Personal Finance News Jul 2009

Thinking of Switching Financial Planners?
BusinessWeek Online - You've got a dirty little secret. During long lunch breaks, or after work when everyone else heads home to their families, you're sneaking out to a secret rendezvous. You know what you're doing is perfectly justified, but you still feel a little bad afterwards. You never thought it would come to this. But here you are -- cheating on your financial planner. (Wed, 01 Jul 2009 12:08:43 GMT)

Fed Holds Rates Steady
BusinessWeek Online - With signs the economy is improving but still fragile, Federal Reserve policymakers held the Fed funds rate steady -- at zero to 0.25% -- on June 24, and maintained its pace of purchases of government debt at mortgage-backed securities. (Wed, 01 Jul 2009 12:08:43 GMT)

U.S. mortgage applications fall to 7-month low
Reuters - U.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday. (Wed, 01 Jul 2009 13:54:22 GMT)

Freddie Mac gets another $6.1B from gov't
AP - Battered mortgage giant Freddie Mac received $6.1 billion in new funds from the Treasury Department to help offset its mounting liabilities, according to a regulatory filing submitted Wednesday. (Wed, 01 Jul 2009 15:32:43 GMT)

Fannie, Freddie to expand refinance program: source
Reuters - Fannie Mae and Freddie Mac will expand their foreclosure-prevention efforts and refinance homeowners whose loan-to-value ratio is 125 percent, an administration source said on Wednesday. (Wed, 01 Jul 2009 16:38:24 GMT)

AIG to sell consumer finance unit in Colombia
AP - American International Group Inc. on Wednesday said it agreed to sell all of its ownership interests in its consumer finance operations in Colombia, the latest in a recent string of asset sales by the embattled insurer to bolster its finances. (Wed, 01 Jul 2009 21:10:28 GMT)

IPO for Genworth's Canadian operations closes
AP - Genworth Financial Inc. said Tuesday that an initial public offering of 44.7 million shares of its Canadian mortgage insurance operations priced at 19 Canadian dollars ($16.35) per share. (Tue, 07 Jul 2009 14:25:49 GMT)

U.S. consumers fall behind on loans at record pace
Reuters - Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills. (Tue, 07 Jul 2009 17:11:39 GMT)

Survey shows racial disparity in 401k savings rate
AP - A new study of 401(k) plans has revealed that black and Hispanic workers save significantly less for retirement and tap into their accounts more frequently than white and Asian employees. (Tue, 07 Jul 2009 19:10:18 GMT)

Falling house prices drive up mortgage fraud
AP - Falling housing prices are driving up reports of mortgage fraud, with the FBI saying Tuesday that reported losses are up 83 percent last year and climbing even higher in 2009. (Tue, 07 Jul 2009 23:53:26 GMT)

U.S. mortgage applications climb eases Fed pressure
Reuters - Demand for U.S. mortgages bounced from seven-month lows last week as average 30-year borrowing costs were unchanged, helping ease pressure for aggressive Federal Reserve actions to push down long-term interest rates. (Wed, 08 Jul 2009 16:15:06 GMT)

U.S. consumer credit edges down $3.23 billion in May
Reuters - Total U.S. consumer credit fell by an unexpectedly slight $3.23 billion in May, Federal Reserve data showed on Wednesday, although the previous month's drop was revised to a steeper decline than initially thought. (Wed, 08 Jul 2009 19:55:13 GMT)

Treasury picks 9 managers for toxic asset program
AP - The Treasury Department on Wednesday selected nine financial firms as partners for a program to buy banks' soured, mortgage-related investments. (Wed, 08 Jul 2009 23:03:38 GMT)

Report: AIG in talks for unit sale to MetLife
AP - American International Group Inc. is discussing a deal for all or part of its foreign unit, American Life Insurance Co., with MetLife Inc., according to a published report Wednesday that cited people familiar with the matter. (Thu, 09 Jul 2009 03:15:22 GMT)

AIG in talks to sell big Alico unit to MetLife: report
Reuters - American International Group Inc has resumed talks to sell its American Life Insurance Co unit to MetLife Inc in a transaction that could help the stricken insurer raise more than $15 billion, the Financial Times said. (Thu, 09 Jul 2009 12:46:02 GMT)

