tag:blogger.com,1999:blog-69019606566584035232024-03-13T09:19:13.571-07:00Bankis ON ...To get information on financial and banking systems, opening a free checking account, the regulation of the banking sector about the best money market accounts, information on reverse mortgage, reverse mortgage brokers, reverse mortgage interest rates, as well a list of the main banking institutions working in a given country, please select the name of the country of your interest.Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comBlogger147125tag:blogger.com,1999:blog-6901960656658403523.post-28126454396882030112012-11-12T00:20:00.000-08:002012-11-12T00:20:29.464-08:00Credit Suisse launches new service for Indian billionaires<div dir="ltr" style="text-align: left;" trbidi="on">
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Credit Suisse has launched a Single Family Office in India with the new service aimed at ultra-high-net-worth and high-net-worth individuals with large family-owned enterprises.<br />
<a name='more'></a>Among other things, the service can help families leverage the strength of their enterprises and set up a governance model, by defining the guiding principles of the family.<br /><br />According to the bank, 42% of India’s billionaires are self made and while business and personal wealth are often interchangeable at the early stages of wealth generation, there is a need to create formal structures that demarcate the two at some point.<br /><br />Credit Suisse has therefore created an offering that provides services around asset allocation, estate planning, corporate finance, administrational management and philanthropic initiatives.<br /><br />The firm’s chief executive officer, India, Mihir Doshi, comments: “The need for managing and growing family wealth has led to an increase in the importance of a trusted family office, and we are privileged to be able to offer this valuable service in India.”<br /><br />Source:<br />bankingtimes.co.uk<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-13218824618216643822012-11-09T00:24:00.004-08:002012-11-09T00:24:52.786-08:00Why Britain, chose not to join the euro zone!<div dir="ltr" style="text-align: left;" trbidi="on">
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In what would be the first step toward a European banking union, the European Central Bank will become the main regulator for the biggest banks in the 17 nations that use the euro as their currency as soon as Jan. 1. <br />
<a name='more'></a>Britain, a member of the European Union, chose not to join the euro zone when it was established in 1999, and has said it won’t take part in a banking union. That decision risks isolating London from its major trading partners and undermining its status as the world’s top money center. “If there is a European banking union and a notable missing member of that is the U.K., then that will likely hurt London as a major financial market,” says Jay Ralph, a management board member at Munich-based Allianz, Europe’s largest insurer.<br /><br />London, the world’s biggest center for foreign exchange trading, cross-border bank lending, and interest rate derivatives, has 251 foreign banks and more international financial firms than any other banking hub, including New York or Frankfurt, according to TheCityUK, a bank lobbying group. The City and Canary Wharf, London’s financial districts, are home to three-quarters of the EU’s foreign exchange trading, including 42 percent of euro trades. Financial sector jobs have been disappearing in the wake of the credit crisis, with the Centre for Economics and Business Research saying employment will fall to a 20-year low of 237,000 in 2013.<br /><br />The danger of a banking union that doesn’t include the U.K. is that Britain’s voice in setting the rule-making agenda will be weakened as the ECB gains new powers, bankers say. Trading in euros could shift to Frankfurt or Paris and be regulated by the central bank. A banking union that gives the ECB new supervisory powers will create an “inner core” of euro-region nations that sidelines the rest of Europe, including Britain, according to Thomas Huertas, a former U.K. representative on the European Banking Authority, which drafts financial rules for the EU.<br /><br />The concern for U.K. banks is that “you end up with a policy weighting toward the euro-zone banks because they’re in aggregate bigger,” says Douglas Flint, chairman of London-based HSBC Holdings (HBC), Europe’s largest bank by market value. Spokesmen for British banks including Barclays (BCS), Royal Bank of Scotland Group (RBS), and Lloyds Banking Group (LYG) declined to comment.<br /><br />The EU has struggled to meet its yearend banking-union deadline as members negotiate provisions, including the scope of the ECB’s authority. The new regulatory regime—a response to Europe’s debt crisis—is aimed at reducing the mutual dependency of banks and their national governments. It is to be phased in for all 6,000 euro-area banks by 2014. In addition to common supervision, a banking union could mean that governments share the costs of winding down failed lenders.<br /><br />The U.K. doesn’t want to have its banks come under ECB regulation because it doesn’t want to be responsible for paying for failed banks in Spain and elsewhere in the euro area, according to top U.K. government officials. Still, it’s wary of the potential impact of unified bank regulation in Europe. “The worst outcome would be the creation of an overpowerful banking bloc,” Deputy Prime Minister Nick Clegg said in a speech in October. “The rest of Europe needs to be crystal clear: If they integrate in a way that hurts the City, they potentially hurt Europe as a whole.”<br /><br />The City remains the world’s most important money center because of its time zone, language, talent pool, and legal infrastructure, according to Z/Yen Group, a London-based research firm. New York and Hong Kong are ranked Nos. 2 and 3 by Z/Yen. “My personal view is, it won’t be dramatically bad for the U.K.,” says George Mathewson, who retired as chairman of Edinburgh-based RBS in 2006. “The U.K. has got some in-built advantages that are difficult to dislodge.”<br /><br />If London is isolated as a result of closer banking ties in the rest of Europe, it might find itself under pressure to submit to ECB regulation after all. Foreign banks would consider shifting operations to within the euro zone, according to an executive with knowledge of lobbying by U.S. lenders who asked not to be identified because the effort is private. Ash Saluja, financial-services partner in London at law firm CMS Cameron McKenna, says global banks may choose to put themselves under full ECB supervision by moving their headquarters into the euro region—or by pressing the U.K. to surrender national regulation in favor of the single supervisory mechanism. It’s “very worrying for the City and the Bank of England,” he says. “The euro zone holds all the cards.”<br /><br />The bottom line: London, home to 251 foreign banks, could lose its dominance as European banks come under a common regulator.<br /><br />Source:<br />businessweek.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-30816137451822225542012-11-08T00:24:00.000-08:002012-11-08T00:24:13.817-08:00FICO released data about its best credit risks<div dir="ltr" style="text-align: left;" trbidi="on">
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How to achieve best credit score. The credit scoring company, FICO, released data about its best credit risks – the people who score in the top 25 of all credit scores. <br />
<a name='more'></a>The company finds several commonalities among the people with the best credit scores.<br /><br />People with the highest credit scores are those who have an average of seven credit cards, but only use four at any one time. This trait undoubtedly points to the age of accounts among people with high credit lines. Typically, new cards are opened and old cards are abandoned, never to be closed as they add to a person’s credit score.<br /><br />Researchers find that although the top quartile has several credit cards, they refrain from holding irresponsible balances. Those in the top 25% carry an average balance equal to 7 percent of their total available credit. Missing a bill may just kick you out of the top quartile altogether, as only four percent of those who have the best credit had missed a monthly credit card payment.<br /><br />A negative tidbit on your credit report will not completely eliminate your shot at being in the top 25% of credit users. In fact, FICO found collection agencies on one percent of all credit reports in the top 25% of scores. Also, some even had reports of bankruptcy or tax issues in their past, a sure negative that usually haunts borrowers for years.<br /><br />FICO’s research reveals how little we know about credit scores but how much the average borrower can do to get the best score. As always, maintaining low balances and making payments on time are the most important part of responsible credit use – actions that will lead to good credit scores.<br /><br />Source:<br />creditcardflyers.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-43060481992359037782012-11-07T00:37:00.002-08:002012-11-07T00:37:29.625-08:00Credit Cards: There are two different interest rates<div dir="ltr" style="text-align: left;" trbidi="on">
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One of the very simple but so important factors in any loan is the interest rate. Depending on how you calculate <br />
<a name='more'></a>an interest rate, the amount that you pay in interest changes dramatically.<br />
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There are two different interest rates:<br /><br />Annual Percentage Yield – Annual percentage yield is the rate that the bank or credit card company uses as its nominal rate. The APY is the rate that will be divided into periods and then compounded. A credit card at 18% APY would be divided into 12 for monthly interest of 1.5%. Then, that rate would be compounded monthly, resulting in APR.<br /><br />Annual Percentage Rate – The annual percentage rate is the annual percentage yield after compounding. Hence, a 1.5% rate per month when compounded is equal to 19.56% APR. The APR is the actual amount of interest that you will pay. You might hear the APR used as EAR, or effective annual rate. The effective annual rate is the same as the APR.<br /><br />When you shop for a new credit card, always look at the credit card rate (APR) as it is the actual rate of interest that you will pay. The APY is always lower, less expensive, and often it is more commonly advertised than APR. Always do your research by looking at the all the small print that accompanies a credit card offer. You should always be able to find the APR – the true cost of the credit card interest – on the back of a credit card offer.<br /><br />Source:<br />creditcardflyers.com</div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-29668365846640982242012-11-06T00:48:00.000-08:002012-11-06T00:48:07.164-08:00A new industry to regulate: on the penalty of debt will begin to work from January, 2 2013<div dir="ltr" style="text-align: left;" trbidi="on">
