Debt Guide and Finance Information

Cabinet moots steps to clean-up tax haven image

Admin — Thu, 23 Feb 2012 04:33:44 +0000

by Urs Geiser, swissinfo.ch

The Swiss government has agreed in principle on extending due diligence requirements of banks and improved legal assistance on tax matters with other countries.

The finance ministry has been mandated to prepare concrete measures by next September in a bid to strengthen Switzerland’s financial centre, which is facing sustained pressure by several countries, including the United States.

Finance Minister Eveline Widmer-Schlumpf said the report discussed in Wednesday’s regular cabinet meeting was designed to outline the strategy for a “credible, tax compliant and competitive Swiss financial centre.”

She said the aim is to settle past tax problems with individual countries through amended deals and a withholding tax to ensure that investment income and capital gains of Swiss bank clients living abroad are taxed in line with international regulations.

Widmer-Schlumpf said the cabinet agreed on three tenets, including upgrading due diligence rules to prevent banks accepting untaxed assets. Besides these additional duties for banks, their clients would also be required to make a declaration on the fulfilment of their tax obligations in their home countries.

“We are convinced that this strategy allows us to live up to a legitimate demand of bank clients for privacy and to the equally legitimate demands of foreign countries to tax their citizens,” she told a news conference.

Widmer-Schlumpf said the cabinet continued to refuse the adoption of an automatic exchange of information, notably demanded by the European Union.

“The government believes that an automatic exchange of information would not be efficient and would contradict our policy of protecting the privacy of bank clients.”

US deal

Widmer-Schlumpf said the strategy report, which was delayed in November, was not directly linked to a scheduled debate in parliament next week over an amended tax accord with Washington.

If the House of Representatives follow the Senate, legal assistance will be granted to US authorities investigating suspected tax dodgers even if the bank client is not named but based only on evidence of on certain “patterns of behaviour”.

But she added that a smooth passage of the bill next week was in the government’s interest.

At least 11 Swiss banks are under investigation by Washington in the wake of a 2009 accord to transfer data concerning around 4,500 US bank clients suspected of violating US tax laws. The move was designed to stave off a potentially disastrous legal action against Switzerland’s main commercial bank, UBS.

But it also chipped away at Switzerland’s tradition of banking secrecy, which helped build up a $2 trillion (SFr1.82 trillion) offshore wealth management industry.

Approval of tax deals is also pending with neighbouring Germany and Britain.

Mixed reaction

Wednesday’s government policy statement met mixed reaction from political parties.

The centre-left Social Democrats said they welcomed the cabinet policy of “cleaning up the financial centre”, force banks to adopt a clean money strategy and reject untaxed money. However, it called on the cabinet to “let action speak now.”

The centre-right Radical Party, traditionally close to business interests, praised the government for taking more time to present concrete measures and refusing to cave in to pressure from the left.

The rightwing Swiss People’s Party, which has staunchly defended banking secrecy, criticised the government’s plans, accusing it of overloading the banks with further administrative duties even though they are not part of the tax system.

The centre-right Christian Democrats had already announced last week they would support the government’s strategy. The party’s spokeswoman said on Wednesday it was a step in the right direction, but further details were needed.

The Swiss Bankers Association said it was satisfied the government was sticking with a strategy it had already outlined and that it was still refusing the automatic exchange of client data.

But it called for any new regulations to be applied to all financial intermediaries and not just the banks.

However, the non-governmental organisation Berne Declaration, which works for equitable relations between the industrialised world and developing countries, slammed the strategy as mere window dressing for a domestic audience.

Urs Geiser, swissinfo.ch

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Article source: http://www.swissinfo.ch/eng/Specials/Rebuilding_the_financial_sector/Spotlight_on_banking_secrecy/Cabinet_moots_steps_to_clean-up_tax_haven_image.html?cid=32168416

Fannie-Freddie regulator has sober plans

Admin — Thu, 23 Feb 2012 04:33:42 +0000

Full-blown change must await congressional action, which is unlikely before this year’s elections. Meanwhile, Fannie and Freddie continue to be subject to competing political agendas: The Obama administration and congressional Democrats urge them to funnel more aid to distressed homeowners, while Republicans warn against adding to the huge risks taxpayers face.

In the face of these cross-cutting pressures,, the acting director of the FHFA, Edward J. DeMarco, has steadfastly adhered to his legal mandate, which requires him to protect the long-term financial soundness of the institutions under his care, even if that means embracing only those ideas for mortgage relief that add the least possible risk to their balance sheets.

The latest example of Mr. DeMarco’s insistence on a long-term perspective is his “Strategic Plan” for the FHFA’s stewardship, pointedly subtitled: “The Next Chapter in a Story that Needs an Ending.” Mr. DeMarco lays out a program for reform that the FHFA can pursue under existing authority. Most salient is his proposal to modernize and consolidate the two companies’ systems for bundling mortgages into securities, so that a unified, up-to-date “platform” will be available for use by whatever successor organization Congress eventually designs. In addition, Mr. DeMarco plans to keep raising fees that Fannie and Freddie charge for guaranteeing securities, as Congress and the administration have authorized him to do. As the housing market heals, this will help “crowd in” private capital to the mortgage-security market.

It’s risky to be optimistic about housing. But declining unemployment and other good economic news may be helping the market turn the corner, at last — even without sweeping new government aid. According to Deutsche Bank, home sales reached 4.1 million in January, almost back to the 4.2 million level recorded in June 2010, when a $7,500 home-buyer tax credit was still in effect.

Under the circumstances, this looks like an opportunity to start slowly weaning housing off Fannie-Freddie life support, rather than to keep trying to use them to stimulate the economy. For the future, what the housing market needs is not stopgap aid but new institutions and a clear and consistent set of rules — for government and the private sector. Those are the fundamental issues, and Mr. DeMarco is wise to stay focused on them.

