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President Trump on Saturday signed orders to extend unemployment benefits, suspend payroll taxes, and offer federal eviction and student loan relief, taking unilateral action that is on shaky legal ground amid stalled negotiations about a fifth round of coronavirus relief in Congress, The Hill reported. The president announced the slew of executive actions from his private club in Bedminster, N.J., where he is spending the weekend after lawmakers on Capitol Hill were unable to reach an agreement with White House negotiators. The president was not physically present for any of the talks over the last few weeks, but has said he received regular updates from his staff. One memo extends the enhanced unemployment benefits that expired roughly two weeks ago and have been critical to millions of Americans out of work due to the pandemic. The benefits will be lowered from $600 to $400 per week, with states required to cover 25 percent of the cost, Trump said. Another of the orders directs the Treasury Department to allow employers to defer payment of employee-side Social Security payroll taxes through the end of 2020 for Americans earning less than about $100,000 annually. The text of the executive order states that the intended deferral period would start Sept. 1, but Trump suggested that it could be retroactive to Aug. 1. Trump also said that he hoped to forgive the deferred payroll taxes and make permanent payroll tax cuts if he is reelected in November. Read more. 

In related news, President Trump’s attempt to circumvent Congress to provide coronavirus relief in the absence of a broad agreement resulted in confusion and uncertainty on Sunday for tens of millions of unemployed Americans and countless businesses seeking aid after critical benefits lapsed, the New York Times reported. As negotiations with congressional Democrats remained at an impasse, administration officials were on the defensive a day after the president’s legally questionable executive actions, at times contradicting one another as they sought to explain how the measures would work and how quickly Americans could see any form of relief. In a series of television appearances on yesterday, they insisted that Americans would receive the aid promised by Trump, including a $400 weekly supplement to unemployment checks. But that funding will be contingent on agreement from state officials, who are already struggling amid budget shortfalls caused by the economic crisis, and the siphoning of aid from a federal fund for disaster relief in the middle of what is expected to be an active hurricane season. The series of measures Trump signed on Saturday were intended to revive unemployment benefits, address an eviction ban, provide relief for student borrowers and suspend collection of payroll taxes after two weeks of talks between congressional Democrats and administration officials failed to produce an agreement on a broader relief package. But the patchwork of moves was less significant than what the president described in his news conference, and the plan appeared unlikely to have immediate, meaningful impact on the sputtering economy, in part because it provided no direct aid to struggling businesses. Because Congress has the constitutional authority to allocate federal spending, Trump is likely to need congressional agreement, and legislation, to deliver additional financial relief to American families and businesses. Read more. 

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin yesterday said that they were open to restarting COVID-19 aid talks, after weeks of failed negotiations prompted President Donald Trump to take executive actions that Democrats argued would do little to ease Americans’ financial distress, Reuters reported. Discussions over a fifth bill to address the impact of the coronavirus pandemic fell apart on Friday, a week after the expiration of a critical boost in unemployment assistance and eviction protections, exposing people to a wave of economic pain as infections continue to rise across the country. Trump on Saturday sought to take matters into his own hands, signing executive orders and memorandums aimed at unemployment benefits, evictions, student loans and payroll taxes. Both Pelosi and Mnuchin yesterday appeared willing to consider a narrower deal that would extend some aid until the end of the year, and then revisit the need for more federal assistance in January. The House passed a $3.4 trillion coronavirus support package in May that the Republican-led Senate ignored for weeks before putting forward a $1 trillion counteroffer. Democrats, pushing hard to keep a $600 per week unemployment benefit, which is a supplement to state jobless payments, and deliver more funds to cash-strapped states and cities battered by the pandemic, had offered to meet Republicans halfway to close the $2 trillion gap — a move the White House rejected. On Sunday, Mnuchin urged lawmakers to accept the money the administration was willing to lay out now to help schools reopen, boost local coffers and help the jobless, even if it fell short of Democrats’ goals.

J. Crew Group’s unsecured creditors believe the company is seriously underestimating the value of the business, alleging it is doing so in order to shortchange them on recoveries, YahooFinance.com reported. The valuation gap is a substantial one — more than $1 billion. The unofficial creditors’ committee in the case argues that its experts had conducted an “extensive investigation” of J. Crew’s finances and assets, and found that the company’s enterprise value was roughly $2.94 billion. That estimate places a significantly higher value on the business than J. Crew’s own revised estimate of $1.84 billion. J. Crew’s unsecured creditors argue that the company is worth substantially more than what its lenders are owed. J. Crew’s general unsecured creditors, including trade vendors, landlords and others, estimate they are owed roughly $150 million to $200 million in claims. In a bankruptcy, general unsecured creditors are fairly low in the hierarchy of who gets repaid, and usually stand to recover a fraction of what they are owed. That dynamic often results in contentious discussions around valuations. The creditors’ committee is also seeking to file its expert reports containing their valuation estimates under seal, as it hashes out with J. Crew which of the information contained in the reports needs to be kept confidential, and whether redacted versions of the reports can later be filed publicly.

