Investment Forge

Investment Forge is a registered and certified name for "Investment Forge Gmbh" and we are an investing control management team. Being registered in offshore jurisdiction on Cyprus, we manage to provide stable interest-earning potential to all of our participants. Earn money with Investment Forge is a simple and modern way to earn money online.
Our numerous team consists of professional analysts, currency traders, stocks exchange brokers and support staff. That will help you to earn profit online with Investment Forge.
Investment Forge provides investing management services to institutions and individuals through the Investment Forge Gmbh funds.
Our primary aim is to make as much earn money for our clients and ourselves as possible. Obviously the more money we have to trade with, the more positions our traders can take, and the more money they can generate for us. Earn money is our prime aim and even if you are not experienced in earning money online we will teach you how to become successful doing your home business.
We trade with the Scottrade Accounts and TeleTrader Software.
Several investment plans are offered for you:

PLAN A:
$50 - $500
Daily rate UP TO 2.0%
Program term - 40 business days

PLAN B:
$500 - $5,000
Daily rate UP TO 2.4%
Program term - 80 business days

PLAN C:
$5,000 - $100,000
Daily rate UP TO 2.8%
Program term - 120 business days

Tags: HYIP, MONEY, INVESMENT, FINANCE, MONEY MARKET, RATE, INVESTING, IMVEST, ON LINE INVESTMENT, INTERNET MONEY

U.S. loans GM $4 billion more

General Motors, which is surviving on $15.4 billion in U.S. government loans, announced today that it has received an additional $4 billion from the government.

In a regulatory filing, GM said it borrowed the additional money today after amending its loan agreement with the U.S. Treasury last Wednesday.

The new loan brings the total amount lent to GM to $19.4 billion.

The automaker said in press release that the new loans are “to maintain adequate liquidity as the company undergoes an aggressive restructuring.”

GM said it had previously believed it would need only $2.6 billion prior to June 1 but now forecasts needing that amount plus an additional $1.4 billion.

The added $1.4 billion “reflects updated timing of when certain expenses would be incurred,” the company said.

The additional amount is being pulled ahead from money that was expected to be borrowed later. GM had forecast that it would need $9 billion from the government after June 1. Now that total has now dropped to $7.6 billion.

“We appreciate President Obama's and his Administration's ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company,” GM said in a statement. “We will continue to work closely with members of the President's Auto Task Force throughout our restructuring and together we will continue to monitor our liquidity needs during this period.”

Payday loan regs pass, ending 4-month impasse

The Senate passed a payday lending bill today, a controversial measure proponents call a compromise, and consumer advocates call disappointing.

The Senate vote for passage, 41-4, broke a four-month long General Assembly impasse.

Sen. Joel Lourie,D-Richland, a co-sponsor of the compromise amendment that broke impasse, said he expects the House of Representatives to accept the Senate version of the bill, without a need for further action.

If that happens, the bill would go downstairs for the governor to sign or veto.

The compromise raises the maximum payday loan amount to $550 from $350, and limits outstanding loans to one at a time by way of a database that will track borrowers.
.
Borrowers would have to wait one day between loans, and after consecutive loans a two-day cooling off period would be in effect.

Other provisions of the compromise are that borrowers would have a 24-hour to change their mind on taking out a loan, meaning they could cancel the transaction within 24 hours if they chose.

If borrowers get trapped in a loan they cannot repay, they could enter an extended payment plan, once per year, which would allow their loan repayment to be broken into four equal payment dates.

The bill also calls for an annal review of the database by the state Board of Financial Institutions, which must make a report to the Senate Banking and Insurance Committee and the House Labor, Commerce and Industry Committee.

Loan reset threat looms till 2012

Homeowners nationwide with good credit but artificially low mortgage payments could be forced to pay more to the bank sometime within the next three years, according to Credit Suisse.

If low interest rates remain, some of these borrowers will be spared payment shock. But those with extremely low payments via deferral of interest/principal owed, will not.

While preparing a story about high-priced foreclosure resales selling slowly in Orange County, I asked Credit Suisse for the latest version of its chart on loan resets nationwide. (The chart has popped up on several Web sites in past months.)

To the right is the version updated last month (click on it for larger image). It shows resets increasing from here with peaks in 2010 and 2011/2012 in the range of $30 to $45 billion monthly. The chart also shows subprime resets are still going on, but decreasing in frequency over the rest of 2009. However, prime resets and resets on loans to people with decent credit scores but special circumstances (stated income) are heading straight up through early 2012.

Note that the chart uses both resets, when interest rates change, and recasts, when payments change. Resets and recasts often happen at once, but not always. Credit Suisse, an analyst told me, used resets in the chart for all loans except option adjustable-rate mortgages, when borrowers can choose a minimum payment that may be less than interest owed (option ARMs are in yellow on the chart… see how they are rising!). For option ARMs it used recasts, which can happen either when the loan amount expands to a maximum allowed — often 115% or 125% of original principal — or a set period, such as five years. (Read more on resets/recasts at Calculated Risk.)

Now here is a copy of the chart published in a February report. This chart goes back further in time. The older chart shows a big peak in 2010 — about $40 to $45 billion a month in loans around September/October 2010. The newer chart pushes that peak about one year into the future into late 2011/beginning 2012.

Some borrowers will hold on a little longer. Maybe the housing market will recover by 2012 and they can sell to avoid foreclosure.

But if any of these borrowers are deferring principal and interest owed, reaching say a maximum of 125% on a loan amount on 2005 to 2007 prices, then it is much less likely home prices will have rebounded enough to save them by 2011 or 2012.

