Loan advertisements – Inzerce Pujcek http://inzercepujcek.net/ Fri, 18 Nov 2022 22:46:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://inzercepujcek.net/wp-content/uploads/2021/06/icon-87-150x150.png Loan advertisements – Inzerce Pujcek http://inzercepujcek.net/ 32 32 FTX Users Can’t Count on IRS Help https://inzercepujcek.net/ftx-users-cant-count-on-irs-help/ Fri, 18 Nov 2022 21:22:00 +0000 https://inzercepujcek.net/ftx-users-cant-count-on-irs-help/ Comment this story Comment When market investors suffer losses – or get taken for a ride – they are often eligible for a tax deduction to soften the blow. Users of bankrupt crypto exchange FTX will not be so lucky. Here’s the difference: Let’s say you’re a crypto investor on an exchange that’s still standing. […]]]>

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When market investors suffer losses – or get taken for a ride – they are often eligible for a tax deduction to soften the blow. Users of bankrupt crypto exchange FTX will not be so lucky.

Here’s the difference: Let’s say you’re a crypto investor on an exchange that’s still standing. If you have suffered investment losses in the middle of the market decline, you can simply sell to offset other gains and possibly receive a deduction. Indeed, the Internal Revenue Service allows investors to sell underperforming cryptocurrencies, just like stocks, and use those losses to offset capital gains from selling better performing assets.

If the losses exceed the gains, investors can deduct up to $3,000 from their taxable income. Losses over $3,000 can be carried forward each year until death to offset gains in future years.

But that is not the case for clients of FTX or any other crypto exchange that is blowing up. The tax code specifies that if you wish to incur a capital loss, you must sell or exchange this asset. Losing access because the stock exchange is closed is different and would most likely be insufficient in court, said Matt Metras, an accountant in Rochester, New York, who represents taxpayers before the IRS.

Another provision of the code allows a deduction if a security is worthless. Bad luck there, though – the IRS has said digital currency is considered property, not a security, like a stock. Moreover, the asset must be worthless, as in zero – not close to it.

Then there’s the theft-loss route, but it’s complicated. Prior to the 2017 Republican Tax Act, investors who suffered losses due to theft could deduct them from their ordinary income provided certain criteria were met. Along with a slew of other miscellaneous itemized deductions, the theft and loss deduction has been largely eliminated, with the exception of losses related to a federally declared disaster.

An FTX user’s best bet when filing tax returns next April might be to try and take advantage of a special provision at the Loss of Flight Rule (created after the Bernie Madoff scandal) that still allows delisting if the loss is due to a Ponzi scheme. But the loss must meet strict requirements to qualify. For example, the investor must show that he expected a profit, and the perpetrators must have had the specific intent to mislead investors.

FTX founder Sam Bankman-Fried has not been charged with a crime. Advisors overseeing what’s left of FTX are struggling to find the company’s money and crypto, according to a bankruptcy court filing.

Keep in mind that the theft and loss deduction is moot if you plan to take the standard deduction rather than itemizing. The deduction for theft and loss is reserved for those who itemize, as they receive a larger deduction for deducting items such as mortgage interest and charitable donations separately.

Some crypto investors on the bankrupt platform Celsius Network, which offered high returns in crypto trading, might consider another tax game, but that seems long. If they can prove that they have made a loan to these platforms and that their entire investment has become worthless and cannot be recovered, then they may be eligible for what is known as a bad debt deduction not commercial.

But that’s a high bar. The mere fact that accounts are frozen or withdrawals are restricted is not enough. And bankruptcy doesn’t automatically mean the entire debt is worthless, warned Phil Gaudiano, a chartered accountant in Great Falls, Va., in an op-ed for CoinDesk.

Which simply means that crypto investors who have been badly burned this year shouldn’t expect relief from the IRS.

More from Bloomberg Opinion:

• Tax Loss Harvesters, Prepare for a Bumper Harvest: Alexis Leondis

• FTX Offers Master Class on Crypto Market Flaws: Editorial

• AI can help make cryptocurrency safer for everyone: Tyler Cowen

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Alexis Leondis is a Bloomberg Opinion columnist covering personal finance. Previously, she oversaw tax coverage for Bloomberg News.

More stories like this are available at bloomberg.com/opinion

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Inflation is entering uncharted territory – Forbes Advisor Australia https://inzercepujcek.net/inflation-is-entering-uncharted-territory-forbes-advisor-australia/ Wed, 16 Nov 2022 07:54:36 +0000 https://inzercepujcek.net/inflation-is-entering-uncharted-territory-forbes-advisor-australia/ Over the past few decades, you could always count on the fact that prices for clothing and electronics had barely increased. The price of a laptop or a pair of jeans is about the same as in the last millennium Look at these ads from nearly 30 years ago. The price tags wouldn’t surprise you […]]]>

Over the past few decades, you could always count on the fact that prices for clothing and electronics had barely increased. The price of a laptop or a pair of jeans is about the same as in the last millennium

Look at these ads from nearly 30 years ago. The price tags wouldn’t surprise you if you saw them today:

Source: Trove

In 1993, a computer cost between $1,500 and $2,000. You can find a midrange computer at a similar price today and it will do a whole lot more.

treasure

The consumer price index underlines how much we get for our money these days. It shows that in quality-adjusted terms, the price of some basic items has steadily fallen. The bars in the chart below show the change in the CPI compared to the previous year and illustrate three categories that have seen almost no price increase: women’s clothing, computers and household goods.

Household items are interesting. When these advertisements above were printed, people kept good tableware in a special walnut display case. But most households formed over the past 20 years would not have “good dishes” that they would not use.

So we had falling prices, as shown in the chart above. But wait a second. Zoom in on this last part of the graph. To improve. Wow. What this tells us is important. Prices in these categories no longer behave as they have behaved over the past two decades. The price crashes are over. Instead, they increase.

