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November 1, 2011

Regions Bank eliminates new debit card fee

Filed under: loans, uk — Tags: , , , — Gladiator @ 5:00 am

Regions Bank has eliminated a new debit card fee it imposed on some checking accounts this month that was unpopular with customers.

In a statement Monday, the bank said it is eliminating a monthly $4 fee it introduced this month on some checking accounts when a Regions customer used a debit card in a non-ATM transaction.

Now, though, Regions Bank has reversed course, based on customer feedback about the fee. “We have heard from our customers and are responding to their feedback by eliminating the monthly fee for CheckCards,” John Owen, head of Consumer Services for Regions Bank, said in a statement. The bank declined to disclose the number of complaints it received, or whether customers closed their accounts based on the fee.

On Nov. 4, Regions Bank will reimburse customers who were charged the fee.

Birmingham-based Regions is among the largest banks in St. Louis, based on deposits. It has 70 branches in the St. Louis area.

Regions joins other banks in dropping debit card fees. The retail banking arm of JPMorgan Chase & Co., which tested a fee for some checking accounts earlier this year, including a $3 monthly fee for a debit card and $5 for online bill pay, will end that program in November. SunTrust Bank also announced on Monday that it is dropping its monthly $5 debit card fee that was set to take effect this week online pay day loans. Wells Fargo has also cancelled its plans to test a fee structure for debit cards in some states.  

Charlotte, N.C.-based Bank of America, the second largest bank in the U.S. and the second largest bank locally, has come under fire in recent weeks after it announced plans to introduce a $5 monthly fee on some checking accounts when a debit card is used. That fee is set to go into effect in early 2012.

Banks said they were imposing the fees based on new federal legislation that led to a lower cap on what a bank can charge for debit card transactions. As part of the 2010 Dodd-Frank financial reform bill, maximum “swipe fees” decreased from 44 cents to 24 cents, beginning in October.

Some local banks and credit unions welcomed the new debit card fee announcements by their competitors as an opportunity to attract new customers. One recent ad by First Community Credit Union, the biggest credit union in St. Louis, reads: “Why pay for your debit card?” The credit union does not impose monthly fees for checking accounts.

Source

October 28, 2011

NATO announces end of Libya mission

Filed under: loans, real estate — Tags: , , , — Gladiator @ 11:08 pm

NATO has announced it will end its air campaign over Libya next Monday, following the decision of the U.N. Security Council to lift the no-fly zone and end military action to protect civilians.

NATO Secretary General Anders Fogh Rasmussen said on Friday that the operation was “one of the most successful in NATO history,” one which was able to wind down quickly following the death of former Libyan leader, Moammar Gadhafi.

Monitoring air patrols are expected to continue until Monday to make sure there are no more threats to civilians.

NATO’s 26,000 sorties, including 9,600 strike missions, destroyed about 5,900 military targets since they started on March 31.

Source

October 24, 2011

Abu Dhabi firm backtracks on Guggenheim contract

Filed under: loans, online — Tags: , , , — Gladiator @ 2:20 am

The Abu Dhabi company building a branch of the Guggenheim museum in the Emirati capital said Sunday it has temporarily dropped plans to award a major construction contract, raising questions about the future of the high profile project.

The state-run Tourism Development and Investment Co. said it recalled the tender for concrete work on the Frank Gehry-designed museum because it is reviewing its strategy for handing out jobs to contractors. It didn’t say when it would again seek bids.

The Guggenheim is one of the showcase museums TDIC is building on Abu Dhabi’s Saadiyat Island, a planned cultural district overlooking the Persian Gulf. The island is also slated to contain a national museum, performing arts center and a branch of the Louvre.

A spokeswoman insisted Sunday that the Guggenheim project is still moving ahead, but didn’t provide details.

TDIC has previously said it would open the museum by 2013.

Some preliminary groundwork for the 450,000-square-foot museum has been completed. The construction contract now on hold would have involved major work on the museum’s base and other parts of the building.

TDIC has not released the value of that deal free credit score.