Article source: http://www.washingtonpost.com/opinions/fannie-freddie-regulator-has-sober-plans/2012/02/22/gIQAd7XBUR_story.html

Sacramento, NBA close to arena financing deal that would keep Kings in capital …

Admin — Thu, 23 Feb 2012 04:33:39 +0000

If the final details are resolved in time, a term sheet will be announced March 1 and the Sacramento City Council will vote on the plan at its March 6 meeting, possibly avoiding the relocation talk that surrounded the team last spring when it almost moved to Anaheim.

“I feel very confident that we as a city are going to be able to do our part,” Johnson said at a late afternoon news conference at City Hall with six council members standing behind him. “The city controls its own destiny.”

The major sticking point in negotiations remains how much the Kings will contribute.

Under the proposed agreement, the city of Sacramento will raise about $190-$230 million by leasing out parking garages to private investors, a person familiar with the negotiations told The Associated Press. The person, speaking on condition of anonymity because they were not authorized to disclose the information, said another $75-$100 million is expected from the Kings and $40-$60 million from arena operator AEG.

The remaining gap will be covered by some combination of a ticket surcharge, advertising around the arena, allocating a portion of the city’s existing transient occupancy tax or a sale of three or four parcels of city land.

The final price tag for AEG depends largely on the team’s contribution.

The Kings’ portion would include upfront cash — the city had initially asked for $60 million — and donating back the land around the franchise’s current suburban Sacramento arena, estimated at about $25 million. AEG’s contribution will be impacted by the splits with the team in arena-related revenue.

Johnson and Stern still have some disagreement on how much, if any, of AEG’s portion is included in the Kings’ contribution. Major points for the city also include making sure rates don’t soar if the garages and street parking are sold to private investors, and getting Sacramento County’s agreement to use a parking garage near the arena site.

The two sides are making progress and hope to bridge the gap to finance the estimated $406 million arena, which would open for the 2015-16 season in the downtown Sacramento rail yards. The Kings nearly moved south to Anaheim last year, twice extending the relocation deadline and struggling to gain approval from league owners.

Johnson made a desperate pitch to the NBA Board of Governors last April to give the city a final chance to come up with an arena plan. He also bought time by presenting more than $10 million in commitments for new advertising, ticket purchases and other financial support from regional businesses for this season.

Despite attempts by Anaheim and Seattle to swoop in and lure the Kings, Stern said the league is making every attempt to keep the franchise in California’s capital.

Article source: http://www.washingtonpost.com/sports/wizards/sacramento-nba-close-to-arena-financing-deal-that-would-keep-kings-in-capital-city/2012/02/22/gIQAPrApTR_story.html

Washington Federal Names Michael Brown President of Equipment Finance Division

Admin — Thu, 23 Feb 2012 04:33:06 +0000

SEATTLE, WA —
Washington Federal (NASDAQ: WAFD) announced the appointment of Michael Brown as President of a newly formed Equipment Finance Division, to be headquartered in Phoenix, Arizona. Brown will be responsible for growing the company’s equipment finance portfolio within Washington Federal’s eight-state operations.

Chairman, President and CEO Roy Whitehead commented, “We like this business because it can be managed efficiently and offers high credit quality at reasonable yields, with relatively short asset duration. Washington Federal is very fortunate to attract a professional with Mike Brown’s extensive commercial finance experience and successful track record of generating high quality business. We look forward to adding his expertise and leadership to our business banking team.”

Most recently, Brown was president of Western Alliance Equipment Finance, a subsidiary of Western Alliance Bancorporation in Phoenix. Prior to that, he served as executive vice president and group head of the CIT Group, president of Wells Fargo Leasing Corporation, president of First Interstate Leasing, and regional sales manager for General Electric Capital. Brown holds a bachelor’s degree in business administration from Kansas State University.

Washington Federal operates 166 offices in Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas and New Mexico. Established in 1917, the Company provides residential real estate loans, commercial real estate financing, consumer deposit accounts and business banking. On December 31, 2011, the Company reported $13.6 billion in assets, $8.9 billion in deposits and $1.9 billion in stockholders’ equity.

To find out more about the Company, please visit our website. The Company uses its website to distribute financial and other material information about the Company, which is routinely posted on and accessible at www.washingtonfederal.com.

© Marketwire 2012

Article source: http://www.msnbc.msn.com/id/46489278

Hinduja Leyland Finance Plans to Raise 1 Billion Rupees

Admin — Thu, 23 Feb 2012 04:33:00 +0000

Hinduja Leyland Finance, a unit of
Ashok Leyland Ltd. (AL), plans to raise 1 billion rupees in private
equity investment to increase lending to buyers of light
commercial vehicles and three-wheelers.

The company is looking to rope in a private equity investor
to raise disbursals for the year starting April 1, Managing
Director S. Nagarajan said in an interview yesterday evening.

To contact the reporter on this story:
Ganesh Nagarajan in Chennai at
gnagarajan1@bloomberg.net

To contact the editor responsible for this story:
Sam Nagarajan at
samnagarajan@bloomberg.net

Article source: http://www.bloomberg.com/news/2012-02-23/hinduja-leyland-finance-plans-to-raise-1-billion-rupees.html

Sacramento, NBA close to arena financing deal

Admin — Wed, 22 Feb 2012 22:33:02 +0000

Sacramento’s last shot to remain an NBA city appears headed for another overtime.

In a joint statement released Wednesday, Sacramento Mayor Kevin Johnson and NBA Commissioner David Stern said they have agreed to a “work plan” in hopes of reaching a deal to finance a new arena by the March 1 deadline. Johnson, Stern and the Maloof family, which owns the Kings, will meet during this weekend’s All-Star festivities in Orlando, Fla.

If a plan can been hammered out in time, a term sheet will be announced March 1 and the Sacramento City Council will vote on the plan at its March 6 meeting, possibly avoiding the relocation talk that surrounded the team last year when it almost moved to Anaheim.

“Sacramento stands ready to meet the March 1 deadline,” Johnson said in the statement. “Our approach makes good on the principles that have guided us throughout this process: protecting the taxpayers, creating jobs, and pursuing an open and transparent process.”