Even those categories – where Moore’s Law and the rise of Chinese industry have protected us from higher prices – have not been able to withstand a rising wave of inflation.

It sends a message. Inflation is spreading. Before, there was a mix of up and down things, but now everything just goes up. Goods and services, imported and domestic. High prices for fuel, rent, labor and shipping mean that almost no category is immune to a price hike in 2022. (Childcare is the main exception and price cuts in this space have nothing to do with the market and everything to do with subsidies).

In Comes the RBA

Official rates have increased enormously in Australia since the beginning of the year: from 0.1% to 2.85%. But official inflation-adjusted interest rates are still negative, which means you can borrow now for a year and pay off the loan with money that’s worth less.

At the next meeting in early December, a further rise above 3% is seen as a high probability, based on market prices, although the RBA pause is not out of the question.

A rise in December was seen as an even higher probability a few weeks ago, ahead of the latest US inflation data, which surprised the market by showing inflation falling 8.2% yoy to 7.7%. But beware. This figure is pulled down by the drop in used car prices. Australia’s CPI does not include second-hand goods.

Also, our economic cycle is a bit behind the Americans. Inflation rose later and the central bank reacted later. It’s kind of like how movie releases used to work – America sees the spectacle now; we get it in six months.

There is no guarantee that the CPI will fall in Australia anytime soon – indeed the Treasury and the RBA still believe that we are in the recovery and that price growth has yet to peak.

December rate hike

Stocks rose enthusiastically on lower US inflation, as rate hikes are bad for asset prices. But as the US Fed’s Chris Waller said during his speech in Sydney this week, “the market seems to be ahead of this CPI report.”

Noise plagues all economic data and a surprise result like this may be a statistical artifact, not ground truth.

With the RBA board not due to meet in January, the chance that it will pass up the opportunity for a December rate cut seems low, unless of course unemployment rises. If they rise, and if the language used to describe their inflation-fighting readiness is aggressive, expect equities and the housing market to soften in response.

Real estate prices show the opposite trend to clothing and computers. Their price has increased enormously over the last 30 years, but the price growth is suddenly very negative. You can certainly argue that households invested whatever savings they made in consumer goods to drive up the bids in housing markets. And now that process is reversed.

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FTX is a signal to refresh your red flags https://inzercepujcek.net/ftx-is-a-signal-to-refresh-your-red-flags/ Sun, 13 Nov 2022 16:14:00 +0000 https://inzercepujcek.net/ftx-is-a-signal-to-refresh-your-red-flags/ Comment this story Comment It’s only when the tide goes out that you find out who swam naked, as Warren Buffett so aptly put it. After more than a decade or so of near-zero interest rates and the mother of all stock market parties, the tide of free money is most certainly receding. The bankruptcy […]]]>

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It’s only when the tide goes out that you find out who swam naked, as Warren Buffett so aptly put it. After more than a decade or so of near-zero interest rates and the mother of all stock market parties, the tide of free money is most certainly receding. The bankruptcy of Sam Bankman-Fried’s FTX empire is a taste of what could come. As the crypto world dances to an obscure beat that is perhaps only tangentially tied to the realm of conventional finance, it is emblematic of tougher times than a company valued at $32 billion there. only a few months had found no one to put in the extra funds that would allow it to continue.

If history is any guide, the expected upward trend in business failures due to rising costs of capital will likely be accompanied by an increase in the incidence of fraud. The Enron Corp scandals. and WorldCom Inc. both boomed in the years following the bursting of the dot.com bubble, another period of near-free money, at least for companies that might tinge themselves with a New Economy aura. Bernie Madoff’s investment firm finally collapsed at the height of the global financial crisis in 2008, exposing the world’s biggest Ponzi scheme. In the UK, Polly Peck International Plc grew rapidly during the 1980s before sinking into the recession of 1991. Its CEO was subsequently imprisoned for theft. The Asian crisis of 1997-1998 exposed abuses in some Chinese international trust and investment companies. The list continues.

“You’re going to have a lot more fraud,” Christopher Leahy, chief executive of Singapore-based research and advisory firm Blackpeak Group, told the Asian Corporate Governance Association conference in London. With a recession coming, “we need to be prepared,” he said. “Everywhere you look there are potential landmines.”

It may be time for investors to revisit the forgotten skills of sifting through balance sheets, profit and loss accounts, and cash flow statements for red flags. It would not be surprising if these fundamentals of value investing atrophied after the crisis. The practice of finding and buying companies that are trading below their intrinsic value has not worked very well for much of the post-crisis era. No wonder: who needs the downside protection of conservative finances and the safety margin when corporations can shake the magic money tree for whatever they need? These easy conditions fade in the rearview mirror, however. Here are some key principles that can give you a chance to spot the next public company fraud scandal before it blows up:

• Read accounts, duh. More importantly, read the back. The front is where the pretty images, colorful graphics, and company spin go. The notes at the back, usually voluminous pages of densely typed text and numbers, are where all the nasty things are buried.

• Don’t ignore the obvious. The Madoff fraud was still hiding in plain sight. Former security industry executive Harry Markopolos has repeatedly provided the Securities and Exchange Commission with a list of red flags, such as his suspicious and consistent returns. His plan had ballooned to $65 billion before collapsing. An old investment adage holds: if something is too good to be true, it probably is. Everyone who has invested with Madoff has ignored this caution.

• There are no stupid questions. Accounting can be fiendishly complicated. However, it is guided by a basic logic. The balance sheets must balance. And if the accounts are so convoluted that they can’t be understood even by a reader familiar with the financial statements, then perhaps the company doesn’t want you to understand them – raising the question, why?

