Identity theft tops consumer complaints...again

NEW YORK (CNNMoney)

Of the more than 2 million complaints made to the Federal Trade Commission, law enforcement and consumer protection agencies, nearly 300,000 (or 14%) were related to identity theft, according to the FTC's annual tally.

1)	Identify theft	14%
2)	Debt Collection	10%
3)	Banks and lenders	7%
4)	Imposter scams	6%
5)	Telephone and mobile services	6%
6)	Prizes, sweepstakes and lotteries	4%
7)	Auto related complaints	4%
8)	Shop-at-home and catalog sales	3%
9)	Television and electronic media	3%
10)	Advance payment for credit card services	2%

Beyond identity theft, the agency received more than 1.1 million complaints about various fraud schemes, which led to losses of more than $1.6 billion for consumers. The FTC did not have an estimate of identity-theft related losses.

Related: New scam targets homeless

Roughly a third of the identity-theft complaints came from consumers who said their personal information had been stolen and used in government documents, such filing a false tax return or applying for government benefits.

Meanwhile, around one-quarter of the identity-theft complaints were about bank or credit card fraud.

Rounding out the top three complaints were problems with debt collectors (10%), including repeated or profane phone calls and misrepresentations of the amounts owed, followed by complaints about banks and lenders (7%), ranging from the use of predatory lending practices to fees and overdraft charges.

Related: Debit vs. credit cards: Which is safer to swipe?

Many consumers said they had fallen victim to other frauds as well, including phony sweepstakes and so-called "imposter scams," a popular scheme where fraudsters pose as a loved one in need.

Florida, Nevada, California and Georgia were complaint hotspots, with the highest ratios based on state populations.

First Published: February 27, 2014: 2:08 PM ET

12.08 | 0 komentar | Read More

Ben Bernanke grilled on AIG bailout

NEW YORK (CNNMoney)

Bernanke gave a deposition in a case brought by Starr International, the firm controlled by former AIG chairman Hank Greenberg that's now represented by attorney David Boies. Starr and the ex-chairman are challenging the 2008 bailout of AIG by the Federal Reserve, arguing that the terms of the bailout were unfair to existing shareholders

The bailout saved AIG from filing for bankruptcy. The federal government took 92% of AIG's shares in return for $152 billion that the Fed and Treasury eventually pumped into the insurer. But when the government took that stake, it greatly diminished the AIG (AIG, Fortune 500) stake held by Starr, Greenberg and other shareholders. Starr and Greenberg sued the government in late 2011.

Taxpayers eventually made a profit of $22.7 billion on the AIG bailout.

Related: Transcripts show Fed underestimated the crisis

Greenberg sought to get AIG to join the lawsuit early last year. But after hearing a presentation from Boies the AIG board declined to participate.

Greenberg has been fighting to force Bernanke to testify about AIG's bailout and the terms of the federal rescue. But the federal court of appeals ruled he would not have to testify while he was serving as chairman of the central bank late last year. His term ended at the end of last month.

Related: Mortgage bailout now profitable for taxpayers

Bernanke is now serving as a distinguished fellow at the Brookings Institution, a Washington think tank.

A spokeswoman for Boies' office said she did not believe Greenberg was present at Bernanke's deposition.

First Published: February 27, 2014: 3:54 PM ET

12.08 | 0 komentar | Read More

Boeing to sell phone that can self-destruct

This new secure phone for government agencies and defense contractors will self-destruct if it's tampered with.

NEW YORK (CNNMoney)

Boeing (BA, Fortune 500) is set to debut a new secure phone for government agencies and defense contractors that will self-destruct if it's tampered with. It just won't be won't be quite as dramatic as the old television show. There won't be any smoke or explosions, but the contents of the device will be completely erased.

"Any attempt to break open the casing of the device would trigger functions that would delete the data and software contained within the device and make the device inoperable," explained a company filing with the Federal Communications Commission, posted on the FCC's Web site Wednesday.

The company is giving few details about the phone, which will be called "Boeing Black." Pricing and an exact release date have yet to be disclosed, though it is expected to be out by this summer. But it won't be available your local Verizon (VZ, Fortune 500) or AT&T (T, Fortune 500) storefront.

"It's geared towards defense and security customers. It's not aimed at the consumer," said Boeing spokeswoman Rebecca Yeamans. The phone will use Google's (GOOG, Fortune 500) Android operating system, but calls and stored data will be encrypted.

Related; Apple issues fix for iPhone security risk

Yeamans said the security measure would use a combination of software and hardware on the phone.

While Boeing Black will be the company's first foray into cell phones, the company has a long-established history of providing secured communications, according to Yeamans.

