Credit card customers will get relief from certain fees and other questionable policies thanks to a decision this week by the Federal Reserve.
The Fed had weighed five proposals for months, with heavy public interest in the issue. Among the five changes were a ban on sudden rate increases and on the "two cycle" billing method that allows higher interest calculations.
The other changes are a requirement for consumers to have "reasonable time" to make payments, a ban on payment methods that maximize interest charges for credit companies, and reforms to subprime credit cards that use "feeder fees."
The new reforms take effect in 2010.
"The revised rules represent the most comprehensive and sweeping reforms ever adopted by the Board for credit card accounts," said Federal Reserve Chairman Ben S. Bernanke. "These protections will allow consumers to access credit on terms that are fair and more easily understood."
The credit card industry had warned that the plan would lead to higher costs and reduced lines of credit for all users. Before the plan was voted on however, analysts were already predicting the industry would scale back up to $2 trillion in lines of credit in the coming months.
Source : Here
Selasa, 23 Desember 2008
Toyota latest automaker to announce losses
The nation's Big Three automakers aren't the only ones struggling in the current recession. This week, Toyota (TM) indicated that it would be facing its first operating loss since 1941.
The Big Three – Ford (F), GM (GM) and Chrylser – have seen their financial troubles getting perhaps the most media attention this year. However, figures released at the end of last quarter showed that nearly all automakers, including Toyota, had posted double-digit declines in auto sales in recent months.
"The change that has hit the world economy is of a critical scale that comes once in a hundred years," Toyota president Katsuaki Watanabe was quoted as saying by the Associated Press. The company reportedly expects a $1.66 billion operating loss through the current fiscal year.
Toyota posted a relatively modest 23 percent drop in sales for the third quarter – "relative" meaning that its Big Three rivals posted far greater declines. For example, GM posted a 45 percent drop in sales, while Ford was down 32 percent.
However, U.S. automakers may have some potential for relief on the horizon now that the White House has signed off on low-interest loans that could keep them functioning in the short term.
Source : Here
The Big Three – Ford (F), GM (GM) and Chrylser – have seen their financial troubles getting perhaps the most media attention this year. However, figures released at the end of last quarter showed that nearly all automakers, including Toyota, had posted double-digit declines in auto sales in recent months.
"The change that has hit the world economy is of a critical scale that comes once in a hundred years," Toyota president Katsuaki Watanabe was quoted as saying by the Associated Press. The company reportedly expects a $1.66 billion operating loss through the current fiscal year.
Toyota posted a relatively modest 23 percent drop in sales for the third quarter – "relative" meaning that its Big Three rivals posted far greater declines. For example, GM posted a 45 percent drop in sales, while Ford was down 32 percent.
However, U.S. automakers may have some potential for relief on the horizon now that the White House has signed off on low-interest loans that could keep them functioning in the short term.
Source : Here
Latest figures show nation still in recession
The nation is still in a recession, according to new U.S. government figures.
In numbers released this week by the Department of Commerce, the nation's real gross domestic product declined by 0.5 percent from the second quarter to the third quarter. Analysts have said that the U.S. economy has now been in a recession for about a year.
According to the Commerce Department, the latest decrease in real GDP was due to fewer personal consumption expenditures and less business investment. However, the department also noted that some of the economic blow was cushioned by increased government spending at the state, federal and local level.
The report also noted that imports had fallen in the previous quarter.
While the latest numbers aren't as bad as they were in the second quarter, the real test of the recession's staying power may come when the numbers from the current quarter are examined. Some recent employment numbers have shown signs of at least leveling off, although a recent Marketwatch report noted that some analysts predict the fourth quarter could see the GDP drop by as much as six percent.
Source : Here
In numbers released this week by the Department of Commerce, the nation's real gross domestic product declined by 0.5 percent from the second quarter to the third quarter. Analysts have said that the U.S. economy has now been in a recession for about a year.
According to the Commerce Department, the latest decrease in real GDP was due to fewer personal consumption expenditures and less business investment. However, the department also noted that some of the economic blow was cushioned by increased government spending at the state, federal and local level.
The report also noted that imports had fallen in the previous quarter.
While the latest numbers aren't as bad as they were in the second quarter, the real test of the recession's staying power may come when the numbers from the current quarter are examined. Some recent employment numbers have shown signs of at least leveling off, although a recent Marketwatch report noted that some analysts predict the fourth quarter could see the GDP drop by as much as six percent.
Source : Here
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