Obama Looks to Get Rid of “Fine Print” in Credit Cards
In response to consumers' growing frustration over skyrocketing credit card interest rates and hidden fees, Pres. Barack Obama vowed that he would come up with a credit card law that would protect consumers from the fine print that have become a source of anxiety and anger of credit card users.
Better-than-Expected Q1 Results: Chase Profits $2.14B, Citigroup Posts Lowest Loss Since 2007
In what is turning out to be a surprising yet extremely welcome trend in the banking industry, two of the country's biggest banks which have recently released their first quarter results, have also performed better than financial experts' expectations.
Balance Transfer Fees: Should You Expect to Pay More?
Traditionally, the defaults on credit card debts rise or fall with the unemployment rate. With the unemployment now at 8.5 percent, the highest in more than two decades, credit card companies are suffering from a surge in defaults. Bank of America, for example, has $182 billion in credit card loans as of December 31, 2008. From this figure, the bank had to write off $11.4 worth of balances.
Goldman Sachs Posts $1.81 Billion First Quarter Gains, Looks to Repay Government Debt
New York-based banking giant Goldman Sachs announced Monday that it earned $1.81 billion in net profit for the first quarter of this year. This translates to earnings per share of $3.39, far exceeding analysts' forecast of $1.33 per share. Aside from its impressive first quarter gains, the bank also said that it plans to raise $5 billion by putting common stock on the market to pay off the $10 billion government bailout fund it received.
Is Confidence Returning to the US Economy?
Figures from six continents showed that the confidence in the global economy is finally returning. The outlook that looked hopeless a mere month ago is now at a 100-month high. It was observed that sentiment grew faster in Asia compared to the US and Europe. Many believe that the worst may be over for their economies.
Wall Street Banks Lose Top Investment Bankers
Top talents of the banking industry, mostly in the investment banking divisions, are starting an exodus out of the country's big banks into smaller investment firms. These departures come in the wake of the US government's plans for tighter restrictions and amidst calls for limits on executive compensation for banks that received more than $5 billion in government assistance
Wells Fargo Reveals $3 Billion 1st Quarter Profit, Stocks Surge
In a welcome yet entirely surprising turn of events, banking giant Wells Fargo, announced Thursday that it posted a record $3 billion profit for the first quarter of the year, further fueling hopes that perhaps, the end of the recession may indeed be in sight. Official bank reports for the first quarter are not expected until the next week or two, but the sneak peak into Wells Fargo’s profitability which blew way past analysts’ expectations has taken both the financial community and the market completely by storm.
Citigroup Offers Temporary Rate Reduction to Unemployed Borrowers
On March 3, Citigroup announced the launch of their Homeowner Unemployment Assist program, which allows unemployed borrowers who have fallen behind on their mortgage loan payments to temporarily make reduced payments averaging $500 per month for 3 months. Interest and penalty fees will also be waived during this 3-month period. The new assistance plan for unemployed mortgage holders is an add-on to Citigroup’s existing Homeowner Assist program that was first put in place last fall to help homeowners avoid foreclosure. Mandated by the U.S.
Goldman Sachs and Morgan Stanley: Shifting Gears
The high-paying, king-making Wall Street that everyone was once in awe of practically vanished after JP Morgan's purchase of Bear Stearns in March, Lehman Brothers' closure in September, and Bank of America’s acquisition of Merrill Lynch that same time. When the dust had settled, only two were left standing: Goldman Sachs and Morgan Stanley.
The Year That Was 2008: A Rundown of the Major Financial Events That Rocked the Nation
Even with the New Year revelry still ringing in our ears, one can never fully take on the challenges that lie ahead in 2009 without reflecting on the year just gone. Certainly, the year 2008 will go down in history as the start of one of the country’s worst recessions since the Great Depression in the 1940’s. Bankruptcies plagued banks and investment houses, and many industries, most notable of which are the finance and auto industries, were now pinning their hopes of surviving more on the bailouts that the government was handing out like candy, than on the likelihood that the economy would put itself right in the near future.
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