• Watch for anomalies. Pay close attention to anything that seems unusual or doesn’t make sense. Leahy spoke of an Indonesian company his company had been hired to review on behalf of a potential investor, who suspected something was wrong. Eventually, he found a disclosure in the notes of a $60 million cash outflow, with an explanation that contradicted what the company had said elsewhere. “There’s a reason people trade,” he said. “If there’s a transaction that doesn’t make sense, then you need to figure out why.”

• Listen to whistleblowers. Most whistleblowers are insiders who know what’s going on within their company and are upset about it, according to Leahy. They played a role in the downfall of Enron and WorldCom. There are many potential downsides to being a whistleblower, and very few upsides. That means they deserve to be taken seriously — although by the time a whistleblower’s report becomes public, you’re probably already too late to avoid a loss.

No country has a monopoly on fraud. Accounting scandals cover markets around the world, from Wirecard AG in Germany, to Parmalat SpA in Italy, to Olympus Corp. in Japan. And the variety of potential red flags is too numerous to list: overstating income; underestimating liabilities; excessively high inventories; discrepancies between the income statement and the cash flow statement; unexplained loans; an excessive number of related party transactions, to name a few. Whole books have been written on the subject, including Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports by Howard Schilit. It might be time to give him another scan. Good reading.

More from Bloomberg Opinion:

UK CEOs pocketed big bonuses. Why ? : Matthew Brooker

Why WFH when you can live in the office like Musk? : Chris Hughes

The Far West of crypto has a new victim: Lionel Laurent

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Matthew Brooker is a Bloomberg Opinion columnist covering Asian finance and politics. A former editor and bureau chief of Bloomberg News and associate business editor of the South China Morning Post, he is a CFA charterholder.

More stories like this are available at bloomberg.com/opinion

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Baltimore leaders see fresh start with victory for Maryland Governor-elect Wes Moore https://inzercepujcek.net/baltimore-leaders-see-fresh-start-with-victory-for-maryland-governor-elect-wes-moore/ Thu, 10 Nov 2022 17:50:00 +0000 https://inzercepujcek.net/baltimore-leaders-see-fresh-start-with-victory-for-maryland-governor-elect-wes-moore/ Comment this story Comment For many Baltimore residents, the history of Democrat Wes Moore Victory in the governor’s race on Tuesday couldn’t come soon enough. It wasn’t just that Moore lives in Baltimore — although that was a big plus. It also meant they were much closer to the departure of Republican Gov. Larry Hogan […]]]>

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For many Baltimore residents, the history of Democrat Wes Moore Victory in the governor’s race on Tuesday couldn’t come soon enough.

It wasn’t just that Moore lives in Baltimore — although that was a big plus. It also meant they were much closer to the departure of Republican Gov. Larry Hogan and the end of eight acrimonious years between the residents of Maryland’s largest city and a leader many believed to be working against them.

With Moore in charge, leaders here said, the relationship between the city and the governor’s mansion can begin to heal. And they’re counting down the days until Hogan leaves.

“A lot of us felt that our governor looked down on our city and didn’t always see us as part of the bigger picture of Maryland,” Del said. Stephanie M. Smith (D-Baltimore), a Moore supporter who represents East Baltimore and chairs the city’s delegation to the Maryland House of Delegates. “This is a city that was looking for a governor who was just a friend. But it would be better, at a minimum, to have a governor who believes in you, knows you, embraces you, and sees you as an integral part of our state.

The city’s frustrations with Hogan date back to 2015 during his first year in office when he disconnected the Red Line, a $2.9 billion light rail system project that had been planned for years and would have connected residents of some of the city’s poorest. downtown neighborhoods.

Where does Larry Hogan go from here?

Proponents said the east-west rail system would have brought the city closer together, made more jobs available to more people, and promoted economic development. Around $288 million had already been spent on the planning process which began in 2001. Hogan dismissed the plans and called the project “an unnecessary waste”. His decision meant that Baltimore would lose $900 million in federal funding that had already been earmarked for the project.

Hogan’s decision, announced the same day, to divert some state funding intended for the Red Line to the Purple Line in suburban Washington added salt to the wound. He also announced $2 billion in road spending statewide. Baltimore felt abandoned.

When Hogan’s Twitter account posted plans for the transportation projects, it included a map of Maryland that had a blank space where Baltimore should have been. The tweet was later deleted.

Moore, whose victory made him the country’s only current black governor and the third elected in its history, said the red line was a “key priority”.

“If you want to get the economy moving again, you have to be able to move people into jobs,” he told the Baltimore Sun in September. “We can’t think we’re going to budge as a state when every time we talk about Baltimore it’s with disdain. We can’t have a prosperous Maryland if Baltimore is in poor health.

Hogan has also regularly lambasted the city leaders for their handling of crime and their failure, he said, to prosecute violent criminals. Baltimore has recorded more than 300 homicides a year for the past seven years and is expected to top 300 again this year. In 2021, it had the highest homicide rate of any of the nation’s 50 largest cities. Earlier this year, Hogan and Baltimore Mayor Brandon M. Scott engaged in heated back and forth, with each side accusing the other of not doing enough to tackle crime and its root causes.

“In February you assured us that a comprehensive plan was in place, but at this point I don’t believe anyone – including you – thinks it’s working,” Hogan wrote in a public letter to Scott in May. . “It’s time to see a real plan and real action now.”

“If the governor wanted to ask me about crime fighting, he could have asked me in person…but he chose not to and instead played public safety games,” he fired back. Scott. “Furthermore, since he took office, two things are true: he has refused to offer Baltimore any meaningful help, and crime has increased every year…The governor knows how to help, but he refuses to do it.”

Hogan also criticized Baltimore state attorney Marilyn Mosby for her approach to pursuing criminal convictions in the city. A year ago, he called for a review of his office’s funding and demanded data on prosecution rates. What Baltimore needed, Hogan said, was “a prosecutor who will actually prosecute violent criminals.”

Mosby fired back at Hogan, accusing him of not working with four Baltimore mayors and his police chiefs.