"It seems like a new endeavor for Boeing but for a long time we've been in business of connecting our customers and providing trusted communications to them," she said.

First Published: February 27, 2014: 2:06 PM ET

12.08 | 0 komentar | Read More

Abercrombie & Fitch soars despite weak sales

NEW YORK (CNNMoney)

Once a favorite of the mall-going set, Abercrombie & Fitch (ANF)and its sister brand Hollister have struggled due to changing trends in teen fashion.

Abercrombie & Fitch said sales fell 12% in the fourth quarter, which contributed to a 58% drop in quarterly earnings. Earnings were also dragged down by restructuring costs related to the closure of Gilly Hicks, the company's defunct lingerie and "knickers" business.

But investors were expecting even worse. Earnings easily beat analysts' expectations, sending shares of Abercrombie & Fitch up 10% in midday trading. Shares of other teen-oriented retailers were also higher, including Aeropostale (ARO), American Eagle Outfitters (AEO), Wet Seal (WTSL) and The Buckle (BKE).

Analysts said the improvement in earnings was driven largely by cost cutting. Abercrombie is expected to continue closing stores and reducing inventory this year, which should help the company meet its earnings targets. Investors also welcomed the company's decision to accelerate its share repurchase program.

Related: Abercrombie & Fitch to offer plus-sizes

But the bigger question is what will Abercrombie do to regain the loyalty of fickle teen shoppers.

Betty Chen, an analyst at Mizuho Securities, said the company has been hurt by broad trends in the economy and consumer spending. But it has also suffered some "self-inflicted wounds" on product design and pricing, she added.

Still, if the company can come up with a product line that resonates with teens and is competitively priced, "you could see that customer come back," said Chen.

CEO Mike Jeffries told analysts on a conference call that Abercrombie & Fitch is facing a "rapidly changing, difficult and uncertain environment." But he was optimistic that changes the company is making will yield "meaningful improvements in our business."

Still, not all analysts are convinced Abercrombie can regain its cachet.

Abercrombie's latest quarterly sales "reinforces our thesis that the intangible brand asset has deteriorated and shows no signs of improvement," said Morningstar analyst Bridget Weishaar.

And despite the stock's rise on Wednesday, shares are still down more than 12% over the past year.

Abercrombie, which is known for featuring scantily-clad teen models in its advertising, has seen its share of controversy lately.

Jeffries has been under pressure from activist investors who say he's not acting in the best interest of shareholders. Abercrombie announced a number of management changes last month, including the appointment of a non-executive chairman to the company's board. Jeffries had previously held the title of CEO and chairman.

The company has been slammed by many consumers and youth advocacy groups ever since Jeffries said in a 2006 interview that its clothes were more for "cool" and "good-looking" people.

In response to this criticism, Abercrombie said late last year it will offer larger plus sizes for some of its women's clothes online in 2014.

First Published: February 26, 2014: 12:58 PM ET

12.08 | 0 komentar | Read More

Credit Suisse 'regrets' aiding tax evasion

NEW YORK (CNNMoney)

The comments from CEO Brady Dougan and other Credit Suisse executives aren't quite the milestone set by another apology from executives at rival UBS five years ago before the same Senate committee.

But the comments marked a new effort by Credit Suisse to get some distance from the practices of its bankers as it came under attack at the hearing of the Permanent Subcommittee on Investigations. The subcommittee's probe found that the bank held as much as $12 billion in assets for 22,000 U.S. clients, up to 95% of which was hidden from the IRS.

Later in the day, lawmakers said they planned to question senior Justice Department officials about what they said was the slow pace of investigations against Credit Suisse and 13 other banks accused of helping clients evade taxes.

Dougan said he was "extremely dismayed by the conduct" of what he said was a small number of his company's bankers. But he took fire from Sen. Carl Levin and other lawmakers for refusing to turn over client names -- so far only 238 names, or 1%, have been provided to the IRS.

Romeo Cerutti, the bank's general counsel, told senators that the bank's cooperation was limited by Swiss law, which prizes client confidentiality and doesn't consider tax evasion a crime.

"You come to this country and you are governed by this country's laws...and yet you hide behind the Swiss law even though you are operating here and that is just simply not going to cut it," Levin, a Michigan Democrat, said, peering down over his glasses at the bank executives.

"Is the Swiss government going to prosecute you if you comply with our laws and turn over those names? Are you going to be prosecuted? Is that your fear?" Levin asked.

"Yes," Cerutti said.

The U.S. and Swiss government negotiated a 2009 treaty to allow more information sharing, but the pact is still awaiting Senate action. In the meantime, Swiss authorities have increased the evidence burden for the IRS to obtain information on U.S. tax dodgers.

