Hard Money Loans

Taxpayers in the top 0.1 percent would save an average of $1.4 million under Presidential candidate Tim Pawlenty’s plan

View full post on Finance Stories

Citic Securities Co., China’s largest brokerage by market value, plans to acquire 19.9 percent of Credit Agricole SA’s brokerage units, CLSA and Credit Agricole Cheuvreux, for $374 million.

View full post on Finance Stories

GM executives have discussed buying shares from the Treasury Dept. to reduce the government’s 33 percent stake in the automaker

View full post on Finance Stories

Washington, D.C., United States (AHN) – US Treasury officials confirmed plans to sell its remaining 6 percent share of US automaker Chrysler Group LLC to Italian automaker Fiat for $500 million, which represents about 98,461 shares of stock.

The sale will give Fiat a majority 52 percent share of the Detroit company whose automotive lines include Jeep. In addition, the sale ends the federal government’s relationship with Chrysler that began with a bailout to rescue the automaker from bankruptcy in 2009.

However, the deal is still expected to leave taxpayers with a $1.3 billion loss.

Chrysler received $12.5 billion in emergency loans from the US Treasury and still briefly entered bankruptcy in 2009, but quickly came out of bankruptcy under management help from Fiat. That resulted in a turnaround for Chrysler, which recorded a $116 million profit in the first quarter of this year.

Fiat is also paying $75 million for the right to buy shares held by the United Auto Workers retiree trust with $60 million of that going to the US Treasury and $15 million going to the Canadian government.

 

View full post on All Stories

Bankruptcies filed by U.S. consumers during May tumbled 15 percent from the prior month, the American Bankruptcy Institute reported. Filings were down 19 percent from the same month last year. Chapter 13 filings retreated around 11 percent.

View full post on Mortgage Stories

Toronto, Ontario, Canada (AHN) – Large Canadian banks reduced their residential mortgage rates by one-tenth of a percentage point for mortgages of one to 10 years.

With the reduction, the rate for a five-year closed mortgage is now 5.49 percent at the Bank of Montreal, Royal Bank of Canada, TD Canada Trust, Scotiabank and the Canadian Imperial Bank of Commerce.

The first four banks announced their home mortgage rate cuts last week, while CIBC announced it on Monday.

Interest rates for long-term loans are down due to concerns over the health of the global economy and the chances that the Bank of Canada will not raise its benchmark lending rate until the second half of 2011, at the earliest.

Analysts forecast the Canadian central bank will leave the key lending rate at one percent for the sixth straight time when the bank meets on Tuesday.

An analyst of Scotia Capital predicted that Bank of Canada Governor Mark Carney would even hold on to the current interest rate into 2012.

The Organization for Economic Cooperation and Development urged the Bank of Canada last week to approve at least one rate increase in the coming months to show to consumers and businesses that it is doing something to address inflation.

View full post on All Stories

Vancouver, British Columbia, Canada (AHN) – British Columbia Premier Christy Clark announced a plan to increase business taxes in the province to make up for a proposal to reduce the controversial harmonized sales tax.

BC plans to reduce the HST rate to 10 percent from 12 percent. In turn, Clark announced that by 2012 the province’s corporate tax rate would increase to 12 from 10 percent. Clark’s plan would reverse the previous BC policy of reducing corporate taxes to encourage competition and help create jobs.

The HST rate, however, would be reduced in phases. Clark said the cut would initially be by 1 percent to 11 percent by July 2012 and by another 1 percent to 10 percent by July 2014.

Until the HST tax rate is cut 10 percent by 2014, BC residents would have paid $185 more a year for goods and services they purchased. When the rate is down to 10 percent, it would be the only time that British Columbians would gain by $120 annually.

BC voters are scheduled to decide on the fate of the HST in a referendum. Ballots are expected to arrive by mail at homes in early June and must be returned to Elections BC by mail or delivered personally to a Service BC office by July 22.

If the “Yes” votes prevail, BC would return to the old general sales tax and provincial sales tax systems before the Liberal-led government integrated the two into the HST in July 2010.

