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Seattle’s Cornish College of the Arts declares financial emergency

Seattle’s Cornish College of the Arts declares financial emergency

Cornish College of the Arts, a 106-year-old private arts school in downtown Seattle, announced this week it’s undergoing a financial emergency, though the president of the school assured the community it’s not planning to close anytime soon.

The school’s Board of Trustees unanimously voted on Oct. 6 to approve a resolution to declare financial emergency and financial exigency, a move Cornish President Raymond Tymas-Jones called a “necessary next step toward our economic recovery and our transition to a new, more sustainable business model.”

“This is a tough time, but with the fortitude and commitment of an extraordinary faculty and staff, I really believe we can come up with a plan that will allow us to recoup and bounce back, so there is no discussion or planning of closing our doors,” Tymas-Jones, who took over as president about two years ago, said Tuesday morning. “Right now, we are taking the steps necessary. That’s why the declaration was made.”

After Cornish transitioned to a 100% remote learning model in March, its enrollment numbers were hit hard, suffering about a 17% decrease, Tymas-Jones said. Last fall, 591 full-time students were enrolled, compared to 479 students this fall, he said. Ninety-two students took a leave of absence, and Tymas-Jones said he wasn’t sure how many were planning to return in the spring.

“Cornish is a tuition-drive institution, so our operating revenue is basically generated through tuition,” he said. Last month, school leaders adjusted the annual budget by about 8% because the college didn’t hit its target of 520 students this fall, which created an “immediate strain,” Tymas-Jones said.

“We have had some employees take a cut in pay. We did apply cost of living increases for staff and faculty, but we have had to make other adjustments in our budget and absorb other reductions

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Italian police arrest woman in Vatican financial scandal

Italian police arrest woman in Vatican financial scandal

A woman who has said she was given hundreds of thousands of euros by a powerful Vatican cardinal to conduct secret intelligence missions for the Holy See in Africa has been arrested by Italy’s financial police.

Cecilia Marogna, 39, was arrested on Tuesday evening in Milan after an international warrant was issued against her by Vatican protectors, according to multiple reports in the Italian press.

The arrest is believed to be the first time the Vatican has ever issued an international arrest warrant through Interpol, and is part of an ongoing criminal investigation into the past financial dealings of officials working inside the Secretariat of State, the Holy See’s central administration office.

Earlier this month Ms Marogna responded to reports that Vatican money had been transferred to a company she controlled in Slovenia by Cardinal Giovanni Angelo Becciu. She told the Italian newspaper Domani that she was employed to establish “a network of high-level diplomatic relations for the Holy See” in Africa.

Details of the payments made to Ms Marogna emerged after Cardinal Becciu, one of the most powerful men in the Vatican who controlled the Secretariat’s finances from 2011 to 2018, was asked to resign by Pope Francis because of allegations against him that the cardinal described as “embezzlement”.

Cecilia Marogna © ROPI

Earlier this year a businessman was charged by the Vatican with various offences including embezzlement in connection with his role in helping a group of Secretariat officials acquire outright a London luxury property development in which Cardinal Becciu had overseen the acquisition of a minority stake in 2014.

Holy See police have conducted several raids on offices and residences inside the Vatican, and several members of staff have been suspended as the investigation continues.

Cardinal Becciu has denied any wrongdoing, has not been charged with any

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PNC Financial (PNC) Q3 Earnings Beat, Provisions Decline

PNC Financial (PNC) Q3 Earnings Beat, Provisions Decline

PNC Financial PNC pulled off third-quarter 2020 positive earnings surprise of 62% on prudent expense management. Earnings per share of $3.39 surpassed the Zacks Consensus Estimate of $2.09. Also, the figure was 15% higher than the prior-year level.

Shares of PNC Financial gained 1.5% in pre-market trading as investors reacted positively to the decline in expenses and lower provisions. A full day’s trading session will depict a better picture.

Moreover, decent fee income aided revenue growth. However, a lower net interest margin and decrease in loans were undermining factors.

Segment-wise, quarterly net income in Corporate & Institutional Banking and Retail banking climbed 4% and 53%, year over year, respectively. Further, the Other segment reported a 69% rise in net income, while the Asset Management Group segment registered a whopping 98% growth.