"Had the U.S. Senate acted earlier, client data could have already been transmitted to the IRS in thousands of cases of suspected tax evasion," the Swiss Embassy said in a statement.

The Senate report says that Credit Suisse used methods worthy of a spy novel to help wealthy American clients stash money away. It opened a special Zurich airport branch so customers could fly in, meet their private bankers and quickly hit the slopes, Senate investigators said.

Related: Banks lock out Americans over new tax law

VIPs would use a secret elevator operated by remote control to be whisked to private banking suites. And bankers used sparse meeting rooms, and avoided sending account statements and leaving paper trails, the Senate report said. One banker slipped the client's bank statement between the pages of a Sports Illustrated magazine during a meeting.

Last week, CNN reported other unusual ways some Credit Suisse customers moved their money. For example, one wealthy customer traveled on flights while hiding $250,000 in pantyhose wrapped around her body, according to federal court documents.

Credit Suisse has recently discussed paying about $800 million to settle the Justice Department probe, a figure that some officials and lawmakers find inadequate.

Levin described it as "too modest" adding: "It doesn't fit the malpractice."

A Justice spokeswoman said the department has charged 73 account holders and 35 bankers and advisers with tax evasion and related crimes, and that prosecutors "won't hesitate to indict if and when circumstances merit."

She said prosecutors' work so far "has been forceful enough to cause 43,000 taxpayers to self-report and pay nearly $6 billion in taxes and penalties. Additionally, more than 100 Swiss financial institutions have applied for a program where they fully disclose their illegal conduct, cooperate and pay steep penalties."

First Published: February 26, 2014: 3:18 PM ET

12.08 | 0 komentar | Read More

Tesla to raise $1.6 billion for 'Gigafactory'

A rendering of Tesla's new "Gigafactory," which could be located in Arizona, Nevada, New Mexico or Texas.

NEW YORK (CNNMoney)

The money will be used to build what its founder Elon Musk has dubbed the "Gigafactory" and for production of a more affordable, new mass market vehicle.

The massive factory is expected to produce more lithium ion batteries annually by 2020 than were produced worldwide in 2013. Those batteries, and the reduction in their cost, are vital to Tesla's ability to produce a cheaper car in numbers that could catapult the company into the ranks of the major automakers.

The electric car maker's current model, the Tesla S, has a starting price of $69,000 and can go more than 200 miles between charges.

Related: Tesla Model S is Consumer Reports' Top Pick car

The new factory could be located in either Arizona, Nevada, New Mexico or Texas, the company said Wednesday. It could take up between 500 and 1,000 acres, employ about 6,500 people, and produce about 500,000 cars per year, Tesla said. Tesla recently increased its sales forecast for 2014, saying it expects global sales to reach 35,000 vehicles.

Tesla (TSLA)'s offering comes after the company reported much stronger-than-expected earnings. Shares hit an all-time high of $265 Wednesday.

The bonds will be converted to stock.

First Published: February 26, 2014: 5:51 PM ET

12.08 | 0 komentar | Read More

Credit Suisse helped clients hide billions from IRS - Senate report

A Senate panel led by Carl Levin (left) and John McCain released a report alleging Credit Suisse helped clients hide assets from IRS and blasting officials for not acting aggressively.

WASHINGTON (CNNMoney)

The Swiss banking giant, which is under investigation by the U.S. Justice Department for allegedly aiding tax evasion by its rich clients, opened a special Zurich airport branch so customers could fly in, meet their private bankers and quickly hit the slopes, Senate investigators said.

VIPs would use a secret elevator operated by remote control to be whisked to private banking suites. And bankers used sparse meeting rooms, avoided sending account statements and leaving paper trails, the Senate report said.

Last week, CNN reported unusual ways some Credit Suisse customers moved their money. For example, one wealthy customer traveled on flights while hiding $250,000 in pantyhose wrapped around her body, according to federal court documents.

According to the new Senate report, Credit Suisse held more than 22,000 accounts for U.S. customers, with assets valued at between $10 billion and $12 billion. Up to 95% of the accounts weren't reported for tax purposes to the IRS.

The Senate report will be the subject of a hearing Wednesday; executives from Credit Suisse and Justice Department officials are set to testify.

A person familiar with Credit Suisse's position said bank officials will acknowledge that there was wrongdoing, though it was limited to a few bad bankers. "This wasn't a systemic issue at Credit Suisse," the person said, and instead "involved a small number of private bankers in Switzerland who violated bank policy and also U.S. law."

The bank has since terminated the business that provided offshore banking to U.S. residents and was involved in the violations and has cooperated with the investigations, the person said.