TDIC is one of several companies set up by Abu Dhabi to diversify the economy and drive development in the emirate, which borders Dubai to the south.

The money-losing company relies heavily on direct cash infusions from the oil-rich Abu Dhabi government, but it also has turned to banks to fund some of its operations.

TDIC executives traveled to Europe and Asia over the summer to meet with potential investors about the possibility of issuing new bonds, but then put off those fundraising plans.

The Guggenheim project has been a flashpoint for controversy.

In March, more than 130 international artists and writers promised to boycott the museum unless authorities do more to protect workers’ rights at the site. That followed an earlier report by Human Rights Watch that outlined alleged abuses against migrant workers on the project.

TDIC has said it is committed to protecting workers’ rights and has taken on board many of Human Rights Watch’s recommendations.

Source

October 1, 2011

Dow, others fall 12 pct. in quarter

Filed under: Uncategorized, loans — Tags: , , , — Gladiator @ 9:16 am

The stock market’s worst quarter since the end of the financial crisis closed Friday on another down note.

Stocks fell broadly on fresh signs that Europe’s debt problems and the U guaranteed payday loan.S. economy continue to languish. Makers of raw materials, industrial companies and banks

September 29, 2011

Fake iPhone ring busted in China: report

Filed under: loans, marketing — Tags: , , , — Gladiator @ 6:20 pm

SHANGHAI

September 23, 2011

World stocks nosedive after Fed releases gloomy assessment of economy

Filed under: loans, term — Tags: , , , — Gladiator @ 1:44 am

PARIS

August 18, 2011

Target’s 2Q profit rises 3.7 percent

Filed under: loans, term — Tags: , , , — Gladiator @ 8:20 am

Target Corp. is benefiting from the economic downturn, while other retailers are getting battered by it.

The discounter, based in Minneapolis, on Wednesday posted second-quarter profit and revenue that beat Wall Street estimates in part because of a growing frugal trend among Americans who are concerned with job security and other economic woes. Target said that while cost-conscious customers in general are making fewer shopping trips to save money on gas, they’re increasingly coming into its stores for their one-stop shopping needs.

“We do believe that we are gaining some of the trip consolidation,” said Kathy Tesija, Target’s executive vice president of merchandising. “We think we’re benefiting across all income levels.”

Consumers have been changing their shopping habits during the economic downturn as they’re being squeezed by rising food costs, high unemployment and weak job and housing markets. Retailers have had to adapt by keeping inventory fresh, offering incentives and discounting.

Target said its results were buoyed by its push into the grocery business, which allows it to offer customers more food items. The retailer also said it benefited from the 5 percent discount program it launched in October for customers who pay with Target branded credit and debit cards.

Target said profit rose 3.7 percent to $704 million, or $1.03 per share, for the quarter that ended July 30. That compares with $679 million, or 92 cents per share, a year earlier. Revenue rose 4.6 percent to $16.24 billion. Analysts were expecting earnings of 97 cents per share on revenue of $15.9 billion.

Revenue rose 3.9 percent at stores opened at least a year __ a key indicator of a retailer’s health. Target said shoppers bought more clothing and home furnishings, as well as groceries and beauty products. Some shoppers also traded up to higher-end home brands like Fieldcrest.

Looking forward, Target said August sales growth is so far slightly slower than in June and July. But the company said school supplies have been selling well and the heart of the back-to-school selling season is still ahead.

The company forecasts third-quarter profit of 70 cents to 75 cents per share, while analysts expect 72 cents per share. For the full year, Target expects to earn $4 payday loan.15 per share to $4.30 per share, compared with the $4.14 per share analysts expect.

“Without a doubt, recent economic and financial market turmoil create additional uncertainty about what lies ahead,” said CEO Gregg Steinhafel, who expressed caution in speaking to investors during a conference call on Wednesday. “Our teams are vigilant and prepared to address unexpected challenges and opportunities as they arise.”

Target shares rose $1.31, nearly 3 percent, to $50.68. That’s at the mid-point of its 52-week range of $45.28 and $60.97.

