Urgent: Senate To Vote on Student Loan Reform

Urgent: Send them a note right now asking them to support Senator Elizabeth Warren's bill to lower student loan interest rates.  Just a few weeks ago, I sat in my cap and gown with thousands of other graduating students. As our parents applauded, speaker after speaker told us, "You're going to change the world!" It was a nice change of pace -- every other day, I hear about how my generation is made up of "lazy, entitled narcissists" [1] who … [Read more...]

U.S. Treasury Department Will Suspend Sales

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By Anna Timone   “ The Treasury Department on Friday will suspend sales of state and local government Treasury securities until further notice, the first action to avoid hitting the U.S. debt ceiling. The debt ceiling is expected to be reached on May 18, but the Treasury had been expected to take steps like this one in order to keep paying bills. Treasury Secretary Jacob Lew said last week that the U.S. will be able to avoid the debt … [Read more...]

Machiavellian Deadline Deals (MADD)

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Now, one of the things we all keep telling ourselves is please don't  leave -whatever it is – to the last minute. advice, that personally, I am prone to ignore. Machiavellian deadline is upon us. The US Administration and I seem as one on this. The Government /House / Senate had a compromise to reach over 'The Fiscal Cliff`. The world and her husband knew very well that given the ludicrous/catastrophic alternative to an agreement, OF COURSE … [Read more...]

The TRUE Cost of Corporate Greed

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The news of layoffs seems to be the new “normal” in financial industry.  As banks stray out of traditional areas and it’s the rank and file who seem to take the hit, the cost of a return to normalcy is incredibly high. The True cost of corporate greed is being shown. UBS has agreed to pay about $1.5 billion to settle a portion of the claims against it for securities trading violations. And now there are 10,000 layoffs looming as part of … [Read more...]

Special Dividends Reveal Companies’ Reactions To Tax Increase

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   For those who think that the threat of increased regulation or taxation does not result in reactions by the private sector are proven to be wrong, as the number of publicly traded companies issuing or expediting dividend payments in the last quarter of 2012 to evade possible higher rates is ample proof. If the Obama Administration and Congress will not take preventative action in 2013, the top effective tax rates for dividends will … [Read more...]

Private Equity in America: End of an Era!

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Could private equity firms join reinsurance companies and mutual funds in going abroad due to increased taxes and regulations? Without a question, this could happen if Congress and the Obama Administration move forward to change the tax treatment for private equity and hedge fund income from the present 15% for capital gains to that of 35%, the top rate for income. This “carried interest” rule has come before Congress and never moved, … [Read more...]

Argentina vs. Hedge Funds: Who is Seeking a Sweet Deal?

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The United States court decision ordering Argentina to pay $1.3 billion to hedge funds is threatening to throw the South American country and the entire sovereign debt market into turmoil. However, are the two holdout investors— Elliott Management and Aurelius Capital Management—in the Argentina debt restructuring case looking for a better deal? Are they trying to use the U.S. court system to circumvent international positions on debt … [Read more...]

Weaknesses in the US Regulation of Derivatives

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President Obama's new proposal aimed to regulate derivatives has some major flaws.  The proposal stops short of creating a fully transparent market. Derivatives are financial products that supposed to help investors manage risks, like the possibility of default or of interest-rate swings.    They are virtually hidden from investors, analysts and regulators. They do not trade openly on public exchanges and have very few other … [Read more...]

Bailout Tax Credit? Some Taxpayers Might Have To Give It Back!

Millions of Americans are just about to enjoy their small break from President Barack Obama's "Making Work Pay" tax credit.  However, they are in for an unpleasant surprise next spring.  The government is going to want some of that money back and IRS didn't tell anyone about it. The "Making Work Pay" provision of the recently enacted bailout plan will provide a refundable tax credit.   The credit pays workers 6.2 percent of their earned … [Read more...]