The Senate probe takes aim not only at the bankers, but also at the Justice Department.

Senators claim prosecutors have moved slowly and not acted aggressively enough to get the names of account holders and the taxes they owe.

The bank is the latest to come under scrutiny for business practices that U.S. authorities say illegally helped customers avoid paying billions in taxes. The government has cracked down on the practice -- in 2009 Swiss bank UBS paid $780 million to settle similar allegations.

All told, 14 banks are under criminal investigation.

Sen. Carl Levin, a Democrat who heads the Senate investigations panel that produced the 175-page report, criticized Justice, the bank and Swiss authorities.

"After years of investigating, negotiating and jaw boning the U.S. has names for just 238 of those 22,000 Credit Suisse customers," Levin said. UBS, as part of its 2009 settlement, turned over the names of 4,700 account holders.

Sen. John McCain, the top Republican on the investigations subcommittee, blasted Justice for not holding top bankers "from both ends of the Atlantic" responsible for "practices that went on for years."

Credit Suisse has recently discussed paying about $800 million to settle the Justice Department probe, a figure that some officials and lawmakers think isn't nearly enough.

Levin described it as "too modest" adding: "It doesn't fit the malpractice."

A Justice spokeswoman said the department overall has charged 73 account holders and 35 bankers and advisers with tax evasion and related crimes, and that prosecutors "won't hesitate to indict if and when circumstances merit."

She said prosecutors' work so far "has been forceful enough to cause 43,000 taxpayers to self-report and pay nearly $6 billion in taxes and penalties. Additionally, more than 100 Swiss financial institutions have applied for a program where they fully disclose their illegal conduct, cooperate and pay steep penalties."

First Published: February 25, 2014: 5:09 PM ET

12.08 | 0 komentar | Read More

How Mt.Gox went down

NEW YORK (CNNMoney)

The shutdown of Mt.Gox -- one of the world's largest bitcoin exchanges -- and the potential loss of more than $350 million worth of bitcoins is the result of abysmal mismanagement at the company.

By its own account, Mt.Gox collected only $380,450 in revenue during most of 2012. The next year, U.S. government agents seized $5 million from its accounts. Such a massive loss would cripple any business, but Mt.Gox remained open in Tokyo, taking people's cash for bitcoins.

Ever since, though, customers noticed Mt.Gox was slow to process transactions. That gave it the aura of a Ponzi scheme. You could join Mt.Gox and give it your money, but cashing out was near impossible.

Things grew worse on Feb. 7, when it halted withdrawals from its accounts. The company's computer programmers hadn't accounted for a quirk in the way Bitcoin works, allowing cyber attackers to dupe Mt.Gox with a scheme resembling receipt fraud. When Mt.Gox discovered it was under attack, it stopped any investors from pulling their money out of their trading platform.

Share your story: Do you have bitcoins?

By the time trading at Mt.Gox was halted entirely late Monday, the price of a Bitcoin there had dropped significantly, to $130. Meanwhile it was trading for more than four times that on other exchanges.

The fact that Mt.Gox's management potentially lost all of its customers' deposits to theft is nothing short of gross incompetence. The cyberthieves would have needed to trick Mt.Gox repeatedly -- withdrawing money, faking a receipt and demanding yet another withdrawal. Now imagine doing that for a prolonged period -- unnoticed -- to the tune of millions of dollars and emptying the company's accounts.

The lack of transparency is also astounding. A company with millions of dollars is staying silent about what's going on. At most, it offers the occasional cryptic message assuring customers it's "closely monitoring the situation and will react accordingly."

Related: What is Bitcoin?

For now, Mt.Gox customers are left with more questions than answers: Was Mt.Gox really just an insolvent bank with insufficient reserves? Did it use clients' incoming funds to pay out exiting ones? And why the lack of transparency with loyal customers?

U.S. regulators won't be there to help them get their money back. Mt.Gox is based in Tokyo and isn't subject to the strict controls of Wall Street firms. It also isn't insured by the Federal Deposit Insurance Corporation, as most standard American bank accounts are.

U.S. officials like New York State's top financial regulator, Benjamin Lawsky, jumped at the opportunity to say this is exactly why more government regulation is necessary. U.S. Senator Tom Carper, who heads the homeland security committee, called it a lesson for policymakers.

Mark Williams, a former Federal Reserve bank examiner, said Mt.Gox's failure shows the risk inherent in sending your cash to Bitcoin exchanges -- most of which are located abroad in places like Slovenia and Hong Kong. There's little assurance you'll ever get that money back.