1-in-4 O.C. home buyers use federal loan program

For the past five months, roughly one out of every four home buyers in Orange County used a federally run loan insurance program that was practically nonexistent here two years ago.

Now home buyers are taking advantage of loans insured by the Federal Housing Administration. One reason: they can make a down payment as low as 3.5% and that can be gifted from a relative. Another reason: the limit was raised to nearly $730,000.

The chart (click on it for larger image) shows FHA market share of purchase loans per month — it was 24.2% in April, down a tad from 25.2% in March but nearly triple a year ago.

FHA has also taken off because brokers and lenders are pushing the program to consumers. When investors in 2007  stopped buying securities backed by mortgages with no government protections, lenders increased or switched to FHA loans and also began doing more loans that can be sold to Fannie Mae or Freddie Mac, which are both under federal receivership.

Under FHA, borrowers pay a fee, and those fees go into a pool which is used to compensate lenders if borrowers default. However, if the pool is inadequate to keep up with defaults, taxpayer money could be used to fill the gap.

I haven’t seen data on what percentage of Orange County purchase loans are being sold to Fannie or Freddie, but I would guess they are making up most of the other 75% of the market.

Our federal government is keeping Orange County’s housing market on life support. How long will this go on?

Stimulating success

Chamber’s ‘Financing Options for Your Business’ program June 9

By Jessica Legge
Times West Virginian

FAIRMONT — The Marion County Chamber of Commerce is helping small businesses learn about financing assistance that could help them succeed.
A chamber event, titled “Financing Options for Your Business,” will take place at 6 p.m. June 9 at the I-79 Technology Park Research Center in Fairmont.
The organization is inviting all of its members to attend this reception, sponsored by Freedom Bank and the West Virginia High Technology Consortium Foundation. The event, which the chamber’s small business committee is organizing, will give attendees the opportunity to discuss financing options that are available.
“The reason we’re doing this now is we feel it’s very timely because of all the stimulus funding that is coming through,” Tina Shaw, president of the chamber, said.
During this panel discussion, several organizations will talk about the financing assistance that small businesses can apply for and the application process, she said. Attendees will be able to find out about the federal government money now available for start-ups, expansion and other business needs.
The panel will include representatives from the Small Business Administration, Washington County Council on Economic Development, West Virginia Economic Development Authority, and U.S. Department of Commerce.
“This is one of the things that our members have told us that they want,” Shaw said. “They want us to host programs that are educational that will help them grow their business (and) showcase products that are out there that could assist them.”
She said there is no cost to attend, and the event will be catered. The chamber is also inviting local financial institutions and other economic-development agencies to provide information to the small businesses.
“They will be there to answer any questions,” Shaw said. “That connection will be right there.”
“We think it’s going to be very beneficial to our small business members.”
To attend, call the Marion County Chamber of Commerce at 304-363-0442 by June 2. While the event is for chamber members, interested persons who aren’t members can call the office to see if seating is available.
On March 16, President Barack Obama announced enhancements to some of the SBA’s programs as part of the American Recovery and Reinvestment Act of 2009. During the upcoming chamber reception, representatives from the SBA will present updates on the new stimulus package and talk about some additional enhancements.
Rick Haney, public affairs officer for the SBA’s West Virginia District Office in Clarksburg, said the focus will be on the agency’s regular loans, which the stimulus package enhances.
The SBA will also discuss some of the qualifications that lenders take into account when it comes to financing and how small businesses can be prepared when they go to the bank. Lenders base much of their decision on a small business’ credit and character, he said.
“Each lender’s different, but they have basically the same type of credit that they look for,” Haney said. “Mostly it’s credit-worthiness. They’re looking for payback — how they’re going to be repaid.”
Small businesses that get any SBA loan this year will incur no fees, he said. The elimination of those costs to get an SBA loan is a big incentive for businesses.
Haney said the 7(a) loan is the SBA’s main financing program, providing funding for any type of business need. The SBA also has a Microloan program, and the 504 loan is a fixed-asset loan program offered through certified development companies and lenders.
He explained that the SBA doesn’t make direct loans, but the funding is available through small business lenders.
“We do work with just about every lender in the state as far as SBA loan programs,” he said.
Around the middle of June, the SBA will offer the America’s Recovery Capital (ARC) loan, which is also tied in with the stimulus program. The details are still being worked out for this new loan, which will provide funding of up to $35,000 for viable small businesses that need help making payments on existing non-SBA loans or debts. The loan is 100 percent guaranteed, has a 0 percent interest rate, and repayment doesn’t start until a year down the road, Haney said.
“They can use that to basically catch up their delinquencies,” he said.
Haney said if small businesses are looking to borrow money from a lender, the chamber event would be an ideal spot for them.
“The SBA looks upon chambers and entities like that as resource partners,” he said. “They’re our eyes and ears. They’re our direct contact with the small business, where we’re the more direct contact with the lenders.”
He said it’s important “to reach out to the small business community and let them know what’s available,” and to get their feedback.
The Washington County Council on Economic Development, another participant in the chamber’s panel discussion, has been around for 20 years. This entity, out of Washington, Pa., is an SBA Microloan lender that does work in Marion, Harrison and Monongalia counties and in four counties in southwestern Pennsylvania, said Ed Nemeth, senior loan officer.
“We specialize in helping entrepreneurs and start-up businesses as well as any small business that’s looking to expand,” he said. “We don’t have the stringent lending criteria that your (banks have). We’re better equipped to help an entrepreneur start up a company.”
Nemeth said the Microloan program offers anywhere from $1,000 to $35,000 to small businesses, and the average loan is around $19,000.
While the Washington County Council on Economic Development has been working in Monongalia County for a while, the organization is trying to get the word out in Marion and Harrison counties about its services.
“We’re trying to expand our presence down into Marion and Harrison,” he said. “Marion and Harrison are newer to us.”
The council is trying to let small businesses know that it’s there to help.
E-mail Jessica Legge at jlegge@timeswv.com.

