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Of thousands of retail workers have been laid off stores are closed and now some chains of just stopped paying rents urban outfitters has mattress firm as well and each of those kinds of decisions has a ripple effect marketplace Merrill segera looks at what happens when businesses just stop paying the rent you can think about this like domino's stores are closed sales have evaporated so a lot of retailers can't pay their rent guess what happens next the landlord of course he doesn't collect rent how is she going to pay the mortgages and the landlord can say as a lender I need a a moratorium on my payments you Kenneth Rosen as chairman of UC Berkeley's Fisher center for real estate so the banks take a financial hit and so do investors like pension funds that put money into mortgage backed securities Rosen says we've seen the dominoes fall before we have recessions what starts out as one thing becomes much more pervasive as the housing crisis in two thousand eight nine showed you who would know that if you have four million people can pay their mortgages would lead to a worldwide Great Recession okay so let's all take a deep breath this scenario is not a foregone conclusion Dan Sheridan at the Hoffman strategy group says yes some landlords are going to fall quickly but some won't you know some landlords have a better ability to absorb some period of time where tenants would not be painful round also are Byron Carlock junior at PWC says he's seeing landlords tenants and banks coming to arrangements for the short term it could be read for parents if the retailer wants to stay open in that particular location he can be allowing tenant to terminate in certain locations and stay open and others and in the cases were no that works out and the banks are left with the losses one piece of good news thanks to the post financial crisis law Dodd Frank thanks have way more of a financial cushion now than they did in two thousand eight only regulation created coming out of the global financial crisis was to have healthy banks and to be able to deal with crises as they come up but how hard the dominoes fall also depends on how long this virus outbreak laughs a Merrill Segarra for marketplace Merrill is talking about the financial cushions that banks have now after the financial crisis in Dodd Frank but as it happens today thirty four the biggest banks in the country giving the federal reserve some data that will let the central bank evaluate how those banks might do in a theoretical crisis stress test is the fridge might heard problem is as market please Justin ho reports in the middle of an actual crisis the fed's theoretical stresses seem a little bit of data under the worst case scenario the fed imagines the economy contracting by nearly ten percent with ten percent unemployment Columbia law professor Katherine judge says not only does today's reality look way worse than that but also those bad outcomes are arriving far far more quickly than the fed had projected the rate of decline to be how fast earlier today former fed chair Janet Yellen said GDP could drop by thirty percent this quarter and UC Irvine law professor Dave Mann says in a situation where many consumers aren't even supposed to leave their houses even the most prudent banker in the world would have trouble at some point in the business of banking is about making loans and if you're making loans and a terrible Connie like this one you're gonna suffer JPMorgan chase's run stress tests of its own CEO Jamie Dimon said in a letter to investors if the economy contracts thirty five percent the bank was still be fine and probably still be able to pay dividends the bank adviser my Rodriguez fights are is it MRV associate says JP Morgan chase and other banks might want to think twice about dividends absolutely every market and macro signal is telling us that there's rising probabilities of default for individuals and especially for companies so banks need to shore up capital to sustain unexpected losses the central bank of Europe in England have pressured financial institutions to stop paying dividends right now so far the fed hasn't I'm just in health marketplace brands and companies right now we're trying.

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