The $2 trillion stimulus package, which the Senate passed days earlier, aims to expand Federal Reserve liquidity resources and provide financial institutions with some regulatory relief.
Details of the $2 trillion deal were still fluid Wednesday, but lawmakers were closing in on a plan that would aim to put banks and consumers alike on stronger financial footing as they weather the coronavirus pandemic.
Subordinated debt issuance, which took a back seat as bank stocks surged, could regain popularity as growth-minded banks become leery of market volatility.
An affiliate of the private-equity firm Angel Oak is packaging bank-issued sub debt to minimize risk for bondholders. It recently completed its first securitization and has plans to issue two deals a year.
Increased investor appetite and the emergence of specialized debt ratings are expected to spur demand, and community banks are looking for ways to fund expansion and hedge against future economic downturns.
Entegra Financial disclosed that it held First NBC subordinated debt. An impairment charge tied to the bank's failure will lower Entegra's first-quarter results by $441,000.
Ashton Ryan, who had been removed as CEO in December, has still been serving as its president. The company also agreed to sell preferred stock to directors to help it make payments tied to its subordinated debt.