LI loan officer charged in mortgage scam

As a Garden City loan officer, Anita Bareja approved applications like the one from a purported sales manager earning $15,000 a month, prosecutors said Friday.
In reality the borrower was a welder earning $11 an hour -- and a partner in Bareja's scheme to steal money from banks through fraudulent mortgage applications, according to a release from Nassau District Attorney Kathleen Rice's office.
Bareja, 35, of Dix Hills, pleaded not guilty Friday to charges of grand larceny and forgery charges in First District Court in Hempstead. She was held on $20,000 bond, or $10,000 cash, and due back in court May 26.
A message for Bareja's lawyer Neil Greenberg was not immediately returned.

Prosecutors say Bareja approved at least three false loan applications from co-conspirators, based on what she knew to be falsified bank and employment information, and took an estimated $500,000 in profit, Rice said.
Two co-conspirators are to be arrested soon, according to a spokesman for Rice. No further details were available.
On top of lying about the co-conspirators' salary information, the mortgage applications included forged house appraisals to inflate the amount of the loans, Rice said.
Bareja faces two counts of second-degree grand larceny, three counts of first-degree falsification of business records, one count of first-degree scheme to defraud, and four counts of third-degree criminal possession of a forged instrument.
In May 2006, Bareja, while working at EFI Capital Corp., and her co-conspirators, used falsified employment records, financial information and bogus appraisals to obtain more than $1.5 million in fraudulent mortgages, Rice said.
Once Bareja approved the loan for the inflated sale price, she and her co-conspirators would profit from the difference, Rice said. They then defaulted on the loans and sent the newly purchased home into immediate foreclosure.
The investigation is ongoing.

Tags: Loan,money,debt,insurance,economic,bank

Story Comments 01 May 22, 2009 in City State officials reject airport’s bid for expansion loan

SEATAC, Wash. – In a decision that could jeopardize more than 200 planned jobs, state officials on Thursday rejected the Spokane airport’s request for a $6.8 million loan.

It’s too much to ask for, some members of the state Community Economic Revitalization Board said, when many rural communities are struggling more.

“I just can’t get there,” said board member George Raiter, voting no.

But by a single vote, the board also offered an alternative: $4 million. Proponents were disappointed, but said they’d see if there was a way to make it work.

“Hopefully there is. We want to be in Spokane,” said Bret Burnside, president of Cascade Aerospace USA, one of the two companies that wants to expand into a new $11.6 million building that would be partially paid for with the loan money.

Airport spokesman Todd Woodard said the expansion would create 266 new jobs.

“It’s an extraordinary number for Eastern Washington,” said Terry Lawhead, the regional manager for the state office of Community, Trade and Economic Development.

Unfortunately for proponents, $6.8 million was also an extraordinary number. Until now, CERB loans have been capped at $2 million.

“Leaping from 2 to 6.8 is a big step,” board member Marty Gardner said. The board voted to do away with that limit to consider the Spokane proposal.

For the past three years, state cash has helped add 142 local aircraft-based jobs. Some $750,000 in grants and nearly $3.3 million in loans has helped develop facilities used by four companies. Among them: a new 18,000-square-foot maintenance hangar.

Since setting up maintenance operations in February, Cascade has grown from 40 Spokane-area jobs to 60. Workers commute from as far away as Idaho and Moses Lake. Burnside said Thursday that a pending deal could mean 60 more jobs by the end of the year.

To supplement the $6.8 million no-interest loan, the airport would kick in $1 million, with Cascade and an aircraft-painting company, Associated Painters, each adding nearly $2 million.

In Cascade’s case, Burnside said, having the additional hangar space would mean the company could add more than 200 new workers, plus work for local suppliers. Associated Painters President Rod Friese said the Spokane operation would mean 36 jobs or more. The new facility is essential, he said.

“Without it, we will be forced to look elsewhere,” he said.

Spokane Community College would piggyback on the expansion, moving its aircraft-technician program from Felts Field. SCC President Joe Dunlap said the program has grown from 43 students to 90 in just two years.

Spokane International Airport’s proposal has already been pared back once. The original plan was to ask for a total of $8.7 million to build two buildings.

CERB projects are mostly rural, but in the last months of each two-year budget cycle, unspent money can be used for urban projects. The airport, as part of Spokane County, is considered urban.

The two-year budget cycle ends June 30. After that, any money left over would fall under the next budget’s rules, meaning that only $1.5 million can be spent in urban areas.

So airport and company officials must decide quickly whether they can make the project work with $4 million.

Some CERB members objected to spending so much money in one spot. State Sen. Dan Swecker, R-Rochester, suggested that the proposal was an urban money grab. CERB loans are for hard-to-grow rural areas, he said. Urban areas can find other money, he said. “Urban always wins,” he said.

Raiter, a county official from Kelso, also said the project would wrongly gobble up money that could be spread around. “I can’t do that to other parts of the state,” he said.

And the Spokane airport has “gotten three CERB loans since 2005,” added board member Julie Tappero, of Gig Harbor. “It’s not like they’ve never gotten anything.”

