Welcome to Finance World

Federal bank regulators have proposed a new system of fees paid by U.S. banks that would shift more of the burden to bigger institutions to support the deposit insurance fund.

The board of the Federal Deposit Insurance Corp. voted Tuesday to propose rules to change the basis for assessing a bank’s insurance fees from the amount of its deposits to its assets. The change is required by the financial overhaul law enacted in July free credit report and score. Officials said it would more clearly reflect the risks to the insurance fund.

The regulators also proposed changes to the way the FDIC determines how much it charges big banks to insure their deposits.

Source

Voters on Tuesday were at the center of a high-stakes tug-of-war between lawmakers and anti-tax advocates.

More than a quarter of the 160 initiatives on the ballots deal with state tax hikes, debt levels and other revenue issues. In total, there are 44 measures that could drastically change the way states fund themselves or make decisions on their budgets.

Anti-tax crusaders have long used ballot measures to keep lawmakers in check, but this year the two sides are wrestling with how to close monstrous budget gaps. State and local officials have had to raise taxes and slash services over the past three years in order to balance their budgets.

Citizens frustrated with the hikes are trying to overturn them or limit future ones. Targets include state levies on candy, soda and alcohol. They are also trying to keep state and local officials from hiking property taxes and issuing new debt.

In Massachusetts, for instance, a move to repeal the sales tax on alcohol passed, but an effort to reduce the sales tax rate from 6.25% to 3% failed.

But in a few cases, voters will decide whether to raise taxes in order to fund education, health care, parks and other services. In Georgia, voters narrowly voted not to add a $10 fee on car registrations to pay for trauma care.

Three of the biggest showdown states this November were Colorado, Washington and California.

Colorado: A trio of fiscal measures in the Centennial State that would have drastically changed the way it funds itself went down to defeat.

Currently, public education in Colorado is paid for through a mix of property taxes and state aid. But a ballot initiative would have cut property taxes in half over 10 years and then use state money to fund schools.

The measure would require the state to come up with $1.5 billion for public schools each year, eating up most of the state’s budget, according to state estimates.

Another ballot measure would have banned all state borrowing and require voter approval for localities to borrow money by issuing debt. Colorado currently borrows about $3 billion annually, while local governments issue $5 billion in new debt each year.

The final initiative that failed for slashing the state income tax rate to 3.5%, down from 4.63%, and for reducing or eliminating taxes and fees on cars and telecommunication services. This would cut state revenues by $2.9 billion.

Washington: Earlier this year, state lawmakers voted to subject candy and bottled water to sales taxes to help close a projected $3 billion budget shortfall personal business card. The legislature also imposed a 2 cent tax on carbonated beverages.

But residents voted to repeal those tax hikes on Tuesday. The measure will cost the state $352 million in revenue and localities $83 million over five years.

A ballot measure that passed restored the rule that tax increases be approved by two-thirds of lawmakers. The state legislature temporarily suspended this requirement, which was instituted by voters in 2007, to make it easier to put through tax hikes to balance the budget.

Washington residents voted overwhelmingly not to tax their wealthier compatriots. The initiative called for establishing an income tax of 5% on single taxpayers earning $200,000 or more and a 9% rate on income above $500,000 — the threshold would be doubled for married Washingtonians. The initiative would also have reduced property taxes by 20% and lowered certain business taxes.

The income tax revenue would have been used to fund education and health care, which advocates said, would provide relief for the middle class. It was expected to raise $11.2 billion for the state over five years.

California: Conservationists were unable to get an $18 annual surcharge on all vehicles to fund state parks and wildlife conservation programs. If it had been approved, cars would have entered the parks without paying daily fees, which are typically charged for use of the pools, boat launches and parking facilities. The measure would have saved the state $200 million.

Two measures that were approved deal with how many lawmakers need to approve the budget and fee increases in the perennially cash-strapped state.

One ballot initiative lowered the number of lawmakers needed to pass a budget to half, from two-thirds, to make it easier to approve the spending plan. The other required a two-thirds vote in order to pass hikes in fees.

California went more than three months without a budget this year as lawmakers wrangled over a $19 billion budget deficit.

There’s one source of taxes that the state won’t be tapping: marijuana. Voters rejected the idea of legalizing, regulating and taxing marijuana by a 54% to 46% margin. 

Source

The foreclosure document fiasco has already caused a major headache for U.S. banks — and that headache may soon escalate into a migraine.