"The problems at Mt.Gox -- lack of strong controls and tight regulation -- are systemic to the Bitcoin industry. The reputational damage will spread," Williams said. "What was the largest exchange is now a collapsed tower of toxic sludge."

Related story: Silk Road heist could doom Bitcoin black markets

Sensing the oncoming wave of doubt, several other Bitcoin exchanges and digital wallet providers sought to reassure investors by taking a harder line with Mt.Gox.

"This tragic violation of the trust of users of Mt.Gox was the result of one company's abhorrent actions and does not reflect the resilience or value of Bitcoin and the digital currency industry," the groups said in a statement.

The executives who signed the letter cast Mt.Gox's downfall as the typical industry evolution that weeds out bad actors. Tom Samson is a Bitcoin faithful in Portland, Ore., who sees Mt.Gox's failure as merely a bump in the road.

"I for one am glad to see Mt.Gox finally die. They've been giving Bitcoin a bad name for far too long," he said. "Onwards and upwards."

First Published: February 25, 2014: 5:29 PM ET

12.08 | 0 komentar | Read More

Apple fixes security flaw for Macs

Apple issued a security fix for Macs four days after hole was patched for mobile devices.

NEW YORK (CNNMoney)

The software update patches a security hole in OS X, the operating system for Apple computers. It comes four days after the same bug was fixed for iPhones, iPads and iPod Touches, which run on iOS software.

The issue was first disclosed on Friday when Apple (AAPL, Fortune 500) released the security patch for mobile devices.

Security experts said there was no evidence hackers discovered the issue before Apple disclosed it, but Mac users were potentially vulnerable since then.

Left unfixed, hackers could potentially read private communications sent over Apple devices, including emails, instant messages, social media posts and even online bank transactions.

Related: BlackBerry unveils new Q20 phone

Those communications usually happen over secure channels. But an error in Apple's code could allow hackers on the same network as the user to view private information, security expert Dmitri Alperovitch told CNNMoney.

So for the most part, Apple users were vulnerable when using an unsecured network at places like a coffee shop or airport.

The software update was issued for both Mavericks and Mountain Lion versions of OS X. Older versions were not vulnerable to the security hole, according to an Apple spokesman.

First Published: February 25, 2014: 8:23 PM ET

12.08 | 0 komentar | Read More

Will Obama's pledge get the unemployed back to work?

NEW YORK (CNNMoney)

But actually hire them? Their pledge doesn't go quite that far.

On Friday, the White House unveiled a pact signed by 300 companies that have agreed to implement new best practices intended to stamp out discrimination against the long-term unemployed -- generally defined as those who have been out of work for six months or longer.

"Because they've been unemployed ... so long, folks are looking at that gap in the résumé and they're weeding them out before these folks even get a chance for an interview," Obama told CNN's Jake Tapper in an exclusive interview Thursday.

The companies pledge not to post job ads that discourage applicants who are unemployed. For example, in some cases, job listings would use language such as "applicants must be currently employed.'

They also agree to review their procedures so they don't inadvertently discriminate against applicants with long gaps in their résumés, and they commit to cast a broad net in recruiting.

The question is whether these steps will have any meaningful effect. Will they lead to jobs or even help remove some of the stigma that the long-term unemployment face?

Related: 'I just want a job'

Jamie May and Lena Rouse know that stigma first hand. Both have been unemployed for over a year now.

May feels she's being discriminated against for two reasons: The gaps in her résumé and her age (she's 56). But in interviews, employers just keep telling her she's overqualified.

"The discrimination is very covert. It's not blatant, but that doesn't mean it's not there," May said. "When I first read about the 300 companies, I thought 'it's just a bunch of talk'."

Rouse would prefer to see the White House push for tax credits for hiring the long-term unemployed.

"A pledge sounds like a waste of time," said Rouse. "Businesses are for-profit. If there are concerns about higher costs with hiring the long-term unemployed, then we should find financial incentives to make the long-term unemployed the preferred hires."

Companies like Boeing (BA, Fortune 500), Dell, Walmart, (WMT, Fortune 500) Apple (AAPL, Fortune 500), McDonald's (MCD, Fortune 500)and Ford (F, Fortune 500) have already taken Obama's pledge. But the White House also made clear that signing it didn't mean the 300 companies were discriminating against the unemployed.

It's more about sending a message, said Mike Evangelist, a policy analyst with the National Employment Law Project.

"I think it's an important first step," he said. "You're talking about changing attitudes, but it's not going to directly create new jobs."

When reporters asked just how many people would be helped by the pledge, the White House wouldn't answer that question.

"This pledge is saying that those who are long-term unemployed should get a fair shot," Gene Sperling, director of the National Economic Council, said on a conference call Thursday.