The major sticking point in negotiations remains how much the Kings will contribute.

The final price tag for AEG depends largely on the team’s contribution.

The Kings’ portion would include upfront cash – the city had initially asked for $60 million – and donating back the land around the franchise’s current suburban Sacramento arena, estimated at about $25 million. AEG’s contribution will be impacted by the splits with the team in arena-related revenue.

Despite attempts by Anaheim and Seattle to swoop in and lure the Kings, Stern said the league is making every attempt to keep the franchise in California’s capital.

“We appreciate the work of the City of Sacramento and (our) discussions have been constructive,” Stern said in a statement. “Our hope is that current momentum continues in a way that we’re able to reach a deal by March 1 that makes sense for all parties.”

Kings owners Joe and Gavin Maloof haven’t been involved in negotiations. The league is bargaining with Sacramento officials on the franchise’s behalf and will present the final proposal to the team.

Joel Litvin, president of league operations, and Harvey Benjamin, executive counsel for business and finance, are the NBA’s lead negotiators. Stern also has been receiving updates.

The NBA could force the Maloofs into bringing in investment partners or – as a last resort – even sell the team if the owners walk away from a plan that has the league’s approval.

Southern California billionaire Ron Burkle remains interested in buying the Kings. And Christopher Hansen, a hedge-fund manager based in San Francisco and a Seattle native, is also making proposals to bring an NBA team to Seattle – with eyes on the Kings if Sacramento’s latest plan collapses.

The Maloofs insist they’re not selling the team. A Kings spokesman said the team is refraining from comment until the NBA and the city complete a proposed plan.

Article source: http://sportsillustrated.cnn.com/2012/basketball/nba/02/22/kings.arena.ap/index.html

Summary Box: Finance minister says loan ‘binds Greece to the euro,’ shields …

Admin — Wed, 22 Feb 2012 22:33:00 +0000

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Article source: http://www.washingtonpost.com/business/markets/summary-box-finance-minister-says-loan-binds-greece-to-the-euro-shields-against-default/2012/02/22/gIQACEdoTR_story.html

Kyriba Launches Supply Chain Finance Solution

Admin — Wed, 22 Feb 2012 22:32:55 +0000

Scalable, Multi-Bank Portal Connects Buyers, Sellers, Financial Partners

San Diego –

CA (PRWEB) February 22, 2012 — Kyriba, the global leader in Software-as-a-Service (SaaS) treasury management solutions, today announced the launch of its Supply Chain Finance technology platform. Fully integrated with Kyriba’s Treasury Management System, the Supply Chain Finance solution is a scalable, multi-bank portal that connects buyers, suppliers and financial partners on a single platform to facilitate the early payment of invoices to suppliers.

Supply Chain Finance solution highlights:

Multi-bank platform

ERP integration
Real-time visibility for all invoices and payments
Straight through processing
Improved working capital for both Buyers and Suppliers
Scalability for organizations looking to expand their Supply Chain Finance programs

“It’s no secret that the financial health of an organization’s supply chain is a strategic concern for CFOs and Treasurers. While many organizations have established Supply Chain Finance programs, many do not have access to the appropriate technology to optimize the deployment of these programs,” explained Edi Poloniato, SVP Strategy and Corporate Development at Kyriba. “CFOs and Treasurers realize that investing in the right technology and partnering with multiple banks is critical to the success of their Supply Chain Finance Programs.”

Mr. Poloniato continued, “By adding Supply Chain Finance to our treasury solution, Kyriba provides a platform that enables CFOs and Treasurers to have the visibility and productivity they require to efficiently manage their Supply Chain Finance programs on a global basis.”

About Kyriba Corporation

Kyriba is the global leader in corporate treasury automation. We deliver a fully-integrated, best-in-class, cloud-based (SaaS) treasury management solution through a user-friendly, highly flexible and secure platform that meets corporate treasury needs and covers the complete chain of liquidity, financial instruments and back office management, including worldwide bank connectivity. Kyriba allows for optimized decision-making, minimized risks, enhanced control and compliance and increased operational productivity. Founded in 2000 and headquartered in San Diego, Kyriba has operational and support centers in New York, Paris, Milan, Minsk, Rio de Janeiro, Hong Kong and Chongqing. Visit kyriba.com to find out more.

CONTACT INFORMATION:

Ellie Ardelean

Director of Interactive Marketing

Kyriba Corporation

eardelean(at)kyriba(dot)com

Sharron Silvers

KCSA Strategic Communications

212.896.1282

ssilvers(at)kcsa(dot)com

###

Ellie Ardelean
Kyriba
212-784-5584
Email Information

Article source: http://news.yahoo.com/kyriba-launches-supply-chain-finance-solution-181014058.html

FGI Participates in the Atlanta Commercial Finance Association’s 2012 Educational Event

Admin — Wed, 22 Feb 2012 22:32:52 +0000

NEW YORK, Feb 22, 2012 (BUSINESS WIRE) –
Ben Brachot, National Director of Business Development at FGI
Finance (
www.fgifinance.com ),
is participating as a distinguished speaker in the Atlanta Commercial
Finance Association’s 2012 Educational Event (
www.cfa.com )
that is taking place today, February 22, 2012 in Atlanta, GA.

The panel, “Perfecting and Lending on Foreign Assets”, is taking place
today, Wednesday, February 22, 2012.

Ben Brachot is speaking alongside Nancy Halwig of UPS Capital
Corporation, Craig Lee of Paul Hastings and Charlotte Starfire of
SunTrust Bank.