But the additional pain isn’t coming from the Obama administration or state attorneys general, both of whom have stepped up pressure on the banks. Nor is it coming from individuals who allege their homes were wrongly foreclosed on.

It’s coming from institutional investors who bought home loans that had been bundled together by banks and then sold off as Residential Mortgage Backed Securities, or RMBS.

These investors thought they were buying solid investments. But the recent robo-signing debacle shed light on document problems in foreclosures, revealing problems with the underlying paperwork and quality of the loans.

So, investors are trying to force banks to repurchase the securities. That would leave banks exposed to billions of dollars in potential losses if plaintiffs are able to force repurchases based on the errors.

Of course, repurchase requests aren’t new. Banks have been receiving them for years. But they could be facing an onslaught now.

"It’s really going to be up to the courts to decide on this one … Certainly investors will try to use this to avoid losses," said Joseph Mason, a professor at Louisiana State University, who studies legal risk in finance and banking.

Earlier this week, the New York Fed, along with investor firms BlackRock and the Pacific Investment Management Company, sent a letter to Bank of America (BAC, Fortune 500) alleging that its subsidiary, Countrywide, has failed to properly service loans totaling $47 billion.

The letter doesn’t amount to legal action, but it does put BofA on notice that litigation may be down the road.

Bank of America is among the most exposed of all the banks due to the sheer scale of its business. It sold a staggering $1.2 trillion in loans Fannie Mae and Freddie Mac between 2004 and 2008, and thus far has received repurchase requests on $18 billion of those loans.

But it says only $2.5 billion in losses have resulted from those requests.

"The risk is relatively sealed on this … the issue is how long the fight will take," Bank of America CFO Charles Noski said during the company’s third quarter earnings call.

Each bank has a different internal process, but in many cases losses are avoided by providing supplementary documents that prove the claim is invalid.

BofA estimates it is more than two-thirds through the wave of repurchase requests on loans made at the height of the mortgage free-or-all, and Moynihan has vowed to fight unjustified repurchase demands in order to protect shareholder interests.

"If you think about people who are going to come back saying I bought a Chevy Vega, but I want it to be a Mercedes with a 12 cylinder. We’re not putting up with that, and we will be very ardent to protect the shareholders interest," Bank of America CEO Brian Moynihan said during the earnings call.

But Bank of America’s outstanding repurchase claims have climbed in each of the last four quarters, reaching a peak of $12.9 billion in the third quarter of 2010.

Worries over the bank’s exposure have kept its stock under pressure, sending shares to a 52-week low on Thursday.

JP Morgan Chase (JPM, Fortune 500) reported paying out $1.5 billion in repurchases in the third quarter, an increase of $1 billion over last year. And the bank added $1 billion to its repurchase reserve in anticipation of an increase in requests. But that remains a relatively small figure compared to the bank’s $24.3 billion in third quarter revenue.

Not every bank is in the same position as Bank of America and Chase. Wells Fargo (WFC, Fortune 500), for one, insists that its exposure is relatively low.

"These issues have been somewhat overstated and to a certain extent, misrepresented in the marketplace," Wells Fargo CFO Howard Atkins said during the bank’s earnings call on Wednesday.

Executives on the call insisted the bank does not anticipate an increase in repurchase requests, and that the number of requests had fallen in the third quarter.

If repurchase requests were to spike, the bank says its $1.3 billion repurchase reserve liability is adequate.  

Source

Bidding for the vintage Custom House hit $2 million Friday afternoon with the bidder identified as chpdx220 reclaiming the top spot. The bid automatically extends the auction to 3 p.m. Monday.

The offer tops the $1.95 million bid Prem Group Cos. submitted Thursday.

Prem and chpdx220 appear to be the last standing in the auction. They are the only bidders since Sept. 22 and have traded the past nine offers. Prem, whose CFO Lance Inouye is bidding under the screen name linouye, kicked off the bidding with a $25,000 offer July 6.

Prem wants to turn the property into its new headquarters. The firm has leased office space in Old Town since 2002. With 90 employees, it is outgrowing its quarters and views the Custom House as a once-in-a-lifetime opportunity.

It remained unclear Friday afternoon what chpdx220 wants to do with the property. The bidder has been linked to a Portland development and investment firm, but its identity could not be confirmed.

The Government Services Administration put the Custom House at 220 N.W. Eighth Ave. for sale online on May 25 after previous redevelopment efforts failed. The suggested opening bid was $2.5 million. The government won’t sell it for less than its real market value, but will not disclose that figure while bidding remains open.