U.S. federal jury rejects $24 mln Altria tax refund
Reuters - Altria Group Inc said it will seek a further review of a federal jury verdict against it that threw out $24 million in tax refunds from investments in utilities and other assets. (Fri, 10 Jul 2009 20:21:18 GMT)

Federal jury rejects Altria's tax shelter claim
AP - A federal jury has rejected a $24 million tax refund claim filed by tobacco company Altria Group Inc. (Fri, 10 Jul 2009 21:11:57 GMT)

Nomura tie-up with India's largest life insurer
AFP - Japan's top securities firm Nomura Holdings has agreed to an asset-management capital tie-up with Life Insurance Corp. (LIC), India's largest life insurer, a newspaper has reported. (Sun, 12 Jul 2009 04:17:09 GMT)

10 tips for managing personal finances
AP - Many employers are setting up financial advice sessions for employees to help them navigate through the market downturn that has reduced 401(k) balances for most of us. It's a good idea to take advantage of one of these sessions if offered at work. If it's not an option in your workplace, you can review this checklist to make sure you're not forgetting any basics. (Mon, 13 Jul 2009 16:23:59 GMT)

Former U.S. Congressman sues Carlyle: report
Reuters - Former Republican Congressman Michael Huffington has filed a lawsuit against Carlyle Group alleging the private-equity firm misrepresented the safety of Carlyle Capital Corp, the publicly traded mortgage-securities fund that collapsed last spring, the Wall Street Journal reported. (Tue, 14 Jul 2009 04:44:01 GMT)

Lawmaker to back Obama student loan shake-up
Reuters - The head of a key U.S. congressional panel will introduce legislation on Wednesday calling for ending a college student loan program that for years helped lenders such as Sallie Mae thrive. (Wed, 15 Jul 2009 03:48:06 GMT)

Mortgage applications rise as interest rates tumble
Reuters - U.S. mortgage applications rose for a second straight week, driven by a jump in demand for home refinancing loans as interest rates tumbled, data from an industry group showed on Wednesday. (Wed, 15 Jul 2009 12:15:13 GMT)

Calpers sues rating agencies over losses
Reuters - Calpers, the biggest U.S. public pension fund, has sued the three largest credit rating agencies for giving perfect grades to securities that later suffered huge subprime mortgage losses. (Wed, 15 Jul 2009 15:44:34 GMT)

Fugitive ex-CS trader arrested, faces new charges
Reuters - A former Credit Suisse trader facing trial on charges of fraudulently selling $1 billion worth of mortgage-backed auction-rate securities, has been arrested after two months on the run, according to a court document made public on Wednesday. (Wed, 15 Jul 2009 18:06:53 GMT)

Meltdown 101: Preparing for your loan modification
AP - Homeowners worried about missing mortgage payments and entering foreclosure may have another option: a loan modification. (Wed, 15 Jul 2009 19:56:54 GMT)

FTC, 18 states act to stop sham loan consultants
AP - Prosecutors nationwide filed 189 legal actions Wednesday against loan modification consultants accused of bilking homeowners who are desperate to make their mortgage payments more affordable. (Wed, 15 Jul 2009 22:03:30 GMT)

AIG speeds up spinoff of life insurance unit
AP - American International Group Inc. is speeding up plans to spin off its American Life Insurance Co. unit as an independent public company, the company said Wednesday. (Wed, 15 Jul 2009 22:46:06 GMT)

Lawmakers frustrated with foreclosure aid programs
AP - Lawmakers vented Thursday about the government's inability to solve the nation's housing woes as fresh data showed foreclosure filings continued to rise. (Thu, 16 Jul 2009 14:57:31 GMT)

Mortgage rates fall again
AP - Rates for 30-year home loans dropped for the third-straight week, inching toward a record low reached earlier this year, Freddie Mac said Thursday. (Thu, 16 Jul 2009 15:27:36 GMT)

JPMorgan profit tops view though credit worsens
Reuters - JPMorgan Chase & Co said record investment banking and trading results drove quarterly profit 36 percent higher, topping Wall Street forecasts, but reported a surge in consumer credit losses that foreshadows deeper problems on Main Street. (Thu, 16 Jul 2009 15:44:45 GMT)