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Starting January 2, the Consumer Financial Protection Bureau will have a new industry to regulate: debt collectors. The CFPB is making waves in consumer finance, striking deals with the credit card industry as well as bankers at large to make the industry operate on rules that stress fairness and clarity for consumers.<br />
<a name='more'></a>The CFPB will have regulatory authority over debt collectors who collect money from consumers for personal, household, or student loan debt issued by the federal government. In a way, the CFPB will regulate the government that created it, given that the Department of Education holds nearly $1 trillion in student loan debt.<br /><br />The agency will require that all debt collectors properly identify themselves, prove and disclose the debs outstanding and due to the collector or the party the collector works for, and create a process through which consumers can settle any disputes. Historically, debt collection has been one of the most controversial parts of the financial industry, as a tangled web of ownership disputes mean that some people pay bills that were never theirs in the first place. On top of that concern, payments towards debts owed to a collector extend the reporting period of the debt on a credit report.<br /><br />Some 63 percent of debt collectors will have to follow the new rules. The CFPB will not be responsible for regulating the smaller portion of the industry that has less than $10 million in annual revenues. Smaller agents are less nimble, and may work on behalf of small businesses, which would incur an undue burden from new and costly legislation.<br /><br />This newest move will be the biggest by the bureau, as the number of debt collectors in the United States soared after the 2008 financial crisis, a time when many American families fell behind on payments owed on products ranging from credit cards to home mortgages.<br /><br />Source:<br />creditcardflyers.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-11403913879154497742012-11-05T00:25:00.002-08:002012-11-06T01:17:36.829-08:00Some tips of Protect Your Finances living in a shared apartment<div dir="ltr" style="text-align: left;" trbidi="on">
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Living with a significant other may not seem like a typical roommate situation, but when it comes to finances, more people should treat it like one. At least that’s the advice in a recent article from Fox Business.<br />
<a name='more'></a>In other words, unmarried couples who live together often mix finances in ways they wouldn’t with regular roommates. And that can leave them in a lurch, the article points out, as unwed cohabitation doesn’t have the built in legal protections marriage has. If the relationship ends, prying apart intertwined finances becomes tricky, as the former couple can’t rely on the asset-division rules that automatically come into play during a divorce.<br />
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This advice was particularly interesting to me, as I’ve been living with my boyfriend for two years — that’s two years of living in fear of making the same mistakes my fellow unwed cohabitors have made. I’ve seen couples co-sign on car loans together. I’ve seen them share credit cards and cellphone family plans, buy houses together — I’ve seen them go half-sies on a puppy. And then I’ve seen them break up.<br />
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For the most part, though, the article reassured me. It gives terribly unromantic advice I’ve followed for the most part:<br />
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Don’t share a car: Don’t put both your names on a car title, the article recommends. If you’re sharing a car that’s not in your name with a partner (and chipping in on the car payments), keep in mind that you’re basically paying rent on that car. If it’s not in your name, it’s an asset you’ll lose when you break up.<br />
Don’t share financial accounts: Sharing a joint credit card account means that both parties are equally responsible for the balance. Being responsible for the debt of someone I’ve broken up with is one of my worst nightmares. Furthermore, consolidating student debt into a single personal loan that both parties pay down might mean a lower interest rate, but it also gives both parties an obligation that might outlast the relationship, the article points out.<br />
Be careful when buying a house together: Buying a house entails a ton of paperwork. If you buy a house with a significant other, you’ll want to draw up some paperwork of your own. Plan with the assumption that the relationship will end. Specify who is responsible for maintenance and insurance costs. Decide who will keep the house if the relationship dissolves.<br />
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I appreciate that there are couples who don’t — and shouldn’t — follow this advice. Not everyone who wants to get married can. Many unmarried couples have kids together, and that entails joint finances.<br />
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Plus, even my living situation is not perfectly business-like. When you live with someone you love, they are not just a roommate. If a roommate can’t make rent, you get annoyed. When your significant other can’t make rent, your heart goes out to them. My boyfriend once (OK twice) came to my rescue when it came to rent (which I appreciated when I first moved to Austin and had no job). I returned the favor later. The thing that helps me sleep at night, though, is that, if we break up, the biggest decision we’ll have to make is who gets to keep the $100 Ikea couch.<br />
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With wise financial planning in mind, here are some of the best personal finance blog posts of the week:<br />
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Mint has an interesting infographic that compares male and female holiday shoppers.<br />
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Money Saving Mom explains how the cash-only crowd can buy gifts online.<br />
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Beating Broke lists five foods you shouldn’t waste your money on.<br />
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Money Coun$elor argues that shoppers should avoid layaway.<br />
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Plunged in Debt wonders if being too frugal can alienate your friends.<br />
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Make Love, Not Debt discusses how an emergency fund can keep you secure and help you take risks.<br />
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Source:<br />
creditcardguide.com</div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-28519288928905561212012-11-02T03:02:00.001-07:002012-11-02T03:02:23.435-07:00Two federal agencies announced that they are working together!<div dir="ltr" style="text-align: left;" trbidi="on">
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Two federal agencies announced on Thursday that they are working together to create the first comprehensive repository of detailed mortgage loan information. <br />
<a name='more'></a>Once in place, the Federal Housing Finance Agency (FHFA) and the new Consumer Financial Protection Bureau (CFPB) will use the National Mortgage Database to support their policymaking and research efforts and to gain a better understanding of emerging mortgage and housing trends.<br /><br />The database will include information spanning the life of a mortgage loan from origination through servicing and include a variety of borrower characteristics including the borrower's financial and credit profile, the mortgage product and terms, property information, and the ongoing payment history of the loan. It will not, however include personally identifiable information and the agencies said they will ensure that individual consumers cannot be identified through the database or any datasets that may be made available to researchers or the public. Data will be updated on a monthly basis and track back as far as 1998.<br /><br />The database will be built by matching a nationwide sampling of credit bureau files on borrower's mortgages and payment histories with informational files such as the Home Mortgage Disclosure Act (HMDA) database, property valuation models, and other data files to create a comprehensive picture for each mortgage. Work has begun on the project which is expected to be completed next year. FHFA and CFPB said they are committed to exploring ways to share the database with other agencies, academics, and the public once it is complete.<br /><br />The agencies said that although the mortgage market is the single largest market for consumer finance there is a lack of comprehensive data available on a complete, national scale. Information is kept by multiple federal and state agencies and private vendors but there is no single database where all the information can be found. Examples of how the National Mortgage Database can support the agencies' work include:<br /> Monitoring loan performance so policy makers can better understand how various loan products are being used and how they are performing. <br /> Conducting surveys to better understand consumer decision making and experiences across a range of topics such as mortgage shopping or distressed homeownership. <br /> Monitoring volume and performance of new products in the marketplace to help regulators identify potential problems or new risks<br /> Permitting analysis of how many homeowners have more than one mortgage and how they are performing. <br /> Understanding the impact of consumers' debt burden from data included about borrowers' other debt obligations. <br /><br />FHFA Acting Director Edward J. DeMarco said "This partnership between FHFA and CFPB will create a unique resource that benefits the government and public as we seek to answer important questions about how the housing finance market is evolving and changing. This collaborative effort is a great way to pool expertise and leverage resources for the benefit of regulators and the public."<br /><br />"In order to understand what is going on in the mortgage marketplace and develop appropriate consumer protections, we must have the best facts and data," said CFPB Director Richard Cordray. "This database will be a valuable tool for regulators and researchers and we look forward to partnering with FHFA on this important work."<br /><br />Source:<br />mortgagenewsdaily.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-92030854462441549152012-11-01T03:29:00.001-07:002012-11-01T03:29:28.551-07:00Questions on why Pandit had to leave.<div dir="ltr" style="text-align: left;" trbidi="on">
