TOP NEWS: Economy: September 20th, 2012
Excerpts and More Top News and Analysis
BANKING: Bank of America Ramps Up Job Cuts - WSJ
Bank of America is planning to cut 16,000 jobs by the end of the year. If the cuts are made, the lender will likely lose its title as the U.S banking industry’s largest employer.
FED: Restoring the Legitimacy of the Fed – NYT, OPINION
SIMON JOHNSON: The Federal Reserve could quiet critics on both the left and the right with forceful action to raise capital standards for large banks.
FED: Patience needed for Fed’s dual mandate – FT, OPINION
James Bullard: ‘Missing on both sides’ is what one should expect from appropriate policy
FED: Will Ben Bernanke’s QE3 Work? No, It’s Already Failed - FORBES
Louis Woodhill: People can stop wondering if QE3, Fed Chairman Ben Bernanke’s latest effort to “do more”, will work. It has already failed.
HOUSING: Housing Recovery Gains Traction – WSJ
Existing-home sales and housing starts last month reached the highest level in more than two years as the turnaround of the long-troubled sector provides a boost to the tepid economic recovery.
HOUSING: Surcharge for US mortgages proposed – FT
Lenders in five states would pay more for guarantees
HUD: HUD may have paid over $1B in false claims - WP
A new report has found the U.S. government may have paid hundreds of millions of dollars in mortgage aid to struggling homeowners who did not qualify for that help.
INVESTING: Venture Capital Secret: 3 of 4 Start-Ups Fail - WSJ
New evidence suggests venture-backed start-ups fail at far higher numbers than the rate the industry usually cites.
INVESTING: High-Speed Trading in Focus - WSJ
A former trader for a high-frequency trading outfit plans to testify about practices he says put ordinary investors at a disadvantage.
INVESTING: SEC no match for high-tech traders – FT
Senator says agency is hopelessly outgunned
INVESTING: Fund managers must break their silence – FT, OPINION
John C. Bogle: Take responsibility for governance
EMPLOYMENT: The New Boss: Big Data - WSJ
Companies Trade In Hunch-Based Hiring for Computer Modeling.
EMPLOYMENT:/WOMEN: When Flexibility Hurts - NYT, OP-ED
The flawed incentives that guide businesses’ employment practices hurt women at both ends of the labor market.
EMPLOYMENT: Hard Unemployment Truths About ‘Soft’ Skills – WSJ
Finding qualified applicants for high-tech jobs would be great. So would finding someone who can answer the phone.
UNEMPLOYMENT: US jobless claims edge down to 382,000 – FT
Employers remain cautious over hiring.
ECONOMY: Incomes Fell or Stagnated Last Year – WSJ
The income of the typical U.S. family fell or was flat in almost every state last year, with the drop particularly steep in places where the economy has been hit hard by the housing bust.
ECONOMY: Mort Zuckerman: Welcome to the Modern-Day Depression - US NEWS
We need to recover from the Obama economic recovery.
WELFARE: Welfare Reform as We Knew It - WSJ, OPINION
Inside the Obama work waiver: It’s worse than Romney says.
DEFENSE SPENDING: Warning on fallout from US defence cuts – FT
Aerospace trade group chairman says cost of equipment could rise.
TAXES: Distortion in Tax Code Makes Debt More Attractive to Banks - NYT
Banks use more debt than equity to finance their activities because a tax break makes the debt cheaper and encourages banks to gorge on more.
AIR TRAVEL: Delta Cracks Down on Mileage Tracking Sites - NYT
Delta Air Lines is cracking down on start-up sites that help travelers see all of their frequent flyer information in one place and that help users figure out when it makes sense to use miles.
TEXTING-DRIVING: AT&T Chief Speaks Out on Texting at the Wheel – NYT
The chairman and chief executive of AT&T, Randall L. Stephenson, said an accident involving someone close to him that was caused by texting while driving spurred him to speak out.
TECH: Apple’s iPhone Update Leaves Out Google’s Maps - NYT
Early reviewers criticized the new Apple Maps app, saying it botched simple searches and did not come with information about public transportation.
TECHNOLOGY: Google Expected to Surpass Facebook in Display-Ad Sales – WSJ
Google is expected to surpass rival Facebook in selling online “display” advertisements in the U.S. this year, according to a new estimate by research firm eMarketer.
CASINOS: Vegas Bet on Chinese VIPs Draws Scrutiny - WSJ
For Las Vegas casinos, Chinese high rollers have become a godsend. But the gamblers have attracted the “junket” business, which law enforcement officials have long suspected of money laundering and organized crime.
More Business News and Analysis
UPS: U.P.S. Bills Stores as Small-Business Solution - NYT
During lean times for shippers, United Parcel Service uses an ad campaign to emphasize the wide range of services its retail stores provide.
MANUFACTURING: Swiss Drug Giant Picks Manhattan for Research Site - NYT
The decision by Roche is bad news for New Jersey, but a coup in New York City’s efforts to develop a life sciences and biotechnology hub.
MARKETS/IPO: Trulia Prices I.P.O. at $17 a Share, Above Expected Range - NYT
Trulia priced its initial stock offering at $17 a share on Wednesday, surpassing expectations as the real estate search site raised $102 million.
VERIZON 4-Year Deals for Unions at Verizon - NYT
The company’s two main unions said the tentative agreements carry an 8 percent pay raise and require workers to pay more for health coverage.
AUTOMOTIVE: G.M. Executive Affirms Commitment to Opel - NYT
General Motors wants no doubts about its plans for Opel, its long-troubled European unit: It intends to fix the division, not sell it or close it.
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