The panel focuses on varying viewpoints surrounding the current state of
capital markets. The panelists for this event have several years of
experience in various fields of lending, investing and general finance.
For more information about this event, please visit:
www.cfa.com

ABOUT FGI FINANCE:

FGI
Finance (
www.fgifinance.com )
is a global commercial finance firm with clients in over 60 countries
around the world. FGI helps middle market companies by providing them
with various financial products, business loans and financial services
to meet their financing needs. FGI Finance provides financing in over 15
foreign currencies and has a presence in 6 continents.
www.fgifinance.com

ABOUT THE COMMERCIAL FINANCE ASSOCIATION:

The
Commercial Finance Association (CFA), is the international trade
association dedicated to the asset-based lending and factoring
industries. Founded in 1944, the CFA has nearly 300 member companies and
16 chapters located throughout the United States, Mexico and Canada.
www.cfa.com

SOURCE: FGI Finance


        FGI Finance
        Alisa Banks, 212-248-3400
        abanks@fgifinance.com 

www.fgifinance.com

Article source: http://www.marketwatch.com/story/fgi-participates-in-the-atlanta-commercial-finance-associations-2012-educational-event-2012-02-22

Consumer finance agency will probe overdraft fees

Admin — Wed, 22 Feb 2012 22:32:50 +0000

NEW YORK (AP) — Of all the bank fees that customers love to hate, overdraft charges on checking accounts have to be near the top. The government’s new consumer protection agency appears to agree.

The Consumer Financial Protection Bureau said Wednesday that it will investigate overdraft fees, including how they are marketed and explained to customers. The agency said the probe could result in additional rules, perhaps even lawsuits.

Overdraft fees are charged by banks when customers try to spend more money than they have in an account. Banks will allow the transaction, then charge the customer a penalty of as much as $35.

“We’ve heard many stories about the $40 cup of coffee,” the agency’s director, Richard Cordray, told reporters and representatives from banks and consumer groups.

Cordray and representatives from four consumer advocacy groups said that the overdraft fees hurt the people who can least afford them because poorer customers are more likely to drain their checking accounts to close to zero.

Since the 2008 financial crisis, the government has clamped down on bank practices that it considers unfair, such as marketing credit cards to teenagers. Banks have complained some of the government’s moves have been too intrusive.

In 2010, the Federal Reserve barred banks from automatically enrolling customers in so-called overdraft protection programs for debit card or ATM transactions. Without overdraft protection, a transaction is declined if the customer can’t cover it.

The rule did not apply to checks, online bill payments or recurring debits, such as having the monthly cable bill automatically sent to your debit card. It also did not limit how much banks can charge for the service.

Banks have responded by marketing overdraft protection aggressively. Some told customers that opting out of overdraft protection could prevent them from making everyday transactions, including “medical or health emergencies,” according to research published last year by the Center for Responsible Lending, a consumer group that opposes overdraft fees.

Banks collected $29.5 billion in revenue from overdraft fees in 2011, according to research firm Moebs Services. That was down from $33.1 billion in 2010 but a significant increase from $18 billion in 1999, when the fees were less common.

Cordray said the problem is not just the fees but that banks often don’t explain them clearly. One bank, which he did not name, required customers to visit three different websites and scroll through 50 pages of dense text just to get an explanation, he said.

Cordray praised banks for finding ways to help customers avoid the fees, such as not charging overdrafts for purchases of less than $5 or giving customers 24 hours to add more money to an account.

Representatives of consumer groups who appeared with Cordray said customers would rather have their cards declined than be charged the fee. A representative of Citigroup, one of the country’s largest banks, said customers prefer to avoid the embarrassment.

Andrew Rowe, a senior vice president from Bank of America, said the bank has started giving customers “clarity statements” to explain fees and sending them text messages when their accounts drop below $25. Last month, Bank of America sent 20 million such texts to 8 million customers, Rowe said.

Bank of America was a leader in trimming overdraft fees beginning in 2009, when Brian Moynihan, now the CEO, was running the bank’s consumer banking unit. At the time, the bank owed $45 billion in government bailout loans. It has since paid the money back.

Banks have also drawn criticism for a practice known as “re-ordering” — when a bank takes all the purchases a customer makes in a single day and subtracts the biggest ones from the customer’s account first. Banks say it helps customers pay their most important bills first, like mortgages and student loans. Consumer groups say it’s a way to rake in fees.

The practice has been challenged in class-action lawsuits around the country. Bank of America settled one case for $410 million last July. JPMorgan Chase agreed this month to pay $110 million to settle similar claims.

The CFPB, born out of outrage over the financial crisis and the banking practices that led to it, said it would focus on four areas: re-ordering, missing or confusing information, misleading marketing and disproportionate impact on low-income and young customers.

According to a 2008 study by the Federal Deposit Insurance Corp., 9 percent of checking accounts incur 84 percent of overdraft fees. The study found that nearly half of younger cardholders paid the fees.

The CFPB also is requesting public input on the idea of a “penalty fee box” — a disclosure on checking account statements that would highlight overdrafts and related fees.

The agency said it plans to issue a report by the end of the year.

___

Follow Daniel Wagner at www.twitter.com/wagnerreports .

___

Wagner reported from Washington.

Article source: http://news.yahoo.com/consumer-finance-agency-probe-overdraft-fees-202703140.html

Experienced Energy Finance Banker Joins Growing Green Campus Partners Team

Admin — Wed, 22 Feb 2012 22:32:43 +0000

EDISON, N.J., Feb. 22, 2012 /PRNewswire/ — New Jersey based energy project developer and financial solutions provider Green Campus Partners, LLC (“GCP“) announced that Bryan Ryscavage, former lease finance banker with First Security Finance (“FSF”) / Crews and Associates (“Crews”) has recently joined the company as Vice President, Business Development responsible for the southeastern US.

Bryan has been in the banking and finance industry for over 12 years and has spent considerable time focusing on performance contract and energy related project financing. Bryan will continue to meet the tax-exempt and taxable financing needs of clients in various sectors throughout the southeast. Bryan currently serves on the membership committee of the Energy Services Coalition (“ESC”) in addition to other industry related organizations. Bryan is a graduate of the University of Arkansas at Little Rock with a BBA Finance.

Mike Horkey, Managing Director and GCP co-founder, said, “Given Bryan’s knowledge and expertise in the energy finance markets, we are thrilled to have him join our growing team. We are very confident that Bryan will make value-added contributions to our company and accelerate the productivity of our business development efforts.”