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As it becomes increasingly clear that Vikram Pandit was forced out as chief executive of Citigroup (C) on Oct. 16, the question for the board is why. <br />
<a name='more'></a>There was plenty of fodder to build a case on why Pandit had to leave. The question is why the board felt it was necessary to orchestrate such a disruptive and disrespectful exit.<br /><br />A piece in today’s New York Times lays out a scene in which Pandit was presented with three versions of a press release: one in which he quit right away, one in which he would stay through the end of the year, and one in which he was fired without cause. Which option would you choose in that scenario?<br /><br />Were things really so tense that the board couldn’t have made it clear to Pandit that they felt a change of leadership was needed and negotiate a seamless exit? Isn’t that what boards do all the time?<br /><br />The most troubling aspect of Citigroup’s leadership change is how it was communicated to the market. Instead of sharing the board’s qualms about the current leadership and outlining its rationale for a change, directors put the blame squarely on Pandit’s shoulders. He seemingly walked off in a huff, as did his No. 2 guy, President and Chief Operating Officer John Havens. No wonder the initial coverage was rife with speculation that they’d both asked for more money. What babies! Come on, guys, grow up!<br /><br />The person who should have explained what really happened—and didn’t—was Citigroup Chairman Michael O’Neill. It was never a secret that he wasn’t enamored with Pandit, and many people assumed a change in leadership was possible when O’Neill took over the chairman’s post earlier this year.<br /><br />Not only did O’Neill mischaracterize Pandit’s exit as a surprise, saying the chief suddenly quit a day after he delivered earnings that beat expectations; O’Neill added to the confusion by having Citi issue a press release filled with boilerplate praise for the departing executives. The board, one assumed, must have been in a state of shock.<br /><br />Worse, the process undercut successor Michael Corbat. Let’s not forget that the new CEO arrived in a state of emergency, practically breathless from sprinting to the airport to get to the C-suite in time. By all accounts, Corbat is well-suited for the top job. He had been groomed and was held in high regard by Pandit himself, according to people within the company. But instead of a well-orchestrated succession, Corbat suddenly flew in from the other side of the planet. That creates the impression that he’s Mr. Right Now.<br /><br />Were there legal reasons to orchestrate a coup? Perhaps. But boards are empowered to replace CEOs. That’s what they do. The question here isn’t why they ousted Pandit. It’s how they did it, and then explained it to the owners of Citigroup. Investors deserve better.<br /><br />Source:<br />businessweek.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-51961317274146766302012-10-31T01:43:00.000-07:002012-10-31T01:43:08.812-07:00Pleasant news: Mortgage rates rose slightly<div dir="ltr" style="text-align: left;" trbidi="on">
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Mortgage rates rose slightly on Tuesday, even though financial markets were fully closed due to Hurricane Sandy. The market closure meant that there was no trading on the secondary mortgage market, but most lenders remained open, and released rate sheets accordingly. <br />
<a name='more'></a> Without indications from MBS (the Mortgage-Backed-Securities that most directly influence rates), there was no unified theme among lenders, though perhaps a bit of "uncertainty premium." Some rate sheets were unchanged from Friday's while others barely budged from yesterday's much-improved levels, though some lenders were markedly weaker. On average, the change over yesterday's offerings is merely an adjustment to cost/rebate for the same note rates. That means that the Conventional 30yr Fixed Best-Execution rate remains intact at 3.375%<br />Loan Originator Perspectives<br /><br />"I think until the markets are up and can fully digest the ramifications of Hurricane Sandy, lenders will price less aggressive. I would give it a few days to lock as you might see thin volumes being traded tomorrow. Good luck! " -Tim Elkins, CEO, Crossline Capital. <br /><br />"I think Sandy is going to create huge mess in the month of Nov and beyond for borrowers in the NE. Clean up is one thing, but re-inspections are going to delay $billions in closings. Rates will have to extended and extra costs incurred by borrowers. One big headache.... " -Mike Owens, Partner with Horizon Financial, Inc.<br /><br />Today's Best-Execution Rates<br />30YR FIXED -3.375%<br />FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)<br />15 YEAR FIXED - 2.875%<br />5 YEAR ARMS - 2.625-3.25% depending on the lender<br /><br />Source:<br />mortgagenewsdaily.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-6567885633309755822012-10-30T02:57:00.003-07:002012-10-30T02:57:55.692-07:00FICO researchers explain how to earn high credit scores!<div dir="ltr" style="text-align: left;" trbidi="on">
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Bankers helped enrich the lives of more than 130,000 American children by participating in Get Smart About Credit Day during October. The American Bankers Association Education Foundation and its partner banks staged financial literacy events in over 450 communities. <br />
<a name='more'></a>The sessions gave bank employees and other volunteers the chance to share financial education tips ranging from learning how credit reports work to managing monthly credit card statements.<br /><br />In a statement to reporters, ABA President and CEO Frank Keating emphasized the importance of volunteer efforts to help young people gain access to financial education. The ABA offered participants of all ages a "credit road map" designed to help Americans manage money effectively through five stages:<br /><br /> Start with a credit card. Credit cards for limited credit may offer small credit lines, but responsible account management will attract better deals.<br /> Make a large down payment on a car loan.<br /> Budget for an affordable home loan.<br /> Get involved in kids' credit decisions.Don't co-sign for student credit cards without setting clear expectations.<br /> Live within your means for an easy retirement.<br /><br />Researchers from credit scoring company FICO revealed that following the ABA's road map can help consumers become "high achievers." FICO uses the term to classify Americans with the top 25 percent of all credit scores. According to FICO spokesman Anthony Sprauve, high achievers often share some key traits:<br /><br /> They manage an average of seven credit cards, but only typically carry balances on four active accounts at a time.<br /> They use an average of just 7 percent of their available credit.<br /> They almost never skip monthly credit card payments: only 4 percent of high achievers reported missing a bill. Even those missed payments happened, on average, more than 4 years ago.<br /> They seldom open new accounts. The average high achiever account was 11 years old, with many consumers in this group staying loyal to a particular account for more than 25 years.<br /><br />It's not impossible to earn a high FICO score with some dings on a credit report, researchers said. Collections activity appeared on 1 percent of high achievers' files, while 1 in 9000 experienced tax liens or bankruptcy. Sprauve told reporters that making consistent payments contributes the most to a strong FICO score.<br /><br />Source:<br />cardratings.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-87099682370260395662012-10-29T02:24:00.001-07:002012-10-29T02:24:07.985-07:00Four tips on how to avoid credit repair scams.<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu5Udakof9oEr6wPuKPWbcUGooE2n-rxwnnmsUgz8n1tzDgmtg5AppTkrIAppb0bgtlFSRityaz176OfiHoTdCQ4CQZC9g802GIaG38R_Nm9PYoOt6rfJQAwQ9psxeeIBLIeq2w3AQUD-6/s1600/87776.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu5Udakof9oEr6wPuKPWbcUGooE2n-rxwnnmsUgz8n1tzDgmtg5AppTkrIAppb0bgtlFSRityaz176OfiHoTdCQ4CQZC9g802GIaG38R_Nm9PYoOt6rfJQAwQ9psxeeIBLIeq2w3AQUD-6/s200/87776.jpg" width="200" /></a>Lenders use your credit score to measure your ability to repay debts. The better your score is, the more likely you are to qualify for credit cards and loans at favorable interest rates. <br />
<a name='more'></a>Therefore, removing negative or incorrect information from your credit report can help to boost your score but it can take time, particularly if your credit history reflects serious delinquency, bankruptcy or foreclosure. Unfortunately, many consumers fall prey to credit repair scams which promise a fast credit fix but fail to deliver on their claims. Knowing how to spot a credit repair scam can help you to avoid doing further damage to your credit. Read on for four tips on how to avoid credit repair scams.<br /><br />1. Do Your Research<br /><br />Before you enlist the services of any company advertising credit repair services, it’s important that you do some independent research to determine whether the business is legitimate. You can begin by contacting the Better Business Bureau in your state to find out if any negative reports or complaints have been filed against the company. Additionally, you can contact your state attorney general’s office or the Federal Trade Commission (FTC) to inquire about complaints. Your attorney general can also tell you whether credit repair companies are required to be licensed before doing business in your state of residence and what agency to contact in order to verify the company’s licensure if applicable. If the credit repair company claims to be accredited, you should also attempt to verify this with their accrediting organization.<br /><br /> 2. Recognize The Warning Signs<br /><br />Credit repair scams use marketing tactics to convince customers that they can provide a fast and easy credit fix. In reality, the tactics these companies employ are more likely to hurt your credit than help it. There are a number of red flags that consumers need to be aware of when spotting a credit repair scam. The Federal Trade Commission advises consumers to avoid doing business with any company that:<br /><br /> Asks for payment upfront before they provide services. The Credit Repair Organizations Act prohibits credit repair companies from requiring payment before services have been rendered.<br /> Does not explain your rights or tell you what you can do to repair your credit on your own.<br /> Tells you not to contact any of the three major credit reporting bureaus (Equifax, Experian and TransUnion) regarding information on your credit report.<br /> Claims they can get rid of negative information on your credit report, even if the information is accurate.<br /> Claims they can help you establish a new credit history using a federal tax identification number or by “piggybacking” on someone else’s credit.