The opposition New Democratic Party is waging a campaign for BC residents to turn down the HST, but did not offer to reduce the rate. NDP leader in BC Adrian Dix said the Liberal’s proposal to cut the HST rate would favor big businesses over families. Dix added the Liberals can’t be trusted to keep the promised to lower the HST rate.

View full post on Economy, Business And Finance Stories

New York, NY, United States (AHN) – Coffee lovers face rising prices because prices for coffee beans continue to rise on commodity markets.

Retail prices for bagged coffee on grocery store shelves have already gone up and more price increases are expected.

Poor growing conditions in South America and other coffee-producing areas has caused concern over shortages of supplies, resulting in investor speculation in commodity markets that has driven up coffee futures prices by 95 percent during the past 12 months.

Companies that roast green coffee beans and sell bagged coffee have raised prices by varying amounts in response to the increased prices they must pay for green coffee beans.

Earlier this week J.M. Smucker increased prices by 11 percent. It marks the fourth time it has raised prices in a year. Smucker sells Dunkin Donuts, Folgers and Millstone brands. Kraft, which owns Maxwell House, has raised its prices three times recently.

Then on Wednesday, Starbucks announced plans to raise prices in mid-July by 17 percent for bagged coffee.

Green Mountain Coffee Roasters also announced plans to raise coffee prices by 10 percent.

View full post on Economy, Business And Finance Stories

Detroit, MI, United States (AHN) – Chrysler Group has apparently recovered from the slump that hit the auto industry in 2008. With the carmaker’s start of recovery, the company will repay on May 24 the $7.5 billion it borrowed from the U.S. and Canadian governments to further improve its bottom line.

The loans were part of the bankruptcy restructuring that the two governments extended to Chrysler and General Motors when the U.S. car industry was about to collapse from weak sales.

The repayment of the loans is a condition for new Chrysler operator, Fiat, to increase its stake in the American car manufacturing firm to 46 percent from 30 percent.

To repay Washington and Ottawa, Chrysler will use $3.5 billion in bonds, a $2.5 billion term loan and $1.3 billion in cash from Fiat.

Last month, Chrysler announced it would repay the two governments its loan by the end of June. After the announcement, Chrysler and Fiat Chief Executive and Chrysler Chief Financial officer Richard Palmer sought potential lenders, which would offer lower interest rates.

Marchionne attributed the company’s deficit to the interest payments it made on the government loans. In 2010, Chrysler reported a $652 million loss, partly because of $1.23 billion interests it paid on the bailout loans.

View full post on Economy, Business And Finance Stories

Atlanta, GA, United States (AHN) – The nation’s largest home-improvement retailer posted a 12 percent increase in first quarter profit on Tuesday despite a weak spring season.

Net income for the period ended May 1 was $812 million, or 50 cents a share, up from $725 million, or 43 cents, in the same quarter a year ago. The earnings met analysts’ estimates.

Revenue fell 0.2 percent to $16.8 billion despite a drop in costs. Selling, general and administrative expenses fell 1.7 percent to $4 billion. Total operating expenses dropped 1.8 percent to $4.4 billion.

Sales from stores open at least a year decreased 0.6 percent. In the domestic market, the Atlanta-based company saw comparable store sales fall 0.7 percent.

The number of customer transactions during the quarter was 317 million, down 1.9 percent from 323 million a year ago. But the average value of purchases rose 1.5 percent to $53.35 from $52.54.

The weather has dampened seasonal sales for many retailers including Home Depot. The company marked the beginning of the home building shopping season with its second “Spring Black Friday,” an event similar to the traditional Black Friday that marks the beginning of the Christmas shopping season.

Home Depot forecast sales growth for the full year of 2.5 percent. It raised its outlook for fiscal earnings per share from $2.20 to $2.24.

“Our sales declined slightly due to a slow spring selling season, but for the year we expect sales to grow in line with the guidance we previously provided,” chair and chief executive Frank Blake said in a statement. “We will maintain our focus on providing great customer service and product and project values.”

View full post on Economy, Business And Finance Stories