'As Virus Hobbles Economy, Companies Race to Tap Credit and Raise Cash' diff viewer (11/12)

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As Virus Hobbles Economy, Companies Race to Tap Credit and Raise Cash	As Virus Hobbles Economy, Companies Race to Tap Credit and Raise Cash
2020-06-16 10:00:44 UTC	2020-06-17 02:24:31 UTC (about 16 hours later)
In a single week in March, as financial markets convulsed and major parts of the economy began shutting down, banks made over $240 billion in new loans to companies — twice as much in new lending as they would ordinarily extend in a full year.	In a single week in March, as financial markets convulsed and major parts of the economy began shutting down, banks made over $240 billion in new loans to companies — twice as much in new lending as they would ordinarily extend in a full year.
Brian Foran, an analyst at Autonomous, a research firm that did the calculations, initially thought it was a typo. “That’s really an unprecedented figure,” he said. “I’ve never seen anything like it.”	Brian Foran, an analyst at Autonomous, a research firm that did the calculations, initially thought it was a typo. “That’s really an unprecedented figure,” he said. “I’ve never seen anything like it.”
American companies are reeling from the body blow dealt by the pandemic. As revenues dwindle, travel slows and production lines halt, companies have begun to furlough or lay off employees, slash investment in operations and buy less from their suppliers. With no way to tell when the economy will restart, they are racing to conserve money and tap as much credit as possible.	American companies are reeling from the body blow dealt by the pandemic. As revenues dwindle, travel slows and production lines halt, companies have begun to furlough or lay off employees, slash investment in operations and buy less from their suppliers. With no way to tell when the economy will restart, they are racing to conserve money and tap as much credit as possible.
The new reality, say bankers and analysts, will be tough for companies that had grown accustomed to the easy money of the past decade. Enticed by ultralow interest rates, they borrowed trillions of dollars in new debt in the belief that banks would keep lending and the debt markets would always be open. Now many indebted companies, even those whose business has not taken a direct hit from the outbreak, are finding that they have to adapt to an era in which cash is suddenly much harder to raise.	The new reality, say bankers and analysts, will be tough for companies that had grown accustomed to the easy money of the past decade. Enticed by ultralow interest rates, they borrowed trillions of dollars in new debt in the belief that banks would keep lending and the debt markets would always be open. Now many indebted companies, even those whose business has not taken a direct hit from the outbreak, are finding that they have to adapt to an era in which cash is suddenly much harder to raise.
Carlos Hernandez, the chairman of JPMorgan Chase’s investment banking business, recently told clients and colleagues that the economic shutdown caused by the pandemic could prompt the sort of brutal reckoning for corporate America that banks went through after the 2008 financial crisis.	Carlos Hernandez, the chairman of JPMorgan Chase’s investment banking business, recently told clients and colleagues that the economic shutdown caused by the pandemic could prompt the sort of brutal reckoning for corporate America that banks went through after the 2008 financial crisis.
Mr. Hernandez, from his perch at the nation’s biggest lender, is seeing the potential crisis unfold firsthand, as his bank and others get bombarded with loan requests from companies stocking up on cash. Banks are still lending, but these are bloodcurdling times for corporations.	Mr. Hernandez, from his perch at the nation’s biggest lender, is seeing the potential crisis unfold firsthand, as his bank and others get bombarded with loan requests from companies stocking up on cash. Banks are still lending, but these are bloodcurdling times for corporations.
Consumers “are not spending money on a long list of things,” said Susie Scher, co-head of the financing group at Goldman Sachs. “If you sell or service that long list of things, if you had a weaker balance sheet to begin with, you’re going to find yourself in a deteriorating liquidity position as the economic crisis goes on,” she said, referring to a position from which obtaining cash is difficult.	Consumers “are not spending money on a long list of things,” said Susie Scher, co-head of the financing group at Goldman Sachs. “If you sell or service that long list of things, if you had a weaker balance sheet to begin with, you’re going to find yourself in a deteriorating liquidity position as the economic crisis goes on,” she said, referring to a position from which obtaining cash is difficult.
Already, a divide among haves and have-nots is emerging in corporate America, tied to how cheaply and easily companies can get credit. Seeing this, Congress moved quickly in recent legislation to funnel emergency loans into the United States economy. Still, some types of companies could be shut out entirely from a multitrillion-dollar loan program lawmakers just set up, unless the Federal Reserve relaxes its own rules.	Already, a divide among haves and have-nots is emerging in corporate America, tied to how cheaply and easily companies can get credit. Seeing this, Congress moved quickly in recent legislation to funnel emergency loans into the United States economy. Still, some types of companies could be shut out entirely from a multitrillion-dollar loan program lawmakers just set up, unless the Federal Reserve relaxes its own rules.
Companies that are rated investment grade — meaning that they are the least likely to default on their debts — are having an easier time borrowing from banks or by selling bonds directly to investors via the public markets. Among those, Exxon, Disney and McDonald’s have all ventured into the turbulent markets to sell bonds to public investors recently.	Companies that are rated investment grade — meaning that they are the least likely to default on their debts — are having an easier time borrowing from banks or by selling bonds directly to investors via the public markets. Among those, Exxon, Disney and McDonald’s have all ventured into the turbulent markets to sell bonds to public investors recently.