Fee Income Aids Revenues, Loans Decline, Expenses Fall

Total revenues for the reported quarter came in at $4.28 billion, up 1% year over year. The top line surpassed the Zacks Consensus Estimate of $3.97 billion.

Net interest income declined 1% from the year-ago quarter to $2.48 billion. The fall is attributable to lower yields on earning assets, partially offset by lower rates on deposits and borrowings and higher average earning assets. However, the net interest margin contracted 45 basis points to 2.39% due to lower yields on earning assets, partially muted by lower funding costs.

Non-interest income was up 3% year over year to $1.8 billion on higher asset management, corporate services, residential mortgage and other income. This was partially muted by lower income from consumer services and service charges on deposits.

PNC Financial’s non-interest expenses totaled $2.53 billion, down 4% from the year-ago figure. This decline primarily resulted from the fall in marketing and other costs, partly offset by higher personnel expenses.

Efficiency ratio was 59% compared with

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A Bridge To Economic Recovery: Be Aware Of Financial Stability Risks

A Bridge To Economic Recovery: Be Aware Of Financial Stability Risks

By Tobias Adrian, Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department

Despite a global economic crisis comparable only to the Great Depression, near-term financial stability risks have been contained with the help of unprecedented monetary policy easing and massive fiscal support across the globe. But many economies had pre-existing vulnerabilities – which are now intensifying, representing potential headwinds to the recovery.

Extraordinary policy measures have stabilized markets, boosted investors’ sentiment, and maintained the flow of credit to the global economy. Critically, these measures helped prevent a slowing economy and sliding financial markets from feeding on each other in a destructive vicious cycle.

The rebound in asset prices and the easing in global financial conditions have benefited not only advanced economies, but also emerging markets. In addition, unlike in previous crises, emerging markets this time were also able to respond by cutting policy rates, injecting liquidity and, for the first time, employing asset purchase programs.

Beware of the real-financial disconnect

The significant improvement in financial conditions has helped maintain the flow of credit to the economy, but the economic outlook remains highly uncertain. A disconnect persists, for example, between financial markets – where there have been rising stock market valuations (despite the recent repricing) – and the weak economic activity and uncertain outlook. This gap can gradually narrow if the economy recovers swiftly. But if the recovery is delayed, for example because it may take longer to get the virus under control, the investor optimism may wane.

As long as investors believe that markets will continue to benefit from policy support, asset valuations may stay elevated for some time. Nonetheless, and especially if the economic recovery is delayed, there is a risk of a sharp adjustment in asset prices or periodic bouts of volatility.

Corporate sector vulnerabilities

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Half of Texans are facing financial hardship due to coronavirus pandemic, survey says

Half of Texans are facing financial hardship due to coronavirus pandemic, survey says

Half of Texans experienced some kind of financial hardship because of the ongoing coronavirus pandemic, a new survey finds.

The survey conducted by the Episcopal Health Foundation highlights how the pandemic affects people across the state from different household incomes, race, whether or not they have health insurance and other factors. Nearly 1,900 Texans were surveyed.

“From being uninsured to not having internet access for online school, Texans say these non-medical factors are not only shaping how they’re dealing with the pandemic, they also could be seriously affecting their future health in many different ways,” said Elena Marks, CEO of Episcopal Health Foundation.

Of the 50% of people who experienced financial hardship, roughly 22% of Texas residents, say they are facing “severe hardship,” the survey said, and about 28% of people are facing “moderate hardship.”

Those with less than $50,000 in household income were more likely to experience financial distress than those making more than $50,000, according to the survey. A third of all people surveyed said someone in their home lost a job, business or had work hours reduced.

Those who are deemed essential workers make up about 34% of Texans, the survey said. About 43% of essential workers are Hispanic, 38% are white, and 10% are Black. According to the survey, those who hold essential jobs are more likely to receive government assistance like food programs and Medicaid, and they are less likely to have health insurance.

Medical care was postponed or skipped altogether by 36% of people since the start of the pandemic, the survey found. Most Texans say their mental health is good, but 46% are worried about how stress related to the pandemic has had a negative impact on their health.

Texas continues to have the highest rate of people in the nation without health

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