Meet the millionaire cofounder of Seventh Generation who is part of a growing movement of wealthy people urging Congress to let the Bush tax cuts expire. For them, it isn’t just a moral question; they say financially the government cannot afford to let them pocket that money.
Can all of a bank’s many operations be boiled down to a single measure of overall risk? And—given the ripple effect that a bank failure has on the economy—can that measure be corrected if it gets too high? The FDIC wants to find out by the end of the year. The agency is examining 105 banks with assets of more than $10 billion and creating for each a scorecard based on categories like earnings and heavy exposure to credit. The plan is to charge each institution based on the threat it poses to the global financial system—in theory, deterring future crashes. It’s a tricky task—one the American Bankers Association calls too new and subjective. “It was rolled out amid troubles in the industry. There hasn’t been a long-enough period to know what would work,” says James Chessen, the industry group’s chief economist. Then there’s the perennial question of how government regulators can ever keep up with private bankers’ complex inventions. “We all thought mortgage-backed securities were fine...
One byproduct of the recession has been a change in the investing habits of 18- to 34-year-olds, according to a new study by Merrill Lynch. Can you blame a generation whose financial coming-of-age was bookended by the dotcom bubble and the subprime-mortgage meltdown?
With a weak housing market and volatile stock prices, people will have to save money to feel flush again. But with the economy in the dumps and unemployment high, is it possible to save money?
Can the government worm its way out of the messy housing market? A group of Treasury officials, economists, mortgage-company executives, and bankers will gather in Washington on Tuesday to talk about the big policy questions surrounding housing finance. NEWSWEEK informally polled a few economists and academics to pinpoint the five basic questions the group needs to ask.
Is it any wonder the average employee is in a bad mood? "There's more of a divide in terms of compensation between senior executives and the average worker now," says Thomas Kochan, a professor of management at MIT. "This will have a lasting effect and lead to lower trust and lower confidence in management."
Treasury officials are fanning out across the country this week to cities known for their financial institutions to sell financial reform to Americans. First stop: New York, where Treasury Secretary Timothy Geithner gave a speech Monday.
Asia now has 3 million millionaires, 26 percent more than a year ago, according to Merrill Lynch Wealth Management and Capgemini, a French consultancy. The region controls more wealth than Europe and is closing in rapidly on North America. Signs of opulence are hard to miss: one of India’s richest men built a 27-story skyscraper as his home, while Chinese millionaires spent $830 million on fine art in 2009.
How soon will the economy recover, and are we headed for a double-dip recession? The answers to both questions became more nuanced -- and possibly worrisome Friday -- when the Commerce Department reported that the country’s economic growth had slowed this quarter, largely due to consumers’ reluctance to spend money.
What will our cities look like in 20 years? Already, roughly 36.4 million Americans work flexible schedules, according to the U.S. Bureau of Labor Statistics. The fixed 9-to-5 schedule no longer suits the round-the-clock demands of finance, business, and professional services.
One day after President Obama signed a financial-reform law aimed at curbing predatory lending and preventing another financial collapse, a new study shows that Americans are less economically secure now than at any other time over the last 25 years.
Even if the Senate passes a bill to provide unemployment-insurance benefits this week, the country still needs to figure out a smart way to create jobs for millions of people whose industries and livelihoods have altogether disappeared. So, how should we put 15 million unemployed Americans back to work? Here’s a quick look at the big ideas for solving the jobs crisis.
Just as the SEC used the case against Goldman as a lesson to big banks, could the ongoing case against controversial trader Fabrice Tourre be a lesson for young Wall Street?
The private sector added a meek 83,000 jobs to the economy during the month of June, according to new data from the U.S. Bureau of Labor Statistics—a figure that fell short of economists’ predictions and that’s far below the 150,000 to 200,000 jobs that must be created each month to bolster the economy....
Where, oh, where is our financial reform? It’s locked up in Congress, as House Financial Services Committee chairman Barney Frank and Senate Banking Committee chairman Christopher Dodd try to secure the 60 votes needed for the bill to avoid a filibuster in the Senate. Here's what you need to know.
The SEC filing for Tesla Motors, Inc.’s public offering reads like a laundry list of how and why the company will never make money. Tesla announced Tuesday that it would publicly sell 10 million shares for $14 to $16 a piece on June 29. The “risk factors” section alone clocks in at 42 pages.
Even though Arkansas Sen. Blanche Lincoln narrowly won the Democratic primary Tuesday night, her signature derivatives legislation won't survive the summer.
Five days after the attempted car bombing in New York City's Times Square, new details have emerged about the alleged attacker's troubled financial life, as well as the government's slow response in tracking him. According to The New York Times, Faisal Shahzad hit a rough patch during the recession. JPMorgan Chase foreclosed last summer on the Shelton, Conn., house he shared with his Colorado-born wife and their two children, while the Los Angeles Times reports that the couple tried to sell broken furniture and used clothes for extra cash. Several media outlets from ABC News to the Times make the intellectual leap that these economic troubles fueled Shahzad's radicalization and his anger toward the U.S. His financial problems prompted him to spend several months in Pakistan, including Peshawar and Waziristan, two areas known for their strong Taliban presence. ...