Sen. Brian Hatfield, D-Raymond, argued that the 266 jobs were a rare “bird in the hand” that shouldn’t be turned down in favor of awarding $50,000 here and there.

“What did we really get for that in the long term?” he said. “Right now we need jobs for the recession.”

Tags: Loan,money,debt,insurance,economic,bank

Government seeks US$300mn World Bank loan for transport sector

The Peruvian government is seeking a US$300mn loan from the World Bank to partly finance transport infrastructure development projects, according to a bank document posted on its website.

The funding - to be covered by the World Bank Group's International Bank for Reconstruction and Development (IBRD) - would support road and highway projects (80%), and the general transportation sector (20%).

The loan would support an overall US$1.08bn transport infrastructure development program, of which another US$630mn is to be covered by the state and US$150mn by IDB.

The World Bank's contribution is expected to be authorized on October 8, while its approval by the bank's board is expected for January 28, 2010.

According to document, US$200mn of the US$300mn loan would support an US$880mn road rehabilitation and maintenance program developed by the transport and communications ministry (MTC).

Another US$75mn of the funding would support a US$150mn road maintenance program known as Proyecto Perú, implemented by the national roads authority (Provías).

A total of US$20mn would support a US$40mn road safety program to reduce critical points and improve bridges, improving safety standards along a number of national roads.

Finally, US$5mn would support a US$10mn institutional support and transport regulation initiative, which seeks to improve the institutional performance of Provías and other MTC areas, increasing the quality of infrastructure management, monitoring and evaluation by improving information and planning, among other issues.

Tags: Loan,money,debt,insurance,economic,bank

Banks approve $150-M loan to ICTSI

MANILA, Philippines—Port operator International Container Terminal Services Inc. (ICTSI) has raised $150 million from a three-year loan with a syndicate of seven banks for the refinancing of some debt due by end-2010.

In a disclosure to the Philippine Stock Exchange yesterday, ICSTI said it had signed a three-year loan facility with The Bank of Tokyo-Mitsubishi UFK Ltd., Calyon, HSBC Ltd., Australia and New Zealand Banking Group Ltd., Chinatrust (Philippines) Commercial Bank Corp., Citibank NA and Mizuho Corporate Bank Ltd.

“Proceeds of the loan facility will be used to refinance substantially all of the remaining outstanding balance of the company’s $250 million revolving and term loan facility due in December 2010 and will result in ICTSI having no substantial debt repayments due until the second half of 2011,” the company said.

It was earlier reported that ICTSI is bracing for a tough global environment by settling some debts ahead of maturity and negotiating with foreign creditors to stretch out the term of the large maturities next year.

ICTSI has already prefunded its capital requirements for this year and taken steps to prefund some of the debts due next year. The company tapped $106 million in remaining funds from a revolving credit facility in October last year and raised another P7.2 billion last December from five- to seven-year loans.

The company’s principal business is the management, operation and development of container terminals here and abroad while subsidiaries provide cargo handling and related services to container, storage facilities and services, and roll-on roll-off and anchorage services to non-containerized cargo or general cargo.

Aside from operating its flagship Manila International Container Terminal, ICTSI also operates two other terminals in the Philippines—the Cubi Point at the Subic Bay Freeport Zone in Zambales and Sasa International Port in Davao City. It also has a global portfolio of port terminals in 11 countries across four continents. It has operations in the Philippines, Brazil, Poland, Madagascar, Japan, Indonesia, Syria, China, Ecuador, Colombia and Georgia.

Doris C. Dumlao

Tags: Loan,money,debt,insurance,economic,bank

Pilgrim's Pride repays DIP loan, sells assets

NEW YORK, May 22 - Pilgrim's Pride Corp <PGPDQ.PK>, the bankrupt U.S. chicken processor, said on Friday that it fully repaid its $450 million debtor-in-possession financing facility and completed the sale of its Farmerville, Louisiana, processing facility for $72.3 million.

The company said it sold the Farmerville complex, which includes a processing facility, a cook plant, two hatcheries, a feed mill and a protein conversion plant, to Foster Farms. A U.S. Bankruptcy Court approved the sale earlier this week.

Pilgrim's Pride said the proceeds of the sale will be held in a cash collateral account and used for general corporate operating purposes as needed.

The company and certain of its subsidiaries filed for Chapter 11 bankruptcy protection in December. It has been closing plants, reducing production and laying off employees as it works to return to profitability.

Tags: Loan,money,debt,insurance,economic,bank

Citizens Bank Foundation Donates More Than $170,000 to Financial Literacy Programs

Programs offer financial tips to individuals on how to manage their money and budget for the future

BOSTON, May 8 /PRNewswire/ -- In recognition of April's Financial Literacy month, the Citizens Bank Foundation announced it has provided more than $170,000 in grants to local organizations supporting financial literacy programs during the first quarter of 2009.

Nonprofit recipients and programs include:

• Greater Boston Interfaith Organization - Moving from Debt to Assets
• BayPath Elder Services - Money Management for Seniors
• Junior Achievement of Central Massachusetts - Financial Literacy for the Future
• Allston Brighton Community Development Corporation - Homebuyer Classes
• Girls Incorporated of Worcester - Economic Literacy
• Valley Community Development Corporation - Homeownership Assistance Center

National Financial Literacy Month is designed to bring awareness to the importance of developing and maintaining healthy financial habits. Financial education provides individuals with the understanding and knowledge to become financially independent by giving people a basic understanding of investing options, managing saving accounts, budgeting tools, credit and debt.