<br /> Advises you to dispute all of the information contained in your credit history, regardless of whether the information is accurate or how old it is.<br /><br />You should also be wary of credit repair companies that claim they can remove bankruptcies, liens, judgments or foreclosures from your credit history. Generally, the only way to remove a judgment or lien against you is to repay the debt it’s connected to. Once the debt is satisfied, you must petition the court where the judgment or lien was entered to have it removed from your credit report. Bankruptcy can be listed on your credit report for up to ten years, depending on which chapter you file. Foreclosures, defaults on student loans and other debts can remain on your credit for up to seven years. (To learn more about the two types of consumer bankruptcy, see Understanding The Differences Between Chapter 7 And Chapter 13 Bankruptcy.)<br />3. Know Your Rights<br /><br />Federal law requires credit repair companies to inform consumers of their legal rights which means telling them how they can go about disputing incorrect or inaccurate information on their credit report. The Fair Credit Reporting Act (FCRA) governs the accuracy, fairness and privacy of the information contained in your credit report. Under the FCRA, you’re entitled to know what information is in your credit history and how the information is used.<br /><br />The Fair Credit Reporting Act also outlines the procedure for disputing errors contained in your credit report. If you find information that you believe is inaccurate or incorrect, you must initiate a dispute by sending a written notice to the credit reporting agency. The notice must include your name, address, the nature of the information you’re disputing and why you believe it’s incorrect or inaccurate. The credit reporting bureau must investigate the dispute within 30 days. If your dispute is verified, the agency is required to remove or correct the relevant information. If the information is accurate, the credit bureau is required to send you written notice informing you that it has been verified.<br />4. Seek Legitimate Help<br /><br />Repairing your credit takes time and patience and it also means making smart financial decisions. Paying your bills on time, getting rid of debt and using credit wisely are the best ways to rebuild your credit score. There are a number of legitimate organizations that can help you get your finances back on track. Non-profit consumer credit counseling agencies exist specifically to help consumers who are struggling with credit and debt management. These organizations can evaluate your financial situation so that you can create a realistic budget, develop a strategy for repaying debt and offer advice on how to legally improve your credit score.<br /><br />As a general rule, if a credit repair company seems too good to be true it probably is. These companies rely on misinformation and a lack of financial knowledge in order to draw in unsuspecting consumers. Taking the time to educate yourself regarding your rights and the way credit repair scams operate can save you time, money and unnecessary headaches in the long run.<br /><br />Source:<br />candofinance.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-46377112535657599492012-10-26T00:57:00.001-07:002012-10-26T00:57:42.478-07:00Innovation: IBT has developed a strategic identity theft prevention plan with Red Flag Alerts in Real-Time<div dir="ltr" style="text-align: left;" trbidi="on">
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IBT, a leading innovator of best of breed solutions of cost effective enterprise-wide technology for financial institutions, now offers real-time red flag alerts to its fraud prevention initiatives product suite for Internet banking and mobile banking.<br />
<a name='more'></a>To date, identity theft is the fastest-growing crime in the United States. The identities of nearly 9 million Americans are stolen each year, with estimated total losses of $15.6 billion in recent years. To assist institutions to comply with the red flag guidance and regulations and combat this growing consumer concern, IBT has developed a strategic identity theft prevention plan that alerts the consumer immediately on recognition of some important common triggers identified in the red flag guidance.<br /><br />“Once again, these identity theft prevention initiatives demonstrate our commitment to safeguard our financial institutions customer information by alerting the customer of suspicious activity, heightening awareness as it occurs and requiring their confirmation of activity in real-time. This is a classic example of 'the IBT difference' in going beyond what is expected and providing solutions suites that protect customers information and give our Client base a unique advantage in providing them the ability to offer this extra security to their customers”, said Mike Golebiowski, president of IBT.<br /><br />About IBT<br />Headquartered in Cedar Park, Texas, IBT specializes in providing complete enterprise automation for financial institutions with products such as core processing, Check 21 proof automation, mobile banking, Internet banking, document imaging and personal financial management applications complete with 24/7 support services. The company focus is to push the innovation envelope to improve process and deliver reliable real time information across all delivery channels. The IBT suite of products delivers robust functionality and flexibility with product creation making the cost of ownership affordable while dramatically improving customer experience.<br /><br />Source:<br />banknews.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-77132741504521070012012-10-25T01:08:00.001-07:002012-10-25T01:08:50.328-07:00Will introduce new rules to control debt collection<div dir="ltr" style="text-align: left;" trbidi="on">
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The country's largest debt collection companies will face new oversight starting in January, the federal consumer watchdog agency said Wednesday -- a move designed to ensure that businesses play by the rules in their contacts with consumers.<br />
<a name='more'></a>The Consumer Financial Protection Bureau Wednesday published a new federal rule allowing it to supervise the country's 175 largest debt collectors -- those with collection revenue of more than $10 million a year -- by routinely examining their operations starting Jan. 2, 2013. The companies under the new scrutiny account for only 4 percent of the nation's debt collectors, but the money they recover from consumers represents more than 60 percent of all collections.<br /><br />Millions of consumers are affected by debt collection, and we want to make sure they are treated fairly.<br />-- Richard Cordray<br />CFPB Director<br /><br />The new rules, which the bureau has been formulating for months following input from consumer and industry groups, are the latest expanding oversight into nonbank financial companies. The agency and its ability to make rules stem from the Dodd-Frank financial reform law passed in 2010.<br /><br />"Millions of consumers are affected by debt collection, and we want to make sure they are treated fairly," CFPB Director Richard Cordray said in a statement. "... We want all companies to realize that the better business choice is to follow the law -- not break it."<br /><br />For consumers, the rules could mean that regulators spot and stop potential abuses earlier than they do now. The new regulations allow federal examiners to inspect a wide array of materials from the large debt-collection companies, including organizational charts, telephone recordings, compensation policies, consumer files, employee scripts and training procedures. Previously, regulators reacted only to consumer complaints.<br /><br />Several different federal laws regulate debt collection and spell out how collection companies identify themselves and make contact with consumers, in order to guard against harassment and deceptive practices. For instance, the 1977 Fair Debt Collection Practices Act says collectors in many circumstances cannot call a subject's workplace or other relatives in an attempt to collect a debt.<br /><br />ACA International, a debt-collectors trade group, said it was disappointed with the rule, saying it cast too wide a net. "ACA members embrace consumer protection, but it has to be balanced with the industry's ability to do their jobs in recovering rightfully owed consumer debt," CEO Pat Morris said. "Repayment of consumer debt is the lifeblood of America's credit based system and helps ensure that affordable credit is available and goods and services remain affordable, sustains jobs, and supports keeping taxes low." <br /><br />Debt collectors are just the latest companies to receive greater scrutiny. Since the CFPB opened up shop more than a year ago, it has used its authority to expand supervision of consumer reporting agencies, mortgage originators, mortgage servicers and payday lenders.<br /><br />Source:<br />creditcards.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-29285673663380998072012-10-24T01:28:00.001-07:002012-10-24T01:28:21.036-07:00The basic principles of saving accounts<div dir="ltr" style="text-align: left;" trbidi="on">
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The banking profession is almost as old as civilization itself. In their simplest form, banks took the money of a large number of people and lent that money to borrowers. <br />