“Quite frankly, he’s been more concerned with pointing fingers at everyone than leading and delivering for a city that’s the heartbeat of this state,” Mosby said at a press conference.

In January, Mosby was indicted by a federal grand jury on two counts of perjury and false loan applications. She ran for a third term but was defeated in the Democratic primary by defense attorney Ivan Bates.

Critics of Hogan in Baltimore say his administration underfunded and understaffed the state’s probation and parole system, resulting in little monitoring and assistance for those released from prison. Moore, on his campaign website, pledged to fill all vacancies, “conducting strict monitoring of high-risk individuals and leveraging local offices to connect people to behavioral health treatments, housing and employment”.

Moore also said he would work to rebuild relationships between Baltimore communities and law enforcement by increasing accountability and transparency and funding community policing programs.

Baltimore looked bowled over by Hogan’s decision on the red line, and the city’s relationship with him never recovered, Baltimore City Councilman Zeke Cohen (D) said. On the contrary, he said, Hogan’s criticism of the city and the disdain he showed towards city leaders made the situation worse.

“Governor. Hogan treated Baltimore City like a rhetorical punching bag,” Cohen said. “Every time he hits him in the media, he seems to think his ratings are going up. But what has been unfortunate is that it has funded our public transit and sometimes our schools, while selling the narrative of local dysfunction.

In its op-ed endorsing Wes Moore last month on Republican nominee Dan Cox, the Baltimore Sun took a parting shot at Hogan for his treatment of the city, writing “Our current governor has too often sought to distance himself from Baltimore and its issues, including a legacy of systemic racism that has resulted in persistent issues of crime and poverty.

Asked to respond to criticism leveled by city leaders, Hogan’s spokesman Michael Ricci defended Hogan’s efforts on Baltimore’s behalf.

“The governor has always believed that a strong Maryland depends on a strong Baltimore, and has made unprecedented investments in city revitalization, infrastructure, school building and public safety,” Ricci wrote in an email on Wednesday. “He did it collaboratively, funding every request made by the mayor to address violent crime and working with legislative leaders to provide the greatest infusion of jobs to the central business district. There are important and hard-won gains on which the next administration can build.

And not all Baltimoreans agree that the governor has been uniformly hostile to the city.

Projects like the redevelopment of the Pimlico Racetrack and surrounding neighborhood and the CORE Project, a $75 million state investment to demolish derelict buildings to create green spaces and develop affordable and affordable housing. mixed use have made a real difference, said Howard Libit, executive director of the Jewish Council of Baltimore, former communications chief for former Baltimore Mayor Stephanie Rawlings-Blake.

“These are going to be a big positive legacy for his work in Baltimore,” he said.

And others in Baltimore didn’t mind Hogan’s aggressive approach to the city.

“I liked the accountability he provided to Baltimore City because he spoke a bit more about what was going on here, especially with crime and how Marilyn Mosby ran his office,” said Kyna McKenzie, vice president of the Baltimore City Republican. To party. “I don’t believe that’s going to happen with Wes Moore.”

McKenzie knows that Republicans in Baltimore are vastly outnumbered in the city. Democrats hold all City Council seats and no Republican has served as mayor since Theodore McKeldin left office in 1967.

“It’s awful, honestly,” she said. “We are totally stuck here.”

Natalie McCabe, a 41-year-old therapist who voted for Moore on Tuesday, is happy to see Hogan go.

She said Hogan overlooked Maryland’s most populous city. “It’s easy to seek out the affluent side of Maryland,” she said. “Baltimore needs people who are going to line up and do what they say they are going to do. I want a better Baltimore that lives up to its potential. »

McCabe thought of nearby Columbia, Maryland, which has benefited from recent construction — from supermarkets to new homes. Slices of Baltimore, however, remain devastated. A few blocks from the elementary school where she voted, the neighborhood of Mondawmin – the site of a violent clash between teenagers and police after the funeral of Freddie Gray in 2015, a focal point of the city’s uprising sparked by the 25-year-old who died in police custody — could benefit from such investments, she said.

“They’re building this community,” McCabe said of Columbia. “Where is it in the Mondawmin community?”

Lauren Lumpkin and Erin Cox contributed to this report

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Billions in bank redemptions if the winter is mild https://inzercepujcek.net/billions-in-bank-redemptions-if-the-winter-is-mild/ Tue, 08 Nov 2022 14:35:37 +0000 https://inzercepujcek.net/billions-in-bank-redemptions-if-the-winter-is-mild/ Comment this story Comment If you want to predict the fate of banks in the UK and Europe, the only thing you should watch is the price of petrol. If the winter is warm and the stored gas is not burned, unloved lenders in the area will look significantly undervalued. The third quarter results highlighted […]]]>

Comment

If you want to predict the fate of banks in the UK and Europe, the only thing you should watch is the price of petrol. If the winter is warm and the stored gas is not burned, unloved lenders in the area will look significantly undervalued.

The third quarter results highlighted that many are sitting on billions of pounds or euros of excess capital. In some cases, that money will be needed in part to meet higher capital demands from regulators, as the final parts of Basel’s global capital rules are fully implemented in Europe. Others will want to invest in loan growth or acquisitions.

But much of the cash should be returned to shareholders, especially if economies don’t suffer as much as some fear.

The reason to watch gas is simple: it will be one of the most important influences on the paths of inflation and interest rates – and therefore on the duration and depth of the seemingly inevitable recession to come. This is a major difference with the United States, where Russia’s invasion of Ukraine caused far fewer problems in terms of economics and energy costs.

Still, European banks, like their US counterparts, saw profits boosted by rising interest rates and strong trading on bond and currency desks, as well as some repayment problems among borrowers. However, everyone expects things to get worse, and the banks have all increased provisions for bad debts – but again, just like their US counterparts, these often look like a return to levels of before the pandemic rather than a sharp rise.