Read the rest

StemCells Announces 2009 First Quarter Financial Results

For the quarter, the Company’s loss from operations was $6,924,000, which was essentially unchanged compared to the loss from operations of $6,897,000 in the first quarter of 2008. The loss from operations in the first quarter of 2009 includes approximately $544,000 of expenses related to the Company’s acquisition of the operating assets and liabilities of Stem Cell Sciences Plc (“SCS”) which closed on April 1, 2009. In the first three months of 2009, net cash used in operating activities was $5,782,000, a decline of 21% compared to the $7,291,000 in net cash used for operating activities in the first quarter of 2008. The decline in cash used for operating activities in the first quarter of 2009 as compared to the same period in 2008 was primarily attributable to more proactive management of the Company’s working capital.

The Company reported a net loss of $9,282,000, or $0.10 per share, for the first quarter ended March 31, 2009, compared to a net loss of $6,545,000, or $0.08 per share, for the first quarter of 2008. The increase in net loss in 2009 compared to the same period in 2008 was primarily attributable to a non-cash expense of $2,755,000 recorded in the first quarter of 2009 to reflect an increase in the Company’s estimated warrant liability.

Read the rest

Experts call for broad flu watch

The head of the World Organisation for Animal Health called on Friday for greater surveillance of pigs and animals other than birds in intensified efforts to limit the impact of future pandemic flu outbreaks.

Bernard Vallat, director-general, told the Financial Times it was “entirely wrong” to focus on slaughtering pigs as a result of the outbreak in Mexico but that there was a long-term need to step up surveillance of animals other than birds, a primary focus because of fears of H5N1 bird flu.

He made the comments as the World Health Organisation said the spread of the swine flu virus was broadly stable, with 11 countries reporting 331 laboratory confirmed cases of the virus, including 10 deaths. Only Mexico, with 156 cases and nine deaths, and the US, with 109 cases and one death, have seen “sustained community transmission”.

Mr Vallat’s organisation – reinforcing similar calls from Infosan, the International Food Safety Authorities Network – has been at the forefront of criticism leading to the WHO this week switching the name “swine flu” to influenza A (H1N1), stressing that while it contains porcine virus genes, there is no evidence the virus is currently circulating among pigs anywhere.

Virologists say pigs’ biology makes them perfect “mixing vessels” in which new flu strains are formed, making them important animals to study in order to monitor future viruses with potential to infect humans.

Even as a growing number of countries and individual businesses advised against international travel, the WHO warned that to do so would do little to prevent the spread of the virus while proving “highly disruptive to the global community”.

Marie-Paule Kieny, WHO’s vaccine research director, said the agency was discussing plans to produce a pandemic vaccine with all the relevant companies round the world, many of which are now well advanced in producing seasonal flu vaccine for the next northern hemisphere winter.

“What is absolutely certain is that within a few weeks there will be switches from seasonal to influenza A (H5N1),” Dr Kieny said. “We have no doubt that making a successful vaccine is possible within a relatively short period of time.

Let's smash some financial myths

Nothing works like a recession to spur enthusiasm for financial literacy. In a tough economy, Americans appear more willing to save, pare debts, learn about finances and make other responsible money moves.

With that in mind, here's a look at several common myths on money issues - not an exhaustive list, but a sampling of the misconceptions out there.

Myth: Free credit reports are free.

That isn't always the case. The only place to obtain free reports, under federal law, is at annual creditreport.com. You can get one report every 12 months from each of the three national credit bureaus (Experian, Equifax, and TransUnion). You also can access no-cost reports by calling 1-877-322-8228.

Other sites, such as freecredit report.com, have funny commercials and catchy jingles, but don't offer the same free service. The Federal Trade Commission has received complaints from consumers confused about the various credit-report sites.

• Myth: Annuities are annuities.

These insurance/investment products are many things to many people. Some investors buy them to defer taxes, receive a guaranteed yield, switch tax-free among funds or for other reasons. Yet most annuity buyers don't exercise the right to lock in a yearly income stream for life, presumably because it means giving up control of the account to their insurance company.

This ability to lock in a yearly income stream is a key element that makes annuities different. It's also the literal meaning of the term "annuity." But most annuity buyers don't use annuities in this way.

• Myth: Short-term moves will boost your credit score.

You might be tempted to boost your FICO or other credit scores by closing accounts, applying for new loans or taking other short-term action.

Some moves can help a bit while others can hurt. But the point is that credit scores mainly reflect a long-term ability and willingness to pay bills on time, get and stay current and keep credit balances low. Scores, in other words, measure your money-management skills over time, not over a few weeks or months.

For credit scoring tips, visit myfico.com.

• Myth: The IRS is your e-mail buddy.

Some taxpayers apparently are responding to phishing scams whereby identity thieves posing as Internal Revenue Service agents seek sensitive personal information such as bank-account and Social Security numbers.

The IRS has repeatedly said it doesn't initiate contacts with taxpayers via e-mail, so be wary of any messages you get.

• Myth: Stock portfolios drop to zero.

A particular stock can keep falling until it's worthless. But losses of this magnitude are nearly impossible with diversified portfolios of stocks.

Yet during the depths of the market's retreat earlier this year, how many people talked as if they feared losing everything? Plenty.

Historically, most serious bear markets have ended after peak-to-trough slides of 35 to 55 percent. That's certainly bad enough, but it's a far cry from worthless.

• Myth: You can't qualify for an individual retirement account.