Analysts say Target is winning customers from rival Wal-Mart Stores Inc., the world’s largest retailer. Target’s results come a day after Wal-Mart posted its ninth straight quarter of declines in revenue at U.S. Walmart stores open at least a year.

The Bentonville, Ark.-based company, however, reported a 5.7 percent increase in second-quarter profit and raised its outlook for the year, citing strong international sales growth and cost cutting. And al-Mart said it has seen a steady improvement in its U.S. business in the past three quarters.

During a pre-recorded call on Tuesday, Mike Duke, Wal-Mart’s chief executive officer, said his company’s shoppers are being pinched by the economy and “trading down to stretch their budgets.”

But some analysts say customers are trading to Target because they were turned off when Wal-Mart got rid of popular brands and items in an effort to clean up its stores. Moreover, recent surveys, including one from WSL Strategic Retail, show that customers no longer believe that Wal-Mart is the low-price leader.

Wal-Mart has been working to restock shelves with popular items again. It’s also returning to an everyday low-price strategy instead of discounting select merchandise on a temporary basis. But some analysts say it’s too little too late for some shoppers.

“Wal-Mart is getting its lunch eaten,” by Target, said Patty Edwards, a principal at Trutina Financial, an investment management firm. “Wal-Mart’s flip-flopping is confusing shoppers.”

Source

August 6, 2011

A Q&A on S&P’s downgrade of US debt

Filed under: loans, news — Tags: , , , — Gladiator @ 11:48 pm

Standard & Poor’s has taken the unprecedented step of lowering the top credit rating that the U.S. has held for nearly a century. A look at this downgrade, and downgrades in general _ and what they mean:

Q: What did Standard & Poor’s do?

A: The ratings agency downgraded the federal government’s long-term credit rating one level from the top AAA grade to AA+. S&P said political gridlock is preventing the country from dealing effectively with its debt burden.

Q: What does a downgrade mean?

A: A downgrade is a warning to buyers of bonds and other debt that the chance that they won’t get their money back has increased, however slightly. In theory, downgrades should lead to higher borrowing costs for the issuer (in this case, the government), since investors demand a higher interest rate if they’re taking a bigger risk.

Q: Does it mean U.S. interest rates will go up?

A: The 10-year Treasury note is considered the basis for all other interest rates, so higher rates on that and other long-term U.S. debt could lead to borrowing costs on everything from mortgage loans to credit cards. That would also make it more expensive for state and local governments, companies and consumers to borrow money.

But it’s not clear that investors will sell their Treasury notes in response to S&P’s downgrade, so it may have no effect on rates. Treasury bonds are a foundation of the U.S. financial system, and there are few safer alternatives that are easy to trade. As stocks plunged the last two weeks, price of Treasurys soared because demand was high, even though investors knew there might be a downgrade. Since yields on debt securities fall as prices rise, the yield on the 10-year note dropped from 2.96 percent on July 22 to 2.39 percent on Friday.

A downgrade could spur a “quick jolt of nervous, knee-jerk selling” of bonds, raising rates in the short term, said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. But investors are so worried about the economy and need the safety of Treasurys that they could quickly become buyers again.

However, some money-market funds could be forced to sell U.S. government debt if they require client money to be invested in only AAA-rated debt.

Q: What did the other ratings agencies do?

A: The two other major agencies haven’t taken action yet. Moody’s Investor Service has said it might downgrade the U.S. rating, but its chief economist noted yesterday that Treasury securities “are still the gold standard.”

Q: How many times has the U.S. been downgraded below AAA?

A: Never. The U.S. has been rated AAA since 1917 and has only faced the threat of a downgrade once. In 1995, when Bill Clinton was president, a similar default loomed and the credit rating agencies warned of a downgrade. At the time, the country had $4.9 trillion in debt _ nearly $10 trillion less than now. Once Congress resolved that debt crisis a year later, the credit agencies removed their warning.

Q: How has a downgrade affected other countries?

