NEW YORK (AP) -- Total U.S. money market mutual fund assets fell by $5.35 billion to $2.563 trillion for the week that ended Wednesday, the Investment Company Institute said Thursday.
Assets of the nation's retail money market mutual funds rose $369 million to $889.88 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category rose $390 million to $702.8 billion. Tax-exempt retail fund assets fell $17 million to $187.08 billion.
Meanwhile, assets of institutional money market funds fell $5.72 billion to $1.673 trillion. Among institutional funds, taxable money market fund assets fell $5.61 billion to $1.586 trillion; assets of tax-exempt funds fell $110 million to $86.95 billion.
The seven-day average yield on money market mutual funds was 0.03 percent in the week that ended Tuesday, unchanged from the previous week, said Money Fund Report, a service of iMoneyNet Inc. in Westborough, Mass.
The 30-day average yield was also unchanged from last week at 0.03 percent. The seven-day compounded yield was flat at 0.03 percent. The 30-day compounded yield was unchanged at 0.03 percent, Money Fund Report said.
The average maturity of portfolios held by money market mutual funds rose to 46 days from 45 days in the previous week.
The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from last week at 0.13 percent.
The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percentage yield available on interest-bearing checking accounts was unchanged from the week before at 0.06 percent.
Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged from the previous week at 0.22 percent. The yield on one-year CDs was also unchanged at 0.33 percent. It was flat at 0.53 percent on two-and-a-half-year CDs and steady at 1.13 percent on five-year CDs.
Money Mole Assess the Effects of the Rise in Unsecured Loans - YAHOO!
Following recent reports of a dramatic increase in the levels of unsecured lending, the team at Money Mole have assessed the effects of this and issued advice on how to seek the most recommendable loans.
(PRWEB UK) 27 May 2012
It has been announced that the percentage of people being offered unsecured loans is on a steep upwards curve. This has caused alarm among many, but the team at Money Mole have provided suggestions on when and where secured loans are appropriate and how to reach the right agreement. One member of the team offered this guidance:“Through our price comparison site, we allow our customers access to the whole market, and we’re able to put them in touch with the most reputable companies offering the best rates for secured loans, based responsibly on the consumer’s personal demographic”.
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Where the lending of unsecured loans used to be dominated by small lenders, large banks have become increasingly eager to grant these facilities to even those with a poor credit history. The team at Money Mole are strongly suggesting that their users give serious consideration to their own financial situation, and the long-term effects of unsecured loans before making any decisions. While many people find the service incredibly useful, it is not advisable to base your eligibility purely on the advice of your loan provider.
- In order to avoid finding yourself in a contract with an irresponsible loan provider, always conduct your own research before signing. The financial experts at Money Mole have also recommended being wary of companies who do not appear to be selective in any way in the process of offering loans or who appear to target students. The recommend always selecting a company who are willing and able to provide all relevant information regarding terms and conditions as well as on customer entitlements.
- Money Mole have advised anyone looking into the prospect of taking out an unsecured loan, not to panic upon hearing this news. When taken out responsibly, and for relatively small amounts of money, these loans can be a really effective relief from financial struggle. Unsecured loans also normally involve lower interest rates, often with a typical APR of around 6%.
Based in Essex and London, MoneyMole is one of the UK’s leading price comparison sites. Specialising in allowing their customers access to companies offering a range of financial services including the arrangement of secured loans, unsecured loans, re-mortgage, or life insurance, the firm have a trusted reputation for helping people from a range of financial backgrounds.
Ben Austin
Money Mole
0800 088 6000
Email Information
Green Power's money woes linger - Bellingham Herald
PASCO -- Something is going on inside Green Power's space at the Big Pasco Industrial Park.
The lights are on and water is being used, say Port of Pasco officials. Some employees are working on grinding up piles of garbage, but exactly what is being done remains unclear.
Almost three years after the state halted construction on the plant that CEO Michael Spitzauer promises will turn garbage into fuel, Green Power still lacks the necessary permits to finish the project.
The company is half way through a six-month lease with the port and does not appear to be making much progress on the plant or on paying off debts, according to state officials and court records.
Spitzauer told the Herald in an email last week that his company has gotten through hard times and is now paying what it owes and creating jobs.
But Spitzauer still owes at least $21 million to former investors, employees and contractors, said Seattle attorney James Rigby, who is the U.S. trustee on Spitzauer's ongoing personal bankruptcy case.
Spitzauer says that amount is exaggerated.
