An unprecedented security compromise of a government database occurred in August, according to reports from South Carolina. A server at the state’s department of revenue was hacked by a foreign criminal and millions of Social Security numbers and debit numbers—belonging to 77 percent … [Read more...]
Commerce Department Reports Stronger Economic Growth in Third Quarter
Consumer spending and home building gains boosted U.S. economic growth, which was also propelled by a consumer confidence level which reached a five-year high in October. The Commerce Department reported gross domestic product increased 2 percent in the third quarter, after a rise of … [Read more...]
Amazon Reports First Quarterly Loss in Five Years
Amazon stock sank today after the company posted its first quarterly loss since 2003. It was no small stumble, either. The Seattle-based company reported a loss of $274 million. The 60-cents-per-share loss greatly exceeded the 8-cents-per-share loss Thomson Reuters analysts had … [Read more...]
Goldman Sachs Rajat Gupta Sentenced for Insider Trading
Former Goldman Sachs director Rajat Gupta was sentenced Oct. 24 for an insider trading conviction handed down by a Manhattan federal court in June. Gupta’s sentence includes two years in prison and a $5 million fine. … [Read more...]
Financial Watchdog Agency to Monitor Debt Collectors
The Consumer Financial Protection Bureau released its new rules for overseeing debt-collection agencies Oct. 23. Beginning Jan. 2, debt collection firms with more than $10 million in annual revenue will be regulated by the government watchdog agency. Although just 175 firms fall into … [Read more...]
Temp Workers File Class-action Suit Against Wal-Mart
Aclass-action lawsuit was filed against Wal-Mart Monday in Chicago federal court. The suit alleges the retail giant, as well as two staffing agencies—Labor Ready Midwest and QPS Employment Group, also defendants—violated federal minimum wage and overtime laws. Plaintiffs in the … [Read more...]
Texas Districts Head to Court Challenging State Education Budget
Texas school districts head back to court this week, challenging the state legislature’s $5.4 billion in education budgetary cuts. The districts will argue before Texas District Judge John Dietz that the remaining system is too inefficient to properly educate students and, in fact, … [Read more...]
Survey Forecasts Economic Growth to Reach 3 Percent in Next Year
Economists believe U.S. economic growth to reach 3 percent by the end of 2013, according to National Association of Business Economics survey results released today. The panel of 44 professional economic forecasters from companies such as Dupont, Ford and JPMorgan Chase—surveyed Sept. … [Read more...]
McDonald’s Posts Weak Third Quarter Earnings
McDonald’s Corporation (MCD) shares fell 4.5 percent yesterday as the fast food giant reported weak third quarter earnings—its worst in nine years. Total third quarter revenues were $7.15 billion, unchanged from last year, however given constant currencies revenues they would have … [Read more...]
CFPB Proposes CARD Act Amendment to Help Stay-at-Home Moms
The Consumer Financial Protection Bureau announced its proposal to allow stay-at-home spouses and partners easier access to open credit accounts. The rule would consider shared income from a working spouse or partner when applying for a credit card account. … [Read more...]
Early Release of Google Earnings Shocks Investors, Sends Shares into Tailspin
Twitter was abuzz with the hash tag #PendingLarry today after Google’s quarterly earnings were released with the Securities and Exchange Commission by mistake. Investors quickly took note and Google’s stock dropped almost 10 percent before trading was halted. … [Read more...]
Seniors to Receive 1.7 Percent Increase to Social Security in 2013
Seniors will receive an increase to their Social Security in 2013, though not much. The Social Security Administration announced Tuesday monthly benefits will increase 1.7 percent beginning Jan. 1. For the nearly 62 million Americans receiving either monthly Social Security or … [Read more...]
Fed’s Dudley Says Lack of Mortgage Competition Hampering QE3 Benefits
Lack of competition in the mortgage industry is hindering the affects of the Federal Reserve’s quantitative easing efforts, a senior Fed policy maker said. In testimony to the National Association for Business Economics in New York City Monday, New York Fed President Bill Dudley … [Read more...]
More Merchants Move to Block Swipe Fee Settlement
A major settlement proposed in July is expected to be submitted to the U.S. District Court in Brooklyn later this week. The $7.2 billion class-action settlement between Visa, MasterCard and U.S. retailers was previously reached following seven years of litigation when retailers … [Read more...]
JPMorgan, Wells Fargo Post Third quarter Profits
JPMorgan Chase & Co. and Wells Fargo & Co. released third quarter earnings today—the first major U.S. banks to post quarterly figures this month. As analysts expected, both companies posted strong growth compared to weak numbers a year ago. … [Read more...]
Consumer Sentiment Hits 5-Year High, Indicates Economic Growth Sustainable
Consumer sentiment rose nearly five points between September and October, far beyond what analysts forecast. According to the University of Michigan-Thomson Reuters sentiment gauge, the preliminary October reading rose to 83.1 from its final September reading of 78.3. In addition to … [Read more...]
Equifax Settles Federal Charges of Improperly Selling Consumer Data to Marketing Group
Equifax Information Services, LLC—one of the three major U.S. credit reporting agencies—reached a resolution yesterday with the Federal Trade Commission concerning charges the credit bureau had unlawfully sold lists of consumers who had missed mortgage payments. Equifax, as well as … [Read more...]
Dimon Says JPMorgan 2008 Purchase of Bear Stearns was Favor to Fed
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon addressed the lawsuit filed against the company last week by the New York attorney general when speaking at a Council on Foreign Relations event in Wasington, D.C. today. Dimon lashed out at the government for alleging Bear … [Read more...]
U.S. Files Suit Against Wells Fargo for Faulty FHA Mortgages
Today Wells Fargo became the latest bank to be sued by the U.S. government for alleged fraud leading to the housing bust and financial meltdown. Manhattan U.S. Attorney Preet Bharara, in conjunction with the U.S. Department of Housing and Urban Development, filed a civil suit against … [Read more...]
Wal-Mart, Amex to Offer Unbanked a Bluebird of Happiness
Stock for prepaid debit card company Green Dot Stock plummeted more than 20 percent today, finishing at $10.36, while competitor NetSpend Holdings Inc. fell more than 7 percent to close at $9.96 per share after Wal-Mart and American Express announced their joint venture in Bluebird, a … [Read more...]