A: In May 1998, S&P knocked Belgium, Italy and Spain from AAA to AA. A week later, their 10-year rates had barely budged. In some cases, rates actually fell. A week after S&P took Ireland’s AAA rating away in March 2009, 10-year rates in that country fell 0.18 percentage points.

Q: How big is the market for U.S. government bonds?

A: At $9.3 trillion, the U.S. government bond market is massive compared to other countries. Daily trading of Treasurys runs at $580 billion, far higher than British gilts ($34 billion) or German bunds ($28 billion), according to a recent study by Fitch.

“I think no matter what happens, Treasurys are the safe haven,” said Dan Greenhaus, chief global strategist at the brokerage BTIG in New York. “No other market is as large or as liquid.”

Treasurys have a solid appeal for the world’s central banks. China’s central bank holds an estimated $1.16 trillion. Japan, the second largest foreign owner, holds $912 billion.

Fitch said the status of the U.S. dollar and the size of the Treasury market are the biggest reasons investors won’t abandon Treasurys soon. The dollar is the global reserve currency, which means a significant amount of global trade is made in dollars _ from toys and computer chips from China, coffee from Kenya or cars from Japan. Central banks in other countries therefore hold large reserves of U.S. currency, mostly through Treasury purchases.

Q: How long will it take for the U.S. to regain an AAA rating?

A: Analysts say it could be tough for the U.S. to regain the AAA rating soon especially given its current economic challenges. S&P officials implied that it will take years to see a meaningful change in the U.S. fiscal situation and in the government’s decisiveness.

“If the economy won’t grow at 2.5 percent over the long term, it has pretty profound implications from a fiscal point of view,” said David Riley, managing director of Fitch Ratings. He said “that means the U.S. is poorer than it thought” and that legislators will face even tougher choices about taxes and spending.

Fitch also said that total U.S. government debt _ including state and local government debt _ will be as large as the country’s annual gross domestic product by the end of 2012. Further increases in the long term are not consistent with an AAA rating, the agency said. Similarly, Moody’s said for the U.S. to keep its AAA rating, it wants to see the federal government’s debt-to-GDP ratio stay near its projected 2012 level of 73 percent in the next several years, and then fall.

Source

July 29, 2011

Stocks edge lower as the debt debate drags on

Filed under: loans, uk — Tags: , , , — Gladiator @ 9:08 pm

The word of the day in financial markets: Anxious.

U.S. stocks first plunged Friday after a dismal report on economic growth added to traders’ fears about the consequences of a stalemate over raising the country’s borrowing limit. But by late morning after President Barack Obama said there were multiple paths to a compromise, the Dow remained the only index that was down slightly.

If Congress fails agree to raise the debt limit before Aug. 3, the U.S. won’t be able to pay all of its bills. The country might then default on its debt. Experts say that could be a disaster for financial markets and the broader economy.

The combination of bad economic news and growing worries about a debt deal were evident in nearly every measure of investor confidence.

_Bond yields fell as more investors sought safer investments.

_The U.S. dollar fell against the yen and Swiss franc, as traders considered them safer. The dollar remained up against some other currencies.

_Gold prices rose by nearly 1 percent.

_The cost to protect against a U.S. default within the next year reached a record high. The cost to insure Treasurys for one year jumped 54 percent this week.

Many analysts have said they believe the debt dispute will be resolved before the deadline. If that confidence fades, the market could plunge more sharply, said Jack Ablin, chief investment officer at Harris Private Bank.

“I think there’s a growing sense of resignation that we could go into technical default” and a downgrade of U.S. debt looks more likely, he said.

But there are other concerns for investors, too. The government said early Friday that economic growth slowed in the first half of the year to its weakest pace since the recession ended two years ago.

The news overshadowed strong earnings reports from drugmaker Merck & Co. Inc. and oil giant Chevron Corp.

In morning trading, the Standard & Poor’s 500 index is flat at 1,301. The Dow Jones industrial average dropped 34, or 0.3 percent, to 12,208. The Nasdaq composite index is up 5, or 0.2 percent, to 2,771.

