Bobby Bean

How Do We Resolve Late Changes To Aggregate Direct Loan Totals For 2023-24 Pushed ISIRs? The following was posted to the FSA Tech listserv on April 18, 2024: "NSLDS identified an error with the calculation of Aggregate Loan Totals due to duplicate Capitalized Interest amounts. NSLDS deducts Capitalized Interest from an Aid Recipient’s Outstanding Balance when determining if a student is close-to or exceeding their Aggregate Limits. This issue was corrected by NSLDS, and all affected loans were cleaned up on April 7, 2024. However, since NSLDS removed a deduction to an Aid Recipient’s Outstanding Balance, Aggregate Loan Totals generally increased. Thus, schools are currently receiving revised ISIRs for the 2023-24 Award Year containing accurate and current Aggregate Loan information. Users should contact the NSLDS Customer Support Center at 1-800-999-8219 or [email protected] for questions about this or other NSLDS issues." According to the U.S. Department of Education (ED), NSLDS is providing the following guidance to impacted schools receiving these updated Institutional Student Information Records (ISIRs) with new aggregate loan balances: "If schools have already fully disbursed a student’s loans for the academic year, and they now learn that as a result of this NSLDS error the students inadvertently exceeded an annual or aggregate loan limit, no action is required unless the students now want to receive additional Direct Loans or other Title IV aid. In that case, affected students would have to reaffirm any loan amounts received in excess of the applicable loan limit before they can receive further Title IV aid. Whether or not the students could receive additional Direct Loan funds would depend on individual student circumstances. For example, an undergraduate student who exceeded the $23,000 subsidized loan aggregate limit due to the NSLDS error would not be eligible for additional subsidized loans as an undergraduate, but might have remaining unsubsidized eligibility.” Reference guidance under "Overpayments Created By Inadvertent Overborrowing and Repayments" in Volume 4 of the FSA Handbook, as well as Dear Colleague Letter GEN-13-02.

FDIC CHAIR ON SVB, US 2023 BANK FAILURES Recent speech below. Mentions new FDIC paper on deposit insurance rework. “This experience has focused our attention on the need for meaningful action to improve the likelihood of an orderly resolution of a large regional bank under the FDI Act without the expectation of invoking the systemic risk exception. In light of our experience, we are taking important steps to make reliance on the systemic risk exception much less likely. They include better aligning capital requirements with changes in the value of securities, building loss-absorbing capacity with long-term debt requirements, improving resolution planning at the bank level, and strengthening bank supervision… “In late July 2023, the three federal banking agencies issued a Notice of Proposed Rulemaking (NPR) to implement the Basel III capital rule.9 There are many aspects to this proposal, but one in particular is a step toward addressing one of the key vulnerabilities of the recent failures. Under the proposal, unrealized losses on available for sale securities would flow through regulatory capital for all banks with more than $100 billion in assets. This means that these banks, in order to maintain their capital levels, would need to retain or raise more capital as these unrealized losses occur.” Federal Deposit Insurance Corporation (FDIC) Silicon Valley Bank New York Community Bank (NYCB) Signature Bank First Citizens Bank #firstrepublic #fdic

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ICYMI. This Wk's Top 3 P'cast| The Dunleavy budget legacy so far, we explain why Alaskans should no longer trust the Permanent Fund Corporation & how the Hilcorp tax loophole keeps growing. #akleg https://lnkd.in/g63_dbEi

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With new information clarifying the previous thesis and providing new insights, I have become even more confident about PFBC's long-term prospects and competitive advantages. Notably, understanding the core business, for PFBC, Mini-Perm Loans dynamics, is very important—Chinese Americans are generally long-term stable depositors who have an extremely low appetite for applying for loans (especially housing related loans) and taking risks. This helps to clarify our most important debating point: whether moving out of the Chinese American community and expanding into the mainstream market will hurt PFBC's competitive advantage. The answer is "no" as mainstream borrowers contribute most of the loan side. This makes me reflect: understanding the business is critical for forming a more objective and informative thesis. Business sounds easier to analyze but actually has a lot of details where a little difference can make the understanding very wrong. Therefore, we should continue to learn and: Stay Humble

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