The rules governing IRAs are complex, and it's easy to lose eligibility for one reason or another. For starters, you need earned income to invest in an IRA, which eliminates some people. Also, relatively high income can disqualify you from a Roth IRA, and high income plus retirement coverage at work can prevent you from deducting contributions to a traditional IRA.

But almost anyone, regardless of income, can open a non-deductible IRA. Why would you want to? Because starting in 2010, non-deductible IRAs can be converted to Roths (upon payment of any applicable tax) and thereafter qualify for tax-free withdrawals.

• Myth: You need private mortgage insurance to buy a home.

Whether new buyers must add this insurance depends on the lender and size of the down payment. Usually it can be avoided if you put down 20 percent or more. Hence the wisdom of making large down payments if you can.

Yet only 19 percent of respondents correctly answered a question about PMI requirements in a recent survey by the National Association of Insurance Commissioners.

The quiz points out several misconceptions about insurance.

You can take it at www.insureuonline.org.

US financial sector to shrink

WASHINGTON - THE financial sector will make up a smaller part of the US economy in the future as new regulations clamp down on 'massive risk-taking,' President Barack Obama said in an interview published on Saturday.

President Obama, whose young administration has spearheaded a raft of reforms in the banking sector as part of efforts to tackle the financial crisis, said the industry's role in the United States would look different at the end of the current recession.

President Obama said some of the job-seekers who may normally have gone to the financial sector would shift to other areas of the economy, such as engineering.

The Obama administration in March proposed sweeping reforms to curb risk-taking on Wall Street and close regulatory gaps to prevent the kind of excesses that led to the worst financial crisis since the 1930s Great Depression.

The president said in the interview that better regulation would help restore confidence in the US financial system.

President Obama expressed optimism that the market for securitised products would pick up, though he said that could take time.

The Federal Reserve, with taxpayer capital from the US Treasury, is supporting consumer and real estate lending markets through a loan facility that could reach US $1 trillion (S$1.5 trillion).

Holders of existing asset-backed and commercial mortgage-backed securities can get loans from the Fed by putting up their securities as collateral.

The facility aims to unclog frozen credit markets and jumpstart securitisation. Part of President Obama's regulatory reforms include the creation of a new 'systemic risk regulator' with broad powers to seize large non-bank financial firms, such as insurers, hedge funds or private equity companies, if they are deemed to threaten the stability of the financial system.

President Obama also said financial rules should be crafted according to what an institution actually does to avoid a regulatory gap in areas such as commercial and investment banking. -- REUTERS

Chrysler's Bankruptcy Deals Blow to Affiliates

By ALEX P. KELLOGG and JEFF BENNETT

Pressure mounted on Chrysler LLC as the auto maker was forced to idle four plants and its dealers scrambled to find new sources of credit a day after the company filed for Chapter 11 bankruptcy protection.

The developments sparked fresh questions about Chrysler's prospects for quickly exiting from bankruptcy protection and about the web of suppliers and dealers that are linked to the company. The plants were idled after suppliers halted shipments, while dealers were squeezed when Chrysler Financial stopped providing cut-rate loans.

Fiat SpA Chief Executive Sergio Marchionne, seen as likely to take the helm of a restructured Chrysler, is counting on the bankruptcy process to move swiftly, allowing him to plunge into restructuring the troubled automaker. Over the next month, Mr. Marchionne will begin touring Chrysler plants and sifting through its other operations.

Fiat, which is partnering with Chrysler, is likely to use Chrysler's journey through Chapter 11 to slim its bloated dealership network, according to a person familiar with the matter. In bankruptcy, Fiat can press dealerships that have underperformed to renegotiate or terminate their contracts.

 

For several months Chrysler dealers have been feeling the strain of slumping sales. On Friday, Chrysler reported sales of cars and light trucks fell 48% in April to 76,682.

However, Fiat faces a bumpy road. Gaining Chrysler's extensive sales network is a key attraction for the Italian company, and Mr. Marchionne does not want Fiat's re-entry to the U.S. market after nearly three decades to be marred by a messy court battle.

A Fiat spokesman could not be reached for comment Friday, a holiday in Europe.

Already-strained parts suppliers, hurt by Detroit's plummeting sales, face a squeeze of their own. In court filings, Chrysler warned that many parts makers could follow the company into Chapter 11 if its proceedings drag on. Its largest unsecured creditor is Ohio Module Manufacturing Co., a supplier that is owed $70.3 million. Chrysler in court Friday asked that it be allowed to continue to pay its employees and suppliers.

"Without a clear timeline for when the [bankruptcy] situation will end and production will resume, I believe we will see massive suppliers bankruptcies that will stop Chrysler from resuming production," Chrysler's procurement officer, Scott Garberding, said in a statement filed with the bankruptcy court Thursday.

Chrysler was preparing to shut down all of its vehicle assembly plants for 60 days on Monday. But on Friday two plants in the U.S. and two in Canada were forced to cease production because a few suppliers stopped shipping parts or materials.

Officials from the Obama administration's auto task force cautioned that there was no reason that suppliers should be hesitating over shipments to Chrysler or getting worried about payments.

"It is the company's intentions to continue to pay suppliers in the ordinary course," said one official. "This company will operate in the ordinary course throughout the bankruptcy process."

Chrysler is being given access to $1.3 billion in federal financing to keep it going during the bankruptcy process. And afterwards, the U.S. government is prepared to offer an additional $4.7 billion in loans.

Across the country dealers Friday were scrambling to line up new banks to provide auto loans for buyers after the company's ailing lending partner, Chrysler Financial, stopped providing loans with subsidized interest rates such as 0% deals.

