| Ailing E-Loan eyes checking, credit cards
Internet bank E-Loan Inc. plans to expand its non-mortgage product lines in 2008 after the housing downturn forced it to lay off 44 percent of the work force at its Pleasanton headquarters. Preparing to weather a down housing market, E-Loan plans to offer a "transactional account," or a checking-account equivalent, that will pair with its savings and CD products, E-Loan President Mark Lefanowicz said. The bank will also begin offering credit cards and expand its student-loan program in 2008. The 410-job reduction announced Nov. 8 was the second this year for E-Loan, a subsidiary of Banco Popular North America, owned by Popular Inc. of San Juan, Puerto Rico. A February restructuring by the parent company cost nearly three dozen E-Loan employees their jobs as Popular's U.S.
Money markets bend, don't break
One of the safest and, lately, most attractive places for people to park some of their savings -- the money market account -- is suddenly looking a little less secure, thanks to fallout from the mortgage mess. Bank of America Corp. announced plans Tuesday to shore up a group of money market funds, in its case with a $600 million reserve. The move raises questions about whether this category of savings might suffer hits that are serious enough to cause losses for investors. The notion that some money market funds might give investors less than a dollar-for-dollar return on their investment, an occurrence known as "breaking the buck," is a sobering thought. Some experts say it remains unlikely, however. The Bank of America funds have run into trouble with a type of investment known as a structured investment vehicle, or SIV, which uses borrowed money to invest in perhaps risky but high-yielding investments.
BofA launches football-related sweepstakes
Bank of America Corp. has launched a six-week sweepstakes to encourage saving through its Keep the Change program. Through the promotion, dubbed Monday Morning Quarterback, customers can win prizes that include a trip for two to Super Bowl XLII in Arizona. Participants also will vie for weekly prizes such as a refund equal to one-quarter of their weekend spending. Customers can go to www.bankofamerica.com/quarterback for information and to enroll. Keep the Change customers have each check-card purchase rounded up to the next whole dollar amount. The difference is transferred from their checking account to their savings account. "Through the Monday Morning Quarterback promotion, we hope to highlight the importance of saving and remind customers that they can join the more than 6.5 million customers who have already saved more than $620 million just by enrolling in Keep the Change and using their debit cards for everyday purchases," says Susan Faulkner, deposits and student-lending executive.
Money funds set aside cash for trouble
One of the safest and, lately, most attractive places for people to park some of their savings - the money market account - is suddenly looking a little less secure thanks to fallout out from the mortgage mess. Bank of America Corp. on Tuesday became the latest financial company to announce plans to shore up a group of money market funds, in its case with a $600 million reserve. The move raises questions about whether this category of savings might suffer hits that are serious enough to cause losses for investors. The notion that some money market funds might give investors less than a dollar-for-dollar return on their investment, an occurrence known as "breaking the buck," is a sobering thought. Some experts say it remains unlikely, however. The Bank of America funds have run into trouble with a type of investment known as a structured investment vehicle, or SIV, which uses borrowed money to invest in risky but high-yielding investments.
Turning up heat on retirement savings
Bank of America Corp. plans to launch on Sunday a $35 million advertising campaign to promote its retirement savings accounts, as the Charlotte, N.C., bank stakes its claim in one of the fastest-growing areas of financial services. "We're in this to win," said Jeff Carney, the bank's chief of retirement products. About 54 million households have a relationship with the bank, but it manages individual retirement accounts for just 1.5 million people. Next year the print and online campaign may expand from IRAs to include the bank's 401(k) retirement savings plans and similar products. "People realize that 401(k)s and IRAs are the two most important vehicles for you to save for yourself," Carney said. The bank's spending would dwarf the $11.6 million that all banks collectively laid out last year to promote retirement products, according to New York data firm Competitrack.
Will Your Money-Market Fund 'Break the Buck'?
NEW YORK -- One of the safest and, lately, most attractive places for people to park some of their savings -- the money-market account -- is suddenly looking a little less secure thanks to fallout out from the mortgage mess. Bank of America became the latest financial company to announce plans to shore up a group of money-market funds, in its case with a $600 million reserve. Its move last week raises questions about whether this category of savings might suffer hits that are serious enough to cause losses for investors. .
Bk Of Israel Gov:New IMF Surveillance Policy's Focus Too Narrow
WASHINGTON (Dow Jones)--Bank of Israel Governor Stanley Fischer, who was formerly deputy managing director of the International Monetary Fund, criticized the IMF's new surveillance policy Thursday for focusing too much on currencies. Fischer said at an IMF conference that the new policy "appears to be a too narrow focus on exchange rate policies rather than overall economic policies." Noting that a large current account deficit like that of the U.S. led to an overvalued dollar, Fischer said IMF policy should take into account other factors beyond just currency policy, such as a government's fiscal policy. "The failure to use fiscal policy to deal with an unsustainable current account deficit would be as deserving of staff and board censure as would policies such as sustained intervention to manipulate the exchange rate to increase net exports," Fischer, who was deputy managing director from 1994 to 2001.
Christmas shoppers use different means for payment
What�s in your wallet? The chances are better these days that it�s not a paper check.
According to the National Retail Federation, almost 40 percent of shoppers will rely on their debit/check cards to make purchases this holiday season while around 30 percent will be using credit cards and 25 percent paying with cash. Only about five percent will write personal checks at the cash register.
Whatever the choice may be, financial counselors, financial institutions, retailers and even shoppers agree that the debit card has become the most common method of payment.
However, Terry Zeltinger, president of United Community Bank, said there is not a �one size fits all� when it comes to paying for purchases.
�Every individual has a different set of circumstances and preferences for the method of payment that fits their situation,� Zeltinger said.
|
