Weekly Wrap: Let Banks Fail?

Amy He

By Amy He
Updated on Mon Jul 21, 2014

President Obama got re-inaugurated this Monday to much less fanfare than he did in 2008, and expectedly so. But what makes America great though, is that his inauguration wasn’t the biggest part about his inauguration. Beyoncégate was.

But Beyoncégate aside, big things are happening in other parts of the world too. It’s time for the annual World Economic Forum, where some of the most powerful people in the world convene to talk about politics, academia and the economy.

At one of the panels at the conference, Deutsche’s Anshu Jain and JPMorgan’s Jamie Dimon said that banks should be allowed to fail. There shouldn’t be a “too big to fail” attitude, they say. Maybe Dimon’s still stinging from that 50% pay cut from last week.

Speaking of failing, 1st Regents Bank is the second bank to fail in 2013. See our predictions of which banks will fail this year.

Dwolla partners up with the state of Iowa to allow the government to make use of this payment system to issue refunds, collect taxes and more.

Oh right, taxes. We’ll probably end up reminding you about tax season every chance we get, so another reminder won’t hurt: pick up five tips you can try to offset the payroll tax. Also, if you have an IRA, be sure to take advantage of the tax deductions in traditional IRAs.

Applications for unemployment benefits fall to a five-year low this week. Maybe that’ll be good for those savings rates? One can hope.

We shared a story this week about how Laura’s ATM card once got eaten by a machine while she was overseas. Nobody was hurt, but there are some things you should do to prepare for banking overseas so that your beloved piece of plastic doesn’t get gobbled up.

It’s important to get with the technology age and all that, but it’s still worth it to balance your checkbook the good ol’ way sometimes.

Banks and financial institutions have been aggressive with getting technologically-savvy. Debt collectors have been chasing debtors on Facebook. The Feds are looking into how to regulate banks’ social media usage.

With that, #happyweekend!


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