Even after these provisions, strong earnings helped banks raise capital for high-potential grants to investors. BNP Paribas SA leads the pack, mainly because it is expected to earn $16 billion from the sale of its US arm, Bank of the West. BNP will make a €4 billion ($3.97 billion) buyout as soon as the deal closes, likely at the end of this year. That alone equates to a one-time return of nearly 6.5% on BNP’s current market value. On top of that, it promised in a strategic plan unveiled earlier this year to pay out at least 50% of its profits as cash dividends every year.

Even then, BNP will be left with around €7 billion of excess capital that it wants to spend on transactions or technology to drive growth. If it can’t find the right complementary acquisitions or the right profitable assets to invest in, the pressure will increase to return that money to shareholders. And that would equate to an additional 11% return on its current market value.

Other banks might not receive monster sales proceeds, but several still have plenty of capital. ING Group NV has already bought back €2.1 billion of shares this year and announced a further buyout of €1.5 billion with its third quarter results in addition to its regular dividends. After that, the Dutch bank still has €6 billion more capital than it needs to meet its Tier 1 Tier 1 capital ratio target, which is the key measure of a company’s strength. bank. If he were to shell out all that excess capital, it would equate to a return of almost 15% on the market value of ING.

UBS Group AG will complete $5.5 billion in share buybacks by the end of this year – of which $4.3 billion has already been completed – and will still end up with more than $3 billion in capital at the moment. above its target ratio. UBS shares are already much more valuable than many of its European peers, so its surplus only equates to a return of around 5.5%. But again, that’s on top of dividends, which offer a recurring yield of around 3.5% next year.

Lloyds Banking Group Plc and UniCredit SpA also have excess capital for buyouts that can yield more than 10%. Meanwhile, Societe Generale SA and even Deutsche Bank AG have available capital worth around a percentage of their market value. For these two banks, however, the buyback potential could be limited by higher capital requirements from regulators or a need to invest for future growth.

There are growing tensions between banks and cautious regulators in the UK and Europe. European bankers are pushing back against what they see as brutal interference by the European Central Bank. Some fear that this could prevent banks from paying dividends if recessions start to deepen as they did during the Covid pandemic. UniCredit shares fell on Monday after a Financial Times report alluding to disagreements between the Italian bank and the regulator over its long-term payment plans and other issues.

Still, most European bank stocks are trading at deep discounts to their expected book values. This is partly justified because profitability is relatively low, generating returns on equity of less than 10%. But many are also trading below what their expected returns suggest they should be worth.

This additional discount is due to fears of recession. The more interest rates have to rise over the next two years, the longer and deeper the recession will be and the more painful it will be for borrowers and lenders. In Europe, gas prices are the main contributor to inflation and the most difficult to predict, and the ultimate peak in interest rates is therefore not yet clear, as the Bank of England said the last week.

But Europe has rebuilt its gas stocks, and if the winter is mild, European economies will look much healthier and many banks will be well stuffed with excess liquidity. If winter brings a big freeze, however, the impact on borrowers could be severe, and some of those banks won’t end up having as much extra capital.

More from Bloomberg Opinion:

• City of London bankers better check Rishi Sunak’s interference: Paul J. Davies

• BOE moving towards rate pivot sends signal to ECB: Marcus Ashworth

• The reasons are piling up for optimism on inflation: John Authers

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

More stories like this are available at bloomberg.com/opinion

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Decades after dropping out of Howard, he’s helping HBCU students graduate https://inzercepujcek.net/decades-after-dropping-out-of-howard-hes-helping-hbcu-students-graduate/ Sat, 05 Nov 2022 14:08:19 +0000 https://inzercepujcek.net/decades-after-dropping-out-of-howard-hes-helping-hbcu-students-graduate/ Comment this story Comment As a freshman at Howard University, Hassan Abdus-Sabur found himself sitting in a crowded auditorium, listening to a speaker asking students to look to their left and right. Most people in those seats, the speaker warned, would not make it to graduation. Hassan didn’t realize it at the time, but he […]]]>

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As a freshman at Howard University, Hassan Abdus-Sabur found himself sitting in a crowded auditorium, listening to a speaker asking students to look to their left and right. Most people in those seats, the speaker warned, would not make it to graduation.

Hassan didn’t realize it at the time, but he would be one of them.

As he tells it, he spent two years attending college in DC before returning home to Newark. He was struggling financially at the time, and tuition fees were piling up. It was one of the reasons he decided to leave, but it was not the only one. He sees it now.

“I could blame the finances,” he said recently. “But I could have gotten a job, I could have stayed in DC, I could have finished what time I had left.”

He could have graduated from one of the nation’s HBCUs — historically black colleges and universities.

But he was 19, he said, and his pride and level of maturity left him trying to carve his way through life like electricity – following the path of least resistance. He returned to live with his parents. He started working. He had a child. And it took him years to realize what he had given up when he left Howard. On the day we spoke, he ticked off a long list of names of notable alumni, including Vice President Harris and Newark Mayor Ras J. Baraka, all too aware that he cannot lay claim to a single title that ‘They hold.

“I can’t wear the Howard alumni hat,” he said. “I can wear the Howard shirt, but I can’t wear the old Howards hat… It’s such a bitter pill because I love this place. It meant so much to me, just when I was there.

The Howard University controversy was never just about dogs. It was a matter of respect.

We all carry our greatest regrets in different ways. Some of us try to push them into the farthest recesses of our minds in hopes of forgetting the circumstances that led them. Some of us keep them close, allowing them to take up space in our thoughts as our days go by. And then there are those of us who openly claim them and use them to propel us in directions we might not otherwise go.

Hassan did it with his missed opportunity. He’s now 48 and still doesn’t have a license from Howard or a university. However and because of this, he has spent the past few years working to help raise funds for students who attend HBCUs.