Pasco plant stalled
Spitzauer first leased Port of Pasco property in May 2008. Previously, he had planned to build an $82 million plant in Fife inside the Puyallup tribal reservation to convert waste to diesel. That project never was built.
It's also unclear if Spitzauer has made any of the mobile biofuel-producing vehicles that he once proposed.
Green Power's partially built biofuels plant in Pasco was shut down in August 2009 because Spitzauer lacked the necessary permits from the state Department of Ecology.
But despite telling state officials that a new permit application would be filed, that hasn't happened, according to Ecology officials.
Green Power still owes the Department of Ecology a $42,000 fine for starting construction without the proper permit and for state staff time spent on his first attempt to get a permit. He must pay that before filing a new application.
Spitzauer, who has told the Herald he lives in the Seattle area, said he's paid the penalty and is in the permitting stages.
Jani Gilbert, Department of Ecology communications manager for Eastern Washington, said Spitzauer emailed state officials Tuesday saying a check was in the mail, but they have not received the payment nor a new permit application.
Spitzauer has had similar problems getting city permits.
Green Power had an air conditioning system installed at the Pasco plant in March without receiving the required city permit, said Mitch Nickolds, Pasco's inspection services manager.
According to the contract Spitzauer signed with Horst Inc. of Kennewick, which installed the units, Green Power was responsible for getting the necessary permits.
Nickolds, who inspected the work earlier this month, said Spitzauer agreed to begin the permit application and pay any penalties.
The usual fine is to pay double the permit fee, which is based on the value of the work, he said.
Spitzauer applied for the building permit Wednesday after the Herald asked him about the issue. Nickolds said it would take about 10 days for the permit to be reviewed.
At the same time, Spitzauer also applied to renew his expired 2009 building permit for remodeling the office that never had a final inspection, Nickolds said.
Steve Horst said he likely still would be waiting to receive the last $16,000 that Green Power owed his company for the $30,000 air conditioning installation project if he hadn't told Spitzauer that he'd reported the payment problem to the Port of Pasco and the Herald.
Financial struggles
On the other side of the state, Spitzauer continues to face personal financial problems.
He has been unable to get a judge to drop a bankruptcy case he filed in 2010 in Western Washington.
He filed for bankruptcy protection three other times that same year, then asked to withdraw his requests and the dismissals were granted.
In the recent case, he has not provided required information about his debts and has failed to appear at meetings scheduled with creditors, according to court documents.
Spitzauer's creditors claim they are owed $21 million and have taken the lead in pursuing the case, which isn't the norm, said Rigby, the U.S. trustee overseeing the current case. He called the case unusual.
Spitzauer estimated in court documents that his debts are less than $1 million.
So far, Spitzauer has turned over $55,000 to the trustee. And $50,000 of that was a payment that Spitzauer made to keep from having to appear at a deposition.
The judge refused to discharge Spitzauer's debts, so his creditors can continue to try to collect what they're owed. In the mean time, Rigby said he has found no more assets for the creditors and plans to close the case.
Spitzauer told the Herald this week that his bankruptcy case is private and that he has settled some debts and is arranging to settle others.
But Rajan Babaria, with Texas-based Chakra Energy Corp., which is among four investors who claim Spitzauer owes them $16 million, said in an email to the Herald that Spitzauer has not paid his company anything.
Chakra Energy claims to be owed about $2.4 million, but Babaria doesn't think his company will ever be paid.
Lingering Tri-City debts
Part of the bankruptcy is a $3.6 million judgment and interest owed to a former employee who sued in Benton County Superior Court.
James Osterloh, who was chief engineer for Green Power before he resigned two years into a five-year contract, told the Herald that Spitzauer has been making some payments on his May 2010 judgment.
Osterloh sued Spitzauer and Green Power in August 2009 for using Osterloh's Social Security number and other employment information to open credit card accounts in Osterloh's name and charge at least $54,000.
Spitzauer initially agreed to pay off the credit cards, but when he didn't, Osterloh got a court judgment against him, court documents show.
American Express Bank has sued Spitzauer in Franklin County Superior Court for repayment of the $54,000, according to court documents. That case is not settled.
In addition, two Tri-City companies have filed in Franklin County, claiming they haven't been paid for their work for Green Power.
American Electric of Richland said it's owed $500,000, and Twin City Metals of Kennewick is owed $48,000, according to court judgments.