Chrysler Financial is still offering auto loans to buyers purchasing vehicles from Chrysler, said the lending company's chief executive, Tom Gilman. However, he acknowledged his company isn't offering the lowest rates available. "Our rates haven't been competitive for some time because our costs are so high," he said.

David Kelleher, owner of one Dodge store and a Chrysler-Jeep franchise in the Philadelphia area, said he was working on paper work on Friday to be able to get customers auto loans from GMAC LLC to make up for the loss of loans from Chrysler Financial.

"Having those partners at Chrysler Financial was very, very important to the dealer body," Mr. Kelleher said. In the past Chrysler Financial worked closely with dealers to help them sell cars, although it had become less so in recent months as it tightened up credit terms and approved fewer and fewer loans.

Associated Press

A customer outside a Chrysler dealer in Oakland, Calif., on Thursday. The auto maker reported sales of cars and light trucks fell 48% to 76,682 in April.

Mr. Kelleher added he's concerned about working with GMAC because it is affiliated with Chrysler's competitor, General Motors Corp. "It's going to be a real challenge to get GMAC to act on behalf of Chrysler," he said. "It's very difficult if a finance arm is not aligned with you."

GMAC is prepared to handle business from Chrysler customers and dealers, and will handle their business the same as GM customers, a GMAC spokeswoman said. Cerberus Capital Management LP, Chrysler's former parent, has sizable stakes in GMAC and Chrysler Financial.

On Thursday President Barack Obama expressed optimism when he announced Chrysler would seek bankruptcy protection after his administration's auto task force failed to reach a debt-reduction deal with about half of Chrysler's 46 secured lenders.

"The necessary steps have been taken to give one of America's most storied auto makers, Chrysler, a new lease on life," Mr. Obama said.

But bankruptcy adds a new element of risk to the government-led restructuring of Chrysler. Since Chrysler is halting production, shipments of parts and materials from suppliers to its 12 North American assembly plants will cease, putting jobs at suppliers as well as at Chrysler on the line.

"When Chrysler doesn't run, we don't run," said a person at Ohio Module who identified himself as a human-resources manager at the company but declined to give his name.

Other officials at Ohio Module, which builds chassis for Jeep Wranglers and was spun off of Chrysler in 2006, couldn't be reached.

Chrysler's Conner Ave. assembly plant, which builds the Dodge Viper, has been stopped by interruptions in its parts supply for the last three weeks, said Chris Vitale, a worker at the plant.

A Chrysler spokeswoman said she didn't know the reason production was suspended at the Conner Ave. plant.

A parts shortage will not only affect production at Chrysler but would ripple through the industry, which could create some disruption for other auto producers.

"We're all interconnected, so we're evaluating it right now," said Edward Miller, a spokesman for American Honda Motor Co. Honda buys parts from 525 U.S. suppliers. But Mr. Miller notes those companies all buy parts from thousands of other producers as well, some of which could also be forced out of business. "We're anticipating there will be some impact," he said.

The bankruptcy was on the minds of the few customers who were in Chrysler stores on Friday.

The Chrysler showroom of Boardwalk Auto Center in Redwood City, Calif., had a lone customer, Ken Hopkins, who was eying a ruby red PT Cruiser to replace his 2001 model. The retired technology consultant said Chrysler's bankruptcy was making him think twice about a purchase. "You want to have the assurance that they'll have follow-up service," he said. Still, Mr. Hopkins said he hoped to pick up a bargain because of the bankruptcy filing.

Many dealers said they have already been contacted by GMAC and are lining up credit through the company, or are already able to get customers car loans from other banks.

Brian Kelly, owner of Kelly Jeep Chrysler, in Lynnfield, Mass., a Boston suburb, said his dealership plans to arrange financing through local banks. "We have long-standing relationships with banks that do this," he said. "That is primarily going to be our biggest option."

For this weekend, his dealership is advertising a "new cars at used car prices" promotion. "We want the world to know that this makes it a buyers' market," he said. "We are just pointing it out and giving people the opportunity to take advantage."

Will Chrysler Bankruptcy Affect Chrysler Financial Customers

The recent Chapter 11 bankruptcy filing may have customers of Chrysler Financial worried about their loans.

Chrysler bankruptcy

Here at Auto Credit Express, most of weren’t surprised by the bankruptcy filing of Chrysler LLC yesterday. That being said, it certainly isn’t pleasant having one of our neighbors (Chrysler headquarters is just a mile away from the ACE offices), as well as one of the three domestic automakers, have to go through a bankruptcy filing in order to remain a viable business.

But while much has been said about Chrysler’s current situation, very little has been mentioned about Chrysler Financial, the automaker’s captive finance company, other than to point out that GMAC, also partly owned by Cerberus (the investment group that purchased Chrysler from Daimler) will immediately begin financing Chrysler’s customers, as well as eventually take over the financing of vehicles on dealer lots (called floorplanning).

GMAC

Chrysler Financial, it turns out, is in financial straits just as dire as that of Chrysler, itself. And while both Chrysler Financial and GMAC applied to the government for bank status (thus allowing them access to TARP funding), only GMAC was granted this status.

So while GMAC has returned to lending as usual (usual being a relative term given the current economic circumstances), Chrysler’s erstwhile finance arm has been fighting the good fight with one hand tied behind its back – hardly acceptable odds in today’s economy. So with Chrysler Financial on the ropes, the only choice for an emerging “new” Chrysler is, guess what (and you get only one guess)? So where does this situation leave current customers of Chrysler Financial?

