Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

Market Archive

Market

Market News (01/16/2013)

 Permanent link
MADISON, Wis. (1/16/13)

  • U.S. retail sales increased more than expected in December, even though consumers finished their holiday shopping--indicating people looked beyond lawmakers' budget battles and suggesting consumer spending gained momentum at year-end  (Bloomberg.com, The New York Times and Moody's  Economy.com Jan. 15). Sales rose 0.5% following a 0.4% gain in November, the Commerce Department said Tuesday. Economists had forecast a 0.2% retail-sales rise in December, according to a Bloomberg survey and a separate Reuters survey. Growth in incomes, an improving labor market, and discounting by chains boosted consumer spending, which constitutes roughly 70% of the U.S. economy, Bloomberg said. However, at the same time, higher payroll taxes, which kicked in this month, will reduce take-home pay and make it harder for households to increase their purchases, Bloomberg added …
  • For the third consecutive month, U.S. wholesale (producer) prices slid 0.2% in December, indicating that inflation remained tame as energy costs continue to decrease (The Wall Street Journal, The New York Times and Moody's Economy.com Jan. 15). The producer-price index--which is a gauge of how much manufacturers and wholesalers paid for finished goods--fell to a seasonally adjusted 0.2% in December from November, the Labor Department said Tuesday. A 0.9% decrease in food prices and a 0.3% decline in energy costs drove the index's drop, the Journal said …

News of the Competition (01/16/2013)

 Permanent link
MADISON, Wis. (1/16/13)

  • The board of Bank of America (BofA) has agreed to pay $62.5 million to settle a lawsuit, arising from its purchase in 2009 of Merrill Lynch (American Banker Jan. 14). U.S. District Judge Kevin Castel in Manhattan approved the agreement Friday. It resolves claims made by at least four pension funds, alleging the bank's officers and directors did not disclose information about a drop-off in Merrill's financial health before BofA asked shareholders to approve the deal. As a result of the settlement, an insurance policy that shields the bank from damages from derivative lawsuits will reimburse BofA, the Banker said …
  • Federal regulators publicly announced enforcement orders regarding JPMorgan Chase's multibillion dollar loss connected to trading activity in London (American Banker Jan. 14). Currently, the orders involve no monetary penalties. The Office of the Comptroller of the Currency and the Federal Reserve Board ordered JPMorgan Chase to rectify its internal controls, and exert more oversight on, and  invest more resources in, its trading activities, the Banker said  …