Elaine Fischer, spokeswoman for the state Department of Labor and Industries, said Green Power still owes the state about $27,000 in unpaid wages, interest and penalties. The agency also received a wage complaint from an employee alleging the worker wasn't paid overtime for work between September 2011 and January. Fischer said the complaint is pending.
Spitzauer told the Herald he has a payment agreement with the agency.
While he has been making payments on unpaid workers compensation insurance, Fischer said he has not paid the wage claims and does not have a payment agreement for them.
Because of previous problems with Green Power's late payments, the Port of Pasco required Spitzauer to pay $233,867 in advance for his current six-month lease and water and sewer utilities. That lease expires Aug. 31.
Spitzauer will have to come back before the port commission to request a lease extension, said Jim Toomey, the port's executive director.
Spitzauer said he plans to ask for a lease renewal and more space at the port. He told the Herald that his company is doing well and is assembling mobile biofuels units at Big Pasco for customers.
"We are delivering systems and we are growing," he said in an email. "We are proud of what we do."
Spain hopes to drew European Central Bank into funding Bankia bailout - The Guardian
Spain's government plans to force Europe's central bank into sharing the task of bailing out its troubled financial sector in a potentially controversial move that could spark objections from the German chancellor, Angela Merkel.
Spain is considering proposals to inject €19bn (£15bn) of capital into nationalised Bankia in the form of government debt that could then be used to raise money from the European Central Bank (ECB), forcing it to get involved in what may become a far wider bailout of Spain's creaking banking sector.
Details remain sketchy, but sources in Madrid confirmed that a refinancing involving the ECB was the most probable way forward for a Spanish government that will have trouble raising €19bn itself at a manageable interest rate.
By avoiding the markets altogether, the government would indirectly "push the financing of Bankia's bailout on to the ECB", according to El País newspaper.
But the debt scheme raises questions about how the ECB, Merkel and the financial markets might react to Europe's central bank helping rescue a nationalised Spanish bank laden with toxic real estate.
"You will have to ask the ECB that," said one official in Madrid.
With Spain now key to the future survival of the euro, the news of a probable debt-for-shares deal with Bankia may add further tension to the markets on Monday.
Part-nationalised Bankia, which holds 10% of Spanish deposits, on Friday asked the government for €19bn on top of the €4.5bn provided three weeks ago. That made it Spain's biggest-ever bank rescue.
But growing uncertainty about the euro and worries about Spain as it nosedives into a second recession in three years mean the country must now pay above 6% interest on money borrowed for 10 years.
If Spain's conservative government can bail Bankia out by giving it debt, it may be tempted to use the same mechanism with other struggling banks. That would allow it to avoid a politically embarrassing bailout by the European Stability Mechanism – which the French president, François Hollande, has already said is needed.
Although Spain has successfully refinanced debt and covered its budget deficit so far this year, it may soon come under pressure to raise significant extra sums.
Regional governments, for example, must refinance €36bn by the end of the year. But they are priced out of the market, with regions such as Valencia already given junk status by ratings agencies.
Doubts about the regions produced jitters on world markets on Friday after the Catalan president, Artur Mas, appealed for the government to cover regional refinancing by issuing state-backed bonds.
The Catalonia news "implies that the Spanish government may have to take on more debt and it cannot afford to do so," Richard Franulovich, a currency expert at Westpac Securities, told Reuters.
Spain's boast that it had raised half of its 2012 financing now looks fragile. Its long-term advantage in Europe, due to a low level of public debt four years ago, is also slipping away. A budget deficit of 8.9% last year has forced Spain to borrow significant extra sums to pay its bills.
The prime minister, Mariano Rajoy, has imposed a fierce austerity programme to bring the deficit down to 3% next year. That has deepened recession and helped push unemployment close to 25%.
The government already expects to inject up to €15bn into banks this year as they set aside €82bn against toxic real estate assets that have slumped in value since a 2008 housing bust. An independent audit of banking assets may uncover further problems, forcing the government to raise more money to help banks.
Bankia revised its 2011 accounts on Friday and found an extra €15.6bn in provisions it must make against potential future losses. It is not clear how Bankia would use government debt to raise money from the ECB. Bankia could use government bonds "as guarantees on interbank operations, go with them directly to the ECB to get money or, in the worst scenario, sell them on the market," El País reported.
In recent weeks Rajoy's government has insisted that the ECB is the solution to Spain's liquidity problems.
If Spain is unable to use government debt to recapitalise banks and cannot raise money on the markets, it may still have to turn to Europe's bailout funds.