Bryan Ryscavage added, “I’m excited to join such an impressive group of seasoned professionals and appreciate the opportunity to grow my career with the most innovative company in this business segment.”

About Green Campus Partners LLC

GCP’s singular focus is on helping its clients convert their green ideas into green solutions. GCP is a catalyst within the Energy Services industry, serving as a valued conduit for productive relationships between contractors, energy users and investors. GCP’s business model targets co-development, financing and implementation of projects in three key segments of the multi-billion dollar Energy Services industry: energy efficiency, renewable energy and distributed generation.

GCP’s co-development model entails close collaboration with world-class engineering, procurement and construction contractors to design and build projects financed and, in many cases, owned by GCP. Business development is focused on financially strong end-use clients with energy intensive facilities, including governmental entities, institutional clients and select commercial and industrial clients and concerns.

For more information, please visit us at www.greencampuspartners.com or contact Mike Horkey via email at mike.horkey@greencampuspartners.com or by phone at 732-917-2304.

Article source: http://finance.yahoo.com/news/experienced-energy-finance-banker-joins-193300991.html

Do debt management plans hurt your credit score?

Admin — Wed, 22 Feb 2012 22:31:26 +0000

Dear Opening Credits,
My wife and I have decided to enroll for a debt management plan. The decision was based on the fact that, although our credit score is good currently, we were not making any dents in paying down our debt (roughly $35,000) by making slightly-above-minimum payments on each account every month. We have never missed a payment nor been delinquent, but we are hopeful this plan will get us out from under this in a much shorter time span. We do also have a mortgage and two car loans, which we also have never been late on nor missed a payment. How severely do you think our credit score will be impacted? The balances on the cards enrolled in the program were near maxed out already, so I cannot imagine the impact being much more negative than it already is. Also, our one car is a lease that will expire while we are under this DMP plan. Will I be able to extend or obtain financing for a car while on this program? — Jim

Dear Jim,
How great that you and your wife put your collective feet down. Acting as a unified force, you banded together and said, “Enough is enough! We’re getting out debt, even if that means ruining our credit!”

But hold up, Jim. It seems you’re a little confused about what makes a good or bad credit rating. Many people presume that their scores must be high because they have never missed a payment cycle or if offers for new accounts continue to flow in, then they’re shocked when they find out otherwise. The only way to tell is by checking, so pull your reports from the three credit reporting bureaus and get a hold of your FICO scores from MyFico.com.

How does a Debt Management Plan (DMP) affect a score, though? It doesn’t. FICO scoring models only draw from the data listed on a consumer credit report. Paying debts with the assistance of a third-party is not factored in at all. Here are the five components that play into a FICO credit score:

Payment history (35 percent): This is the most significant part of your credit score, and it includes how you’ve paid on all of your accounts. It also assesses anything in collections, if you’ve filed for bankruptcy or owe legal judgments and fines. With a debt management plan, you’ll continue to make steady payments, so unless you skip a cycle when you start the plan, you will still be doing well.

Amounts owed (30 percent): The second-weightiest factor is how much you owe in relation to the amount you can borrow. If you’re at your limit (which you are), your scores will suffer. As you delete the debt, however, they will rise. Because the repayment time frame for a DMP is three to five years, if you stick to the schedule, it will help in this area.

Length of credit history (15 percent): Now this is where a debt management plan can be problematic. While you’re on the plan, you’re expected to not get into any new credit contracts. If you don’t have an open card (clients are usually permitted to have one active account), not using credit at all can be detrimental. Still, this is a minor factor when compared to payment history and amounts owed. If you do have a card, use it wisely as you’re deleting the debt to help your score climb.

New credit (10 percent): Each time you apply for credit, your score will drop a bit. Therefore, not pursuing credit — as stipulated in the DMP agreement — will help you stay out of over-application trouble.

Types of credit used (10 percent): Lenders want to know how you’ve done with many types of financial obligations. Since you have a home and car loan as well as a lease, you’re proving that you can handle multiple financial obligations.

Regarding your car lease, there are no rules surrounding debt management plans and reapplication. However, lenders and other businesses who see the notation on your credit report are free to make a negative, neutral or positive determination about participation. To find out what your leasing company thinks, call and ask. The more you know now, the better.

See related: FICO’s 5 factors: The components of a FICO credit score

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Sales Rise, But Prices at 10-Year Low

Admin — Wed, 22 Feb 2012 19:40:04 +0000

Sales of existing homes rose in January, posting their third increase in four months even as prices sank to a 10-year low.

The National Association of Realtors (NAR) reported today that existing home sales in January were up 4.3 percent over December’s level, to a seasonally adjusted annual rate of 4.57 million. That represents a 0.7 percent annual increase over the Jan. 2011 level, which itself represented a temporary sales spike.

At the same time, the median sales price for previously owned homes fell to $154,700, the lowest reported since November 2001. The figure represents a 2.0 percent annual decrease from January 2011.

The falling prices and rising sales are related, according to Lawrence Yun, NAR chief economist, who noted favorable market conditions for buyers.

“The uptrend in home sales is in line with all of the underlying fundamentals,” Yun said. “Pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”

NAR President Moe Veissi said member Realtors have been reporting increasing interest among potential homebuyers compared to one year ago, which combined with favorable economic signs made him cautiously optimistic that home sales will trend upward through the year.

An abundant supply of foreclosed properties on the market continues to exert downward pressure on home prices. Sales of distressed properties made up 35 percent of January’s sales, up from 32 percent in December, with foreclosure sales nearly double that of short sales. Investors, who frequently purchase distressed properties, accounted for 23 percent of all existing home purchases, up from 21 percent in December.

More DeMarco Outrage: You Won’t BELIEVE Who He’s Considering for Fannie CEO

Admin — Wed, 22 Feb 2012 16:32:39 +0000

The other day we appeared on Sam Seder’s program, The Majority Report, to discuss the radical-right ideology of Edward DeMarco, a Bush appointee who became Acting Director of the Federal Housing Finance Agency (FHFA) and continues in that role because Congress won’t confirm President Obama’s nominee.

