Uber valued at $18.2 billion

Uber's latest funding round values the company at $17 billion.

NEW YORK (CNNMoney)

The four-year old company has been a giant success story, growing its operation to 128 cities in 37 countries and providing transportation to millions of customers.

Uber started as a business that sends customers luxury cabs at a touch of a button. It has since expanded to lower-cost cars and delivery service with its UberX service.

The latest funding round of $1.2 billion -- soon to be $1.4 billion, after other investors chip in -- includes institutional investors, mutual funds, private equity and venture capital partners, Uber said in a blog post. That values the company at $17 billion on top of the $1.2 billion in funding.

Uber already has some high-profile backers, including Google (GOOGL, Tech30) Ventures, which invested $250 million last year. Although Uber did not name any of its new investors, there have been several reports that one of them is mutual fund giant Fidelity Investments.

Uber believes it is making positive changes in the transportation industry, claiming it is creating 20,000 new jobs per month.

Related: It's not a tech bubble -- it's tech roulette

"With our growth and expansion, the company has evolved from being a scrappy Silicon Valley tech startup to being a way of life for millions of people in cities around the world," said Travis Kalanick, Uber's CEO, in a blog post.

"This 'Uber' way of life is really a reflection of our mission to turn ground transportation into a seamless service and to enable a transportation alternative in cities that makes car ownership a thing of the past," he added.

But Uber is also no stranger to controversy.

Related: Uber is worth more than Barbie

Uber's dynamic pricing model leads to fares that grow by as much as eight fold during periods of extreme demand. Last winter's massive snow storms and New Year's Eve are prime examples of when minimum fares surged well above $100, and per-mile charges were more than $30.

The company has also been accused of employing questionable tactics to recruit its drivers.

Gett, which allows users to order cars with a smartphone app, claimed earlier this year that Uber employees in New York ordered and canceled over a hundred of its cars during a span of three days in January. The aim: collect the drivers' cell phone numbers and recruit them to work for Uber. The company since apologized.

Several locations have also cracked down on Uber, suing the company for violating its taxi laws. Most recently, the state of Virginia's Department of Motor Vehicles sent a cease-and-desist order to Uber and its competitor Lyft on Thursday, saying drivers would be fined if they continued operating.

First Published: June 6, 2014: 1:48 PM ET

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Heartbleed Part 2: The handshake bug

There's yet another problem with OpenSSL, the safety feature guarding our private Web communication. It's targets the handshake between your computer and a website.

NEW YORK (CNNMoney)

You can call this one the "handshake bug."

Computers and Web servers initiate secure conversations with one another in a process known as a "handshake." But this week, security researchers discovered a flaw in the way they shake hands. The bug allows a hacker operating between you and a website -- say, connected to the same public Wi-Fi network -- to snoop in on your Internet session.

Here's the good news: The handshake bug isn't as devastating as Heartbleed. The only major browsers it affects are for Google's Android mobile operating system. And for a hacker to exploit the bug, you and the website must both be running vulnerable versions of the encrypting software, known as OpenSSL.

But it's yet another wake up call that your Internet security relies on a few volunteers. The OpenSSL Foundation is a tiny team of computer programmers that only recently started getting additional financial support from many companies that rely on this software. The Linux Foundation said OpenSSL has received about half of the $5.4 million that companies have donated so far to the Core Infrastructure Initiative, an effort to better secure the Internet.

In fact, many security researchers say the only reason we spotted the handshake bug is because, post-Heartbleed, more volunteers are combing through the OpenSSL computer code. The world can thank Masashi Kikuchi, a software security expert at the small Japanese consulting firm Lepidum who decided to look through the code himself.

"The biggest reason why the bug hasn't been found for over 16 years is that code reviews were insufficient," Kikuchi wrote in a blog post.

