The newswire citing "five people with direct knowledge of industry discussions".
- main concern is that the Treasury Department has said it expects lenders to verify borrower eligibility, and take steps to prevent fraud, money laundering and protect customer information under the Bank Secrecy Act, sources said. Banks are worried they could face regulatory penalties or legal costs down the line if things go awry in the haste to get money out the door, or get blamed for not moving funds fast enough if they perform due diligence the way they would in ordinary times, the sources said.
- After hearing the concerns, Treasury officials are considering withdrawing guidance that instructed lenders to verify borrowers had the specified number of employees on their books, and that their other costs are legitimate, according to two sources. Reuters could not learn which specific banks are thinking about boycotting the program.
Link here to the Reuters story
Aye, that'd be a spanner in the works, sure.