"Spain cannot do this alone," said Luis Garicano of the London School of Economics on a blog posting after Bankia asked for €19bn. "I do not understand why the government is waiting to ask for help from Brussels."
British Airways departure
British Airways is expected to lose its largest shareholder after Bankia said it was planning to sell its stakes in several leading businesses. Bankia, which held a controlling share in Iberia before it merged with British Airways, now holds 12.5% of stock in parent company International Airlines Group (IAG). As it prepares to receive a €23.5bn (£18.7bn) cash injection, however, Bankia will be forced into a fire sale by European authorities, competition regulators who typically require bailed-out banks to sell non-core operations and halt dividend payouts until taxpayers have been repaid. Ailing Bankia has 5.3% of energy firm Iberdrola, 10% of hotel company NH and 18% of SOS, a food company. It also has holdings in real estate companies Realia and Metrovacesa.
EU finance ministers haggle over bank rules - Yahoo Finance
BRUSSELS (AP) -- European Union finance ministers are to meet in in Brussels Tuesday to hammer out an agreement over how high banks should build their defenses against future financial shocks, with the U.K. running the risk of being isolated over who should set the height.
The EU's 27 members agree on the need to increase capital reserves of banks, following an international agreement called Basel III, which was negotiated by the world's largest economies to avoid another financial meltdown such as the one brought on by the collapse of U.S. investment bank Lehman Brothers in 2008.
But the U.K. wants national regulators to be able to set requirements significantly higher than those of the EU — a position opposed by almost all other EU members, who fear investors might then prefer UK banks and flee from those in other countries.
On his way into the meeting Tuesday morning, George Osborne, the British chancellor of the exchequer, was non-committal about the possibility of reaching an agreement.
"This is a time of considerable uncertainty in the eurozone economies," he said, referring to the 17 countries — the U.K. not among them — that use the euro currency. "And that uncertainty is undermining the entire European recovery. And I think we're reaching a point where we've got to make a decision to see the eurozone stand behind their currency. A very important part of that, of course, is strengthening the entire European banking system. And that is what we intend to do today."
Once enacted, Basel III would require lenders to increase their highest-quality capital — such as equity and cash reserves — gradually from 2 percent of the risky assets they hold to 7 percent by 2019. An additional 2.5 percent would have to be built up during good times. All members of the G-20 have agreed to implement Basel III; if the European Union succeeds, it would become the first entity to institute the new requirements.
The U.K. is arguing that, because national taxpayers have to bail out banks when they fail, national authorities should be able to set more stringent requirements to guard against such failures. A compromise proposal offered by the Danes, who hold the rotating presidency of the European Union, would allow national authorities some leeway to increase requirements beyond those called for in the Basel III agreement. That proposal has broad support — except, so far, from the U.K.
The finance ministers can approve the compromise proposal without British support, through what is known as qualified majority voting, in which member countries have different numbers of votes according to their populations. However, there is a tradition in the EU that changes that would affect an industry in a particular country — such as the banking sector in the U.K. — are not forced into effect over the objections of that country, and consensus is sought.
"I think there should be a unanimous decision on such an important issue," Swedish Finance Minister Anders Borg said on his way into the meeting.
New Products and Awards - So Much More than Motor Finance - YAHOO!
MotoNovo Finance Continue to Innovate and Impress
(PRWEB UK) 27 May 2012
MotoNovo Finance has once again been nominated for a number of top awards, at numerous events, in the motor finance industry. MotoNovo, literally translated as ‘Driving Forward/Innovation or change,’ are in the middle of yet another innovative year of business with prosperous results. The name certainly reflects the values of this forward-thinking company as new products and services are introduced to maximise on customer satisfaction.Firstly, the car finance company based in Cardiff were shortlisted for the respected Asset Finance Firm of the Year award at the ‘Credit Today Awards.’ Having won the award in the previous two years, the team at MotoNovo Finance were delighted to be amongst the nominees once more. The award ceremony, sponsored by the Marston Group, was celebrating its 13th year with a performance from comedian Al Murray, in front of over 1400 attendees.
Mark Standish CEO reflected on the event: “Having won the award for the previous two years, it is a huge honour to have made the shortlist once again. I think that the nomination reflects our commitment to innovation and excellence. I believe the nomination also highlights the success of the wider motor finance industry in raising the profile of dealer finance as a very attractive and very much available financing option to help dealers to sell cars to a consumer market where finance availability has reduced over recent years.”
