Beam Reach Wiki - User contributions [en]

FrazierDinger617a

2012-03-13T02:35:57Z

86.141.30.154: Created page with "Bank of America has reported a $2bn (�1.2bn) profit for the three months to the end of 2011, compared with a $1.2bn loss in the same period in 2010. It signals continued recov..."

LaneAndersen343

2012-03-12T02:07:20Z

Bank of America has reported a $2bn (�1.2bn) profit for the three months to the end of 2011, compared with a $1.2bn loss in the same period in 2010.

It signals continued recovery for the US' second biggest lender.

For the full year, the company reported net profits of $1.4bn compared with a net loss of $2.2bn in 2010.

Meanwhile Morgan Stanley, the world's largest broker, reported a fourth-quarter loss of $250m compared with a profit of $836m a year earlier.

Despite the loss, the results at Morgan Stanley beat analysts' expectations since it was able to increase its share of the equity trading market in the period.

For the full year, Morgan Stanley said its net revenues were $32.4bn compared with $31.4bn in 2010.

Recent results from American banks have been mixed with Goldman Sachs announcing on Wednesday that it made 47% less in profits than in 2010 whilst Citigroup posted a 6% rise on the previous year.

Bank of America chief executive Brian Moynihan said: "We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company."

"Reflecting a gradually improving economy," continued Mr Moynihan, "we saw solid business activity by companies of all sizes, with commercial and industrial loan balances rising."

Bank of America was one of the worst performers on Dow Jones Industrial Average index of leading companies in 2011, losing 58% of its share value over the year.

The lender has been hit by lingering concerns about bad mortgage loans on its books in the wake of the 2008 sub-prime crisis when it was bailed out by the US government.

The bank has been building up its reserves, known as Tier 1 capital, to protect itself against the risk of further bad loans.

"Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth," said chief financial officer Bruce Thompson in a statement.

"During the quarter, we significantly increased capital and liquidity. For 2012, our focus is to continue to build capital and liquidity and manage expenses."

MathewSeabolt684a

2012-03-11T23:19:45Z

86.141.30.154: Created page with "What really caused the eurozone crisis? World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011. And that was in the year that feat..."

What really caused the eurozone crisis?

World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011.

And that was in the year that featured the Arab Spring, the Japanese tsunami and the death of Osama Bin Laden. What's more, 2012 looks set to be not much different. But as eurozone governments hammer out new rules to limit their borrowing, are they missing the point of the crisis?

* The eurozone has agreed a new "fiscal compact"
* Eurozone leaders have agreed to a tough set of rules - insisted on by Germany - that will limit their governments' "structural" borrowing (that is, excluding any extra borrowing due to a recession) to just 0.5% of their economies' output each year. It will also limit their total borrowing to 3%. These rules are supposed to stop them accumulating too much debt, and make sure there won't be another financial crisis.
* But didn't they already agree to this back in the '90s?
* Hang on a minute. They agreed to exactly the same 3% borrowing limit back in 1997, when the euro was being set up. The "stability and growth pact" was insisted on by German finance minister Theo Waigel (centre of image). What happened?
* So who kept to the rules?
* Italy was the worst offender. It regularly broke the 3% annual borrowing limit. But actually Germany - along with Italy - was the first big country to break the 3% rule. After that, France followed. Of the big economies, only Spain kept its nose clean until the 2008 financial crisis; the Madrid government stayed within the 3% limit every year from the euro's creation in 1999 until 2007. Not only that - of the four, Spain's government also has the smallest debts relative to the size of its economy. Greece, by the way, is in a class of its own. It never stuck to the 3% target, but manipulated its borrowing statistics to look good, which allowed it to get into the euro in the first place. Its waywardness was uncovered two years ago.

User:WolfsonScoville453d

2012-03-11T00:34:18Z

WolfsonScoville453d

2012-03-11T00:34:07Z

User:CoralieCronin476

2012-03-09T03:16:43Z

86.141.30.154: Created page with "IN AN ordinary American presidential election, a candidate who had earned a fortune in business and then paid an absurdly low tax rate would barely raise eyebrows. Americans have..."