But companies with lower credit ratings, which make up a significant share of all big companies and include household names like Ford and Macy’s, could find the public markets more expensive. Yum Brands, which has a relatively low, or “junk,” credit rating, set its interest rate at 7.75 percent on the corporate bonds it sold Monday, nearly twice what it was paying a month ago.	But companies with lower credit ratings, which make up a significant share of all big companies and include household names like Ford and Macy’s, could find the public markets more expensive. Yum Brands, which has a relatively low, or “junk,” credit rating, set its interest rate at 7.75 percent on the corporate bonds it sold Monday, nearly twice what it was paying a month ago.
Yum, which owns KFC and Taco Bell, expanded its offering to $600 million from the originally planned $500 million based on strong investor demand, but it may be among the lucky ones. Lower-rated companies play a huge role in the economy. Half of the 1,148 companies in the Russell 3000 stock index that have ratings are below investment grade, according to calculations based on data from CapitalIQ. Last year, these companies employed more than six million people and had revenue of $2.7 trillion.	Yum, which owns KFC and Taco Bell, expanded its offering to $600 million from the originally planned $500 million based on strong investor demand, but it may be among the lucky ones. Lower-rated companies play a huge role in the economy. Half of the 1,148 companies in the Russell 3000 stock index that have ratings are below investment grade, according to calculations based on data from CapitalIQ. Last year, these companies employed more than six million people and had revenue of $2.7 trillion.
To shore up their cash flow, hundreds of companies have chosen to draw from credit lines that banks agreed years ago to make available. Ford, which is still paying back a loan from the federal government made over a decade ago, last week tapped a $15 billion credit line; General Motors has said it would draw down $16 billion. Both have halted North American car production but are repurposing plants and workers to manufacture emergency batches of ventilators to undersupplied hospitals. Macy’s, which said it would furlough most employees, drew down a $1.5 billion credit line in March.	To shore up their cash flow, hundreds of companies have chosen to draw from credit lines that banks agreed years ago to make available. Ford, which is still paying back a loan from the federal government made over a decade ago, last week tapped a $15 billion credit line; General Motors has said it would draw down $16 billion. Both have halted North American car production but are repurposing plants and workers to manufacture emergency batches of ventilators to undersupplied hospitals. Macy’s, which said it would furlough most employees, drew down a $1.5 billion credit line in March.
Even as Mr. Hernandez and other longtime Wall Street executives predict a seismic shift in the way corporations handle financing, their banks — which reduced their own dependency on borrowed money and bolstered their access to cash as a result of new regulations enacted after the financial crisis — continue to lend.	Even as Mr. Hernandez and other longtime Wall Street executives predict a seismic shift in the way corporations handle financing, their banks — which reduced their own dependency on borrowed money and bolstered their access to cash as a result of new regulations enacted after the financial crisis — continue to lend.
Between March 11 and March 18, bank lending surged by $243 billion to a total of $4.1 trillion, according to Mr. Foran, the analyst, who added that the increase occurred as companies tapped the credit they were already entitled to receive from banks as part of prior agreements. Consumer discretionary companies — coffee shop chains, shoemakers, car companies and other nonessential service providers — constituted by far the single-largest proportion of businesses borrowing money from banks, Autonomous noted in a recent report, a direct consequence of the sudden slide in their revenue from virus containment efforts. Industrial companies and real-estate firms, the firm reported, were the second- and third-largest users.	Between March 11 and March 18, bank lending surged by $243 billion to a total of $4.1 trillion, according to Mr. Foran, the analyst, who added that the increase occurred as companies tapped the credit they were already entitled to receive from banks as part of prior agreements. Consumer discretionary companies — coffee shop chains, shoemakers, car companies and other nonessential service providers — constituted by far the single-largest proportion of businesses borrowing money from banks, Autonomous noted in a recent report, a direct consequence of the sudden slide in their revenue from virus containment efforts. Industrial companies and real-estate firms, the firm reported, were the second- and third-largest users.
During the week ending March 18, the most recent week for which data is available, JPMorgan was the most active provider of financing, playing a leading role in an estimated $78 billion worth of credit facilities that were drawn down, according to figures tracked by Standard & Poor’s and Autonomous. Bank of America lent from an estimated $31 billion pool of credit. The companies appear to be putting the cash they draw down back in the banks.	During the week ending March 18, the most recent week for which data is available, JPMorgan was the most active provider of financing, playing a leading role in an estimated $78 billion worth of credit facilities that were drawn down, according to figures tracked by Standard & Poor’s and Autonomous. Bank of America lent from an estimated $31 billion pool of credit. The companies appear to be putting the cash they draw down back in the banks.
Still, some banks have balked at the raft of requests, say market participants — especially those coming from apparently healthy companies with high credit ratings that appear to be drawing down lines of credit largely to burnish their balance sheets in case of future problems.	Still, some banks have balked at the raft of requests, say market participants — especially those coming from apparently healthy companies with high credit ratings that appear to be drawing down lines of credit largely to burnish their balance sheets in case of future problems.