Are you unemployed? Share your story with CNNMoney

As of December, about 4 million Americans were counted as unemployed for more than 27 weeks. Efforts backed by Obama to extend a federal program providing jobless benefits to that group fell flat earlier this month in Congress.

New Jersey, Oregon and the District of Columbia already have laws in place, prohibiting job ads that discriminate against the unemployed. In 2011, the President tried to get Congress to pass a nationwide law, prohibiting discrimination based on unemployment status. Bills were introduced in the Senate and House, but little progress was made.

First Published: January 31, 2014: 2:36 PM ET

12.09 | 0 komentar | Read More

Detroit reaches deal on retiree health care

Protestors oppose cuts to healthcare coverage for city of Detroit retirees.

NEW YORK (CNNMoney)

"We're happy we're able to reach any agreement short of protracted litigation," Nowling said. "Things are starting to move in the bankruptcy case and we think it's moving in a positive way."

The cost of providing health care coverage for retirees accounted for about half of the $11.5 billion in unsecured debt that the city cited in its July 18 bankruptcy filing. The plan presented by Orr calls for using the bankruptcy court process to slash those debts to $2 billion.

Related: $330 million deal could save art in bankrupt Detroit

The tentative deal only covers the cost of health care, not pension benefits, which also could be cut in the city's bankruptcy reorganization. Pension benefits have some protections under the Michigan state constitution, but it is not clear whether those protections mean anything in the bankruptcy court process. The retiree health care coverage has even fewer legal protections.

The city has provided health care coverage to retirees who are not yet eligible for Medicare that is similar to what active employees get. It has also offered a supplemental Medicare policy.

In October, the city announced plans to end health care coverage for retirees not yet eligible for Medicare. Instead, those retirees would get a $125-a-month stipend to buy coverage on their own, either through the Obamacare exchanges or a current employer.

Michigan governor offers $350 million bailout for Detroit pensions

But first because of problems with the Obamacare web sites, and then at the request of mediators, the city delayed cutting those benefits. They were due to take effect March 1.

There had been a hearing in bankruptcy court set for Feb 3, to hear a legal challenge to these benefit cuts. But on Friday, mediators in the case announced the two sides had reached an agreement and that the legal challenge would be dropped.

Details of the agreement still need to be worked out, according to Nowling. And it will need to be approved by bankruptcy court judge Steven Rhodes.

Rhodes has already rejected a previous agreement between Orr and two major banks that hold city debt, the Bank of America (BAC, Fortune 500) and UBS (UBS). That agreement was also backed by mediators, so it's not certain that Rhodes will approve the deal.

Spokespeople for the city's unions were not available for comment Friday.

First Published: January 31, 2014: 2:41 PM ET

12.09 | 0 komentar | Read More

What Americans think about Obama's myRA plan

NEW YORK (CNNMoney)

But not everyone thinks the new plans are a great deal. The accounts, which will launch in a pilot program later this year and will eventually be available to any worker who gets paid through direct deposit and earns below a certain threshold, has elicited a wide range of reaction.

CNNMoney heard from dozens of readers about the president's plan. From disbelievers to eager savers, here's a sampling of where America stands on myRAs:

"Why would anyone consider giving a broke and bankrupt government any more of your money? That's foolish," said 62-year-old reader Steve Keller.

Related: What you need to know about Obama's 'myRA' retirement accounts

Yet, people from a range of ages and financial situations expressed enthusiasm for myRA, saying they would sign up immediately if able. Some don't have access to workplace savings plan, while others said they like the idea of supplementing their savings with the account, which would allow them to save up to $5,500 a year until the account balance reaches $15,000.

In previous years, 36-year-old Grand Prairie, Texas resident Angel Malone had both retirement and other savings set aside. But after weathering four months of unemployment last year and taking a significant pay cut, Malone now says she has less than $1,000 in savings.

Malone, who as a contract worker doesn't receive retirement benefits, said myRA could help her start saving again.

"Being able to start it with a small contribution (is) very affordable at this point for me," she said. "These days anything saved is a help over $0."

Many readers were worried they would not have enough money to live on in retirement and hoped the new plan could help their situation.

"I'm going to be pretty much dependent on Social Security. But I would like to continue saving," said 67-year-old Kathryn Riss, who stopped saving for retirement after losing her job in 2008. While she found a new job in 2009, she now earns around a third of what she used to and doesn't receive retirement benefits.

She and her husband keep the modest savings they do have in money market accounts, which earn less than 1%. The myRA, on the other hand, will invest in government savings bonds and provide returns of around 2% to 3%, depending on interest rates.

Riss said they would like the security and slightly higher returns that the government-backed accounts would offer. "We don't want something that's really volatile and where there's high risk," she said.