As we wrote last week, DeMarco is single-handedly blocking relief for millions of struggling homeowners and is using deception to justify his actions. He refuses to allow Fannie Mae and Freddie Mac, the two government-sponsored enterprises he now directs, to reduce principal or even interest rates. Some underwater homeowners are paying as much as 7 percent interest, while loans are now available at 4.3 percent.

DeMarco deceived lawmakers by suggesting it would cost $100 billion to write down mortgage principal while, as we wrote last week, his own agency’s estimates show that it would probably save more than $28 billion.

It gets worse. Even in the days since we taped this interview the DeMarco train has continued to ride the housing market off the rails. An academic has studied DeMarco’s insistence on increasing the Fannie/Freddie financial portfolio – which he says has no bearing on his refusal to do more to help homeowners – and has concluded that “there is a very significant conflict of interest” which DeMarco and others have understated.

DeMarco’s team has invested roughly $5 billion of Freddie Mac’s $650 billion in “reverse floaters” which are essentially bets that the homeowners who aren’t being helped by DeMarco’s team will never get helped. That conflict of interest is actually understated, said Christopher Mayer of Columbia Business School, because these “floaters” are derivatives which link back to $26 to $30 billion in mortgages. That makes the amount of mortgage loans subject to this conflict five to six times what was originally believed.

It gets even worse. Adding insult to injury, Fannie Mae is currently hunting for a new CEO. Which names are at the top of the list? One of them is Fannie Mae’s current Chief Counsel, Timothy Mayapoulos. What did Mayapoulos do before he joined Fannie Mae? He was chief counsel for Bank of America in 2008, when BofA was neck-deep in a wave of foreclosure fraud and other criminal activity. Bank of America has signed a number of multimillion dollar SEC settlements, and paid $410 million to settle charges that it illegally processed debit card transactions out of order in order to maximize overdraft fees.

That happened on Mayapoulos’ watch.

But Bank of America’s former top lawyer isn’t the only candidate that DeMarco and his team are considering. Another candidate is David Stevens, CEO of the Mortgage Bankers Association. What does the Mortgage Bankers Association do? For one thing, it owns and operates MERS Inc., the shell company that is central to many cases of foreclosure fraud and deception. For another, it’s the organization whose previous CEOs lectured homeowners on the immorality of walking away from underwater properties – while walking away from its own.

That’s the kind of CEO that Edward DeMarco thinks should be handling the taxpayers’ money and carrying out Fannie Mae’s mission ”to keep money flowing to mortgage lenders, to help strengthen the U.S. housing and mortgage markets, and to support affordable homeownership.”

And that’s why Edward DeMarco has to go.

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Article source: http://www.huffingtonpost.com/rj-eskow/more-demarco-outrage-you_b_1293676.html

New Greek Bonds To Be Issued Under English Law-Finance Minister

Admin — Wed, 22 Feb 2012 16:32:36 +0000

ATHENS (Dow Jones)–New bonds Greece will issue under a proposed debt exchange will be governed by English–rather than Greek–law, the country’s finance minister said Wednesday.

Speaking to parliament’s finance committee, Evangelos Venizelos said that the change in the legal framework was part and parcel of convincing the country’s private sector creditors to participate in a voluntary EUR100 billion debt write down.

“The new bonds will fall under English law, because …

Article source: http://online.wsj.com/article/BT-CO-20120222-708165.html

Consumer-Finance Watchdog Probes Overdraft Fees

Admin — Wed, 22 Feb 2012 16:32:35 +0000

The government’s new consumer-watchdog agency is launching a probe into costly overdraft fees charged by big banks.

The Consumer Financial Protection Bureau said Wednesday that it will ask banks for information about how overdraft fees affect consumers, how overdraft protection is marketed and what information consumers receive.

The probe could result in new rules or even lawsuits if banks are accused of violating consumer laws.

“Overdraft practices have the capacity to inflict serious economic harm on the people who can least afford it,” CFPB Director Richard Cordray said in a statement. “We want to learn how consumers are affected, and how well they are able to anticipate and avoid paying penalty fees.”

Banks impose overdraft fees when people spend more money than they have in their accounts. The fees didn’t exist 15 years ago; by 2009, they were generating tens of billions of dollars for banks.

The fees function like extremely high-cost, short-term loans. The cost of pushing your checking account into the red averages $30 to $35 per transaction, the CFPB said.

Banks were barred from automatically enrolling customers in overdraft programs for debit card or ATM transactions in 2010, under a rule issued by the Federal Reserve. The rule did not apply to checks and online bill payments or recurring debits. It also did not limit how much banks can charge for the service.

Banks have responded by marketing overdraft protection aggressively. They told consumers that opting out of overdraft protection “may prevent you from completing everyday transactions including . . . medical or health emergencies,” according to research published last year by the Center for Responsible Lending, a consumer group that opposes overdraft fees.

Some banks increased their fee income through a practice known as “re-ordering.” The banks would collect all the transactions in a given day then apply them in order, from largest to smallest. The effect is to maximize the number of transactions that trigger a fee.

Reordering has been challenged in class-action lawsuits around the country. Bank of America settled one case for $410 million last July. JPMorgan Chase agreed this month to pay $110 million to settle similar claims.

The CFPB outlined four areas of interest in its inquiry:

— The reordering of transactions in ways that increase costs to consumers.

— Missing or confusing information. The agency wants to make sure people understand how they can avoid overdraft fees. It will look at how the fees are disclosed and what other options are presented.

— Misleading marketing. The number of people who choose overdraft protection varies widely from bank to bank, the CFPB noted. It wants to know how marketing affects people’s decisions. The Center for Responsible Lending report noted several examples of misleading or threatening language in banks’ marketing materials.

— Disproportionate impact on low-income and young consumers. According to a 2008 study by the Federal Deposit Insurance Corp., 9 percent of checking accounts incur 84 percent of overdraft fees. The study found that nearly half of younger cardholders paid the fees.

