Category: News Desk

State of California Sues Fannie Mae and Freddie Mac Over Foreclosures


California’s attorney general has filed a lawsuit against the largest US mortgagers Fannie Mae and Freddie Mac in a bid to get the companies to reveal answers over their lending and foreclosure practices.

AG Kamala Harris is suing the two mortgage giants in essentially identical lawsuits over 12,000 foreclosed properties in California where they served as landlords, using the legal approach to insist that the firms respond to 51 investigative subpoenas.

Hot Money Flows Out Of China, Japan To Purchase Chinese Debt


For the second consecutive month, financial data revealed a net outflow of foreign exchange from China leading to expectations of another cut in the reserve requirement. Separately, Japan’s finance minister Jun Azumi said that Tokyo was looking to buy Chinese public debt, as a way of diversifying its forex holdings and getting more involved in the world’s second largest economy.

Infographic: The Truth About Exaggerated and False Scientific Research


How reliable is the latest survey or “research has found” article you’ve just read? While we tend to implicitly trust the expert power that scientists and academics present, the truth is a large number of researchers often lie about their experimental results. 

Shady scientific research is more rampant that we imagine. It goes beyond the unethical methods such animal testing, and includes the deliberate omission or alteration of information to skew research results to create more convenient “findings”.

UK Turns Its Back On The Euro


On Monday, eurozone ministers collectively agreed to the IMF’s firepower by 150 billion euros ($195 billion). But the target of 200 billion euros was not reached after Britain refused to provide additional resources to the IMF’s rescue fund.

As the European Central Bank struggles to garner support for its weak bond market, the IMF has in raising 150 billion euros to its crisis-fighting fund.

Only $4.99 – That’s the Price of Bank of America Shares, A Two-Year Low


Bank of America, the second largest lender in the United States hasn’t had a good year, nor will it be looking forward to any Christmas day rally. Prices of the Bank shares fell below $5 for the first time since March 2009 amid fears over the extent of the Europe debt crisis.

Overall, shares of financial institutions have taken a beating over worries about the global economy and possible exposure to sovereign defaults in Europe.

Infographic: How Much Does a Fortune 50 CEO Earn Compared To An Average Worker?


Let’s talk about money: What do CEOs ear compared to their employees? In a survey conducted by payscale.com, it was found that the highest CEO-to-worker pay ratio stands at a phenomenal 1737:1 from the UnitedHealth Group.

Ranked No. 1 on the Fortune 50, Wal-Mart CEO Michael T. Duke takes in an annual cash compensation of $16.27 million, while a typical employee (out of Wal-Mart’s 2,100,000 employees) earn a mere $22,700.

Key Economic News to Watch This Week: Dec. 19


A quick preview of the key economic events for the upcoming week:

With key U.S housing and economic growth data expected this week, analysts are expecting stronger results and a show of resilience from the world’s largest economy – a reprieve from the slew of bad news from the EU.

Monday, 19 December

Marco Draghi, head of the ECB speaks in Brussels at the Quarterly Hearing before the European Parliament Economic and Monetary Affairs Committee, with mounting pressure for him to print more notes.

North Korea’s “Dear Leader” Kim Jong Il Dies Aged 69


North Korean leader Kim Jong Il has passed away at the age of 69, according to the communist state’s television announcement.

In the televised report, the North Korean broadcaster, clad in a black funeral dress and weeping, reported that Kim died due to “overwork” after “dedicating his life to the people.” Kim’s funeral is set for December 28 in Pyongyang, with the mourning period expected to last till December 29.

What Recession? U.S. Holiday Online Spending Up 15%


Americans are celebrating the festive season by shopping. According to the latest comScore results, Americans spent nearly $31 billion in online shopping, a 15 percent increase from a year ago.

The most recent work week (Dec. 12-16) saw four days surpass $1 billion in online spending, led by Monday, December 12 with $1.13 billion and Friday, December 16 (known by the online retail industry as “Free Shipping Day”) with $1.07 billion, according to comScore.

Wall Street Woes: Morgan Stanley Cuts 1,600 Jobs


As the banking sector continues to reel from the trauma of the financial crisis, 1,600 employees at Morgan Stanley will lose their jobs in the first quarter of the coming year.

According to Morgan Stanley, the cuts will affect 2.6 percent of its 62,648 strong global headcount. Bank spokesperson Mark Lake said that the cuts will occur globally and will include analyst, associate, vice president, executive director and managing director levels.

Last week, Citigroup announced it would eliminate 4,500 jobs, or 1.5 percent of its global headcount of 267,000 headcount.