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

Hackers attack Yahoo Mail accounts

NEW YORK (CNNMoney)

Yahoo (YHOO, Fortune 500) said it recently identified a coordinated effort by hackers who tried to log into many email accounts with stolen usernames and passwords. The note by Yahoo products executive Jay Rossiter did not immediately say how many accounts were affected.

The company declined to comment further but said it has teamed up with federal law enforcement to investigate the attack.

The credentials were likely taken from a third-party database, Yahoo said.

Related story: Stolen credentials blamed in Target breach

Yahoo said it reset passwords for users who were impacted. The company sent them text messages Wednesday night warning of "unusual activity on the network."

First Published: January 30, 2014: 6:04 PM ET

12.09 | 0 komentar | Read More