tagged w/ Financial Meltdown
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U.S. automakers are returning to Congress for high-stakes hearings they hope will persuade skeptical lawmakers to save their troubled industry with $34 billion in emergency aid, but a top Senate Democrat wants to hand their problem to the Federal Reserve.U.S. automakers are returning to Congress for high-stakes hearings they hope will... more
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Harvard University's endowment has fallen 22% in the last four months, the largest drop in modern history, forcing the school to announce it will take a "hard look at hiring, staffing levels, and compensation." The University still has a lot of options. They announced plans to leverage their credit ratings—the highest granted by rating agencies Moody’s and Standard & Poor’s—to issue bonds that improve Harvard’s cash position. And putting things further in perspective, the loss in their endowment's value, equal to about $8 billioHarvard University's endowment has fallen 22% in the last four months, the... more
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A top executive of General Motors Corp. said Wednesday bankruptcy isn't a viable option, as the United Auto Workers braced for a decision on contract concessions to the endangered Big Three.A top executive of General Motors Corp. said Wednesday bankruptcy isn't a viable... more
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Worker productivity slowed in the summer while wage pressures increased, but both developments were better than expected and are unlikely to raise inflation alarms at the Federal Reserve.Worker productivity slowed in the summer while wage pressures increased, but both... more
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European stock markets fell modestly Wednesday after further dismal economic data and as Wall Street was heading towards a lower opening. Asian markets were higher after Wall Street's rebound the previous session.European stock markets fell modestly Wednesday after further dismal economic data and... more
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President-elect Barack Obama pledged quick work Tuesday on an economic recovery plan to include tax cuts and increased federal spending, and told the nation's governors he wants their advice in designing a package to help their hardhit states.President-elect Barack Obama pledged quick work Tuesday on an economic recovery plan... more
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Ford Motor Co. is considering selling Volvo Car Corp. as the beleaguered U.S. automaker seeks to raise cash and weather a global automotive sales crisis.Ford Motor Co. is considering selling Volvo Car Corp. as the beleaguered U.S.... more
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WASHINGTON – The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.
"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.
Bowing to aggressive lobbying — along with assurances from banks that the troubled mortgages were OK — regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way...
Read The Rest at Link...WASHINGTON – The Bush administration backed off proposed crackdowns on... more
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British Prime Minister Gordon Brown said Wednesday that London will host an April meeting of the Group of 20 industrialized and emerging economies on the financial crisis.British Prime Minister Gordon Brown said Wednesday that London will host an April... more
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Everyone seems to want one, but apparently a lot of Americans aren't sure what exactly a ``bailout'' is.Everyone seems to want one, but apparently a lot of Americans aren't sure what... more
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The government is working on a new loan facility to help companies that issue credit cards, make student loans and finance car purchases.The government is working on a new loan facility to help companies that issue credit... more
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Consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount.Consumer prices plunged by the largest amount in the past 61 years in October as... more
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Asian stock markets sank Tuesday after Wall Street retreated and global financial firms announced another round of massive layoffs, adding to gloom about the world economy. European markets traded lower.Asian stock markets sank Tuesday after Wall Street retreated and global financial... more
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Citigroup Inc. is cutting approximately 53,000 more jobs in the coming quarters as the banking giant struggles to steady itself after suffering massive losses from deteriorating debt.Citigroup Inc. is cutting approximately 53,000 more jobs in the coming quarters as the... more
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Japan's economy slid into a recession for the first time since 2001, the government said Monday, as companies sharply cut back on spending in the third quarter amid the unfolding global financial crisis.Japan's economy slid into a recession for the first time since 2001, the... more
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The U.S. House of Representatives Tuesday passed a landmark consumer protection measure aimed at leveling the playing field for credit card users.
The Democratic-controlled House voted 312-112, mostly along partisan lines, to support the Credit Cardholders' Bill of Rights. The vote came amid a tumultuous week for Wall Street and the credit markets and days before Congress considers an administration plan for a $700 billion bailout of mortgage lenders.
The banking industry was quick to condemn the passage and issued a statement within minutes of the vote. The bill, "while well-intentioned, will increase the cost of credit for consumers and small businesses across the country, result in less access to credit for consumers and businesses alike, and may further roil the securities markets -- all at a time when our economy can least afford it," Edward Yingling, president and CEO of the American Bankers Association, said in a statement. JP Morgan Chase, the No. 2 U.S. credit card issuer, expressed disappointment at the House vote.
The White House issued a statement Monday expressing opposition to the bill. Although the administration is "concerned about unfair and deceptive credit card practices," they felt curbing abuses was a task best left to the Fed: "Regulations are better suited to addressing these problems than legislation because they can be adapted more readily to changes in market conditions."The U.S. House of Representatives Tuesday passed a landmark consumer protection... more
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The Labor Department reported that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That is the highest total since just after the Sept. 11 terrorist attacks and second-highest since 1992.The Labor Department reported that jobless claims last week increased by 32,000 to a... more
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More than 84,000 properties were repossessed in October.
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Consumers around the world who are watching their spending bought more burgers and chicken breakfast biscuits at McDonald's in October, leading to a big rise in sales at established locations for the fast-food leader.
Systemwide, sales rose 5.4 percent, or 9.9 percent as measured in constant currencies. In the U.S., the chain's comparable-store sales were up 5.3 percent last month, helped by new menu items, including the Southern Style Chicken sandwich, and continued demand for breakfast items. The company's Dollar Menu and its Monopoly promotion also drew in consumers. Total sales—including sales from newer restaurants—rose 6.3 percent year-over-year.
The results were a bright spot in what was a dismal month for most restaurant operators. Many sit-down chains have reported steep declines in same-store sales as consumers grew more anxious about the possibility of a prolonged recession.Consumers around the world who are watching their spending bought more burgers and... more
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WASHINGTON – The government has abandoned the original centerpiece of its $700 billion rescue effort for the financial system and will not use the money to purchase troubled bank assets.
Treasury Secretary Henry Paulson said Wednesday that the administration will continue to use $250 billion of the program to purchase stock in banks as a way to bolster their balance sheets and encourage them to resume more normal lending. He also announced that the administration was looking at a major expansion of the program into the markets that provide support for credit card debt, auto loans and student loans.
Paulson said 40 percent of U.S. consumer credit is provided through selling securities that are backed by pools of auto loans and other such debt. He said these markets need support.
"This market, which is vital for lending and growth, has for all practical purposes ground to a halt," Paulson said.
On the issue of using the $700 billion bailout package to provide help to ailing auto companies, Paulson said the administration preferred an approach that would...
Reda The Rest at Link...WASHINGTON – The government has abandoned the original centerpiece of its $700... more
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