Constructed in 1901 on a former homestead, the Custom House occupies an 0.88-acre block that fronts Portland’s North Park Blocks. It is considered a prime redevelopment opportunity, but the aging building will require millions in renovations. In 1997, Sera Architects estimated the building needs $18 million to $24.3 million in repairs in 2009 dollars. Much of that is associated with reinforcing against earthquakes but the laundry list of projects covers everything from landscaping and building access to restoring old light wells, new mechanical systems and improving access for people with disabilities.

The Multnomah County Assessor’s Office values the Custom House at nearly $10.45 million, with $7.5 million of that associated with the building and $2.88 million connected to the land.

The GSA describes the property in the auction document as a “well-preserved exemplar of Second Renaissance Revival architecture.”

The building includes 78,838 square feet of office space and a basement. It is inside the Portland Development Commission’s Downtown Waterfront Urban Renewal Area. However, the urban renewal area has no ability to take on new debt, so the city’s economic development agency will not be able to offer financial support to the redevelopment at this time, a spokesman said.

Source

The Moses Cone ~ Wesley Long Community Health Foundation marks a major reorientation with a new strategy and a new name. The Foundation is now focusing on four health concerns and – effective Oct. 1 – will be known as Cone Health Foundation.

“This really is the next step in the development of the foundation,” said Susan Shumaker, president of the newly renamed foundation. “In the past 18 months, the foundation has narrowed its focus and funding priority areas. We’re also taking a bigger role in advocating for policies that promote health. The new focus and identity will help with that.”

The Cone Health Foundation is putting its resources into four areas: access to healthcare, HIV/AIDS and other sexually transmitted infections, adolescent pregnancy prevention and substance abuse/mental health.

The four areas were determined through the completion of a strategic plan that narrowed the Foundation’s focus and provided more emphasis on evaluation and advocacy payday loans guaranteed no fax. Previously, the foundation funded eight priority areas.

To help guide decision-making, the Foundation commissioned research papers to assess the capacity for making change in Guilford County within the funding priority areas. The research papers are available as a community resource at the Cone Health Foundation website, www.conehealthfoundation.com <http://www.conehealthfoundation.com/> .

The foundation was founded in 1997 and given the name Moses Cone ~ Wesley Long Community Health Foundation to recognize the heritage of the two merging hospitals which created it. The crisper name, Cone Health Foundation, signals the organization’s evolution and new priorities, officials say. The change also is intended to eliminate confusion between The Moses H. Cone Memorial Hospital, Wesley Long Community Hospital and the Community Foundation of Greater Greensboro.

Source

One of America’s richest, and youngest, is giving back.

Mark Zuckerberg, founder and chief executive of social networking powerhouse Facebook, is planning on donating $100 million toward improving public schools in the troubled district of Newark, N.J.

According to an official familiar with the agreement, Zuckerberg’s donation will be the first installment from a foundation financed by Zuckerberg, and will be focused on bettering education.

With an estimated net worth of $6.9 billion, Zuckerberg ranked 35th on this year’s Forbes 400 list of richest Americans — up from 158th last year.

At 26, he and Facebook co-founder Dustin Moskovitz, are the youngest billionaires on the list.

Zuckerberg is expected to officially announce the donation on "The Oprah Winfrey Show" on Friday, along with Newark Mayor Cory Booker and New Jersey Governor Chris Christie.

The announcement comes a week ahead of the release of "The Social Network" — a highly anticipated movie about Facebook’s early years. The movie, and the book it is based on — "The Accidental Billionaires" by Ben Mezrich — do not depict Zuckerberg in the most favorable of lights. Critics have speculated that the donation is being timed to counteract the effects of the movie.

Control of Newark public schools has been in the hands of the state since 1995. Under an agreement between Mayor Booker and Gov. Christie, the state will maintain legal control over the district, but will authorize the mayor to develop a comprehensive education plan. No details have been released about how the money is to be distributed or used.

Zuckerberg grew up in Westchester County, N.Y., and founded Facebook in 2004, while studying computer science at Harvard University. 

Source

Haley Farms in Roswell received an $891,000 loan guarantee and grant package from the U.S. Department of Agriculture to construct a solar photovoltaic system.

Haley Farms produces pecans on 260 acres. The solar array will include 1,518 solar panels on a 2.75-acre area. It will power pumping of a large irrigation well and sprinkler booster pump, virtually eliminating the need to buy electricity for its irrigation systems. Construction is under way and expected to be completed by December need a personal loan with bad credit.