Foreclosures rise 15 percent in first half of 2009
AP - The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills. (Thu, 16 Jul 2009 16:17:44 GMT)

Fed balance sheet rises back above $2 trillion
Reuters - The U.S. Federal Reserve's balance sheet rose back above $2 trillion after dipping below that level earlier this month, bolstered by increased holdings of agency mortgage-backed securities, Fed data showed on Thursday. (Fri, 17 Jul 2009 00:56:42 GMT)

AP - Federal judge dismisses SEC insider trading case against Dallas Mavs owner Mark Cuban. (Fri, 17 Jul 2009 14:27:30 GMT)

Bank of America credit losses soar, profit falls
Reuters - Bank of America Corp, the largest U.S. bank, posted a quarterly profit that topped Wall Street forecasts but warned of a fresh surge in soured loans to credit card, mortgage and business customers. (Fri, 17 Jul 2009 15:50:09 GMT)

Wall Street dips on profit quality worries
Reuters - Stocks fell on Friday on worry over the quality of corporate profits after General Electric Co missed quarterly revenue estimates, discouraging investors after a four-day run-up in Wall Street. (Fri, 17 Jul 2009 17:11:46 GMT)

U.S. housing starts, permits jump in June
Reuters - Ground-breaking for new U.S. homes jumped in June, with starts for single-family homes rising at the fastest rate in 4-1/2 years, the government said on Friday in a report that suggested the battered housing sector was beginning to stabilize. (Fri, 17 Jul 2009 17:19:48 GMT)

Commercial mortgage failure at 20-year high in U.S.: report
Reuters - Commercial mortgages at U.S. banks have been failing at the fastest rate in nearly 20 years, the Wall Street Journal said, citing its own analysis. (Mon, 20 Jul 2009 08:42:59 GMT)

Report: UK mortgage lending up 17 pct in June
AP - Gross mortgage lending in the United Kingdom rose by 17 percent in June compared to the previous month but still lagged at about half of year-ago levels, the Council of Mortgage Lenders said Monday. (Mon, 20 Jul 2009 10:45:09 GMT)

Student Loans: A Bitter Financial Lesson
BusinessWeek Online - Where I grew up, it's in bad taste to talk about your personal finances. But with the financial woes of governments, companies, and ordinary people making headlines just about everywhere you look these days, it's about time we had an honest discussion about the great big money mess of 2009. (Mon, 20 Jul 2009 12:08:44 GMT)

Manage Your Money Like Warren Buffett
The Motley Fool - If you saw a mysterious $4 entry on your income-tax return, would you sweat it? What if you were a billionaire many times over? Would it even catch your eye? (Mon, 20 Jul 2009 15:33:28 GMT)

Credit and consumption; wed and unemployed
AP - BUY NOW, PAY LATER: Financial institutions helped develop consumer credit in the 1920s, as postwar prosperity raised the standard of living and old ideas about the burdens of debt quickly disappeared. Americans became so enamored of credit and layaways that many couldn't survive without them. (Tue, 21 Jul 2009 17:05:44 GMT)

House committee backs Obama student loan reform
Reuters - The $92-billion U.S. college student loan market would be fundamentally reshaped under a bill approved on Tuesday by a congressional committee, which sent the measure on to the full House of Representatives. (Tue, 21 Jul 2009 19:17:57 GMT)

Obama sees "battle" as financial plan forges ahead
Reuters - The Obama administration advanced its financial regulation reform agenda on Tuesday, moving ahead on reshaping the $92-billion student loan market and unveiling a proposed shake-up for credit rating agencies. (Tue, 21 Jul 2009 20:43:42 GMT)

Sallie Mae 2Q loss attributed to investment losses
AP - SLM Corp., better known as Sallie Mae, said Tuesday investment losses pushed it to a loss for the second quarter. (Tue, 21 Jul 2009 22:29:07 GMT)

Mortgage applications climb but job fears weigh
Reuters - U.S. mortgage applications rose despite a jump in borrowing costs last week, but still bounced around the year's lows with unemployment fears depressing demand. (Wed, 22 Jul 2009 11:25:37 GMT)

