The Federal Reserve fined five large US banks a combined $35.1 million to settle cases of mortgage servicing flaws dating back to 2011. The central bank announced the fines against Goldman Sachs, Morgan Stanley, CIT Group, US Bancorp and PNC Financial as part of a broader effort to terminate
The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, as anticipated, but left its rate outlook for the coming years unchanged even as policymakers projected a short-term acceleration in US economic growth. Having raised its benchmark overnight lending rate three times this year,
Dear John: Interest rates have been kept artificially low through quantitative easing, which currently stands at about $200 billion a month in Japan and Europe. Still, our national debt doubled in the past 10 years. Imagine what the impact will be if rates returned to historic levels? E.H. Dear E.H.
The Government Accountability Office on Thursday said the Federal Reserve’s 2013 guidance limiting leveraged lending should have gone through Congress. The guidance had the effect of tamping down the number of LBOs because financing was choked off. If the measure is forced before lawmakers, it is unlikely to pass, industry sources said.
Dear John: As a retired state auditor, I can vouch for the fact that statistics put out by the government are sometimes phony, not because of incompetence but for other reasons. For example, the New York State Department of Social Services developed a quality-control audit program that consistently produced data
I’ve been telling you for years that the employment data produced by the US government were misleading people into thinking the economy was performing better than it really was. Now Federal Reserve Chair Janet Yellen — finally! — agrees. Yellen, speaking before the National Association of Business Economics on Sept. 26, said,
Even though Fed chief Janet Yellen has raised its target federal funds rate four times since December 2015 — with a possible fifth increase happening Wednesday — don’t expect interest on your savings deposits to rise any time soon. In part, that’s because banks just don’t need your money. As Lance Pan
Let me start by acknowledging the outstanding job National Economic Council Director Gary Cohn’s team has done swaying the media into thinking Armageddon would occur if he left the White House. I get that Cohn was a respected trader on Wall Street at Goldman Sachs. However, Goldman generally mints exceptional talent.
The Federal Reserve has given Cabela’s shareholders an early Christmas gift. The Fed, which some feared wouldn’t complete a review of a key piece of the $5 billion Bass Pro Shops acquisition of Cabela’s, surprised Wall Street on Thursday by approving a crucial credit card sale — clearing the way for
Goldman Sachs CEO Lloyd Blankfein gave a less-than full-throated endorsement when asked on Wednesday whether Gary Cohn would make a good chairman of the Federal Reserve. “No one’s perfect, but he’s the best I know,” Blankfein said of Cohn, his former No. 2 at Goldman Sachs, during a talk with journalists
The media is making the same mistake all over again concerning the economy. Even newspapers that should know better are starting to refer to the economy in ways that are too glowing, despite the revised quarterly growth of 3 percent that was released Wednesday morning. One newspaper the other day, after covering
There’s one other thing you should keep in mind. As I said, the Trump administration — despite the president’s pledge to clean up Washington — is riddled with Goldman Sachs alums. That’s no different than most other recent administrations. One of those Goldman grads is Gary Cohn, chief economic adviser to Trump.
MASSENA, New York/JACKSON HOLE, Wyoming – After a turbulent year of anti-globalization backlash, central bankers still argue open borders and free trade are the key to more jobs, growth and prosperity. But when they meet for the U.S. Federal Reserve’s annual research conference in Jackson Hole, Wyoming, this week, it will
Wall Street just had its most profitable quarter ever — fueled in part by the skimpy returns paid out on savings accounts. US banks rang up record profits of $48.3 billion in the second quarter as the Federal Reserve’s interest rate hikes weren’t passed along to consumers, the FDIC said Tuesday. The
When every retail store has back-to-school specials, that’s the cue for financial writers like me to start predicting what could cause the stock market to collapse. The reopening of schools and concern about the stock market — while I don’t think they are actually related — share the same season. In
An administrative law judge recommended that an ex-Goldman Sachs bigwig get banned from the financial industry for his role in accepting leaked documents from the Federal Reserve — but the banker claims the subordinate who fingered him for the abnormal act is a “liar” and the decision should be tossed. Joe