Related: Will you have enough to retire?

But other readers weren't sold. Alaska resident John Baumeister, 43, said he would never put his retirement savings in an investment with such a modest return. While Baumeister receives pension benefits from his job as a firefighter, he also invests in a traditional Roth IRA.

"2% interest is pathetic," he said. "Inflation will swallow your buying power at that rate."

Torrington, Conn. resident Dave Elwell is 24, earns a modest income as a mason's apprentice and receives no retirement benefits, making him the target audience for the myRA program.

Yet, in Elwell's opinion, "myRA is little more than worthless" for a young saver due to the minimal returns.

Instead, he said he will continue to contribute 10% of his pay to the Roth IRA account that he set up around six months ago with an online broker. Elwell said he splits his savings among five mutual funds, which are heavily invested in stocks and have been earning double digit annual returns.

"(Obama is) making it seem like people can take money and put it in this account and really have something special," he said. "But after inflation, what will that really be worth?"

First Published: January 31, 2014: 2:50 PM ET

12.09 | 0 komentar | Read More

Will Obama's pledge get the unemployed back to work?

NEW YORK (CNNMoney)

But actually hire them? Their pledge doesn't go quite that far.

On Friday, the White House unveiled a pact signed by 300 companies that have agreed to implement new best practices intended to stamp out discrimination against the long-term unemployed -- generally defined as those who have been out of work for six months or longer.

"Because they've been unemployed ... so long, folks are looking at that gap in the résumé and they're weeding them out before these folks even get a chance for an interview," Obama told CNN's Jake Tapper in an exclusive interview Thursday.

The companies pledge not to post job ads that discourage applicants who are unemployed. For example, in some cases, job listings would use language such as "applicants must be currently employed.'

They also agree to review their procedures so they don't inadvertently discriminate against applicants with long gaps in their résumés, and they commit to cast a broad net in recruiting.

The question is whether these steps will have any meaningful effect. Will they lead to jobs or even help remove some of the stigma that the long-term unemployment face?

Related: 'I just want a job'

Jamie May and Lena Rouse know that stigma first hand. Both have been unemployed for over a year now.

May feels she's being discriminated against for two reasons: The gaps in her résumé and her age (she's 56). But in interviews, employers just keep telling her she's overqualified.

"The discrimination is very covert. It's not blatant, but that doesn't mean it's not there," May said. "When I first read about the 300 companies, I thought 'it's just a bunch of talk'."

Rouse would prefer to see the White House push for tax credits for hiring the long-term unemployed.

"A pledge sounds like a waste of time," said Rouse. "Businesses are for-profit. If there are concerns about higher costs with hiring the long-term unemployed, then we should find financial incentives to make the long-term unemployed the preferred hires."

Companies like Boeing (BA, Fortune 500), Dell, Walmart, (WMT, Fortune 500) Apple (AAPL, Fortune 500), McDonald's (MCD, Fortune 500)and Ford (F, Fortune 500) have already taken Obama's pledge. But the White House also made clear that signing it didn't mean the 300 companies were discriminating against the unemployed.

It's more about sending a message, said Mike Evangelist, a policy analyst with the National Employment Law Project.

"I think it's an important first step," he said. "You're talking about changing attitudes, but it's not going to directly create new jobs."

When reporters asked just how many people would be helped by the pledge, the White House wouldn't answer that question.

"This pledge is saying that those who are long-term unemployed should get a fair shot," Gene Sperling, director of the National Economic Council, said on a conference call Thursday.

Are you unemployed? Share your story with CNNMoney

As of December, about 4 million Americans were counted as unemployed for more than 27 weeks. Efforts backed by Obama to extend a federal program providing jobless benefits to that group fell flat earlier this month in Congress.

New Jersey, Oregon and the District of Columbia already have laws in place, prohibiting job ads that discriminate against the unemployed. In 2011, the President tried to get Congress to pass a nationwide law, prohibiting discrimination based on unemployment status. Bills were introduced in the Senate and House, but little progress was made.

First Published: January 31, 2014: 2:36 PM ET

12.08 | 0 komentar | Read More

Detroit reaches deal on retiree health care

Protestors oppose cuts to healthcare coverage for city of Detroit retirees.

NEW YORK (CNNMoney)

"We're happy we're able to reach any agreement short of protracted litigation," Nowling said. "Things are starting to move in the bankruptcy case and we think it's moving in a positive way."

The cost of providing health care coverage for retirees accounted for about half of the $11.5 billion in unsecured debt that the city cited in its July 18 bankruptcy filing. The plan presented by Orr calls for using the bankruptcy court process to slash those debts to $2 billion.