<a name='more'></a>When borrowers paid back their debts to the bank, they would have to pay some extra. The banks would then convey a portion of this extra money earned to the original people from whom the banks received money. While the banking industry has become much more complex than this in modern times, the basic principal of receiving deposits and paying people for the deposits they make continues in the form of savings accounts. Customers can deposit their cash into banks in this way for safekeeping and to earn money from the bank.<br />Interest From Savings Accounts<br /><br />When one party owes money to another party over a certain period of time, a fee is usually assessed. This is called interest. Just as banks charge interest for the loans they make, they also pay interest to people who deposit money into savings accounts. The amount of money you will make by depositing your money in this way is usually expressed as an interest rate.<br /><br />For instance, if your savings account comes with a 1 percent interest rate, this means that your bank will pay you 1 percent of the total amount you have deposited into your account for every year that the money remains in the account. Unfortunately, compared to nearly every other type of investment instrument, a savings account usually yields the lowest interest rates available. This is due in part to the fact that a savings account comes with virtually zero risk to the cash deposited.<br />Compounding<br /><br />One important matter to bear in mind when calculating what you will gain in interest for your savings is the matter of compounding. If you deposit $1,000 in a savings account at 1 percent interest and never withdraw anything from that account for the next 10 years, you will not just receive $10 every year in interest. Rather, the total amount of interest you receive will increase year by year because of interest on your interest (1 percent of $1,010 for the second year, and so on). This is called compound interest.<br />Fees<br /><br />Depending on the specific type of savings account you have or the bank you use, there may be a monthly or annual fee involved with having a savings account. Banks charge these fees to keep from losing money by servicing a high volume of accounts with low balances. Most banks that charge such fees allow clients to get those fees waived by meeting certain requirements, such as having a recurring direct deposit or maintaining a minimum account balance. The specifics vary from bank to bank.<br />Taxes<br /><br />The Internal Revenue Service does not tax you for having money in a savings account. However, the interest that you earn on that account is taxable income. This interest income is taxed on a different scale from hourly wages, though: it is taxed as capital gains. As a taxpayer, you must report your interest earnings annually.<br /><br />Interest Versus Inflation<br /><br />One of the most disheartening things to be said about savings accounts is that keeping your money in one may actually result in a loss of wealth. Even if you avoid paying fees and receive interest payments from your bank, as long as the interest rate is lower than the inflation rate, the real value of the money in your account is consistently decreasing, even if the nominal value continues to grow. For instance, in the United States, it may be difficult to find a savings account that pays more than 1 percent interest, but inflation rates tend to hover around 2 percent or 3 percent.<br />Alternatives<br /><br />For many who seek to put their money away, the low yields that savings accounts offer are simply unacceptable. For this reason, they look for alternatives. One of the basic rules of investment is that risk and potential return are directly related. High-risk investment instruments tend to come with a high payoff, while low-risk investment instruments tend to have a low payoff.<br /><br />As mentioned previously, savings accounts are virtually risk-free, which is why they earn depositors so little. In some cases, though, those seeking to put money away can enjoy a substantially higher yield for only a very small increase of risk. For instance, government bonds are generally viewed as low-risk or no-risk investments, and their interest rates often track inflation rates quite closely. Another alternative may be a long-term Certificate of Deposit, as these come with low rates of interest and usually offer higher yield rates (see: CD Rates). Bear in mind, though, that CDs also usually come with early withdrawal penalties.<br />Online Versus Brick-And-Mortar<br /><br />If you are intent on getting a savings account, consider the difference between an online savings account and a savings account through a more traditional, brick-and-mortar bank. While traditional banks can be more convenient and offer a wider array of services and products, the fact that they offer so much makes it difficult for them to provide competitive rates. Some online banks specialize in industry-beating savings accounts with yield rates that traditional banks cannot match. In opening your savings account, look around and see what various banks have to offer before you make your decision.<br /><br />Source:<br />candofinance.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-85368863210819713492012-10-23T00:37:00.000-07:002012-10-23T00:37:07.223-07:00Spyware snooping around your credit card<div dir="ltr" style="text-align: left;" trbidi="on">
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Your credit card could soon be tattling on you to marketers.<br /><br />At least that’s the conclusion being drawn by the Financial Times and Wired after analyzing an online presentation from MasterCard, offering up cardholder data to online marketers looking to zero in on holiday shoppers (the presentation has since been taken down).<br />
<a name='more'></a>MasterCard cardholders make tens of billions of transactions each year, according to Wired. Out of that storm of data, patterns start to emerge. Population sectors can be isolated and analyzed. And that can be particularly useful to marketers who want to target business travelers, for example — or, even better, holiday shoppers (broken down into categories like Black Friday shoppers and Cyber Monday shoppers).<br /><br />Although no personally identifying data would be passed on to marketers, they’d be able to target you with online ads tailored to your shopping habits. That connection between your offline purchases and online life is what’s so mysterious (and so concerning). How, exactly, are these online marketers supposed to use what you’ve been buying at the mall and find you online?<br /><br />If MasterCard’s potential program takes off, it will be another development in the complicated relationship consumers have with their personal data. On the one hand, we offer up our information on a silver platter to marketers via social media. And we embrace smartphone apps that know where we are and send us coupons for nearby stores. On the other, we get creeped out when our favorite stores seem to know us a little too well and protest when malls try to track our phones. Plus, there’s a vulnerability that comes from marketers having the inside scoop on our impulse buys.<br /><br />How far is too far? Would MasterCard be crossing the line with this program?<br /><br />With protecting your wallet in mind, here are some of the best personal finance blog posts of the week:<br /><br />Money Crashers lists 10 things to never keep in your wallet.<br /><br />Punch Debt in the Face celebrates achieving financial peace.<br /><br />One Cent at a Time explains 15 ways you could get scammed on Craigslist.<br /><br />Personal Dividends offers some tips for negotiating a lower rent.<br /><br />NarrowBridge Finance explains why freebies don’t always add value to your life.<br /><br />Your Finances Simplified provides three ways to feed your family when you have little time — and little money.<br /><br />Source:<br />creditcardguide.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-17985051030521577122012-10-22T01:39:00.001-07:002012-10-22T01:39:35.258-07:00Mortgage Rates Finally Hold Their Ground<div dir="ltr" style="text-align: left;" trbidi="on">
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After moving higher every day this week mortgage rates finally held their ground today. Despite moderately lower Treasury yields and healthy improvements in the mortgage-backed-securities market, the actual rates that made their way onto lenders' rate sheets represented more of a "ground-holding" than a triumphant "bounce back" to previously lower levels.<br />
<a name='more'></a> This can often be the case in the wake of several days of weakness and some lenders tend to be more conservative with rate movements on Fridays. <br /><br />The net effect is a Conventional 30yr Fixed Best-Execution rate that is now shying away from a move higher to 3.5% and sticking around at 3.375% despite threatening to move higher yesterday. The minor improvement today is nice in the short term, and the outright levels are also excellent in the overall history of mortgage rates, but in the intermediate term, this is still quite a bit weaker than last week's pricing. Bottom line, if you were quoted a rate last week, it's still not likely to be available under the same terms today. <br /><br /> Loan Originator Perspectives<br /><br />"Nice MBS rally today should lead to better rates, but after a rough week leading up to today, we're not seeing lenders adjust pricing meaningfully better. Yet. Could come this afternoon Pacific time. If better pricing comes out, we'll look to lock certain clients. Otherwise floating into Monday. " -Julian Hebron, Branch Manager, Loan Agent, RPM Mortgage.<br /><br />"Nice to see price improvement on a Friday for a change. We haven't recouped all the ground lost over the past week or two, but something is better than nothing. Trying to convey that to my clients who procrastinated and failed to start their loans when rates were 3.25%. It's ALWAYS better to have the loan in progress, whether you float or lock, than to wait until the exact, sometimes fleeting, moment when rates hit their lows!" -Ted Rood, Bank Star<br /><br /><br />Today's Best-Execution Rates<br />30YR FIXED - 3.375%-3.5%<br />FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)<br />15 YEAR FIXED - 2.875%<br />5 YEAR ARMS - 2.625-3.25% depending on the lender<br /><br />Source:<br />mortgagenewsdaily.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-47229642800897072042012-10-19T00:58:00.002-07:002012-10-19T00:58:41.493-07:00Data helps MasterCard and its partners determine advertising that would be most attractive to the credit card user.<div dir="ltr" style="text-align: left;" trbidi="on">
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Data into DollarsMasterCard, the largest global payment network, is under scrutiny for a data digging project that raises some concerns about privacy. The company was said to have launched a new business whereby it uses consumer data to determine more about their users. This information is then sold to third parties for advertising and marketing campaigns.<br />
<a name='more'></a>The privacy concerns may be unwarranted, however. MasterCard data does not reveal who makes the purchases, nor does it include the names or addresses of those who use its cards. In fact, the company has explained its process by example. Those who travel frequently are more likely to be business travelers. Those who use their cards more heavily on weekdays are more likely to be business travelers than people who use their cards more often on weekends.<br /><br />This data helps MasterCard and its partners determine advertising that would be most attractive to the credit card user. The company is rolling out the service to marketers for online advertising campaigns.<br /><br />This is not the first time that consumer data has been used to generate better advertising campaigns. Google records user data to determine what customers are most likely to buy and when. Facebook has its own data-tracking, which follows users around the internet to learn more about the sites they visit. Amazon is known to collect data on its shoppers to find information about their spending habits and what products they would be most likely to buy given their most recent purchase history.<br /><br />For consumers, this poses very little privacy threat. However, it does mean that you might be seeing better personalized advertising in the near future.<br /><br />Source:<br />creditcardflyers.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-74115617535952646422012-10-18T02:27:00.000-07:002012-10-18T02:27:16.275-07:00Possibility of finding a Reward Card for budget hotels<div dir="ltr" style="text-align: left;" trbidi="on">