In addition to this success MotoNovo have also been shortlisted, along with six others, for the MotorTrader Award for Innovation. The MotorTrader Industry Awards 2012 takes place at the Grosvenor House Hotel, London on 11th July. The motor finance suppliers have been nominated for their discount shopping service, offering discounts and savings from hundreds of high street stores. Deals include savings with up to 15% discounts on high street shopping for all MotoNovo Finance customers.
A new service My Car Locator, available on the MotoNovo Finance website, is also going from strength to strength. This service helps customers locate their ideal car by searching through thousands of cars from hundreds of accredited dealers online. This also allows dealers to upload stock with just one-click, including photographs and full finance quotes. This allows dealers to advertise to over 100,000 finance customers.
So now customers can get full, detailed finance quotes and apply online for immediate decisions. The team at MotoNovo Finance hope that this will make searching for and acquiring a car a lot easier for their clients. For the moment however, they look forward with anticipation, to the coming award show in July.
About MotoNovo Finance
MotoNovo Finance offers a range of car finance products and services quickly, efficiently and competitively. Assisting over a quarter of a million customers with motor finance for over 40 years, MotoNovo are supported by multi-national bank – FirstRand. Accredited with a two-star rating from ‘Best Companies,’ the Cardiff based company has also been bestowed with the Investors in People Silver Standard award. Employing over 170 individuals across the UK, the experienced management team has been involved with motor finance for decades.
Karl Werner
MotoNovo Finance
08447 704 438
Email Information
Brazil Finance Minister Demands Lower Bank Interest Rates -Report - NASDAQ
SAO PAULO -(Dow Jones)- Brazilian banks must lower their lending rates by between 30% and 40%, and increase lending, without raising fees, to help spur economic growth, Finance Minister Guido Mantega said in an interview with the Folha de Sao Paulo newspaper and UOL website.
"In one more month, all of this has to be in due course," Mantega said in an interview with Folha. "Our intention is to monitor this on a weekly basis. I will demand," Mantega said.
Brazil's government and banks have been involved in a tug-of-war for several months over the reasons behind sky-high bank lending rates in Brazil. While the government argues that banks inflate their costs, as measured by the spread between their borrowing and lending rates, banks argue that high non-payment levels, labor costs and taxes all drive up interest rates.
"If private-sector banks reduce [rates] 30%, 40% and increase the volume [of lending] 30%, 40%, they will be providing a service to the economy," Mantega said. The Folha report cited central bank data which shows that Brazil's five largest banks on average charge 54.11% per year for personal and corporate loans. A 40% reduction would see that fall to 32.46%, according to the report.
Brazil's central bank has slashed rates by three-and-a-half percentage points since late August 2011, to 9%, and is expected to lower rates again after its next monetary policy meeting on May 29-30. But the government has become increasingly concerned that the Brazilian economy isn't picking up as fast as it would like, following a meager 2.7% rise in gross domestic product in 2011, and has taken a series of other measures to try to promote growth, most recently unveiling tax breaks and other incentives for car makers.
The minister said he no longer expects the economy to grow 4.5% this year, and that somewhere between 3.5% and 4% growth is more feasible. Inflation in 2012 will be lower than last year's 6.5%, the minister said. Consumer price inflation is currently running at around 5.1%; "If it stays were it is, that's good for us," the minister said.
Mantega said he doesn't see any need for the government to reduce its savings target, although he acknowledged that if there were to be a global catastrophe--such as a chaotic Greek exit from the euro zone--"then clearly we would use all the instruments to prevent the economy from skidding."
With regards to bad loans, the government is preparing measures to encourage customers that are late on their payments to catch up, the minister said. Rules currently don't favor repayment of overdue loans, he acknowledged. Current rules are more flexible for loans of up to 30,000 Brazilian reais and the government plans to extend this to BRL80,000 or BRL100,000, the minister said.
Mantega rejected worries that Brazilian families are increasingly indebted, and cannot thus consume as much as they have done in recent years, contributing to the economic woes. He said overall debt levels are among the lowest in the world, with families setting aside around 20% to 22% of monthly income to pay debts, compared to around 80% in the U.S. Moreover, credit will continue to grow as Brazil continues to generate more jobs, Mantega said.
On the web:
http://www.folha.com.br (http://www.folha.com.br)
-By Matthew Cowley, Dow Jones Newswires; +55 11 3544 7082; matthew.cowley@dowjones.com
(END) Dow Jones Newswires 05-27-121018ET Copyright (c) 2012 Dow Jones & Company, Inc.
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