The Government’s lawsuit against McGraw-Hill’s S&P unit hinges on the argument the banks were unknowing investors and were duped by the rating that S&P placed on their credit products. The government is seeking $5bn and an admission of wrongdoing in connection with what it alleges as deliberately understating the risk of $2.8 trillion in residential… Read More
Individual investor sentiment improving (as reported by Justin Menza via cnbc.com)
Since 2008, the confidence of many investors has been shaken dramatically. The financial crisis, investment bank closures, algorithmic trading errors that swing the market violently, political uncertainty, and a grinding economic recovery have all taken a toll. That said, according to Fred Tomczyk, CEO of TD Ameritrade, individual investors are beginning to come back to… Read More
Is outsourcing losing its appeal? (as reported via cnnmoney.com)
Journalists are beginning to chronicle the return of a number of manufacturing and service jobs to the U.S. from abroad. Companies claim that a number of factors are making it cheaper to do more work locally, as opposed to sending it abroad where advantages in wages may be overcome by other costs. One take on… Read More
Student loan’s delinquency at multi-year high (as reported by Elizabeth Dexheimer via bloomberg.com)
Fair Isaac Corp., which created the FICO score that is used as a measure of consumer credit risk, announced today that the delinquency rate on student loans stands at a multi-year high. The delinquency rate rose to 15.0% between 2010 and 2012, as opposed to a rate of 12.4% between 2005 and 2007. This seems… Read More
“Villages” emerge as effective financial planning resource (as reported by Carla Fried via bloomberg.com)
Individuals around the country are creating new forms of social infrastructure to solve problems collectively that they could not solve as individuals. They are coming together in “Villages” to meet common needs at reasonable prices that members may not be able to manage alone such as transportation, financial planning and entertainment. Some also serve as… Read More
Payroll tax affecting consumers (as reported by Hadley Malcolm via usatoday.com)
In the month of January, employees may have noticed that their pay check became a bit smaller. One explanation for this change is the expiration of the Social Security payroll tax, which had been cut since 2010, but rose again at the end of 2012. A recent article offers some early notions of how this… Read More
Tools to reduce debt (as reported by Anne Tergesen via wsj.com)
There are a number of new and free online tools to get your financial house in order, writes Anne Tergesen of the Wall Street Journal. With a growing number of Americans headed to retirement with a mortgage, there are now several resources that consumers can use to reduce and consolidate their debt. Click here for… Read More
New Year’s financial resolutions! (as reported by Divya Rahhavan via nerdwallet.com)
It is a new year, time for resolutions! Many people include a financial resolution or two on their list. Check out what Nerd Wallet has compiled as some of the best New Year’s financial resolutions—you’ll find the traditional ones like paying off debt, and many others that might just give you an idea of… Read More
Untraditional bank proving popular with consumers (as reported by Jenna Wortham via nytimes.com)
In a time of increased regulation and pressure on banks, consumers find themselves on the hook for more fees and penalties. Simple, an online banking startup based in Portland, Oregon is looking to change that. Not only does the company refuse to charge any fees to its customers for banking products, but Simple offers customers… Read More
Author working to dispel financial planning myths (as reported by Sam Knight via bloomberg.com)
Sam Knight at Bloomberg reviews a new book on financial literacy that debunks the ideas of some of America’s most renowned financial experts. Despite the vast increase in financial advisers and planning resources, author Helaine Olen contends that many widespread ideas are simply false. For example, her book dispels the famous notion that forgoing that… Read More