USDA Rural Development approved the financing through the Rural Energy for America Program, which provides financial assistance to agricultural producers and small rural businesses to purchase and install renewable energy systems and to make energy efficiency improvements in rural areas with less than 50,000 people.

Source

Wyoming transplant Peter Wysocki was picked Tuesday to head Round Rock's planning department.

City Manager Jim Nuse said Wysocki will begin work as planning director in the north of Austin suburb Sept. 15. He's currently working as community development director for the city of Laramie, Wyo. He replaces Jim Stendebach who retires Aug. 31.

“We will dearly miss Jim Stendebach, who has been part of Round Rock’s development successes for more than two decades,” Nuse said. “I can’t imagine a person better suited than Peter Wysocki to replace Jim."

Nurse said the incoming director has worked in a fast-growing region of Wyoming for the last six years and "comes highly recommended by those in the communities where he served.” During his tenure, he successfully facilitated a new master plan, a new unified development code, groundwater protection plan and completely revamped the development review process.

Prior to his current position, he was community development director for the city of Fernley, Nev personal loans for bad credit. from 2001 to 2006. He also worked six years as a planner with the Douglas County, Nev. community development department.

“My family and I are very excited about moving here and becoming members this great community," Wysocki said.

He earned a bachelor’s in urban and regional planning from California Polytechnic University and a certificate of professional development in public management from the University of Nevada, Reno. He is a certified planner by the American Institute of Certified Planners, member of the American Planning Association, a member of the Western Planning Resources and served as the president of the Northern Section of the Nevada Chapter of the American Planning Association.

Source

The Lockheed Martin team developing the next-generation Global Positioning System satellites — which are to be assembled and tested in the Denver area — completed the "critical design review," or CDR, of its work on Thursday — two months ahead of schedule.

The completion of the CDR means that Bethesda, Md.-based Lockheed Martin Corp. (NYSE: LMT) and its partners — most notably General Dynamics Corp. and ITT Corp. — can begin production work on the two GPS IIIA satellites they are contracted to build for the U.S. Air Force at a cost of $1.46 billion. The team could build as many as 10 more GPS satellites under the contract if all the options on it are exercised.

The last phase of the CDR took four days to complete and was held at the newly constructed Patriot Center at Lockheed Martin’s newly expanded operations in Newtown, Pa. About 350 people participated, including employees of Littleton-based Lockheed Martin Space Systems Co payday loans no teletrack., the Lockheed unit that’s leading the team; General Dynamics; ITT; the Air Force; the Defense Department; the Department of Transportation; and the Federal Aviation Administration.

Lockheed Martin Space Systems has about 300 people in Newtown working on the satellite project. It also has employees working on the project in the Denver suburbs and Colorado Springs as well as in California and Mississippi and at Cape Canaveral, Fla., where the satellites will be launched.

The generation of GPS satellites Lockheed Martin is working on will deliver signals that are three times more accurate than current GPS satellites and three times more powerful for military users. It also will have a new civil signal that is compatible with signals from similar satellites being built by other countries.

Source

Agricultural Bank of China, a bank with more customers than the entire U.S. population, made a lackluster debut in Shanghai on Thursday.

During its first day of trading, shares of Agricultural Bank rose a modest 0.8%, ending at 2.70 yuan.

As one of China’s largest lenders, expectations had been for Agricultural Bank to make a bigger splash than it did.

In what is one of the largest IPOs in history, the Beijing-based lender raised $19.2 billion from investors. It sold 25.4 billion shares in Hong Kong for $0.4107 per share, totaling $10.43 billion. Its Shanghai stock, which totaled 22.2 billion shares, was priced at $0.3955 a share, raising approximately $8.78 billion.

The bank plans to list its shares on exchanges in Hong Kong on Friday.

Agricultural Bank will not trade on a U.S. exchange, but Wall Street investors are keeping a close eye on the lender for any hints of whether China’s broader economy and stock market are showing signs of cooling off no faxing payday loans.

Along those lines, China’s government announced Thursday that its gross domestic product in the second quarter rose at an annualized 10.3% pace. While that is still obviously a healthy rate of growth, it’s a bit slower than the first quarter of this year.

With nearly 24,000 branches and a customer base of approximately 320 million, Agricultural Bank is poised to grow as both the Chinese banking system and domestic consumers become more sophisticated.

CNNMoney.com’s David Ellis contributed to this report.  

Source