Traders flocked to bonds, considered to be a safer investment, pushing the yield on the benchmark 10-year Treasury note to 2.85 percent from 2.95 percent on Thursday. As demand for bonds increases, the government is able to pay bondholders lower interest rates, causing yields to fall. Concerns that bond yields could spike on fears of a default have so far been unfounded.

Gold rose about $10, or just under 1 percent, to $1,627 per ounce. Gold prices tend to rise when investors are nervous about turbulence in other markets.

House Republicans are trying for the third straight day to pass a bill that would raise the borrowing limit while cutting federal spending by nearly $1 trillion.

President Barack Obama said again Friday that he will not sign such a bill. Democrats say any bill must include revenue increases from higher taxes as well as cuts.

A default by the U.S. could increase borrowing costs for the government and consumers. That could dig the nation into a deeper deficit hole and discourage people from borrowing to buy homes and cars.

Even if Congress does reach a deal, rating agencies might still downgrade U.S. debt, which would likely have the same effect on borrowing costs.

The debate over increasing the nation’s borrowing authority has cast a shadow of uncertainty over the financial markets all summer. Any remaining calm faded before the markets opened Friday, as news of weak economic growth pushed some investors to sell quickly.

The dollar fell 1.5 percent against the Swiss franc as traders’ confidence in the reserve currency eroded.

The market-wide selloff pushed shares of Merck down 2 percent, despite the company’s reporting strong earnings before the markets opened. The drugmaker said its second-quarter profit nearly tripled from a year ago. It announced plans to cut 11,830 jobs.

Shares of Chevron also lost a fraction of a percent despite strong second-quarter earnings. The company said its profit jumped 43 percent, beating analysts’ estimates, as higher oil and gasoline prices offset a decline in production.

Among the few gainers was travel website operator Expedia Inc. Shares surged 8 percent after the company said its second-quarter net income rose more than expected because bookings increased and prices for plane ticket and hotel rooms rose.

Source

July 25, 2011

Britain: who else hacked phones?

Filed under: loans, uk — Tags: , , , — Gladiator @ 12:20 am

The chief villain in Britain’s phone hacking scandal, the News of the World tabloid, is history, shut by owner Rupert Murdoch. But was it the only shadowy practitioner in Britain’s cutthroat media market? Some celebrities think not.

Actor Jude Law is suing The Sun, another tabloid owned by Murdoch, for allegedly hacking into his voice mails. And actor Hugh Grant, now a vigorous campaigner against phone hacking, is pushing to learn who in the British media may have intercepted his phone messages.

Britons greet their scandals with cynicism about fallen figures, but they are not used to ones that sweep up major institutions all at once. Police, politicians and journalists were pulled into what Prime Minister David Cameron called a “firestorm,” and now people wonder how far this one will go. Even the number of possible hacking victims is uncertain, with the number said to run into the thousands.

The focus for now is on the News of the World and its management, as well as former executives who were arrested in a police investigation. But a key question that has yet to be addressed is to what extent other newspapers hacked the voice mails of celebrities and others in an attempt to garner gossip and other titbits deemed worthy of print.

The slow pace of investigative work, the challenge of untangling evidence in seized documents and confidentiality clauses in any settlements between newspapers and plaintiffs mean it could take months or years to uncover the full extent of wrongdoing, if it happens at all.

“I believe it to be widespread,” said Max Clifford, a celebrity publicist who got a hefty payout from the News of the World after his phone was hacked in an earlier scandal. “News of the World were definitely the leaders of the pack, but they weren’t isolated. They weren’t the only ones.”

The scandal erupted a few weeks ago with allegations that journalists at the News of the World hacked the phone of a 13-year-old murder victim while police were still searching for her and broadened to include claims reporters paid police for information. Arrests followed, top police officials quit, and Murdoch and his son, James, told a parliamentary committee that they were unaware of wrongdoing.

Murdoch’s camp has sought to deflect criticism by alleging that News of the World was unfairly tarnished, accusing newspapers that have printed critical reports of hypocrisy and suggesting that phone hacking was hardly confined to one media organization.

