FOX Business Network learned that Bank of America (NYSE:BAC) will be one of the first major banks to start layoffs, as several analysts are predicting a slowdown in profits for the big banks for the rest of the year. The cuts are said to be about 5% and only in certain segments of the company that are not performing well within its capital markets unit.
Meanwhile, after barreling through resistance, the S&P 500 hit its highest level in four months. The index gained 17 points, closing at 1143 Monday afternoon. And the Dow jumped 146 points, closing at 10754.
Tax Lessons From Lone Star State
SMU professor Michael Cox on why Texas's tax policies are an example for the rest of the U.S.
NY Gubernatorial Candidate Carl Paladino on the need to reform financial practices.
Fed Shocker Dept.: The Federal Reserve, unsurprisingly, kept its target on interest rates in the range of 0 to 0.25% Tuesday afternoon. The central bank said the economy is not growing enough to warrant higher rates at this point. It also said improvement in jobs numbers and output has slowed, but it continues to expect a modest recovery.
A nasty loophole in security led to thousands of Twitter accounts being hijacked earlier on Tuesday. Users were infected simply by hovering their mouse over an infected “tweet,” causing it to spread quickly and unknowingly. Twitter put a security patch, however, to close the security flaw.
Treasury Secretary Tim Geithner testified before Congress on how financial reform will affect banks in the U.S. Geithner said banks should be able to meet the new higher capital requirements imposed on them with the regulation and said they’d do so through future profits. He also said this would not hurt lending in a way that could hurt the economy.
Taxed to Death Dept.: FOX Business Network explored the issue of the imminent sunsetting of the Bush tax cuts all week. If Congress does not act to extend them, in fact, Americans will face what amounts to the largest tax hike in U.S. history. Think it will only impact the nation’s millionaires? Think again.
According to tax consulting firm Deloitte, if the tax cuts are not extended:
- A family of four with an annual income of $50,000 can expect to pay $2,900 more in taxes in 2011
- A family of four making $100,000 a year can expect their tax bill to go up $4,500
- A family of four with an income of $500,000 a year will see a $10,800 increase in taxes
- A family of four with $1 million in yearly income will be taxed an additional $53,200
Volcker: White House Not Anti-Biz
Obama advisor Paul Volcker rebukes the notion the administration is against business.
Rep. Paul Ryan on whether we can expect a vote on the extension of the Bush tax cuts.
Congress approved a $30 billion lending bill for small business Thursday, a victory for Democrats. The legislation now makes its way to the president’s desk, where it’s expected to be signed into law. The bill will create a lending fund for small businesses, which have been struggling in this economic environment.
Meanwhile, the same department that FOX Business learned would be laying off workers at Bank of America will apparently be throwing a lavish party. The bank’s capital markets arm was scheduled to hold a party at a rooftop bar in Manhattan, said people at the firm Thursday night.
'We're Confused, Like Taxpayers'
Jackson Hewitt CEO argues the removal of the debt indicator by the IRS threatens lending.
Novartis CEO Joe Jimenez on a new drug to treat MS and health-care reform.
Executive Pay Dept.: Citigroup (NYSE:C) bigwigs will get raises as the partially-taxpayer-owned bank is unwound from executive pay rules being imposed on it. The Treasury Department said it plans to sell its remaining stake in the bank by year-end. Working with the White House pay czar Ken Feinberg, a formula was worked out to pay several of the financial company’s highest-ranking officers a “stock salary” award. Left out, however, is CEO Vikram Pandit, whose salary will remain at $1 for 2010.
And ending the week with a bang, the Dow jumped nearly 200 points Friday. The average closed at 10860, tacking on to Wall Street’s best September, as a report showed demand for durable goods was double what analysts had expected.