Related: $330 million deal could save art in bankrupt Detroit

The tentative deal only covers the cost of health care, not pension benefits, which also could be cut in the city's bankruptcy reorganization. Pension benefits have some protections under the Michigan state constitution, but it is not clear whether those protections mean anything in the bankruptcy court process. The retiree health care coverage has even fewer legal protections.

The city has provided health care coverage to retirees who are not yet eligible for Medicare that is similar to what active employees get. It has also offered a supplemental Medicare policy.

In October, the city announced plans to end health care coverage for retirees not yet eligible for Medicare. Instead, those retirees would get a $125-a-month stipend to buy coverage on their own, either through the Obamacare exchanges or a current employer.

Michigan governor offers $350 million bailout for Detroit pensions

But first because of problems with the Obamacare web sites, and then at the request of mediators, the city delayed cutting those benefits. They were due to take effect March 1.

There had been a hearing in bankruptcy court set for Feb 3, to hear a legal challenge to these benefit cuts. But on Friday, mediators in the case announced the two sides had reached an agreement and that the legal challenge would be dropped.

Details of the agreement still need to be worked out, according to Nowling. And it will need to be approved by bankruptcy court judge Steven Rhodes.

Rhodes has already rejected a previous agreement between Orr and two major banks that hold city debt, the Bank of America (BAC, Fortune 500) and UBS (UBS). That agreement was also backed by mediators, so it's not certain that Rhodes will approve the deal.

Spokespeople for the city's unions were not available for comment Friday.

First Published: January 31, 2014: 2:41 PM ET

12.08 | 0 komentar | Read More

What Americans think about Obama's myRA plan

NEW YORK (CNNMoney)

But not everyone thinks the new plans are a great deal. The accounts, which will launch in a pilot program later this year and will eventually be available to any worker who gets paid through direct deposit and earns below a certain threshold, has elicited a wide range of reaction.

CNNMoney heard from dozens of readers about the president's plan. From disbelievers to eager savers, here's a sampling of where America stands on myRAs:

"Why would anyone consider giving a broke and bankrupt government any more of your money? That's foolish," said 62-year-old reader Steve Keller.

Related: What you need to know about Obama's 'myRA' retirement accounts

Yet, people from a range of ages and financial situations expressed enthusiasm for myRA, saying they would sign up immediately if able. Some don't have access to workplace savings plan, while others said they like the idea of supplementing their savings with the account, which would allow them to save up to $5,500 a year until the account balance reaches $15,000.

In previous years, 36-year-old Grand Prairie, Texas resident Angel Malone had both retirement and other savings set aside. But after weathering four months of unemployment last year and taking a significant pay cut, Malone now says she has less than $1,000 in savings.

Malone, who as a contract worker doesn't receive retirement benefits, said myRA could help her start saving again.

"Being able to start it with a small contribution (is) very affordable at this point for me," she said. "These days anything saved is a help over $0."

Many readers were worried they would not have enough money to live on in retirement and hoped the new plan could help their situation.

"I'm going to be pretty much dependent on Social Security. But I would like to continue saving," said 67-year-old Kathryn Riss, who stopped saving for retirement after losing her job in 2008. While she found a new job in 2009, she now earns around a third of what she used to and doesn't receive retirement benefits.

She and her husband keep the modest savings they do have in money market accounts, which earn less than 1%. The myRA, on the other hand, will invest in government savings bonds and provide returns of around 2% to 3%, depending on interest rates.

Riss said they would like the security and slightly higher returns that the government-backed accounts would offer. "We don't want something that's really volatile and where there's high risk," she said.

Related: Will you have enough to retire?

But other readers weren't sold. Alaska resident John Baumeister, 43, said he would never put his retirement savings in an investment with such a modest return. While Baumeister receives pension benefits from his job as a firefighter, he also invests in a traditional Roth IRA.

"2% interest is pathetic," he said. "Inflation will swallow your buying power at that rate."

Torrington, Conn. resident Dave Elwell is 24, earns a modest income as a mason's apprentice and receives no retirement benefits, making him the target audience for the myRA program.

Yet, in Elwell's opinion, "myRA is little more than worthless" for a young saver due to the minimal returns.

Instead, he said he will continue to contribute 10% of his pay to the Roth IRA account that he set up around six months ago with an online broker. Elwell said he splits his savings among five mutual funds, which are heavily invested in stocks and have been earning double digit annual returns.

"(Obama is) making it seem like people can take money and put it in this account and really have something special," he said. "But after inflation, what will that really be worth?"

First Published: January 31, 2014: 2:50 PM ET

12.08 | 0 komentar | Read More