Daily Mail editor Paul Dacre told a parliamentary committee this month that some “questionable methods” could be justified to break a story that was in the public interest, but he said he had never considered phone hacking or “blagging,” or obtaining information through misrepresentation.

“Clearly, they are criminal charges,” he said.

Fresh information on hacking could emerge in January, when dozens of alleged victims, including former government ministers, bring a joint lawsuit against News International, which runs Murdoch’s British newspapers, to the High Court in London.

The case will focus on five lead claimants chosen to represent the different types of people who were allegedly targeted _ Hollywood actor Law, British lawmaker Chris Bryant, former soccer star Paul Gascoigne, interior designer Kelly Hoppen and soccer agent Sky Andrew.

Lawyer Tamsin Allen, who represents Bryant, said so far 32 claimants in all had joined the action, which will decide whether hacking took place and whether victims should receive compensation.

Law is already suing The Sun for allegedly hacking his telephone mails for stories about his private life. News International denies the claim, accusing the actor of “a deeply cynical and deliberately mischievous attempt” to drag The Sun into the scandal. The Sun is the first paper other than the News of the World to face a phone-hacking lawsuit.

Law’s spokeswoman, Sara Keene, on Friday declined to comment on any aspect of phone hacking.

On Wednesday, actor Grant was granted the right to see evidence that could reveal whether his voice mails were intercepted by journalists at the News of the World or other newspapers.

A judge at Britain’s High Court ordered police to disclose information to Grant and his former girlfriend, Jemima Khan, that was allegedly gathered by private investigator Glenn Mulcaire. Mulcaire, who was jailed for phone hacking in 2007, worked for the News of the World and may also have sold information to other newspapers.

The Guardian reported that their lawyer, David Sherborne, also asked for any information the police had on “passing of material about the claimants to other newspapers.”

Martin Moore, a founder of Hacked Off, a group that seeks full accountability in the phone-hacking scandal, said documents seized from Mulcaire, which are key to police and parliamentary inquiries, are difficult to decipher because they don’t spell out the identities of alleged phone hacking targets. A document might list a birthday instead of a name, for example, but it is not clear whose birthday it is.

“It’s terribly difficult to know what else they mean,” Moore said. “I can understand why that would be quite daunting for the police.”

Another former private investigator with links to News of the World is Jonathan Rees, who was charged with conspiring to murder a former business partner, though the charge was eventually dropped. Moore said documents seized from Rees deserve more scrutiny and, he said, “there may be other private investigators we don’t know about.”

CNN talk show host Piers Morgan has been drawn into the debate, denying claims he was involved in hacking when he was editor of the News of the World and a non-Murdoch tabloid, the Daily Mirror.

British lawmaker Louise Mensch, who was on the committee that questioned the Murdochs, said Morgan has been “very open about his personal use of phone hacking,” and had boasted about it in his memoir “The Insider.”

In fact, Morgan writes in the book of being suspicious that his own phone was hacked and says that after being warned by a friend, he changed his phone’s security code. Morgan challenged Mensch to repeat the claim outside Parliament, where parliamentary privilege protects members form being sued. She has declined.

Morgan told the AP that any suggestion that he was involved in phone hacking is “a falsehood and I suspect maliciously done.”

“I’m obviously very high-profile back in Britain. There’s lots of old friends in the newspaper game that would like nothing more than to drag my name into this and have tried very hard to do so,” he said.

Morgan edited the News of the World in 1994 and 1995. He later moved to the Mirror, but was forced to quit in 2004 after the newspaper ran pictures of British soldiers allegedly abusing Iraqis that turned out to have been faked.

The Guardian devoted considerable effort to investigating phone hacking, and The Independent and The Observer also pursued the story prior to the scandal that shook British public life. Clifford, the publicist whose voice mail was hacked, noted that some newspapers had avoided the matter even though it was hurting the reputation of their rivals at the News of the World.

“I think that pretty much speaks for itself,” Clifford said without elaborating. He said police should investigate other newspapers if necessary, even if it entails more embarrassing revelations of inappropriate ties between law enforcement and the media.

Source

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