“It will be higher than 2.5 percent”
Bank of America Corp., the nation’s second-largest bank, reported rising credit costs Tuesday, as it continues to wade through a challenging economic cycle. via WCNC
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The raid today at Agriprocessors, Inc. meat packing plant targeted individuals who were using stolen Social Security numbers. via 100.3 The Edge — New Rock for Little…
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Mortgage finance company Freddie Mac’s first quarter loss widened to $151 million as the U.S. housing market worsened, though the results were not as poor as expected.
McLean-Va.-based Freddie Mac also said Wednesday it plans to raise $5.5 billion in new capital. Shares of Freddie Mac, the second-largest buyer and backer of home loans, rose more than 6 percent in premarket trading.
The quarterly loss at Freddie Mac was larger than a loss of $133 million in the January-through-March period last year. The results were equivalent to a loss of 66 cents a share, compared with 35 cents a share a year earlier. Read more
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“This is the largest operation of this type ever in Iowa. Agents and officers from federal state, and local agencies are involved today”
CHICAGO - U.S. immigration agents arrested more than 300 people on Monday at Agriprocessors Inc, a kosher meat plant in Postville, Iowa, amid an ongoing investigation into identification theft, … via Reuters
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“It’s apparent that what they’ve tried so far isn’t working.”
More U.S. homeowners fell behind on mortgage payments last month, driving the number of homes facing foreclosure up 65 percent versus the same month last year and contributing to a deepening slide in home values, a research company said Tuesday.
Nationwide, 243,353 homes received at least one foreclosure-related filing in April, up 65 percent from 147,708 in the same month last year and up 4 percent since March, RealtyTrac Inc. said.
Nevada, Arizona, California and Florida were among the hardest hit states, with metropolitan areas in California and Florida accounting for nine of the top 10 areas with the highest rate of foreclosure, the company said. Read more
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“This process is likely to take some time”
Turmoil in financial markets has eased somewhat, but the situation is still “far from normal,” Federal Reserve Chairman Ben Bernanke said Tuesday.
The central bank has taken a number of unconventional steps - especially since March, when the credit crisis intensified - to help squeezed banks and big investment firms overcome problems and try to get credit flowing more freely again.
Those efforts appear to be paying off and “have contributed to some improvement in financing markets,” the Fed chief said in prepared remarks delivered via satellite to a financial markets conference sponsored by the Federal Reserve Bank of Atlanta in Sea Island, Ga. Read more
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The phone is called the BlackBerry Bold or BlackBerry 9000 and is the next level of smartphones to be out on the market soon. via ClipSyndicate
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“We have patients coming in fewer times”
The economic downturn is hitting roughly one in 10 middle-aged and older Americans especially hard, compelling them to borrow money for everyday living expenses and to seek help from family, friends or … via CBS News
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Failed mortgage broker Wesley A. Snyder asked a federal judge Monday to delay his sentencing for running a Ponzi scheme because his lawyer died two months ago. via Reading Eagle/Reading Times
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“We’ve had a pretty good bull run that carried us up to about 1,400 on the S&P 500 and what we would expect is a little churning here”
Wall Street advanced moderately Monday as a rising dollar cooled some concerns about inflation and helped keep oil prices in check. The Dow Jones industrials at times rose more than 100 points.
The dollar’s gains against other major currencies appeared to help ease some concerns about inflation. A weak dollar can exacerbate price increases, especially since hard commodities like oil become more attractive to investors seeking a hedge against inflation.
The market’s unease about rising inflation and its effect on consumer spending receded somewhat as light, sweet crude wavered, falling 55 cents to $125.41 per barrel on the New York Mercantile Exchange. Oil briefly reached a new trading high of $126.40, but investors seemed shy, for the time being at least, to add to oil’s huge gain of nearly $10 last week. That advance added to concerns about rising prices and their effect on businesses and consumers. Read more
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“Unfortunately, our study found that those who need their 401(k) the most look to be benefiting the least”
Despite extensive efforts to educate workers about saving for retirement, many employees are not doing a good job of managing their company-sponsored 401(k) accounts, a new study indicates.