Current Chrysler Financial customers

Although Chrysler Financial has yet to issue any press statement, both Chrysler LLC and GMAC have stated that the following will occur:

GMAC will immediately begin to service new Chrysler customers at the retail level. This means that when you finance a new Chrysler through a Chrysler, Dodge or Jeep dealer, the captive lender will be GMAC (through a branded lender for dealers backed by GMAC).

GMAC will immediately begin offering floorplanning financing to all CDJ dealers currently with Chrysler finance.

Finally, Chrysler Financial will continue to service its portfolio. This means that for all current customers of Chrysler Financial, it will be “business as usual.” You will make your payments to CF just as you have in the past.

The future

Although Chrysler Financial customers will see no changes in the near term, it’s difficult to whether or not things may change in the future. If Chrysler has so little faith in the company that it’s partnering with GMAC, then pushing their erstwhile financial partner off the stage can’t be a good sign (especially if you’re a CF employee).

But regardless of the fate of the company, Chrysler Financial customers can rest assured that either CF or another lender (to be named later) will continue to service their car loan.

Chrysler Begins Voyage Down Bankruptcy Route

Deliberations on the fate of Chrysler shifted from Washington to a Manhattan courtroom on Friday as lawyers for the automaker sought to clear the way through bankruptcy, sell or transfer Chrysler’s operations, and keep paying its workers their salaries and benefits.

Chrysler, the third-largest American automaker, filed for bankruptcy on Thursday after months of negotiations with regulators, unions and creditors fell apart when a small group of debt- holders balked at the government’s final terms for an out-of-court restructuring.

Chrysler’s next steps toward settling with its creditors and completing an alliance with the automaker Fiat are taking place in the courtroom of Judge Arthur J. Gonzalez of United States Bankruptcy Court, who received a series of motions from Chrysler’s lawyers Friday morning.

In addition to asking to protect employee wages, which total about $60 million, and basically keep operating, lawyers sought to keep Chrysler’s warranties in place, an effort to reassure current and prospective customers they can still safely buy Chrysler and Jeep products. Lawyers for the automaker said they wanted to move quickly.

“I don’t think that any American can doubt these are extraordinary times,” said Corinne Ball of Jones Day, Chrysler’s lead bankruptcy lawyer. “We have to move at a high speed.” Chrysler’s 22 plants in the United States are to be idled at the end of the day Friday, Ms. Ball said.

As part of its reorganization, Chrysler said Friday that it planned to shut eight plants permanently, lay off about 6,500 workers and close an unspecified number of dealerships.

Judge Gonzalez granted Chrysler’s request to use its existing cash management system, which would enable the company to transfer money to other subsidiaries to keep operating.

Lawyers for various constituencies, including banks, car dealerships, hedge funds, parts makers and others have been working around the clock readying their arguments to make sure their interests are protected in court.

Thomas E. Lauria of the law firm White & Case, who represents a committee of the secured creditors, declined to comment to reporters and did not raise any objections to the motions at the hearing. It is still unclear whether the group, which includes Oaktree Capital Management, OppenheimerFunds, Stairway Capital Management, Schultze Asset Management, Group G Capital Partners and the TCW Group, will object to Chrysler’s restructuring plan at the continuation of the case next week.

The lenders, who say they believe they are being treated unfairly in the process, may request that Chrysler be liquidated. But, according to the company’s own analysis, a liquidation would cost more than $2 billion and there are unlikely to be many buyers for Chrysler’s assets.

More than a dozen photographers and television crews swarmed lawyers and others as they were leaving the courtroom after the hearing.

Chrysler’s chief financial officer, Ronald E. Kolka, and other executives quickly jumped into a minivan waiting outside the courthouse.

Ms. Ball and her team of lawyers from Jones Day attracted a swarm of reporters and photographers, who followed them down into a subway station after the hearing. As they stepped on the train, other riders began asking whether a celebrity had just come aboard.

Judge Gonzalez has experience with major bankruptcy cases, having overseen the reorganization of Enron in 2001, which set a record by filing for bankruptcy with $63 billion in assets, and WorldCom in 2002, which topped Enron with $107 billion assets when it filed.

Court documents filed by Chrysler in New York on Thursday showed that Chrysler’s re-emergence from bankruptcy could take until Aug. 28, or four months from now.

Bankruptcy always contains some element of unpredictability, and the debtholders who oppose the new arrangement could argue in court that the company is worth more to them in liquidation.

No light was shed at Friday’s hearing on how quickly the proceedings might play out.

Administration officials said they believed that it was highly unlikely that a bankruptcy court judge would side with the minority when those holding 70 percent of the debt had signed off on the arrangement.

Micheline Maynard and Jack Healy contributed reporting.

 

http://www.nytimes.com/

Ponzi schemes seem to proliferate in tough economic times

CLEVELAND -- Warren Buffett described a classic Ponzi scheme when he told shareholders in a recent newsletter, "You only learn who has been swimming naked when the tide goes out."

Lately, there have been a lot of folks without suits on -- and no bigger example than Bernard Madoff, the Manhattan financier arrested in December and charged with massive securities fraud. His $65 billion scheme may be the largest Ponzi ever uncovered, but it is hardly the only one.

During the first three months of 2009, the Securities and Exchange Commission, the Commodity Futures Trading Commission and the FBI have charged dozens of investment officers or firms with Ponzi swindles. In Ohio, Ponzi scams in 2008 led the list of the top investment crimes for the second consecutive year.

Why the rash of cases?