Related story: Fast in-flight Wi-Fi coming to Europe

The bug has been fixed, and now it's up to Web browser makers and website servers to update their systems. According to Adam Langley, a senior researcher at Google (GOOG), these Web browsers are safe:

• Internet Explorer
• Firefox
• Chrome (for desktop, iOS)
• Safari

According to Qualys (QLYS) engineering director Ivan Ristic, these browsers are vulnerable:

• Android
• Chrome (for Android)

"We shouldn't be surprised that there are more flaws in OpenSSL," said Jean Taggart, a researcher at antivirus maker Malwarebytes. "Security is a process, not a product."

And if you're still worried about the handshake bug? Keep yourself clean. Don't use strangers' Wi-Fi.

First Published: June 6, 2014: 2:10 PM ET

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GM recalls 106,000 more vehicles

The 2012 Chevrolet Camaro is part of a new recall from GM.

NEW YORK (CNNMoney)

The automaker issued four more recalls Friday, adding 105,688 vehicles to the more than 15.8 million cars and trucks it has recalled worldwide this year.

The new recall affects about 36,000 vehicles including the 2012 Buick Verano, Chevrolet Camaro, Cruze and Sonic, which have a problem that can prevent the airbag from deploying in a crash. The flaw has been linked to one crash where someone suffered an injury.

A separate issue that could prevent the passenger airbag from deploying properly affects 87 Chevrolet Sparks from model years 2012 and 2014, as well as Buick Encores from model year 2013. Another airbag issue affects 37 Chevrolet Corvettes from model year 2014. Neither of those problems have been linked to a crash, the company said.

Related: GM deleted references to engines stalling

The largest, but less serious recall issued Friday affects 70,000 vehicles including some Chevrolet Silverado LD and HD models, as well as GMC Sierra LDs, Tahoes, Suburbans and Yukons from model years 2014 and 2015. They have a problem that could disable the audible chime that warns drivers and passengers that a front seat belt is not buckled or that the driver's door is opened while the key is in the ignition. GM is not aware of any crashes or injuries related to the issue. It affects

GM (GM) will send letters to customers letting them know when they can bring their vehicles into a dealership to be repaired.

The new recalls come one day after the company released an internal report examining why it took more than a decade to recall 2.6 million cars for a faulty ignition switch. That problem has been linked to at least 13 deaths. GM CEO Mary Barra announced that 15 employees have been dismissed and five more have been disciplined over the matter.

First Published: June 6, 2014: 4:57 PM ET

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Bank of America in talks on $12 billion mortgage settlement

NEW YORK (CNNMoney)

At issue are allegations that Bank of America defrauded buyers of mortgage-backed securities by misleading them about the quality of the loans involved.

The securities in question consisted of home loans that financial institutions bundled according to their risk. The products played a key role in the 2008 financial crisis. Loans that were rated as safe began to fail in huge numbers as the housing market collapsed.

Bank of America (BAC) declined to comment on the potential settlement. The U.S. official said a deal is still weeks away.

The bank already agreed in March to pay $6.3 billion to settle four lawsuits filed by the Federal Housing Finance Authority (FHFA), which has overseen government-backed housing finance firms Fannie Mae and Freddie Mac. Those lawsuits also alleged that the bank falsely represented mortgage loans.

Fannie and Freddie purchased billions of dollars' worth of mortgage-backed securities ahead of the crisis and required a government rescue in 2008 when those investments soured.

The potential Bank of America settlement comes after JPMorgan paid $13 billion to settle similar lawsuits with the Department of Justice. As part of the agreement, JPMorgan (JPM) admitted to making "serious misrepresentations" to investors in mortgage-backed securities.

First Published: June 5, 2014: 11:39 PM ET

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GM: Recall death toll may be more than 13

Warren, Mich. (CNNMoney)

That's notable considering that the automaker has been holding firm on that number, as recently as a Thursday morning press conference.

GM counts crash victims using a fairly narrow definition as to how deaths can be connected to the problem. The flaw can turn the car's engine off while driving, disabling its airbags, anti-lock brakes and power steering.

