Wall Street Journal

NY reveals 59% of Onondaga County’s Covid deaths are senior care facility residents

Mary Pat Campbell

Link: https://www.syracuse.com/coronavirus/2021/02/ny-reveals-59-of-onondaga-countys-covid-deaths-are-senior-care-facility-residents.html

Excerpt:

Residents of nursing homes and other long-term care facilities for seniors account for 59% of Onondaga County’s total Covid-19 death toll, according to data the state released for the first time over the weekend.

…..

The new data shows nursing home resident deaths account for 52 percent of Onondaga County’s 626 Covid-19 deaths. Before the state released that data, a Syracuse.com investigation estimated that total deaths of nursing home residents were 50% higher than reported by the state and that they accounted for about 60% of all local deaths. Shortly after that story was published, the state Attorney General’s office issued a report that said the state underreported nursing home deaths by 50%.

The new data for the first time gives a breakdown of Covid-19 deaths among residents of Onondaga County assisted living facilities and adult care homes. These facilities provide non-medical services to adults unable to live independently. The data shows 40 residents of these facilities in Onondaga County died of Covid-19 as of Feb. 6. Those deaths combined with nursing home resident deaths total 367, or 59% of the county’s 626 Covid-19 fatalities.

Author(s): James T. Mulder

Publication Date: 8 February 2021

Publication Site: syracuse.com

MetLife Sees a Baby Bust

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/08/metlife-sees-a-baby-bust/?kw=MetLife%20Sees%20a%20Baby%20Bust

Graphic:

Excerpt:

Analysts at the Brookings Institution have predicted, based on consumer surveys and demographic data for the period following the 1918 influenza pandemic, that the number of U.S. births could fall by about 300,000 to 500,000 this year, because of health concerns and the effects of the pandemic on the economy.

MetLife has an indication that the Brookings analysts are correct: Enrollees in the group short-term disability plans MetLife runs for employers are filing fewer pregnancy-related STD claims.

MetLife sells employers group STD coverage, and it also administers group STD plans for employers that choose to self-insure.

STD claims for pregnancy-related leave fell 20% between the fourth quarter of 2019 and the fourth quarter of 2020, according to Phil Bruen, a senior vice president for group life and disability product management at MetLife.

Author(s): Allison Bell

Publication Date: 8 February 2021

Publication Site: Think Advisor

Biden Says Vaccine Will Be Available To All Americans By The End Of July

Mary Pat Campbell

Link: https://www.forbes.com/sites/andrewsolender/2021/02/16/biden-says-vaccine-will-be-available-to-all-americans-by-the-end-of-july/

Excerpt:

At the start of the town hall, Biden told moderator Anderson Cooper that the U.S. will have “over 600 million doses” of coronavirus vaccine by the end of July, which he said would be “enough to vaccinate every single American.”

Biden emphasized that his deadline refers to vaccine availability, not the number of vaccines administered, a key distinction considering the logistical pitfalls that have hampered some states’ vaccine rollouts.

Author(s): Andrew Solender

Publication Date: 16 February 2021

Publication Site: Forbes

Wisconsin Task Force Recommends State-run Retirement Plan

Mary Pat Campbell

Link: https://www.asppa-net.org/news/wisconsin-task-force-recommends-state-run-retirement-plan

Excerpt:

If the recommendations of the Wisconsin Retirement Security Task Force are followed, the Dairy State could join others that have implemented a state-run plan to provide coverage for workers whose employers do not offer a retirement plan.

The task force, headed by Wisconsin State Treasurer Sarah Godlewski, issued its report on Feb. 10. The task force makes a variety of recommendations, including establishing a state-run program dubbed “WisconsinSaves.” Gov. Tony Evers (D) had signed Executive Order 45 on Sept. 16, 2019, creating the task force to address retirement security in the state.

The Situation

“Wisconsin is in trouble when it comes to retirement security,” says the report, adding that “even before the COVID-19 pandemic, our retirement system was not working for a significant number of Wisconsin workers.” It notes that in 1983, traditional pension plans covered 62% of employees in Wisconsin, but that by 2016, that had shrunk to 17% of them. In addition, the task force says, AARP found that:

Author(s): JOHN IEKEL

Publication Date: 16 February 2021

Publication Site: ASPPA

Police pension fund has a big 2020

Mary Pat Campbell

Link: https://www.valleybreeze.com/2021-02-16/north-providence/police-pension-fund-has-big-2020#.YCz9RGhKg2w

Excerpt:

NORTH PROVIDENCE – The town’s police pension fund last year gained more than 10 percent, or $4.7 million, says Mayor Charles Lombardi, a huge year for a fund that was once in tatters.

The Breeze reported back in September 2013 that the town’s injection of $20.6 million from the Police Department’s $60 million winnings in a settlement with Google a year earlier had pushed the fund to more than 95 percent funded.

The state’s 2019 report on locally administered pension plans showed that the fund lost about 8.1 percent on its funded status from 2012 to 2018, to 86.8 percent, and that number was about 88 percent last year, said Lombardi. He said the town’s actuary hasn’t completed its work yet, but he’s hoping that funding status could reach 90 to 92 percent with this latest positive news.

Author(s): Ethan Shorey

Publication Date: 16 February 2021

Publication Site: Valley Breeze

Springfield will make extra payment to police, fire pension funds

Mary Pat Campbell

Link: https://newschannel20.com/news/local/springfield-will-make-extra-payment-to-police-fire-pension-funds

Excerpt:

The City of Springfield is going to make an extra payment to their growing fire and police pension funds, but this is only going to make a small dent in the overall pension costs.

During the Springfield City Council meeting on Tuesday. Feb. 16, the aldermen voted in favor of making a $589,323 payment to the police and fire pension funds.

The reason they can make this move is because their corporate fund balance was over 20% after closing the books on Fiscal Year 2020 last August, but Springfield Mayor Jim Langfelder said this is small.

Author(s): Tessa Bentulan

Publication Date: 16 February 2021

Publication Site: News Channel ABC 20

Joint motion filed in St. Clare’s pension case

Mary Pat Campbell
Joint motion filed in St. Clare’s pension case

Excerpt:

It’s been a little over two years since 1,100 former St. Clare’s health care workers learned they were no longer receiving their pensions.

The legal battle continues, after a lawsuit has been filed against the Albany Roman Catholic Diocese, the St. Clare’s Corporation, and two local bishops.

Attorney General, Letitia James, is also launching a separate investigation. But now, a joint motion has been filed between the lawyers working on behalf of the pensioners and the Attorney General’s Office to compel the defendants to produce documents and information.

Author(s): Jamie DeLine

Publication Date: 16 February 2021

Publication Site: ABC News 10