The analysis of nearly 1 million retirement portfolios found that 69 percent have inappropriate risk or diversification of holdings and 36 percent have worrisome concentrations of company stock. In addition, one-third of savers aren’t putting enough aside to qualify for the full company matching contribution. Read more
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Hundreds of thousands of taxpayers from legal immigrants to soldiers based abroad are missing out on the tax rebates going out to millions of others to stimulate the economy. via KARE-TV Minneapolis
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“Your primary consideration is how long you are very sure that you are going to be in the same place.”
College graduates are saying goodbye to all-night study groups, pizza diets and midafternoon naps. via Hartford Courant
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High investment costs remain out of mind when overall returns are strong. Why sweat decimal points when basking in 20 percent gains? But when returns turn meager or slide downward, hefty expenses become visible … via The Morning Call
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Being your own boss, and working from home. It’s a dream for many…and a reality for a few. via ClipSyndicate
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Federal regulators says they’ve closed ANB Financial National Association banks after discovering “unsafe and unsound” business practices there. via Newsday.com
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“I’m still mastering the English language.”
Lenny Dykstra speaks six languages. The former All-Star lets this tidbit hang in the air for a few seconds, eyes twinkling mischievously, until he can’t hold in the smile any longer. via MSN Money
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05/09/08 With the exception of the ASX200 index, most other major Asian/Pacific indices once again posted three-digit losses at their close. via ClipSyndicate
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We thought the push to privatize Social Security was dead. Failing to privatize Social Security, the administration has slashed the agency’s budget. via People’s Weekly World Online
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COMMENT By Kenneth R. Harney Saturday, May 10, 2008; Page F01 A legal brawl is breaking out over how homes are appraised, at what cost and by whom. via The Washington Post
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“High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy”
A government-backed mortgage bailout is needed, and it must be done right away. Before shouting about all the reasons why taxpayers shouldn’t rescue the profligate who took on more debt than they could handle, … via Daily Herald
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“The big issue is the credit swap business, and they do not have any control over market prices.”
American International Group , after disappointing with a worse-than-expected loss on Thursday, did little to buoy investor spirits on Friday, telling shareholders it does not yet see signs of a rebound in the … via WNED.org
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“I am sure the government is considering their options carefully”
The International Monetary Fund on Friday approved a 3.65-billion-dollar loan to Turkey, the final segment of a three-year stand-by credit worth nearly 10 billion US dollars. via The Age
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“If a site used to have 10 auctions, these days it has 15 or 20″
ELK GROVE VILLAGE, Illinois : The foreclosure crisis is hitting yet another American locale: the self-storage center. via International Herald Tribune
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“While we anticipated a difficult trading environment, the severity of the unrealized valuation losses and decline in value of our investments were beyond our expectations”
By STEPHEN BERNARD The Associated Press Thursday, May 8, 2008; 5:32 PM NEW YORK — American International Group Inc. via Washington Post
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Pending home sales dropped to a new low in March, an industry group said Wednesday, signaling the housing slump has yet to bottom out even as the spring sell season gets under way. via PR-inside.com
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Q. When will I get my payment? A. Payments are going out now for those returns processed by April 15 and will continue on a weekly schedule through mid-July. See the payment schedule for both direct deposit and … via WHNT-TV Huntsville
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05/08/08 While awaiting news of what the European Central Bank is going to do with interest rates, the US dollar gained ground in trading against the euro. via ClipSyndicate
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New Hampshire residents who pay their rents on time are losing their homes as fast or faster than homeowners who default on mortgages. via WLBZ
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Families facing having their house repossessed because of the credit crunch will get free legal help to avoid losing their homes, the Government has announced. via Daily Express
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The state Assembly has passed legislation to impose a one-year delay on foreclosures after a homeowner defaults on mortgage payments. via PressConnects.com
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“Taking into consideration strong net inflows and stable margins, the segment is poised for future growth as markets go back to normal.”
German insurer Allianz SE said Friday first-quarter net profit fell 65 percent due to difficult market conditions as it wrote down $1.3 billion tied to the U.S. subprime crisis.