GM only counted drivers and front seat passengers who were killed in head-on accidents in which the air bag did not deploy. Passengers who died in side-impact accidents weren't counted because airbags aren't designed to deploy in side crashes. Fatalities of back seat passengers were also excluded from the total, because there are no rear airbags.

Related: GM's botched recall shows "a pattern of incompetence and neglect"

But by midday Thursday GM said that it is prepared to raise the death toll tied to the ignition switch, based on the criteria that will be set by independent compensation expert Kenneth Feinberg. GM hired Feinberg to administer a program to compensate those killed or injured in accidents.

"Once Ken Feinberg determines the criteria and administers the program, GM will release the number of fatalities and serious physical injuries," said a GM spokesperson.

Feinberg told CNNMoney Thursday that he doesn't know whether the families of side-impact crash victims or those in the back seat will be compensated by GM.

"I don't want to say anything until I get input from GM, the lawyers and public interest groups," he said. He expects to send preliminary criteria to the interested parties next week, and to have a final formula within several weeks.

David Friedman, the acting administrator of the National Highway Traffic Safety Administration, has said that he thinks GM's count of 13 fatalities will climb. GM's tally also sparked objections from plaintiff attorneys, auto safety advocates and families of some of those killed in the recalled cars.

All of them argue that the ignition flaw could cause an accident on its own, regardless of whether airbags and power steering were working.

Related: Mary Barra's 7 most significant quotes on the recall

"They're playing with numbers," said Beth Melton. whose daughter Brooke was killed in a side-impact accident in 2010 when the ignition switch turned off the Cobalt she was driving. The car went into a skid on rain-slicked roads.

"They don't count Brooke's death, and she's dead because of that ignition switch," said Melton.

Natasha Weigel is another ignition switch fatality that isn't included on GM's list because she was in the back seat of a car. Her friend, Amy Rademaker, who was killed in the same accident while riding in the front seat, is on the list.

"I don't understand how Amy can be on that list and not Natasha," said Ken Rimer, Weigel's stepfather. "Had the ignition switch not failed, they'd both be alive."

-- CNNMoney's Jennifer Liberto contributed to this report.

First Published: June 5, 2014: 2:08 PM ET

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It's expensive being rich

Living the rich life can cost you. And the more you have, the more you'll spend. Click on the image above to see what a super rich lifestyle can cost.

NEW YORK (CNNMoney)

But the reality is that having a lot of money costs a lot of money, and living a wealthy lifestyle doesn't come cheap. Not only do bigger houses, luxury cars and better schools cost more, but the everyday cost of maintaining fancier things can really add up.

Infographic: The cost of being super rich

Household help

While maid service may seem like a luxury, bigger houses are much harder to keep clean, especially if you're working long hours to pay the huge mortgage. Chances are, you're going to need a housekeeper to tidy up and be home once your children return from private school.

Having a housekeeper for just a few hours each week day can add up to more than $20,000 a year, according to Quintessentially People, a group that helps wealthy clients find household staff.

Add on a few thousand bucks for someone to tend to your yard every week or so. Standard landscaping maintenance for yards from a half acre up to three acres can cost $1,500 to $3,000 per month, Keith Williams, a landscape architect in Palm Beach, Florida, told CNNMoney.

Schools

Many wealthy families feel it necessary to forgo public schools -- with their larger classes and more limited resources -- in favor of private schools with smaller classes, olympic-sized pools and highly-educated teachers who speak Mandarin.

Related: Rich, really rich, and ultra rich

But that choice costs a pretty penny -- the average nationwide cost of private school tuition is nearly $11,000, according to the National Center for Education Statistics.

In some of the pricier areas like New York, it can cost up to $40,000 per year for each kid -- or about the cost of a year of college, according to Amanda Uhry, founder of Manhattan Private School Advisors.