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Free airline flights are easily the best known travel rewards perks. However, for frequent travelers, cashing in travel rewards for free hotel stays can offer great value, particularly when traveling to big cities where hotels can easily cost upwards of $300 a night.<br />
<a name='more'></a>“If you’re traveling on a $200 [plane] ticket to California, you may save more money using travel rewards points for the hotels,” says Daraius Dubash, founder of the blog MillionMileSecrets.com. ”On the other hand, if you’re flying to Europe, you may save more money using your air miles for the ticket. It really depends on your personal situation.”<br /><br />Despite the potential payoff of hotel rewards, for travelers on a budget, finding the best hotel rewards program isn’t always easy. The most publicized hotel rewards programs involve mid- to higher-end hotels. While these programs may offer the most redemption flexibility, including the option to transfer points to airline rewards, they often don’t offer the best rewards deals for the frugal-minded.<br /><br />However, there do exist a variety of hotel rewards cards for low- to mid-tier hotels. Here’s what to look for — and how to crunch the numbers to find the best deals.<br /><br />Finding low- to mid-tier hotel rewards programs<br />When looking for hotel rewards programs to compare, you need to cast a fairly wide net. The best place to start, of course, is to look at the programs offered by hotel groups with a large portfolio of budget to mid-tier hotels, such as the Choice hotel group, as well as hotel chains like La Quinta and Best Western.<br /><br />At the same time, many hotel groups with a large portfolio of upscale hotels diversify by including several low- to mid-tier hotel chains. The Marriott hotel group, for example, includes Fairfield Inn and Courtyard by Marriott.<br /><br />Comparing rewards values<br />Once you’ve selected three or four programs to compare, it’s time calculate how rewarding they really are. This includes taking into account the hotels covered in the plan, the plan’s rewards accrual rate, the plan’s redemption requirements, bonus sign-up offers and the cash discount value of rewards.<br /><br />As an example, here’s a side-by-side look at two of the more popular low- to mid-tier hotel rewards cards — the Choice Privileges Visa card issued by Barclays and the Priority Club Select Visa issued by Chase.<br /><br />1. Which hotels are covered?<br /><br />Choice Privileges is the credit card rewards program of the Choice hotel group, which includes more than 5,500 budget hotels, such as Comfort Inn, Quality Inn, Clarion, Econo Lodge, Rodeway Inn, and many, many more. The group has hotels in the U.S., Canada, and internationally.<br /><br />Priority Club, meanwhile, is the credit card rewards program of the International Hotel Group (IHG), the parent company of Holiday Inn, Holiday Inn Express and Candlewood Suites, as well as numerous upscale chains.<br /><br />2. What’s the rewards accrual rate?<br /><br />Choice Privileges cardholders earn 10 to 15 points per dollar spent when paying for hotel stays at Choice hotels using the Choice Privileges Visa card, and two points per dollar on other purchases. In other words, for each $100/night hotel stay, you’d earn 1,000 to 1,500 points depending on which hotel you stay at.<br /><br />Holders of the Priority Club Select Visa earn 5 points per dollar spent for hotel stays within the IHG group, 2 points per dollar for gas, groceries, and restaurant purchases and one point for all other purchases.<br /><br />3. How many points do I need for a free stay?<br /><br />The value of rewards points depends on where you redeem them. Free nights with budget hotels in the Choice Privileges program require anywhere between 6,000 to 12,000 points. IHG Priority Club earnings can be redeemed for free hotel stays at the Holiday Inn and Holiday Inn Express starting at 10,000 points.<br /><br />4. What’s the cash discount value of the rewards?<br /><br />In other words, how much of a discount do you get when you stay at the hotel and pay with your hotel rewards card? Well, if you spend $100 for a stay at a Choice Quality Inn, you will earn 1,500 points. A free night’s stay at a Quality Inn will cost 8,000 points. That puts the percentage value of your Choice Privileges rewards cards earnings at an 18.75 percent discount. That means you earn almost one free night for every five stays at a Quality Inn. (For the sake of this example, we are ignoring rewards earnings for other purchases, as these are comparatively low).<br /><br />In contrast, if you spend $100 at a Holiday Inn on your Priority Club Visa, you earn 500 points. However, you need 10,000 points for a free night at the Holiday Inn, so that pegs the discount value at about 5 percent. That means that you need 20 paid stays at a Holiday Inn to earn a free night.<br /><br />5. Is there a sign-up bonus?<br /><br />The Choice Privileges Visa card comes with a sign-up bonus of up to 16,000 points, good toward up to 2 free nights.<br /><br />In contrast, the Priority Club Select Visa card offers a generous 60,000 bonus points for cardholders who spend $1,000 within the first three months, plus one free night a year. The latter benefit is somewhat offset by the card’s $49 annual fee, however. Reward nights at Holiday Inn can be redeemed for as little as 10,000 points, so those 60,000 bonus points could net you up to six free hotel stays.<br /><br />Determining a winner<br />Which rewards program is best? Well, it depends on your goals. In keeping with the two hotels used in this example, if you’re looking for a hotel rewards card with a bonus offer that will net you the most free nights, the Priority Club Select Visa wins hand down, thanks to its generous sign-up bonus. On the other hand, if you frequently stay at hotels and are looking for a card that will earn you the highest discount on your stays, the Choice Privileges program may be your better bet.<br /><br />There are many nuances, so keep your eyes open. The Priority Club rewards program, for example, offers a “Point Breaks” option with free hotel stays for as little as 5,000 points. However, those deals are harder to come by and will take more digging and pre-planning to land.<br /><br />Once you’ve checked out the terms and compared, it’s easier to decide which budget hotel rewards program best suits you. For maximum redemption flexibility, you may want to stick with hotel groups that include mainly budget hotels, such as Choice, La Quinta Inns and Suites and Best Western. If you can’t decide, you can always mix and match and take a few offers for a test ride.<br /><br />Source:<br />creditcardguide.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-33947977195943825762012-10-17T07:38:00.002-07:002012-10-17T07:38:49.485-07:00Restaurant owners reject proposed Visa, Mastercard<div dir="ltr" style="text-align: left;" trbidi="on">
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The country's largest restaurant trade group joined a chorus of detractors claiming that a proposed settlement over credit card interchange fees doesn't go far enough to foster competition among merchant banks. In a statement to reporters, Dawn Sweeney, President and CEO of the National Restaurant Association, said that the pending deal with Visa, MasterCard, and a host of member banks will not "fundamentally change a broken marketplace in which swipe fees are set."<br />
<a name='more'></a>Sweeney told journalists that small business owners don't always know what they're paying for the convenience of accepting credit cards. With little bargaining power, Sweeney said, restaurateurs can surrender as much as 5 percent of their revenues to banks, a high price to pay in an industry with small margins. Trade groups representing convenience store owners, truck stop operators, pharmacists, and grocers have also rejected the settlement.<br /><br />Last July, attorneys for the defendants announced what they called "the largest antitrust settlement in history." Visa, MasterCard, and major banks earmarked over $7 billion for refunds and reduced fees to merchants who claim that a lack of competition artificially inflated the rates businesses pay to accept credit and debit cards. Attorneys claimed at the time that reduced fees would trickle down to the consumer in the form of lower prices on goods and services. National Retail Federation President and CEO Matthew Shay told ABC News that retailers were "simply too competitive" to keep the fee reductions and rebates as profits.<br /><br />Meanwhile, banking industry lobbyists such as the Electronic Payments Coalition have told reporters that big box retailers drove the push for the deal without fulfilling promises to discount their merchandise for debit card users. Banks use their portion of interchange fees to fund customer benefits such as cash back credit cards, rewards credit cards, and free checking accounts. The deal awaits confirmation by a federal judge, but could become void if plaintiffs representing more than a quarter of the defendants' actual processing volume back out of the agreement.<br /><br />Source:<br />cardratings.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-52107368776071560912012-10-16T00:28:00.001-07:002012-10-16T00:28:42.412-07:00Mortgage Rates interest rates remain conventional loans at 3.25%<div dir="ltr" style="text-align: left;" trbidi="on">
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After managing to improve on Thursday and Friday,mortgage rates begin the current week slightly higher. Even so, the changes between Friday and today are minimal in most cases and several lenders are actually unchanged or slightly lower in rate/fee. This leaves the prevailing Best-Execution rate for 30yr fixed, conventional loans at 3.25%.<br />
