Weekly Global News Wrap: Swiss National Bank likely to keep low policy rate; Goldman Sachs pledges further $250m aid

And Commerzbank rebuffs Cerberus demand for seats in supervisory board.

From Reuters:

The Swiss National Bank is likely to keep its policy interest rate at minus 0.75% until the end of 2021 at least, according to economists polled by Reuters.

All analysts surveyed expected the central bank to stick to its current policy rate when it gives its monetary policy assessment on Thursday. Some did not expect any change until late 2025, as the SNB faces the high value of the Swiss franc, deflationary risks and sluggish economic growth caused by the pandemic.

They also unanimously expected SNB Chairman Thomas Jordan to keep the interest rate on sight deposits, used to put a brake on the franc’s rise, at -0.75%.

From Reuters:

Goldman Sachs has pledged an additional $250m to fund the federal aid program to help businesses hurt by the pandemic, taking the bank’s total commitments to $775m.

The Paycheck Protection Program was launched in April as the US government rushed to get cash to millions of desperate borrowers.

Goldman, which is not an approved small business loan provider in the country, will not issue these loans directly, but rather provide the financing to community development financial institutions and other mission-driven lenders that then loan it out to the clients.

From Reuters:

Commerzbank, under fire for its strategy and leadership, rejected demands by top investor Cerberus for two seats on the German bank’s supervisory board.

Earlier this week, Cerberus launched a public campaign for change at Germany’s second-biggest bank, demanding the seats as well as cost cuts and a strategy shift.

In the launch of its campaign this week, Cerberus complained that the bank had failed to heed its advice after more than 70 meetings with managers. Shares in the bank have fallen about 60% since Cerberus bought a 5% stake in 2017.

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