Since 2020, he has helped raise over $100,000 and his efforts have caught the attention of GoFundMe staff members. Hassan was named a GoFundMe Hero, and he’s now working with the company on an initiative that seeks textbook grants worth $500 each for HBCU students. The effort is being made through the company’s GoFindYou initiative, which is described online as “a place to celebrate often overlooked stories of black joy.”

“We see a lot of stories of black joy that are overshadowed by grief and trauma,” said Leigh Lehman, director of communications at GoFundMe. But mixed in with fundraising efforts centered on painful issues, she said, there are those that aim to raise money to start small businesses, pay for black and brown children to see films such than Black Panther and “funding the next generation of HBCU scholars”.

On Friday, the fundraising page for textbook grants showed that more than $22,000 had been raised towards a goal of $75,000. Lehman said the company has tried to get the word out to students, so they can benefit, and to potential donors, so they can contribute.

“We want him to live in perpetuity,” she said.

As the Supreme Court considers the affirmative action issue, much of the public debate recently has focused on the admission of black and brown students into colleges and universities. But getting in is only part of the picture. Staying on can also prove a challenge, especially as wider economic inequalities leave many of these students entering with less financial security than their white peers.

Now that we see what stealing a place in college really looks like, can we stop making students of color feel like cheats?

As someone who grew up in an underserved neighborhood and was lucky enough to get into Stanford University, I can tell you that financial help beyond loans would have brought welcome relief, even if it only took the form of a textbook subsidy. For one course, I had to buy more than 30 books.

Hassan, who now works for a Newark council member, said he grew up in a “typical working poor” household in a neighborhood that was a food desert. His hope with the fundraiser, he said, is not just to see students graduate, but also to see them return to their communities and improve their lives there. What it might look like, he said, is a student coming home and saying, ‘My mother’s block is falling apart, I have an engineering degree, how can I help?

Hassan started a non-profit association to manage the distribution of the funds raised. But in 2020, the effort started the easy way – with a request from a friend. One of Hassan’s former classmates told him that his niece had been accepted to Howard but needed help with her tuition. Hassan donated to his GoFundMe page, but then worried he might not meet his $18,000 goal. So he had an idea: he would raise money for her by cycling from Newark to Howard University. Four friends agreed to join and their effort became “Bike for Marbella”.

Together they raised around $7,000, which was below Marbella’s goal, but was enough when combined with the funds she had raised and the money she saved. studying from home after covid precautions caused the campus to close.

The following year Hassan rode his bike again – and this year he did it again. Along the way, he said, he and the other cyclists met strangers who donated on the spot when they heard about the cause. A man they met in Maryland told them his grandson was attending HBCU and gave them $50. A woman who overheard the exchange also made a donation.

A GoFundMe page for the most recent “HBCU Scholarship Bike Ride” shows a goal set at $50,000 and over $64,000 raised.

But a different measure of success also exists. Hassan said that Marbella had graduated and that two other students who received funds are expected to graduate in 2024. That year, Hassan will also graduate with his baccalaureate. He said he was inspired to go back to school and was attending Rutgers University. “You can’t tell kids to do something, and you don’t,” he said.

Obtaining this degree will mark a milestone in his life, but in a way, he already feels like he has crossed the stage. Each year, the bike ride ends at the Yard on the Howard University campus, and riders are greeted with applause.

“When I ride on campus, it’s my graduation every year,” he said. “When everyone claps, it’s my graduation.”

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Loan company distances itself from GOP-led states student debt lawsuit https://inzercepujcek.net/loan-company-distances-itself-from-gop-led-states-student-debt-lawsuit/ Thu, 03 Nov 2022 02:30:00 +0000 https://inzercepujcek.net/loan-company-distances-itself-from-gop-led-states-student-debt-lawsuit/ Comment this story Comment A student loan officer named in a lawsuit that temporarily blocked President Biden’s debt forgiveness plan is distancing himself from one of the claims raised by six Republican-led states challenging the program. The states – Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina – say the president exceeded his authority in […]]]>

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A student loan officer named in a lawsuit that temporarily blocked President Biden’s debt forgiveness plan is distancing himself from one of the claims raised by six Republican-led states challenging the program.

The states – Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina – say the president exceeded his authority in creating the pardon plan and that the move threatened the revenues of state entities that benefit from federal student loans, including including the Missouri Higher Education Lending Authority. The quasi-state entity commonly known as MOHELA is not a named party to the lawsuit, but nonetheless has drawn the ire of advocacy groups and Rep. Cori Bush (D-Mo.), who challenged question his perceived involvement.

On Tuesday, Justice Department attorneys alerted the United States Court of Appeals for the 8th Circuit which weighs an injunction against the pardon plan to a letter MOHELA sent to Bush last week stating that she had no role in Missouri Attorney General Eric Schmitt’s (R) decision to prosecute.

“The only communications between MOHELA and [the Missouri attorney general’s office] with respect to student debt relief, is that the Bureau recently filed a series of Solar Law Requests on MOHELA requesting copies of documents relating to MOHELA’s Federal Loan Service Agreement,” wrote the society in his letter to Bush.

The lawsuit filed by Schmitt and the leaders of the other five states said MOHELA, which holds and manages debt from the former federal Family Education Loan program, would be deprived of interest payments if borrowers bundled out of FFEL to take advantage of Biden. forgiveness to plan. He said the company, which funds state scholarships, would also lose revenue from servicing direct loans — those made and held by the federal government — that are wiped out.

Bush had asked MOHELA if the company supported efforts to block Biden’s plan to preserve his profits. In response, MOHELA said he was “faithfully performing his obligations under his Federal Loan Service Agreement.”

The company said it was “a public instrument of the state. As a government entity, it has no shareholders and does not exist to make a profit. All available funds beyond operating needs and reasonable reserves are dedicated by MOHELA for student financial aid.