<a name='more'></a>Last week saw rather muted activity in financial markets and fairly minimal movements in mortgage rates. There wasn't much on the calendar in terms of data or events and markets generally coasted sideways after spending a few days reacting to the previous week's jobs report. On the approach, this week contains much more in terms of potential market movers, but the question remains: will they actually motivate movement? <br /><br />So far, the answer is "no" considering the reaction to this morning's Retail Sales data. Markets paid some small attention to the stronger-than-expected numbers, but it certainly didn't generate big movement or big volume. This would seem to suggest that it's a tall order for the rest of the week's data to send rates definitively in either direction, and the lack of guidance leaves the door open for volatility. It's also possible that markets are waiting to see if any major news comes out of Thursday's EU Summit.<br /><br />Long Term Guidance: While the recently high degree of uncertainty remains very much intact, the Fed's decision to specifically target Mortgage-Backed-Securities in a third round of Quantitative easing provides a supportive undertone for mortgage rates. We'd still advocate not trying to get too far ahead markets. In other words, we wouldn't try to guess how low or how high rates might go before changing course. Rates remain near all time lows and risks of volatility remain high. Those factors suggest that you stay vigilant regarding the day-to-day swings in mortgage rates. If you're floating, set a limit as to how high rates would have to go before you cut your losses and locked. Similarly, set a target of how low rates would have to get before you lock.<br /><br />Loan Originator Perspectives<br /><br />"It's a very busy week for economic data, and rates will be volatile. So it's worth restating something I mentioned last week: rates move in real time throughout each MBS trading day, so rates you read about in the media are expired by the time you're reading about them. When it’s volatile like this, rate shoppers need to have target rates that they can’t or won’t go above, and give lenders standing orders to lock those rates when they become available. " -Julian Hebron, Branch Manager, Loan Agent, RPM Mortgage<br /><br />Today's Best-Execution Rates<br />30YR FIXED - 3.25% - 3.375%<br />FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)<br />15 YEAR FIXED - 2.75%<br />5 YEAR ARMS - 2.625-3.25% depending on the lender<br /><br />Source:<br />mortgagenewsdaily.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-11310184724309232152012-10-15T02:18:00.001-07:002012-10-15T02:18:01.000-07:00Some ways to part with your credit card<div dir="ltr" style="text-align: left;" trbidi="on">
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It was love at first swipe: That shiny piece of plastic caught your eye, every purchase brought a thrill and you planned on a bright future together. <br />
<a name='more'></a>But now the spark is gone. Should you call it quits? Experts offer some advice on when it makes sense to kiss your credit card goodbye. When to get rid of your credit card<br />
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1. "You don't treat me right." Bad customer service can be a good reason to part ways with your credit card company, experts say. It was reason enough for Craig Isaac, a North Carolina architect who is renovating a house and used his Home Depot credit card to buy everything from lumber to plants for the yard. He says he had a $3,000 balance and, right after he paid off all but $500, he handed his card to a cashier and it got declined. The next week, he got a letter stating that his credit limit had been lowered to about the amount of his outstanding balance. He called the issuer, Citibank. "I told them, 'With what you've done, I won't go back to Home Depot,' but they didn't care," he says. "It didn't matter how loyal a shopper I was." He says he switched his spending to his debit card.<br /><br />How to make the break<br /><br />There are many ways to cut ties with a credit card -- from the coy (let it languish in your wallet, but leave your options open) to the dramatic (cut up the card!) to the foolish (close the account in a huff). Here are some expert tips on the best way to move on:<br /><br />Look at your options. Depending on the situation, you could call your card issuer and ask for a change that will make you happy -- for example, upping your credit limit or lowering your interest rate. Or you can play the field and look for a new card.<br />Consider keeping the account open. Closing the account will slash your available credit and affect your balance-to-limit ratio, which is the amount of available credit you're using. For example, imagine that you have two credit cards with $5,000 credit limits on each. One is maxed out; the one you want to cancel is paid off. If you close the paid-off card, you go from using half of your available credit to all of it. The result? A dip in your credit score.<br />Put your card away. If you keep the account open, but stop using the card, stop carrying it. "Put it in a safe deposit box across town or I've even had some clients who freeze it," says Consolidated Credit Counseling Services' Dvorkin.<br />If you close the account, do it for the right reason. There are a few good reasons to close an account, experts say. Ditch it if the card has a high annual fee you no longer want to pay or it's a secured card and you want your initial deposit back, for example. Another one: if you are unable to control your spending. "If more plastic equals more temptation, go ahead and take the hit on your credit card score," NFCC's Cunningham says. In the long run, she says, using credit irresponsibly would do more damage to your score anyway.<br /><br />2. "Honey, you've changed." As evidenced by Isaac, credit card companies can change terms, leaving their customers feeling betrayed, experts say. Credit limits and interest rates are the most obvious switches, say experts, but changes in rewards programs are also common. "People almost go down memory lane, thinking about how long they've had a relationship with that card and say, 'How could you do this to me?'" says John Ulzheimer, president of consumer education at SmartCredit.com. But, he says, consumers need to realize it's just business: "If they're not comfortable doing business with you under the current terms, they're going to change the terms."<br /><br />3. "We're not a good match anymore." You got a student credit card before you moved into the dorm, but now you have a posh apartment and a new job. Or maybe you got an airline rewards card when you were a jetsetter who spent vacations in the Caymans, but now you're a homebody who prefers to hang out on the couch. Or that low-interest card when you were broke came in handy when you carried a balance, but isn't so useful now that you have money in the bank and want to rack up rewards. "Your life changes, and so should the card," says Howard Dvorkin, founder of Consolidated Credit Counseling Services Inc.<br /><br />4. "It's not you. It's me." Your credit card might be fine, but experts say if you have issues with overspending, you might need to bid your card farewell. "People have to look at themselves in the mirror and know themselves," says Dvorkin, who says his average credit counseling client carries a whopping eight credit cards. "If you don't have a lot of willpower, you shouldn't be carrying around multiple credit cards. You should be carrying a debit card. That gives you the ability to pay for things without spending money you don't have."<br /><br />5. "It's time to move on." Maybe you got a secured credit card or low-limit starter card when you needed to build or rebuild your credit, and now you're ready to take the next step. "You get this credit card and it's got a $500 or $1,000 limit on it. You will quickly outgrow that card," Ulzheimer says, especially if you want to start traveling for business or use your card heavily and pay it off each month to get rewards. You could ask your existing issuer to increase your credit limit, he says, but it probably makes more sense to shop for a new card.<br /><br />6. "There's someone else." You saw an ad for a shiny new card with attractive perks, and it stole your heart. There's nothing wrong with starting a relationship with a new card that seems to better suit your needs and desires. "You should always look at your credit card business as being portable and be willing to take it somewhere else if you find a new card that appeals to you," Ulzheimer says.<br /><br />No matter what you decide to do, experts say it's important to think things through first and not make any rash decisions. "We're all very emotional about our money," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. "But it's best to make financial decisions with your head, not your heart."<br /><br /><br />Source:<br />creditcards.com</div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-69473594480558357662012-10-12T02:05:00.000-07:002012-10-12T02:15:56.571-07:00Mortgage rates welcome improvement items!<div dir="ltr" style="text-align: left;" trbidi="on">
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Mortgage rates finally improved on Thursday after moving sideways or higher since last Thursday. The drop in rates/costs was broad-based with less of the stratification between lenders noted yesterday. <br />
<a name='more'></a>Depending on the scenario, this gets some of the more aggressive lenders back into 3.25% territory, while many others remain at 3.375%, simply with lower borrowing costs vs yesterday. <br />
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Bond markets and mortgage-backed-securities began the day slightly weaker territory, which would normally be a prelude to higher rates on lenders' rate sheets. Rates markets disregarded economic data to level off in the morning and began improving even before the afternoon's Treasury auction. After the auction passed with reasonable success, levels continued to improve into the afternoon, prompting some lenders to offer improved rate sheets.<br />
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Long Term Guidance: While the recently high degree of uncertainty remains very much intact, the Fed's decision to specifically target Mortgage-Backed-Securities in a third round of Quantitative easing provides a supportive undertone for mortgage rates. We'd still advocate not trying to get too far ahead markets. In other words, we wouldn't try to guess how low or how high rates might go before changing course. Rates remain near all time lows and risks of volatility remain high. Those factors suggest that you stay vigilant regarding the day-to-day swings in mortgage rates. If you're floating, set a limit as to how high rates would have to go before you cut your losses and locked. Similarly, set a target of how low rates would have to get before you lock.<br />
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Loan Originator Perspectives<br />
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"Our most active refi clients are folks that have already captured rate lows during 2012, so they're holding for macro themes (e.g., U.S. fiscal showdown and Eurozone debt contagion) that may push rates lower before they refi again. The recent rate uptick has made more risk averse refi clients decide that they want to capture the still-near-record lows before any further upside risks. And as for home buying clients who are getting into contract this week, we have a rate locking bias. " -Julian Hebron, Branch Manager, Loan Agent, RPM Mortgage<br />
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" Rates are rallying in the middle to late afternoon. Many lenders have yet to reprice for the better. If your lender has repriced better today and you are within 15 days of funding, i would lock. If your lender hasnt repriced yet, i would float over night. i would float any loan that is outside of the 15 day window. " -Victor Burek, Benchmark Mortgage.<br />