The CFPB also is requesting public input on a draft “penalty fee box” — a disclosure on a consumer’s checking-account statement that would highlight any overdrafts and related fees.

The results of the probe will inform the CFPB’s policy on overdraft programs. It could spawn consumer-education efforts, new rules, guidance for bank examiners or legal action against banks that are accused of wrongdoing.

———

Follow Daniel Wagner at www.twitter.com/wagnerreports

Article source: http://abcnews.go.com/Business/wireStory/consumer-finance-watchdog-probes-overdraft-fees-15763127

Finance Departments Drive Demand for Electronic Document Management Solutions

Admin — Wed, 22 Feb 2012 16:32:34 +0000

IntelliChief Develops Paperless Solution for Finance Departments

Mansfield, MA (PRWEB) February 22, 2012

IntelliChief LLC, the leading provider of document management and document imaging solutions for the IBM i (System i, iSeries, AS/400), today announced the development of the IntelliChief solution for finance.

Creators of IntelliChief’s document management solutions realize it is imperative for finance professionals to have control over document processes. IntelliChief comes into play by organizing and grouping documents intelligently by client name, tax year, or other. It helps users manage what information the team shares, how it’s reviewed, and allows for easy approval of critical financial documents. Users can also flag priority documents needing review and add custom annotations to make documents easier to find.

“Because finance professionals work with a tremendous amount of documents that need to be carefully managed, it’s important to take control over document organization and processes,” said Brian Smith, Director of Marketing at IntelliChief. “IntelliChief is excited to be able to offer our finance customers a paperless solution designed particularly for their finance processes.”

Electronic document management solution adopters are able to use powerful features, such as IntelliChief Workflow, to help manage documents through the approval process. Additionally, users can manage finance documents from the browser, desktop, or even from Apple, Android, or Windows Mobile devices.

About IntelliChief

IntelliChief, is the leading provider of Paperless Process Management (PPM) solutions for the IBM i (System i, iSeries, AS/400) Enterprise. With decades of expertise in the market and seamless integration with leading ERP software vendors, IntelliChief takes companies of all sizes paperless with a typical ROI of less than one year. Users can create, capture, manage, archive, retrieve, and distribute mission-critical documents directly from their familiar ERP screens, eliminating the need for filing cabinets, storage facilities, fax machines, copiers, and paper files.

###

Brian Smith
IntelliChief
508-594-2800 556
Email Information

Article source: http://news.yahoo.com/finance-departments-drive-demand-electronic-document-management-solutions-141610237.html

The Business Finance Store Offers Tips for Hiring the Right Employees

Admin — Wed, 22 Feb 2012 16:32:31 +0000

The Business Finance Store discusses key factors for small businesses to consider when acquiring and retaining talent.

Santa Ana, CA (PRWEB) February 22, 2012

The new season of The Celebrity Apprentice debuted this week with 18 new celebrity contestants such as Arsenio Hall, Clay Aiken and Debbie Gibson. The show is a Donald Trump creation and features celebrities competing for a chance to win $250,000 for their charity of choice. The Donald apparently didn’t have trouble finding new “employees” for his show, similarly small business owners can make the hiring process easier for themselves as well. In the recent blog post “You Don’t Have to Be Donald Trump to Find and Retain the Right Talent,” The Business Finance Store discusses key factors for small businesses to consider when acquiring and retaining talent.

As a small business owner, the goal should be to hire the right people, individuals who can get up to speed quickly, meet the needs of the hiring managers, and stay with the company. The best tools are those that are right at your fingertips. Read more about finding, hiring and retaining the best employees at The Business Finance Store Blog.

The Business Finance Store is a business financing and consulting firm that offers customized Business Financial Solutions. Seasoned professionals offer assistance in a variety of financial solutions to help small businesses succeed such as: Business Financial Solutions, Legal Solutions, and Accounting Solutions.

The staff at The Business Finance Store understands that starting and growing a business is an exciting time. They keep it exciting by taking care of some of the most difficult aspects, by providing legal advice, helping with vital responsibilities like accounting bookkeeping, and by obtaining business finance. They can quickly and easily guide entrepreneurs through many different complicated processes and put them on the path to success.

For 10 years The Business Finance Store has been helping startups and other small businesses legally structure their companies, find the right franchises, get the funding they need, and achieve the American Dream of owning their own successful business. Since expanding nationwide in 2007, they have helped thousands of companies and have funded over $60 Million in business credit lines, not including SBA loans. The Business Finance Store sees limitless potential in the current climate, and looks forward to many strong years of growth to come. Take some time to review their services, and give them a call.

For more information, or a free, no-obligation analysis of your business needs, visit The Business Finance Store website: http://www.businessfinancestore.com. A member of their professional staff will contact you to discuss your business’ short and long-term goals. Whatever you need, The Business Finance Store is there.

###

Kelly Rye
The Business Finance Store
(949) 777-5959
Email Information

Article source: http://news.yahoo.com/business-finance-store-offers-tips-hiring-employees-150327249.html

Barry Habib, Residential Finance Corporation Executive, Proposes Housing Initiative

Admin — Wed, 22 Feb 2012 16:32:30 +0000

COLUMBUS, Ohio, Feb 22, 2012 (BUSINESS WIRE) –
As the mortgage industry and the federal government struggle to find
ways to stem foreclosures, Barry Habib, vice president and chief market
strategist for Columbus, Ohio-based Residential
Finance Corp. (RFC), proposes a plan to prevent foreclosures and
strategic defaults. The proposed plan also enables homeowners to quickly
rebuild equity in their homes with a monthly housing expense lower than
renting.

Under the proposed Homeowners
Equity and Liquidity Pathway (HELP) for Housing plan, homeowners
build equity in their homes after just two years without a government
bailout while contributing up to $450 billion in economic stimulus to
the U.S. economy over five years.

Key elements of this proposal include:

–
Eligible for borrowers who are current but trapped in their mortgage
by not being able to refinance their mortgage or sell their home.