In their case, the states argued that Missouri had the right to sue on MOHELA’s behalf because it “performs” an essential task. public and “its board is made up of public officials and governor appointees.”

U.S. District Judge Henry E. Autrey, who dismissed the States case for lack of standing, questioned this premise. Autrey said that while the governor appoints five members of the corporation’s board of directors, its revenues and liabilities are independent of the state.

The States appealed, sending it to the 8th Circuit. The court last month issued an administrative stay temporarily barring the Department of Education from paying any debt under the new rebate scheme.

So far, MOHELA has remained silent on the States lawsuit. The company did not respond to requests for additional comment on Wednesday.

MOHELA is the primary service provider for borrowers seeking loan forgiveness from the Civil Service, a federal program for teachers, firefighters and other public servants. The company handles about $59 billion in direct federal loans as well as loans from the former FFEL program, according to court documents.

Following the states lawsuit, the American Federation of Teachers and the nonprofit Student Loan Protection Center sent MOHELA a cease and desist letter last month. The group accused the company of violating California’s Student Borrowers Bill of Rights, which prohibits student loan officers from interfering with borrowers’ rights to loan forgiveness. The Student Loan Protection Center said it was prepared to take legal action if the company did not drop the lawsuit.

On Wednesday, SBPC Executive Director Mike Pierce said, “It appears these states have just been caught misleading a federal appeals court in a ruthless effort to score political points against the president. . It is the clearest sign yet that the right-wing state challenge to student debt relief has no legal basis and will ultimately prove unsuccessful.

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Opening statements set to begin in Trump Organization criminal trial https://inzercepujcek.net/opening-statements-set-to-begin-in-trump-organization-criminal-trial/ Mon, 31 Oct 2022 13:00:00 +0000 https://inzercepujcek.net/opening-statements-set-to-begin-in-trump-organization-criminal-trial/ Comment this story Comment NEW YORK — The criminal tax evasion trial against the Trump Organization is set for opening statements on Monday, with prosecutors seeking to prove allegations that the company for years provided untaxed compensation to executives. The lawsuit is the result of a three-year investigation into the Trump Organization’s business practices by […]]]>

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NEW YORK — The criminal tax evasion trial against the Trump Organization is set for opening statements on Monday, with prosecutors seeking to prove allegations that the company for years provided untaxed compensation to executives.

The lawsuit is the result of a three-year investigation into the Trump Organization’s business practices by Manhattan District Attorney Alvin Bragg and former District Attorney Cyrus R. Vance Jr. Bragg said that it was still assessing whether former President Donald Trump had committed crimes by allegedly manipulating the value of his assets to obtain favorable loans and interest rates, or by devaluing his assets to reduce his tax liability.

Trump and three of his adult children who have held senior positions at the company have not been personally charged.

The procedures of Trump Organization and Trump Payroll Corp. before the New York Supreme Court could last up to six weeks and is expected to involve witnesses who still work at the company, including longtime chief financial officer Allen Weisselberg, who is on paid leave, and comptroller Jeffrey McConney. The two are said to have orchestrated a scheme to supplement corporate executive pay with benefits that went untaxed for 15 years from 2005 to 2021.

The Trump Organization’s criminal trial for fraud will begin on Monday

Weisselberg was the only individual charged with the companies. He pleaded guilty in August and agreed to testify at the organization’s trial. In exchange for his testimony, he will receive a five-month prison sentence. He faced up to 15 years in prison.

McConney was a grand jury witness and was granted immunity from prosecution under New York State law.

In recent days, prosecutors have warned prospective jurors that some witnesses may be reluctant to testify. Assistant District Attorney Susan Hoffinger told jurors on a voir dire Thursday that some witnesses in the case are still employed by the Trump Organization and its affiliate, and that they “may at times be reluctant to answer. to certain questions”.

“It’s understandable… They’re testifying against their employers,” Hoffinger said.

The selected panel of 18 jurors includes six alternates.

The tax evasion and conspiracy case was filed in July 2021 and alleges that Weisselberg and McConney, who ran the company’s finances, kept two sets of books to reflect actual compensation, with undeclared executive benefits such as expensive cars and apartments, and compensation figures that were reported to state and federal tax authorities. The company is based in Trump Tower on Fifth Avenue.

Weisselberg personally saved more than $900,000 in taxes from the misrepresentations, prosecutors say. He is expected to testify about his own conduct and his plea agreement limits the scope of what he is required to discuss.

The Trump Organization and the Trump Payroll Corp. could face a combined maximum fine of $1.6 million if convicted.

The company’s attorneys should argue that criminal liability does not automatically shift from Weisselberg and McConney to corporations.

New York Attorney General Letitia James sued Trump, his children, Weisselberg, McConney and the company last month over the alleged practice of altering asset values ​​to obtain better loan and insurance rates.

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Egypt and IMF reach preliminary deal for $3 billion loan https://inzercepujcek.net/egypt-and-imf-reach-preliminary-deal-for-3-billion-loan/ Thu, 27 Oct 2022 20:38:00 +0000 https://inzercepujcek.net/egypt-and-imf-reach-preliminary-deal-for-3-billion-loan/ Comment this story Comment CAIRO — The International Monetary Fund on Thursday reached a preliminary deal with the Egyptian government that paves the way for the economically struggling Arab nation to access a $3 billion loan, officials said Thursday. IMF officials said a staff agreement between the Egyptian government and IMF leaders had been reached […]]]>

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CAIRO — The International Monetary Fund on Thursday reached a preliminary deal with the Egyptian government that paves the way for the economically struggling Arab nation to access a $3 billion loan, officials said Thursday.

IMF officials said a staff agreement between the Egyptian government and IMF leaders had been reached after months of talks, as Egypt struggles to tackle soaring inflation caused, in part, by the war in Ukraine.