Without a federal supplement, many of the 30 million Americans relying on unemployment benefits will need to get by on regular state unemployment benefits, which often total a few hundred dollars a week or less, the New York Times reported. For many families, that will not be enough to pay the rent, stave off hunger or avoid mounting debt that will make it harder to climb out of the hole. Households and the broader economy are particularly vulnerable at this moment. Eviction moratoriums are expiring or have expired in much of the country. The Paycheck Protection Program, which helped thousands of small businesses to retain workers, ended Saturday. There are already signs that the economy has slowed down this summer as virus cases have surged in much of the country. On Friday, the Labor Department reported a net gain of 1.8 million jobs in July, a smaller increase than in May or June. Many economists warn that layoffs could begin rising again without more government support. Food banks say they are bracing for a new wave of demand. The economic crisis caused by the pandemic has disproportionately affected low-wage workers who have little in savings. Research from the last recession found that when unemployment benefits ran out, people cut their spending on food, medicine and other necessities, suggesting they were able to do little to prepare for the drop in income. The more generous benefits offered during this recession may have allowed families to save some money, but those savings won’t last long, particularly when food prices are rising at the fastest pace in years.

Learfield IMG College, the multimedia business that owns broadcast rights for many of the country’s leading collegiate sports programs, is preparing for a possible financial restructuring as the coronavirus pandemic curtails athletics nationwide, WSJ Pro Bankruptcy reported. The company has tapped law firm King & Spalding LLP for advice on renegotiating its obligations. Backed by entertainment giant Endeavor Group Holdings Inc. and investment firm Atairos Group Inc., Learfield relies on collegiate sports competitions that are sure to draw fewer fans and dollars in the fall season, if they are held at all. Investors price the company’s $475 million first-lien loan at around 72 cents on the dollar, according to FactSet, indicating concerns about repayment. A $75 million second-lien loan trades at roughly 48 cents, according to FactSet. While Learfield’s core business is in television, radio and sponsorship rights, the company also makes money on signage and displays inside stadiums, as well as ticket sales and concession services. The Plano, Texas, company has multimedia rights to nearly 200 college teams, as well as the Big 12, Big Ten and A-10 conferences. Athletic departments across the country are curtailing sports activities and haven’t reached consensus on how to put on games safely amid the pandemic. Schools are limiting stadium attendance, canceling nonconference play and sequestering athletes to mitigate the risk of contagion.

The largest mall owner in the U.S. has been in talks with Amazon.com Inc., the company many retailers denounce as the mall industry’s biggest disrupter, to take over space left by ailing department stores, the Wall Street Journal reported. Simon Property Group Inc. has been exploring with Amazon the possibility of turning some of the property owner’s anchor department stores into Amazon distribution hubs. Amazon typically uses these warehouses to store everything from books and sweaters to kitchenware and electronics until delivery to local customers. The talks have focused on converting stores formerly or currently occupied by J.C. Penney Co. Inc. and Sears Holdings Corp., these people said. The department-store chains have both filed for chapter 11 bankruptcy protection and as part of their plans have been closing dozens of stores across the country. Simon malls have 63 Penney and 11 Sears stores, according to its most recent public filing in May. It wasn’t clear how many stores are under consideration for Amazon, and it is possible that the two sides could fail to reach an agreement.

White House officials and Democratic leaders ended a three-hour negotiation yesterday without a coronavirus relief deal or even a clear path forward, with both sides remaining far apart on critical issues, the Washington Post reported. “We’re still a considerable amount apart,” said White House Chief of Staff Mark Meadows after emerging from the meeting with House Speaker Nancy Pelosi (D-Calif.), Senate Minority Leader Charles E. Schumer (D-N.Y.) and Treasury Secretary Steven Mnuchin. President Trump called into the meeting several times, but they were unable to resolve key issues. Pelosi called it a “consequential meeting” in which the differences between the two parties were on display. Mnuchin said after the meeting that if they decide Friday that further negotiations are futile, Trump would move ahead unilaterally with executive orders to address things like unemployment aid. Schumer countered that Democrats were “very disappointed” in how the meeting went and that any White House executive orders could be challenged in court. The political standoff comes as more than 30 million Americans are set to miss their second enhanced jobless benefits check in the next few days and millions of others are no longer protected by an eviction moratorium that expired last month. Democrats have sought a $3.4 trillion bill to provide more economic relief, while Republicans have sought a much narrower package. Negotiations have taken place for more than a week, and Mnuchin said that while they have made progress in certain areas, other issues — such as aid to states and cities — remain completely unsettled.

The Federal Reserve’s $600 billion Main Street lending facility had covered less than $77 million in loans to only eight companies near the end of July, further revealing how little reach the program has had, even as millions of businesses vie for survival, the Washington Post reported. The Fed yesterday released a report breaking down each outstanding loan, including the lending bank, borrower and loan amount as of July 27. Of the eight companies, six are in Florida and received loans issued by the City National Bank of Florida. The largest loan, secured by a Pennsylvania casino operator, was for $50 million, followed by a $12.3 million loan to a dental practice in Wisconsin. Other loans, ranging from $5.5 million to $1.5 million, went to a roofing company, a building company and a real estate broker. The Fed’s latest balance sheet yesterday showed $95 million in outstanding Main Street loans, reflecting a slightly larger cumulative tally since July 27. As part of the Fed’s vast portfolio of emergency tools, the Main Street program is meant to provide low-interest loans to midsize businesses. But the facility has been dogged for months by a slow rollout, a bumpy start and little uptake since it went fully operational last month. Struggling businesses say the terms are too onerous and can’t practically serve as a lifeboat in a time of such economic distress. Thousands of banks are eligible to sign up, but many of the country’s largest firms did not sign on initially. None of the loans included in yesterday’s report were issued by major banks.