Utilities

Everyone has to pay to keep the lights and heat on. But the more rooms you have to light and heat, the more sinks and showers you have to keep water running, the more expensive your bill.

Sonja Morgan, the famed Real Housewife of New York City, said she pays $1,400 in utilities per month for her 4,800 square foot townhouse on New York's Upper East Side.

"Is that a lot?," she asked in an interview at her dining room table.

In comparison, utilities for a 425 square foot studio apartment would cost just under $50.

Related: No 99%ers allowed

Driving

Most wealthy people can afford to drive nicer cars than the rest of us. But if you have a luxury car, you'll usually end up paying more for premium gas, repairs and maintenance.

Just getting your car serviced can cost as much as $400 for a Mercedes S Class, vs. $60 for a Honda Civic, according to estimates from U.S. News and World Report.

And if you own a car in a major city like New York, you're likely paying more than $30,000 annually just to park it in a garage.

The really rich life

The operating costs of being rich get even higher the more money you have. Those who have enough change to have a second home, a driver, a private plane or even a yacht, pay more than most people make in a year, just to maintain those things.

Related: Crazy requests for the luxury concierge

For example, the super rich may need a personal assistant for about $90,000 per year, and a chef to cook for their busy family, at about $100,000, according to Quintessentially People.

The pilot on your private plane will run you about $300,000, and the flight attendant another $150,000. For just a couple months on your yacht, you're shelling out $44,000 for the crew alone.

"These people are essential to our wealthy clients," said Samuel Martin, co-founder of Quintessentially People. "These people require this kind of support."

First Published: June 5, 2014: 3:52 PM ET

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Coping with a $15 minimum wage in Seattle

Seattle's minimum wage hike will drive up the price of a burger from Dick's Drive In Restaurant.

NEW YORK (CNNMoney)

The city council unanimously approved an increase to $15 an hour, which will be phased in over several years.

It's a significant hike, raising the rate more than $5 over what minimum wage workers currently make in the state of Washington. It's also well above the federal minimum wage rate of $7.25.

As other cities, states and Congress continue to fight over raising the minimum wage by even smaller amounts, Seattle business owners will already be learning how to survive while paying workers top dollar.

Washington business owner David Jones planned to open an additional location of Blazing Onion Burger in Seattle, but now he's going to wait to see how the new law plays out.

"I would love to come to Seattle, but I have to do it responsibly and wait until I have more information," Jones said.

Related: Washington state defies minimum wage logic

One point of controversy prompted the International Franchise Association to threaten to sue the city within hours of the bill's passage.

Under the law, businesses with fewer than 500 workers are given more time to comply. That would be fine with the franchisees, if they were considered one of those smaller businesses.

Instead, the law states that a business owner has to count all employees in the U.S., likely putting those affiliated with a national franchisor in the large-business category.

Franchises are independently owned even though they use a brand name, said Steve Caldeira, the IFA president. But under the new law, a Subway shop that has eight workers will have to pay a $15 wage years before a non-franchised sandwich shop with the same amount of workers.

Some small business owners are embracing the change.

"Anytime the workers in a city get a raise, they're going to have more money in their pockets, and they're going to eat more ice cream," said Molly Moon Neitzel, the owner of Molly Moon's six ice cream stores in Seattle.

Neitzel said her payroll costs will increase, but expects an increase in demand. She said she would rather her bottom line take a hit than raise prices.

That's not true for Dick's Drive-In Restaurant.

"We're all for higher wages," said Jasmine Donovan, vice president at the local burger joint that now has five Seattle locations and 200 workers.

The chain already pays starting employees $10.25 an hour, but it will have to start paying more by 2016. Plus, Donovan expects to raise the wage of other employees to preserve the existing wage structure and retain good workers.

She expects to absorb the hike by raising prices.

"Seattle wanted a higher minimum wage and hopefully our customers will be willing to pay for it in higher prices," Donovan said.

First Published: June 3, 2014: 6:53 PM ET

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