–
Existing mortgage would be divided into two parts: a first mortgage —
representing 80 percent of the current value of the home — on a
20-year fixed payment, which takes advantage of the historically low
market rates, and a second mortgage on the remaining balance, to be
securitized and held on the Federal Reserve balance sheet, much like
QE1, QE2 and Operation Twist.

–
Borrower is not obligated to make monthly payments on the second
mortgage; however, interest accrues and is payable upon the sale of
the home.

–
Significantly lower monthly mortgage payments — resulting in a less
expensive alternative to renting a similar home.

–
Borrower rebuilds equity within two years.

–
Borrower cannot sell the home for three years after entering the
program.

–
Zero to minimal contribution from the federal government.

While there are many loan programs and ideas that address the
foreclosure problem, this proposal actually addresses borrowers’ current
situation and underlying issues contributing to strategic defaults. For
instance, with some programs, even if the borrower does refinance, he or
she will end up paying more than they would for rent and still not be
able to gain equity in their home. By building equity, HELP for
Housing allows borrowers to see a light at the end of a tunnel of
being upside down or loan trapped. The program shows them how they can
create wealth in their home again by giving them “skin in the game” or a
reason to continue to pay their mortgage as well as room to rebound
financially.

“This program would enable an average homeowner to save about $590 a
month on their mortgage payment, which they would likely spend —
creating enormous economic stimulus — save, or use to pay down their
mortgage,” Habib said. “The bottom line is that homeowners will have a
mortgage payment they can afford and once again build equity in their
home while also having significant extra cash per month. This is not a
bailout; there is no moral hazard; and the government benefits from
significant economic stimulus without having to pay for it.”

Homeowners would be required to pay back all of the loan(s) upon the
sale of their home, which they would not be able to sell for three
years, as a condition of the proposed program.

As for the benefit to government, Habib said in addition to getting the
economic stimulus, banks are less likely to need bailouts because they
will not be required to write down a portion of the existing loan, as is
the case with other plans.

Habib continued, “The mortgage industry must get creative with the way
we approach foreclosures because we know exactly what plans will help
homeowners; we also know how the government can participate without
bailouts and without costing taxpayers money.”

Homeowners would have to qualify for the proposed program, which is
explained in detail in the new whitepaper, “HELP for Housing.” To
enter the program, they would need to have paid their bills on time and
incur no late mortgage payments for the last 12 months. Conceivably, the
plan could affect 10 million homeowners who would each be able to pour
$7,080 annually back into the economy, or $450 billion during the next
five years.

The revolutionary proposal has been submitted for consideration to the
Mortgage Bankers Association, National Association of Realtors, the
Consumer Financial Protection Bureau, the House Financial Services
Committee, the Department of Housing and Urban Development and several
congressmen.

About Residential Finance Corp.

Founded in 1997, Residential Finance Corporation (RFC) (
www.residentialfinance.com ),
offers homeowners and homebuyers nationwide a wide range of home
mortgage loan options, including special lower-rate government-insured
FHA and VA loans, residential mortgage loans, jumbo mortgage loans, and
reverse mortgages. RFC’s highly-trained staff delivers mortgage
expertise and customer service excellence, winning the company many
awards, including Columbus Business First Corporate Caring Award, Columbus
Business Journal Best Place to Work, Florida Trends Best Company in
Florida, American Business Award Sales Department of the Year,
Inc Magazine INC5000 Fastest Growing Company, and American Society
of Training and Development Excellence in Practice. Headquartered in
Columbus, Ohio, RFC has branches throughout the country, and is seeking
loan officers and branch managers to join their network of branches. For
more information contact Jessica Manna at 614.255.4317.

NMLS#1652. Equal Housing Lender.

SOURCE: Residential Finance Corporation


        For RFC
        Media Contact
        Charlyne H. McWilliams, 301-933-5567

Article source: http://www.marketwatch.com/story/barry-habib-residential-finance-corporation-executive-proposes-housing-initiative-2012-02-22

Horizon Technology Finance Announces Fourth Quarter 2011 Conference Call and Webcast

Admin — Wed, 22 Feb 2012 16:32:27 +0000

FARMINGTON, Conn., Feb. 21, 2012 (GLOBE NEWSWIRE) — Horizon Technology Finance Corporation (Nasdaq:HRZN – News) (the “Company” or “Horizon”), a leading specialty finance company that provides secured loans to venture capital and private equity backed development-stage companies in the technology, life science, healthcare information and services, and clean-tech industries, announced today that it plans to release financial results for the fourth quarter ended December 31, 2011, on Monday, March 12, 2012, after the close of market trading. The Company has scheduled a conference call to discuss the results on Tuesday, March 13, 2012, at 9:00 a.m. ET.

The conference call will feature remarks by Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer, Gerald A. Michaud, President, and Christopher M. Mathieu, Chief Financial Officer. To participate in the call, please dial (877) 677-9112 (domestic) or (708) 290-1396 (international). The passcode is 43314588. Please dial into the call at least five minutes before the scheduled start time.

The conference call will also be available via a live listen-only webcast on the Company’s website, www.horizontechnologyfinancecorp.com. Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the Internet broadcast.

For interested individuals unable to join the live conference call, a replay of the call will be available through March 20, 2012 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The passcode for the conference call replay is 43314588. An online archive of the webcast will be available on the Company’s website for 30 days following the call.

About Horizon Technology Finance Corporation

Horizon Technology Finance Corporation is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company provides secured loans to development-stage companies backed by established venture capital and private equity firms within the technology, life science, healthcare information and services, and clean-tech industries. The investment objective of Horizon Technology Finance is to maximize total risk-adjusted returns by generating current income from a portfolio of directly originated secured loans as well as capital appreciation from warrants to purchase the equity of portfolio companies. Headquartered in Farmington, CT, with a regional office in Walnut Creek, CA, the Company is externally managed by its investment advisor, Horizon Technology Finance Management LLC. To learn more, please visit www.horizontechnologyfinancecorp.com.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Article source: http://finance.yahoo.com/news/horizon-technology-finance-announces-fourth-211500594.html