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Today's Best-Execution Rates<br />
30YR FIXED - 3.375%<br />
FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)<br />
15 YEAR FIXED - 2.75%<br />
5 YEAR ARMS - 2.625-3.25% depending on the lender<br />
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Source:<br />
mortgagenewsdaily.com</div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-69592461852666410652012-10-11T02:04:00.002-07:002012-10-11T02:04:40.168-07:00Banks have been aggressive in lending only to customers with good or better credit scores.<div dir="ltr" style="text-align: left;" trbidi="on">
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Consumer LendingBanks are stocking up on cash in a move that may soon put more credit cards, car loans, and consumer loans in the hands of consumers. The market for asset-backed securities is stronger than ever, suggesting that credit card rates may be headed lower, and rewards may be getting even juicier.<br />
<a name='more'></a>Barclays, one of the largest banks in the world by assets, reports that the market for asset-backed securities is so strong that banks are selling their credit card assets with rates only .42% higher than safe US Treasuries. The implications are huge – credit card companies are finding it cheaper to finance credit cards for American consumers, and may soon speed up the rate at which they lend.<br /><br />American Express, and General Electric (parent company of GE Money Bank, which funds many consumer credit cards) have been some of the most prolific issuers of new asset-backed securities. Retail stores are also finding more funding. Victoria’s Secret, Pottery Barn, Ann Taylor, and other retailers, are selling off their credit card portfolios in a move that will allow retail stores to issue new store credit cards to consumers.<br /><br />Are Subprime Cards Back?<br /><br />When credit card companies find it easier to borrow, the usual outcome is more credit card issuance to more people. In particular, those with low credit scores are a major beneficiary of lower credit card rates. Companies are more aggressive with their lending when they can finance their portfolios inexpensively.<br /><br />Since the financial crisis, banks have been aggressive in lending only to customers with good or better credit scores. Now, it seems, the market for subprime credit card debt may come back, extending credit to more people in more credit rating brackets.<br /><br />Source:<br />creditcardflyers.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-62053378881312044402012-10-09T01:14:00.001-07:002012-10-09T01:14:09.160-07:00FTC prevent fraud with platinum credit card<div dir="ltr" style="text-align: left;" trbidi="on">
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Marketers behind the "Platinum Trust Card" and the "Express Platinum Card" can never sell credit cards or make cold calls again, according to the Federal Trade Commission. <br />
<a name='more'></a>According to FTC officials, a Philadelphia company operating under the names Apogee One Enterprises and Marquee Marketing used telemarketing services to pitch platinum credit cards that they claimed would work with merchants who accept Visa, MasterCard, and American Express.<br /><br />FTC investigators learned that the marketers called consumers who had applied for payday loans online, promising instant credit limits of up to $9,500 in exchange for a $99 advance fee and a $19 monthly fee. However, the card's customers learned that they could only use their new credit lines at the card's own online store. FTC officials told reporters that the marketers sold "off-brand, overpriced products" and failed to honor promises to report cardholder activity to the three major credit bureaus.<br />Credit card marketers must close up shop, say investigators<br /><br />To avoid prosecution, company principals Blake Rubin, Chase Rubin, Justin Diaczuk and their organizations must pay fines and restitution amounting to $7.5 million. While admitting no guilt, the settlement blocks the marketers from getting back into business or benefiting in any way from consumers' credit profiles. Investigators froze the companies' assets in February after responding to consumer complaints related to unauthorized checking account deductions.<br /><br />The settlement caps off an investigation that began in January, as part of the FTC's initiative to target companies that violated the FTC Act and the FTC's Telemarketing Sales Rule. According to FTC officials, many telemarketing scams use online payday loan applications to identify potential victims. Boiler room operators promise instant approval credit cards with no credit report pulls, while asking for upfront fees or bank account information.<br /><br />Current Federal Reserve rules limit a credit card's annual service fees to 25 percent of an account's credit limit. However, pending litigation seeks to resolve the question of whether a bank can assess an application fee or a processing fee before a new account is officially opened. FTC officials advise consumers to avoid doing business with anyone who demands immediate payment for a new credit card over the phone.<br /><br />Source:<br />cardratings.com<br /></div>
Lord21http://www.blogger.com/profile/16817954810169117217noreply@blogger.comtag:blogger.com,1999:blog-6901960656658403523.post-39663684982972898462012-10-08T02:42:00.002-07:002012-10-08T02:42:56.877-07:00Risk management Regulations drafted in the wake of the global financial crisis!<div dir="ltr" style="text-align: left;" trbidi="on">
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Bank executives like to say that their most important job is managing risk. This does not mean they’re good at it. Banks the world over have often failed to monitor hazards properly, blowing up spectacularly every few decades. <br />
<a name='more'></a>Regulations drafted in the wake of the global financial crisis were supposed to curb dangerous behavior. Yet the complex new rules repeat a mistake that led to the banks’ troubles in the first place: They assume bank executives and regulators can figure out what is risky.<br /><br />Now a handful of regulators on both sides of the Atlantic are pushing for a less complicated approach. They argue that the only way to make sure financial institutions don’t fail when their bets go bad is by relying on dead-obvious restrictions on leverage. For every dollar of capital a bank has, it can lend a fixed amount, say $10, regardless of how risky or non-risky it claims that loan to be. That way the bank can take any risk it wants as long as there’s enough shareholder equity to cover the potential losses—so taxpayers aren’t stuck with the tab if it collapses.<br /><br />Andrew Haldane, executive director of financial stability at the Bank of England, and Thomas Hoenig, a board member of the U.S. Federal Deposit Insurance Corp., are the leading voices in this back-to-basics movement. “There’s scope for significant simplification of the rules,” says Haldane. “An advantage of the leverage ratio is that it doesn’t pick certain assets as winners and others as losers.”<br /><br />Banks in some 100 countries are bound by the Basel Accords, a set of regulatory standards named after the Swiss city where officials gather to forge those rules. Under Basel, the minimum capital requirement is determined by looking at a bank’s risk profile, which institutions calculate using their own complex formulas. The third installment of the Basel framework, which countries will start phasing in next year, ratchets up the minimum ratio to 8 percent; it does not question whether banks do a decent job of estimating the risk of their own loan portfolios. “The whole Basel approach has failed miserably because it allows the banks to focus on gaming the system,” says Anat Admati, a finance professor at Stanford University. “The simpler you make the capital rule, the harder it becomes to game it. That’s why simple leverage can work better.”<br /><br />In a paper presented at a gathering of central bankers in August, Haldane showed that the simple leverage ratio would have been a better predictor of failures in the last crisis. He also noted that the models banks use to measure risk involve millions of variables and assumptions, rendering them impossible to monitor for accuracy by regulators. Using its secret in-house formulas, Deutsche Bank (DB) calculates its risk to be 20 percent of assets. JPMorgan Chase (JPM) says about half its balance sheet is risky.<br /><br />The latest Basel rules do introduce the simple leverage concept for the first time, though as a secondary requirement to the minimum capital ratio. Haldane has said the Basel target of 3 percent of assets is lower than he would like, though he has shied away from offering his own number. Hoenig has proposed 10 percent. Sheila Bair, former chairman of the FDIC, favors 8 percent. Senator Sherrod Brown (D-Ohio) has introduced legislation that would set a 10 percent leverage limit.<br /><br />If U.S. regulators adopted Hoenig’s proposal as part of their implementation of Basel III, the four largest U.S. banks would have to increase their capital by $300 billion, according to Bloomberg Businessweek calculations. That would mean selling new shares or holding on to profits. Bank of America (BAC) would have to suspend its dividend for 12 years.<br /><br />Banks have resisted calls for higher capital requirements, saying they would end up curtailing economic growth. Because there isn’t enough investor demand for bank shares, financial firms would have to reduce assets to comply with a higher ratio, bank executives say. That means less lending for companies and consumers. The Institute of International Finance, a lobbying group, estimated in 2010 that new financial regulations would shave 3 percent from global economic output. The International Monetary Fund recently published a study refuting such claims.<br /><br />Unlike Hoenig, Haldane doesn’t advocate ditching Basel altogether. Bringing simple leverage to the forefront and pushing risk-based calculations to the background would make Basel much more powerful, Haldane argues. Bair agrees, especially if banks aren’t allowed to rely on their own risk models but are given standard risk scores for different asset categories. “Simpler and standard across-the-board risk weighting can help the leverage ratio in restraining banks,” she says.<br /><br />Yet even standardized measures can fail to spot risk in advance. Before the subprime crisis, mortgage lending was assigned a very low risk factor, while the sovereign bonds of most developed nations were seen as risk-free. If there’s one lesson the world should have learned about banking risk by now, it’s that it’s unpredictable.<br /><br />Source:<br />businessweek.com<br /></div>
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