Business

"This will reverberate through the banking world"
7:12 pm
Mon September 22, 2014

N.Y. jury finds Arab Bank liable for funding terrorism

Attorneys for Arab Bank leave Federal Court in Brooklyn. Shand Stephens, center.
Credit AP Photo/Richard Drew

In a verdict that has far-reaching consequences for global banking, a federal jury in New York has found Arab Bank liable for funding terrorism in Israel between 2000 and 2004.

300 American victims and their families sued the Jordan-based bank, saying they violated the Anti-Terrorism Act by knowingly funding Hamas during the second Intifada. The plaintiffs convinced a jury that the bank gave material support in 24 attacks where Americans were hurt or killed.

This is the first time the Anti-Terrorism Act has been used civilly against a bank.

Read more
"regulators are too slow to catch them"
9:47 pm
Wed September 17, 2014

SEC penalizes first high-frequency trader

May 7, 2010, file photo. Traders work on the floor of the New York Stock Exchange the day after the "Flash Crash" and The Dow Jones industrials dropped 1,000 points. The crash brought scrutiny to high-frequency trading and other computerized strategies that move buy and sell orders at blinding speeds.
Credit AP Photo/Richard Drew

The Securities and Exchange Commission (SEC) charged a New York trading firm with the largest fine ever for breaking rules designed to keep risky trades from unraveling the financial system.

It is also the first time the SEC penalized a high-frequency trader.

High-frequency traders, or flash traders, make millions of trades a minute. They are the focus of an ongoing debate over whether those trades make the market function better or exploit slower, traditional traders.

Read more
Cracking down on lenders and debt agencies
5:55 pm
Tue September 16, 2014

New York moves to protect troubled borrowers

Chief Judge Jonathan Lippman proposes reforms to consumer debt cases in state courts with new filing requirements for collectors of so-called "zombie" debts.
Credit AP Photo

In separate actions, New York officials are cracking down on companies taking advantage of troubled borrowers. 

The Department of Financial Services issued subpoenas to nine lending companies in the state Tuesday. The state's bank regulator is investigating them for what are called "loan-to-own" schemes.

Read more
“We’ve all got one hand tied behind our back"
5:46 am
Wed September 10, 2014

Apple Pay, another unregulated business with your data

Reserve System member Daniel Tarullo testifies on Capitol Hill, in Washington Wednesday, June 6, 2012, before the Senate Banking Committee hearing.
Credit AP Photo/Manuel Balce Ceneta

On the same day Apple unveiled a new mobile payment system, regulators warned Capitol Hill about the hazards of non-bank companies having access to financial data.

"Ironically," regulators said Tuesday, Home Depot also confirmed the theft of banking data from millions of customers.

Apple says their payment system is designed to be more secure than the one Home Depot uses, but it is also one more company with access to your financial data that’s not subject to government oversight. 

Read more
Salex Tax
10:57 am
Fri August 15, 2014

Back to school shoppers: Hunting for tax breaks and bargains

Retailers are optimistic about back to school sales because of a strengthening job market and falling gas prices.
Credit Justin Sullivan / Getty Images

For millions of Americans, August is a month for relaxing and basking in the summer sunlight.

Those are the people without children.

The households with students are likely to be scurrying around under the bright florescent lights of big-box stores, searching for back-to-school bargains on clothes, shoes, notebooks, backpacks, computers and dorm furniture.

And many shoppers are timing their purchases to take advantage of sales-tax holidays for school-related items, hoping to keep a bit more in their wallets.

Read more

Pages