The revolving lines of credit that many companies have “are there as a theoretical safety net,” said David Topper, a senior adviser at the private equity firm General Atlantic and former capital-markets executive at JPMorgan. “You’re not supposed to draw them.”	The revolving lines of credit that many companies have “are there as a theoretical safety net,” said David Topper, a senior adviser at the private equity firm General Atlantic and former capital-markets executive at JPMorgan. “You’re not supposed to draw them.”
~~Updated June ~~12,~~ 2020~~	Updated June 16, 2020
	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Banks are encouraging corporate clients to avoid drawing on bank credit and instead look to public-market financing, Mr. Topper added. “They’ve said, ‘Look, we know you need money, and we’re willing to lend to you, but let’s do it on market terms,’” he said. In other words, banks are pushing companies to consider bond offerings — which cost companies more, both in interest payments to investors and banking fees — instead of drawing their credit lines, for which they pay the banks far less. Companies are willing to take that advice, Mr. Topper said, because they want to preserve relationships with lenders.	Banks are encouraging corporate clients to avoid drawing on bank credit and instead look to public-market financing, Mr. Topper added. “They’ve said, ‘Look, we know you need money, and we’re willing to lend to you, but let’s do it on market terms,’” he said. In other words, banks are pushing companies to consider bond offerings — which cost companies more, both in interest payments to investors and banking fees — instead of drawing their credit lines, for which they pay the banks far less. Companies are willing to take that advice, Mr. Topper said, because they want to preserve relationships with lenders.
Nonetheless, some companies are both drawing on credit lines and raising cash through the public markets in preparation for the uncertainty that lies ahead. McDonald’s, for one, has drawn down $1 billion in credit from JPMorgan and other banks and also sold $3.5 billion in public bonds to counter the fact that “the negative financial impact to our results cannot be reasonably estimated” but may be “material,” according to a regulatory filing.	Nonetheless, some companies are both drawing on credit lines and raising cash through the public markets in preparation for the uncertainty that lies ahead. McDonald’s, for one, has drawn down $1 billion in credit from JPMorgan and other banks and also sold $3.5 billion in public bonds to counter the fact that “the negative financial impact to our results cannot be reasonably estimated” but may be “material,” according to a regulatory filing.
On Tuesday the embattled cruise operator Carnival Corporation began a $6 billion effort to raise cash from sales of stock, bonds and other securities. In a reflection of its current straits, Carnival, which has already drawn on bank credit lines, was selling some of those bonds with a suggested 12.5 percent interest payment to investors.	On Tuesday the embattled cruise operator Carnival Corporation began a $6 billion effort to raise cash from sales of stock, bonds and other securities. In a reflection of its current straits, Carnival, which has already drawn on bank credit lines, was selling some of those bonds with a suggested 12.5 percent interest payment to investors.
Congress’s recent rescue package may fail to close the gap opening up between top-rated companies and those further down the credit scale, making it harder for the economy to recover and for hiring to bounce back. Also, the fraying economy could wallop companies before government agencies can get vast new loan programs set up — a process widely expected to take until mid- or late April, if not longer, for some programs.	Congress’s recent rescue package may fail to close the gap opening up between top-rated companies and those further down the credit scale, making it harder for the economy to recover and for hiring to bounce back. Also, the fraying economy could wallop companies before government agencies can get vast new loan programs set up — a process widely expected to take until mid- or late April, if not longer, for some programs.
The legislation gives the Fed backing from the Treasury Department to provide an estimated $4 trillion of financing to corporations and other borrowers. It does not explicitly rule out lending to companies with ratings below investment grade, but restrictions on the Fed could lead to that outcome. Companies receiving an emergency loan from the Fed can’t be insolvent, and the central bank has to make sure that it has sufficient collateral to back its loans.	The legislation gives the Fed backing from the Treasury Department to provide an estimated $4 trillion of financing to corporations and other borrowers. It does not explicitly rule out lending to companies with ratings below investment grade, but restrictions on the Fed could lead to that outcome. Companies receiving an emergency loan from the Fed can’t be insolvent, and the central bank has to make sure that it has sufficient collateral to back its loans.
The Fed can create some leeway by tweaking rules written after Congress overhauled the emergency lending laws in 2010, some Fed scholars say. One rule — which requires a company to be current on “undisputed debts” in the 90 days before an emergency loan program — would disqualify many companies right now because they’ve stopped paying some bills to stay afloat, said Peter Conti-Brown, assistant professor at the Wharton School of the University of Pennsylvania.	The Fed can create some leeway by tweaking rules written after Congress overhauled the emergency lending laws in 2010, some Fed scholars say. One rule — which requires a company to be current on “undisputed debts” in the 90 days before an emergency loan program — would disqualify many companies right now because they’ve stopped paying some bills to stay afloat, said Peter Conti-Brown, assistant professor at the Wharton School of the University of Pennsylvania.