Wells Fargo profit rises; credit losses up
Reuters - Wells Fargo & Co on Wednesday said quarterly profit increased 47 percent as strong mortgage banking results and the acquisition of Wachovia Corp offset rising credit losses. (Wed, 22 Jul 2009 12:18:34 GMT)

NJ woman's bake sale helps make mortgage payment
AP - A New Jersey woman's bake sale has helped her forestall foreclosure. (Wed, 22 Jul 2009 13:18:09 GMT)

Bankrate to be taken private in deal with Apax
AP - Bankrate Inc. said Wednesday it had agreed to be acquired by New York-based private equity firm Apax Partners in a $571 million deal that will take the consumer-finance Web site operator private. (Wed, 22 Jul 2009 21:54:37 GMT)

Fed moves to improve disclosures on mortgages
AP - The Federal Reserve on Thursday advanced proposals designed to make it easier for Americans with mortgages, or shopping for them, to better understand how the loans work. (Thu, 23 Jul 2009 16:27:36 GMT)

Mortgage rates rise after falling for 3 weeks
AP - Rates for 30-year mortgages have edged up after falling for three-consecutive weeks. (Thu, 23 Jul 2009 16:49:22 GMT)

St. Jude Medical plans debt securities offering
AP - Medical device maker St. Jude Medical Inc. said Thursday it is offering senior debt securities and could use the proceeds to pay debt, buy back stock or fund general purposes. (Thu, 23 Jul 2009 19:38:22 GMT)

Report: Obama housing plan may fall short of goal
AP - The Obama administration's effort to persuade mortgage companies to lower payments for up to 4 million homeowners could fall short of its goal, according to congressional investigators. (Thu, 23 Jul 2009 21:07:44 GMT)

Citigroup names former banking regulator to board
AP - Citigroup Inc. named three new outside directors Friday as the bank seeks to shift its focus back to traditional banking after it suffered a bruising hit from risky mortgage-backed securities. (Fri, 24 Jul 2009 13:08:02 GMT)

Geithner, Bernanke at odds on consumer protection
AP - Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke staked out opposing sides Friday in a turf war over who should protect Americans from shady mortgage lending, abusive credit card fees, payday loans and other high-cost or risky financial products. (Sat, 25 Jul 2009 01:36:54 GMT)

REIT investors move from fear to fundamentals
Reuters - Many real estate investment trusts (REITs) spent the first quarter avoiding a financial funeral, but when they report second-quarter earnings in the next weeks, some may be feeling a new sense of longevity. (Sun, 26 Jul 2009 11:37:20 GMT)

Starbucks to match 401k but health benefits costlier
Reuters - Starbucks Corp will make discretionary matching contributions to 401(k) retirement plans for its 2009 plan year but employees will face higher health-care costs, Chief Executive Howard Schultz said in a memo to employees on Monday. (Mon, 27 Jul 2009 19:44:22 GMT)

Fed to update its consumer finance survey
AP - The Federal Reserve is reaching out to Americans to get a more detailed picture of how the country's economic debacles have affected household finances. (Mon, 27 Jul 2009 20:50:03 GMT)

U.S. housing chiefs to push lenders for aid
Reuters - Senior U.S. housing officials and leading mortgage companies on Tuesday will make a fresh commitment to help troubled borrowers keep their homes and will promise to expand foreclosure-prevention aid, sources familiar with the plans said. (Tue, 28 Jul 2009 05:32:02 GMT)

AIG sells life insurance premium finance business
AP - Insurer American International Group Inc. said on Tuesday that it closed the sale of its life insurance premium finance business for $679.5 million in cash. (Tue, 28 Jul 2009 14:25:22 GMT)

Feds push mortgage companies to modify more loans
AP - The Obama administration, scrambling to get its main housing initiative on track, extracted a pledge from 25 mortgage company executives to improve their efforts to assist borrowers in danger of foreclosure. (Tue, 28 Jul 2009 21:24:56 GMT)

Apax Partners begins tender offer for Bankrate
AP - Private equity firm Apax Partners launched a cash tender offer at $28.50 a share Tuesday to acquire all outstanding shares of consumer finance Web site operator Bankrate Inc. (Tue, 28 Jul 2009 21:59:13 GMT)