In a statement on Thursday, the head of the IMF’s Egypt mission, Ivanna Vladkova Hollar, said the 46-month deal – known as the Extended Financing Facility Agreement – allows Egypt access to the loan of 3 billion dollars on the condition that it implement a series of economic reforms.

In the hours leading up to the announcement, Egypt’s central bank announced a series of economic measures, including raising key interest rates by around 2 percentage points and moving to a “sustainably flexible exchange rate”. . The bank said the exchange rate change would now allow international markets to “determine the value of the Egyptian pound against other foreign currencies”.

Following the announcement, the Egyptian pound fell to a record high against the US dollar, from 19.75 to around 22.99, according to data provided by Egypt’s central bank. Before the Egyptian currency’s IPO on Wednesday, the US dollar was trading at an average of 23 pounds on the black market.

Since the start of the year, the Egyptian pound has lost around 46% of its value against the US dollar. Jason Tuvey, senior emerging markets economist for Capital Economics, expects it to lose further value before the end of next year.

The flexible exchange rate “will cause economic hardship in the short term” but got the deal approved by the IMF and “will go a long way towards restoring macroeconomic stability”, Tuvey said.

“The commitment to sustainable exchange rate flexibility going forward will be a fundamental policy to rebuild and safeguard Egypt’s external resilience in the long term,” Hollar said.

Egypt’s economy has been hit hard by the coronavirus pandemic and the war in Ukraine, events that have disrupted global markets and pushed up oil and food prices around the world. Egypt is the world’s largest importer of wheat, most of which came from Russia and Ukraine. The country’s supply is subject to price variations on the international market.

In a statement released Thursday morning, Egypt’s central bank said it had raised the new lending rate to 14.25% and the deposit rate to 13.25%. The discount rate was also raised to 13.75%, he said.

Egypt’s monetary reforms and IMF loan are designed to help offset rising inflation, which topped 15% in September, and ease the financial strain on low- and middle-income households. Some of the main goals of the deal are to reduce Egypt’s overall debt and bring about sweeping reforms to its fiscal policy, Hollar said.

As part of its monetary reforms, the central bank said it would start scrapping a system for importers, a bureaucratic process introduced in February to control demand on the currency for imports.

Late Wednesday, Egyptian Prime Minister Mustafa Madbouly announced an 11.1% increase in the minimum monthly wage, from 2,700 pounds ($137) to 3,000 pounds ($152). Madbouly’s announcement marks the fourth minimum wage hike since President Abdel Fattah el-Sissi took office in 2014.

In its statement, the Egyptian central bank said it was “determined to intensify its reform program to ensure macroeconomic stability and achieve strong, sustainable and inclusive growth”.

About a third of Egypt’s 104 million live in poverty, according to government figures.

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IKEA Projekt Map Review – Forbes Advisor https://inzercepujcek.net/ikea-projekt-map-review-forbes-advisor/ Tue, 25 Oct 2022 13:00:06 +0000 https://inzercepujcek.net/ikea-projekt-map-review-forbes-advisor/ IKEA® Project credit card* vs. Citi Custom Cash℠ Card The Citi Custom Cash℠ card earns a uniquely designed 5% cash back reward on purchases in a higher eligible spend category each billing cycle, up to the first $500 of spend each month and 1% cash back on all other purchases and can be used anywhere […]]]>

IKEA® Project credit card* vs. Citi Custom Cash℠ Card

The Citi Custom Cash℠ card earns a uniquely designed 5% cash back reward on purchases in a higher eligible spend category each billing cycle, up to the first $500 of spend each month and 1% cash back on all other purchases and can be used anywhere Mastercard is accepted. The no annual fee card also offers an introductory APR of 0% on balance transfers and qualifying purchases for 15 months. After that, the variable APR will be 16.99% to 26.99%, depending on creditworthiness. There is also a balance transfer fee of 5% of each balance transfer; At least $5.

For those planning a number of home renovations or remodels and want to take advantage of financing (albeit with a more limited window of opportunity), Citi Custom Cash may be a better bet than the IKEA Projekt Card, d especially since it can be used at other stores and to earn rewards in other categories.

The IKEA Projekt card is best for ongoing renovations or redesigns with IKEA only, but for others a card like the Citi Custom Cash will likely have more long-term utility.

IKEA® Project credit card* vs. IKEA® Visa® credit card*

If Comenity, the issuing bank, has combined the IKEA® Visa® credit card* and the IKEA Projekt card, they would have a solid credit card. The IKEA Visa Card does not offer any introductory financing options, but earns 5% rewards on IKEA purchases, including Traemand installation and TaskRabbit assembly services, 3% cash back on restaurant purchases, d groceries and utilities and 1% cash back on all purchases. other purchases made with your IKEA Visa credit card.

Those looking to finance purchases with 0% introductory APR periods at IKEA will want to carefully review the IKEA Projekt terms before applying. Those who want rewards to be earned on purchases at IKEA and elsewhere, but see themselves spending those rewards only at IKEA should consider the IKEA visa. Those who want more flexibility in a credit card rewards system should wake up and realize that they’ve found themselves at home in a showroom and need to navigate the world. real.

IKEA® Project credit card* vs Triple Cash Rewards Visa® Upgrade

With vague advertising, the Triple Cash Rewards Visa® upgrade doesn’t immediately clarify that the card actually offers lines of credit with payment plans, not your standard credit card revolving line of credit. For this reason, we encourage each potential Upgrade Triple Cash Rewards Line of Credit applicant to read all terms and conditions carefully. With lines of credit from $500 to $20,000 and unique rewards of 3% unlimited cash back on home, auto and health categories and 1% unlimited cash back on everything else, the card could be a attractive option for those who may not qualify for traditional credit. card with awards on home furnishings.

For those who want financing with rewards and are willing to risk a loan disguised as a credit card, upgrade Triple Cash Rewards may offer an easier repayment plan, since monthly payments are a fixed amount and not subject to renewable interest rates. like with a credit card.

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