IN AN ordinary American presidential election, a candidate who had earned a fortune in business and then paid an absurdly low tax rate would barely raise eyebrows. Americans have long considered wealth something to admire and pursue, not vilify and redistribute. Alexis de Tocqueville said he knew �of no country�where a profounder contempt is expressed for the theory of the permanent equality of property.�

But this is no ordinary election. That so much scrutiny has fallen both on how Mitt Romney earned his fortune (in the ruthless world of private equity) and his tax rate (15%, less than what some middle-class families pay) is a sign something has changed. For that, credit a decade in which the median family in America saw its real income fall by 7%, even as the top 1% grabbed a share of national income unseen since the 1920s (see article), and a level of unemployment that, though falling, remains troublingly high. Not many Americans like the tactics or fashion choices of Occupy Wall Street, but quite a few share the movement�s opinion that the economy is tilted in favour of the wealthy.

And so the rich are now a campaign issue. Barack Obama calls for �millionaires and billionaires� to �pay their fair share�: introduce a minimum tax rate on millionaires and return the top income-tax rate to 39.6% from 35%, and the other 98% of Americans would not have to pay more, he claims. Republicans shoot back that raising any taxes would destroy jobs and business confidence. They think you can fill the budget hole by spending cuts alone; many want to cut taxes further.

Neither side is talking sense. America�s rich should indeed pay more tax; but marginal rates should not go up.

History shows that deficit reduction works best when most of the burden falls on spending cuts. That means that middle-class entitlements will have to be reduced, no matter what Mr Obama tells his supporters. But, just as in every other budget squeeze, a portion must come from higher taxes, no matter what the Republicans say.

Democrats say only the top 1% need pay more; that�s misleading. Others will have to pay too. But more of the increase should be shouldered by the rich who have done so well from recent trends. Technological change and globalisation have sharpened demand for the most skilled workers, in particular superstars, be they athletes or hedge-fund managers, thus sharply increasing inequality. Tax policy has exacerbated this trend instead of mitigating it. George Bush junior slashed top income-tax rates as well as rates on dividends and capital gains, which explains why Warren Buffett and Mr Romney have such low tax rates.

Follow the money

However, restoring the top income tax rates, as Mr Obama proposes, is not the best way of extracting extra revenue from the rich. It would raise revenues of about 0.3% of GDP and do nothing to make America�s grotesquely complicated tax system more efficient. It would be far better to close or limit loopholes and deductions, currently worth up to 7% of GDP, which distort behaviour (by, for example, encouraging people to take out big mortgages) and mostly benefit the affluent. Some deductions, including mortgage relief, would have to be phased out in stages; but many could go immediately. In a similar way, equalising the rates on capital, dividends and ordinary income would make it possible to lower America�s corporate tax rate, currently one of the rich world�s highest.

The result would be lower rates, more revenue and a more efficient and progressive tax system. If that�s where the debate about wealth ends, it will have been worth it.

CoralieCronin476

2012-03-09T03:16:08Z

User:CarlinaPerez888

2012-03-08T09:54:20Z

86.141.30.154: Created page with "The chairman of a meeting of Eurozone finance ministers says fresh conditions will be attached to a 130bn euro ($170bn; �110bn) bailout for Greece. Jean-Claude Juncker said an..."

The chairman of a meeting of Eurozone finance ministers says fresh conditions will be attached to a 130bn euro ($170bn; �110bn) bailout for Greece.

Jean-Claude Juncker said an extra 325 million euros ($432m; �273m) in savings for 2012 will be needed.

The Greek parliament will also have to pass the package of cuts and reforms on Sunday.

And political leaders will have to promise to continue to implement the reforms after elections in April.

"Despite the important progress achieved over the last days, we did not yet have all necessary elements on the table to take decisions today," Mr Juncker, the Luxembourg prime minister, said.

"All these measures are important to ensure a smooth implementation of the programme also after the upcoming general elections.

"These three elements, those I mentioned, need to be in place before we can take decisions," Mr Juncker added.

He further welcomed "assurances provided by the Greek government that all the necessary elements will be put in place in the coming days," Reuters reports.

CarlinaPerez888

2012-03-08T09:54:04Z