SEC files complaint against Phoenix company
AP - The Securities and Exchange Commission has charged four people and a Phoenix-based company with securities fraud for orchestrating a mortgage lending scam that raised nearly $200 million from investors. (Tue, 28 Jul 2009 23:55:09 GMT)

Subprime mortgage companies warn on U.S. foreclosures
Reuters - Companies that service risky residential mortgages are warning U.S. officials that a key program to slow foreclosures may push some financing costs higher and derail their efforts, said a leading subprime firm. (Wed, 29 Jul 2009 01:58:40 GMT)

U.S. durable goods orders slump, mortgage demand wanes
Reuters - New orders for long-lasting U.S. manufactured goods notched their biggest decline in five months in June, while applications for mortgages fell last week in a sign that economic conditions remain fragile. (Wed, 29 Jul 2009 13:03:44 GMT)

California legislature to take up tax changes
Reuters - California Govenor Arnold Schwarzenegger will call lawmakers into a special session to overhaul the state's tax system, which relies heavily on personal income taxes that are at the root of its budget crisis. (Wed, 29 Jul 2009 23:39:37 GMT)

New Federal Housing Administration loan assistance
AP - Loans backed by the Federal Housing Administration will be eligible for payment reductions similar to the Obama administration's loan modification program, the government will announce Thursday. (Thu, 30 Jul 2009 04:01:18 GMT)

Unemployment spreads distress in U.S. home loans
Reuters - Cities in the U.S. Sun Belt states of California, Florida, Nevada and Arizona dominated the record foreclosure spree in the first half of the year, but distress in other regions emerged as joblessness spread, RealtyTrac said on Thursday. (Thu, 30 Jul 2009 05:23:08 GMT)

Senate probes Goldman, Deutsche: report
Reuters - Goldman Sachs Group Inc and Deutsche Bank AG (DBKGn.DE) were issued subpoenas by a U.S. Senate panel looking for evidence of fraud in the 2008 mortgage-market meltdown, the Wall Street Journal said, citing people familiar with the matter. (Thu, 30 Jul 2009 05:37:26 GMT)

China's central bank reassures on monetary policy
Reuters - China's central bank pledged to maintain loose monetary policy to support the economy and said it would ensure sustainable credit growth without resorting to heavy-handed quotas to rein in a lending spree. (Thu, 30 Jul 2009 11:38:08 GMT)

Bankrate 2Q profit cut in half
AP - Bankrate Inc. on Thursday reported its second-quarter profit was cut in half as the recession eroded advertising revenue at the consumer finance Web site operator. (Thu, 30 Jul 2009 21:51:46 GMT)

Financial Literacy: Reaching the College Crowd
BusinessWeek Online - Cash-strapped families taking out large student loans to pay tuition. College students graduating with thousands of dollars in debts. Stressed-out seniors working double-shifts to pay off loans. These aren't new stories, but they're becoming increasingly common at universities as the financial crisis drags on. With experts blaming students' financial woes on risky loans and a lack of understanding of key money concepts, financial illiteracy in America is getting serious attention from universities around the country. (Fri, 31 Jul 2009 12:08:41 GMT)

Federal authorities create mortgage fraud team
AP - Federal authorities are creating a mortgage fraud task force in Connecticut to investigate schemes that contributed to the economic crisis and emerging crime trends associated with the growing tide of foreclosures. (Fri, 31 Jul 2009 15:48:39 GMT)

Genworth shares fall as 2Q results miss estimates
AP - Genworth Financial Inc. shares slipped on Friday, a day after the insurer reported worse-than-expected second-quarter results as it was hit by losses in its U.S. mortgage insurance division and investment portfolio. (Fri, 31 Jul 2009 16:22:21 GMT)

Illinois files bias suit against Wells Fargo
Reuters - Illinois Attorney General Lisa Madigan filed suit on Friday against Wells Fargo & Co , accusing the second-largest mortgage lender of steering blacks and Latinos into high-cost subprime loans. (Fri, 31 Jul 2009 21:58:07 GMT)