Allianz, which also owns Dresdner Bank, said net profit for the January through March period came in at 1.1 billion euros ($1.69 billion) compared with 3.2 billion euros in the same quarter a year ago.
The news sent Allianz shares down nearly 2 percent to 128.48 euros ($197.18) in Frankfurt morning trading.
Allianz said it marked down 845 million euros ($1.3 billion) at its banking business as a result of its asset-backed securities, which combines various slices of mortgage-backed securities. The market for subprime mortgages, those made to people with less than stellar credit, began to collapse last summer. Banks have written of billions as a result as they revalue holdings. Read more
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The House of Representatives is due on Wednesday to begin debating a housing rescue package that could see the government buy up $15 billion of abandoned homes and help an estimated half million homeowners … via WTKS-AM Savannah
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“Coupled with higher delinquency and foreclosure rates, a smaller share of families own their homes this year.”
By MARTIN CRUTSINGER The Associated Press Thursday, May 8, 2008; 2:59 PM WASHINGTON — Rates on 30-year mortgages edged down slightly this week, but remained above 6 percent for the third straight week. via The Washington Post
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“Part of the review is likely to be focused on ensuring banks diversify their funding sources and lengthen the maturity structure of their debt”
CALMING MEASURES: The Reserve Bank is taking special measures to try to ensure the banking system has enough liquidity in case of further international financial market turbulence. via The Nelson Mail
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“Conditions in mortgage markets remain quite difficult”
A rising tide of late mortgage payments and home foreclosures poses considerable dangers to the national economy, Federal Reserve Chairman Ben Bernanke warned anew Monday as he urged Congress to take additional steps to alleviate the problems.
‘High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy,’ Bernanke said in a dinner speech to Columbia Business School in New York. ‘Therefore, doing what we can to avoid preventable foreclosures is not just in the interest of lenders and borrowers. It’s in everybody’s interest,’ he said. Read more
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Shares of machinery companies fell Tuesday along with the broader market on disappointing earnings news and a jump in oil prices. via International Business Times
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Shares of Countrywide Financial Corp. tumbled Monday after one Wall Street analyst said Bank of America Corp. via 680News
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“The upsetting reality is that the current bankruptcy system routinely forces borrowers to pay bloated amounts and permits mortgage servicers to misbehave without serious consequence”
Mortgage lender Countrywide Financial Corp., which is under investigation for inflating certain borrowers’ fees, acknowledged Tuesday that it has made errors and pledged to take steps to improve its operations. via The Modesto Bee
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“This survey reflects the high level of angst among banks involving the erosion of credit quality, rising delinquencies, foreclosures and defaults”
The Federal Reserve reported Monday that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis. via Kentucky.com
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05/06/08 Shareholders want Yahoo Executives to turn around the company. via ClipSyndicate
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“The House has allowed them to do that. Specifically (House rules) say that the House member has complete power over that aspect of their office funds.
“Those rules give the legislators so much leeway.”
The Legislature’s long-standing practice of hiring full-time employees at part-time hours and pay may be nearing an end just as the issue becomes a political football for state lawmakers.
The Austin American-Statesman has reported that at least 12 House employees are paid less than $300 a month and work other jobs, but have been enjoying the insurance and pension benefits of full-time employment.
As lawmakers were asked to remove the so-called ghost employees from their payrolls, investigators began an inquiry into what rules or laws may have been broken after the newspaper report last week put the practice in the public spotlight for the first time. Read more
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Fannie Mae said Tuesday it lost $2.2 billion in the first quarter as home-loan delinquencies mounted and home prices declined more sharply than the mortgage finance company had expected.
The company said it expects ’severe weakness’ in the housing market to continue this year, bringing increased mortgage defaults and foreclosures.
