Financial Daily Dose 5.12.2020 | Top Story: Fed Launches ETF Buying in Effort to Aid Credit Markets


For the first time, the Federal Reserve system will begin buying corporate bonds—all part of the central bank’s efforts to “support the economy and financial system in the coronavirus crisis.” The NY Fed will kick things off with hundreds of billions in ETFs, which it views as “a fast way to direct money rapidly into credit markets” – WSJ and Bloomberg and MarketWatch

County orders (and human lives?) be damned. Elon’s reopening his Fremont-based Tesla production facility. Because who wants to wait for court rulings, anyway? – WSJ and Bloomberg and MarketWatch and NYTimes

With America’s banks struggling in their role as the primary conduit for virus-related government aid, some in Congress are working on ideas to “sidestep banks” and distribute much-needed relief via payroll processing companies or the Federal Reserve itself – NYTimes

As the Nasdaq pushes into positive territory and the S&P 500 closed out its best month in 33 years, it’s well worth a reminder that markets DO NOT equal the economy. This increasing chasm between Wall Street and Main Street was around pre-Covid-19, but the past few months have only highlighted the extent of the abyss – NYTimes

The Upshot puts a finer point on the Main Street hardship. Namely, even after stores start reopening en masse and planes start flying again, the “United States will still be facing waves of second- and third-order economic effects that could last years” – NYTimes

All part of why you’ll likely be hearing less about “Vs” and more about “swooshes” when it comes to the recovery – WSJ and MarketWatch

Short-video streaming service Quibi hasn’t exactly hit it big in its debut a month ago. So is it corona’s fault, as co-founder Jeffrey Katzenberg is quick to suggest, or something deeper that’s plaguing the smartphone-only app? – NYTimes

The OCC’s new chief national bank examiner is already looking ahead to the next financial crisis and thinking about what his agency and banks can do prep for the “next recession or economic downturn” – Law360 and Law360

A bit of crystal ball gazing from Law360, which speculates about a coming wave of virus-related white-collar crime—from price-gouging to insider trading  – Law360

PNC Financial, the Pittsburgh-headquartered regional banking group, is withdrawing its 22% stake in BlackRock, “ending a lucrative yearslong wager on the world’s largest money manager” – WSJ and Bloomberg

The SEC is accusing Florida-based investment firm TCA Fund Management Group of “engaging in fraudulent practices for nearly a decade to inflate revenue it told investors and the commission was in its main fund, which financed small- and medium-sized businesses” – Law360

Jerry Stiller was a comedy institution long before he was Frank Costanza. But my God, was he ever Frank Costanza. Serenity now, big guy. Serenity now – TheRinger and Vulture

Stay safe,

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