SEC Chief Raises Concern About Broker Bonuses

SEC Chief Raises Concern About Broker Bonuses

http://www.nytimes.com/aponline/2009/08/31/business/AP-US-SEC-Broker-Bonuses.html

Mary Schapiro, head of the Securities & Exchange Commission has warned US investment houses against using bonuses and other inducements to attract and recruit brokers who generate high sales volume and act against consumer interests. The high compensation or the additional incentives offered to lure brokers may encourage them to sell securities in high volumes to justify the special benefits granted to them. The pressure may also force the brokers to conduct in such a way that it is harmful to the investors, Schaprio said in an open letter to the CEOs of the investment firms. So the CEOs and the management of the various investment firms should keep in mind that investor interest is their prime motive and should be carefully considered in all types of transactions. So investor is supreme and we need to take care of him.

Oil Prices Mirror Investor Confidence Levels

Oil Prices Mirror Investor Confidence Levels

http://news.yahoo.com/s/nm/20090901/bs_nm/us_markets_oil

Oil prices dropped to $68 a barrel yesterday on reports of growing investor concerns about the state of the economy. The drop in oil prices followed the sell off witnessed in the stock markets as investors put concerns with regard to consumer confidence ahead of positive data from the manufacturing, housing and automobile segments.

Oil prices have been see sawing over the past few months, moving up or down depending on the news coming from the US economy. The past few days have witnessed a continuous drop in oil prices from the high of $75 a barrel to the current $68 a barrel, first on account of weaknesses in the Chinese markets and then by the sell offs seen in the US markets.

Dealers Unhappy Over Reimbursements for`Cash For Clunkers’ Program

Dealers Unhappy Over Reimbursements for`Cash For Clunkers’ Program

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/20/AR2009082002699.html?wpisrc=newsletter

The `Cash for clunkers’ program which was expected to last till November has been such a great success that it has run out of funding and will come to a close on Monday. For those who came in late, the program was designed with a twin objective of spurring auto sales as well as getting gas guzzlers off the road. Customers can trade in their `clunkers’ to receive a $4500 voucher off on purchase of a brand new fuel efficient car. So while the program has been well received with almost $3 billion worth of voucher transactions expected to close this weekend, dealers are jittery. They all have huge amounts locked up in these vouchers which they have already passed on as discounts and are awaiting reimbursement.

Guidelines On Private Equity Investments Soon

Guidelines On Private Equity Investments Soon

http://www.reuters.com/article/newsOne/idUSTRE57300620090804

The Federal Deposit Insurance Corp, or FDIC, is soon expected to finalize a new set of rules on private equity investments in failed banks. Investment in the segment has been stalled for quite some time now for want of new and clearer guidelines. The regulatory body had proposed stringent guidelines for private capital investment in troubled banks and is awaiting comments from various sections before finalizing them. The FDIC proposals have evoked severe criticism from several quarters, especially on the issue of the requirement of a Tier I leverage ratio of 15 percent, which is far higher than the five percent requirement for healthy, well-capitalized banks. It is widely believed that the FDIC will reduce the requirement in its final version to ten percent. The FDIC needs to look into the demands of the private equity segment.

Confusing Signs

Confusing Signs

http://www.msnbc.msn.com/id/32111826/ns/business-stocks_and_economy/

On the one hand we have investors on Wall Street looking to pop the champagne at the first available opportunity. Their optimism has pushed the Dow over the 9,000 mark; the first time in almost seven months. On the other hand, there are thousands who believe that the stimulus package is not working; it is not likely to work; or even make things worse for future generations.

What is the reason for this difference in views? The average man on the street is most affected by his employment situation. If he has lost his job and is being unable to find another one, he is bound to be pessimistic about which way things are headed. To make matters worse, economists believe that the unemployment situation will continue to remain grave for a while even after the recession ends. So there really is no light at the end of the tunnel as yet for the jobless man or woman on the street.

No End In Sight For Job Losses

No End In Sight For Job Losses

http://news.yahoo.com/s/ap/20090709/ap_on_bi_ge/us_economy

Close to seven million Americans are collecting unemployment checks. Over half a million newly laid off workers claimed unemployment insurance last week. The unemployment rate at 9.5% is the highest in twenty six years.

One would think that things cannot get any worse. But analysts believe otherwise. They are predicting steep job losses will continue for a while and unemployment rates will touch 10%.

The outlook is bleak and one wonders how those who have extinguished their unemployment insurance are coping. People have left their homes, are living in their cars if they have one that is, or have moved into “tent” towns which have sprung up on the outskirts of many cities. Not at all a happy picture.

The Biggest Discounts On Houses

The Biggest Discounts On Houses

http://news.yahoo.com/s/usnews/20090626/ts_usnews/the10mostdollardiscountedhousingmarkets

It is quite interesting really. There was a time when the media only spoke about how the real estate market was booming, the large number of projects underway and the soaring prices. Today we get lists of the most discounted housing markets.

It is completely a buyer’s market today. Sellers are competing with each other to attract a buyer and in the process pushing prices down. The main reason why this is happening is the huge amount of foreclosed properties on the market. Banks are willing to sell these off at prices less than half of what they would have fetched three years ago. At times these prices only just about cover construction costs.

For buyers, the search for that bargain home has just got easier. Look through these lists, and you will know where the most attractive housing markets are.

Hotel Rooms Go Empty

Hotel Rooms Go Empty

http://news.yahoo.com/s/ap/20090607/ap_on_bi_ge/us_sunstone_w_san_diego

Sunstone Hotel Investors, Inc. has indicated that it will default on the June mortgage payments of its luxury W Hotel San Diego property and is likely to hand over the property to its lenders.

As with all other luxury brands and products, luxury lodging too has faced the severest brunt of the ongoing recession. Apart from the drop in occupancy owing to the severe economic downturn, this hotel has also had to face growing competition from luxury boutique hotels as well as a 1,190 room convention hotel in its vicinity.

Hotels worldwide are faced with severe challenges currently. From the time when hotels, particularly those under the “luxury” category would charge exorbitant rates, the wheel has turned a full cycle, and there are few takers today even though rates have dropped sharply.

Schwarzenegger’s New Take

Schwarzenegger’s New Take

http://latimesblogs.latimes.com/lanow/2009/05/schwarzenegger-proposes-5-cut-in-state-worker-salaries.html

Gov. Arnold Schwarzenegger has come up with yet another proposal – a 5% cut in state workers’ salaries. Now if the state workers were 2,000 or 20,000 in number, this proposal would not be such a huge setback. It is being frowned upon because the number of state workers is no less than 200,000! And that’s a lot of people!! If one was to combine the current mandatory furlough on government workers, the people would have to bear up with a 15% pay cut.
The proposal, to be announced Friday is expected to save the state $470 million, but please tell up – at what cost!

GM Shrinks!

GM Shrinks!

http://www.latimes.com/business/la-fi-gm-dealers16-2009may16,0,2550148.story

General Motors is losing its global image, shrinking to a much smaller size after implementing a new restructuring plan. Now, its distribution network will be lesser by 2,400 dealers. This change has been implemented by GM in order to evade bankruptcy. American automakers and auto buyers will see this as a big blow to the market of cars and the American economy, as a whole. Another thing that is not visible to many as of now, is the loss of 100,000 + jobs and tax revenue. Restructuring always hurts a company and when it is a brand like General Motors the blow is that much harder and painful.