Fannie Mae, the largest U.S. buyer and backer of home loans, said it would raise $6 billion by selling new stock. The company will cut its dividend, starting in the third quarter, to 25 cents a share, to generate around $390 million a year. Read more
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05/07/08 An survey by IBM shows a large number of CEOs see further consumer-driven change down the road, but few say they are equipped to deal with it. via ClipSyndicate
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“We’re eager about the proj ect, very ready”
Sixteen-year-old Trevon Skinner takes a break from pounding nails into a new Gulf Coast home and waves the hammer over his head during a big stretch, unaware that his work is about to get a powerful helping … via Montgomery Advertiser
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Talk of the Town brings you the latest in movie, music and celebrity news. “Iron Man” kicks off the summer box office season in style. via Reuters
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Liam McGee, Bank of America’s president of global consumer and small business banking, chatted with The Associated Press about his thoughts on leading his bank’s retail growth and customers’ perceptions of the … via Ann Arbor News
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Interest rates on U.S. home loans remain high despite serial cuts of official rates by the Federal Reserve. via Australian News
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“I’ve been able to help out a lot of people as well”
With employers cutting thousands of jobs each month amid a slowing economy, many downsized workers decide to start their own small businesses. via Chicago Tribune
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Dann, a Democrat, says he’s “embarrassed” and has “taken responsibility” for what he’s done. via WCTV Tallahassee
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Some East Bay residents are calling on three national banks to renegotiate their mortgages to help them avoid losing their homes.
About two dozen people protested outside the Antioch branches of Countrywide, Wachovia and Washington Mutual on Friday.
The protest was organized by a Contra Costa County interfaith group that wants the banks to convert customers’ risky, adjustable-rate mortgages into 30-year, fixed-rate mortgages to help prevent foreclosures.
A Wachovia spokeswoman says the bank is committed to working with borrowers to reach a solution that will help keep them in their homes. Read more
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“Where’s my stimulus check?” you ask? You could already have it–if you had the foresight to sign up for electronic distribution of your tax return. via Hispanic Business
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“There’s been an enormous market of underserved customers that these new products reach”
Scott Metzger wanted to start a restaurant-microbrewery in San Antonio, Texas. His credit was good. via Springfield News Leader
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Like a spreading infection, restrictions on credit are moving into new and more specialized niches of the mortgage market. via The Morning Call
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“Democrats are also fighting for a second economic stimulus package and are working hard to enact comprehensive housing legislation that will help more Americans avoid foreclosure and hold on to the American Dream.”
President Bush, defending his record and his rhetoric, said Saturday that his administration has been “clear and candid” about the nation’s economy.
“We saw the economic slowdown coming, we were up front about these concerns with the American people, and we’ve been taking decisive action,” Bush said in his weekly radio address.
The president’s comments appeared at least partly in response to a drumbeat of criticism from Democratic leaders, who say his view of the economy is rosy and unrealistic. Read more
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“The resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years”
Linens Holding Co. of Clifton, N.J., filed for Chapter 11 bankruptcy protection Friday to restructure debt on 120 U.S. stores, a company statement said. via KEX-AM Portland
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“We wanted to encourage people to be consumers”
President George W. Bush said the country’s economic downturn was anticipated, which led the push for the stimulus package that Congress passed. via WTVJ Miami Channel 6
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“I don’t know of any CEO that wouldn’t do the job for half the pay they get, maybe a quarter”
OMAHA - Executives at firms badly hurt by their investment in complex mortgage-related credit securities ‘really didn’t have any idea what risks they were involved with,’ investor Warren Buffett told an estimated 31,000 shareholders of his Berkshire Hathaway Inc. investing company here Saturday. Berkshire’s annual stockholder meetings, held every spring in the hometown of the man some people call the ‘Oracle of Omaha,’ always draw a huge crowd: Many come specifically to hear Buffett’s blunt and often tart insights into the markets. Read more
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04/30/08 A new bill before the U.S. Congress will eliminate red tape in an effort to speed up food aid as prices continue to soar. via ClipSyndicate
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“While there will be job openings in all types of jobs over the coming decade, demand will continue to grow for specialized workers in areas related to border and transportation security, emergency preparedness, public health and information analysis.”
Despite the home mortgage crisis and rising fears of a recession, the federal government predicts an overall growth in employment of 11 percent by 2016. via WMUR
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