Banks to Stop Receiving Bailouts From Taxpayers: 5 Things to Know for the Week

Simon Zhen

By , Staff Writer
Posted on Mon Dec 10, 2012

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Banks to Stop Receiving Bailouts From Taxpayers: 5 Things to Know for the Week

freemarketmyass / Flickr source

With the last economic recession still fresh in mind, regulators in the United States and the United Kingdom have laid out plans on how global financial institutions will be handled in the event of a failure — and it doesn’t involve taxpayers’ dollars.

  • Square, the mobile-payment innovator, has introduced digital gift cards. Users can find a retailer in the recipient’s area and purchase a Square gift card, which is sent directly to the recipient’s Square account. The recipient just opens up and uses the gift card through their Square mobile app.
  • The United States and United Kingdom have developed plans that deal with the failures of major global financial institutions. The FDIC and Bank of England said it would impose losses on shareholders and unsecured creditors instead of taxpayers. The strategy aims to reduce the risks to global financial stability.
  • Regions Bank is expected to make an announcement regarding its line of checking accounts. As other major banks have restructured their checking accounts amid strict federal regulations, Regions Bank is looking to do the same. Earlier this year, the bank also introduced a suite of financial services that cater to consumers who prefer non-traditional banking methods.
  • On Tuesday, the Federal Reserve will host a two-day board meeting to discuss monetary policy. In the minutes of the previous meeting, the central bank mentioned an expanded bond-buying program to keep interest rates at extremely low levels. The market will be watching for such a program.
  • Chase Freedom cardmembers have until the weekend to sign up for their 5 percent bonus cash back on this quarter’s categories. If cardmembers enroll by Dec. 14, 2012, they’ll receive bonus cash back on hotel stay and airfare and at Best Buy and Kohl’s. Meanwhile, consumers with similar cash-back credit cards — Discover More and Citi Dividend — will soon be able to sign up for next quarter’s bonus cash-back categories.
 

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