Bible Out of ContextRandom Quotes from the Bible
Now I beseech you, brethren, by the name of our Lord Jesus Christ, that ye all speak the same thing, and that there be no divisions among you; but that ye be perfectly joined together in the same mind and in the same judgment. KJV: 1 Corinthians 1:10
Now I exhort you, brethren, by the name of our Lord Jesus Christ, that you all agree and that there be no divisions among you, but that you be made complete in the same mind and in the same judgment. NASB: 1 Corinthians 1:10
I appeal to you, brothers, in the name of our Lord Jesus Christ, that all of you agree with one another so that there may be no divisions among you and that you may be perfectly united in mind and thought. NIV: 1 Corinthians 1:10
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Bible Out of ContextRandom Quotes from the Bible
He that justifieth the wicked, and he that condemneth the just, even they both are abomination to the LORD. KJV: Proverbs 17:15
He who justifies the wicked and he who condemns the righteous, Both of them alike are an abomination to the LORD. NASB: Proverbs 17:15
Acquitting the guilty and condemning the innocent - the LORD detests them both. NIV: Proverbs 17:15
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Bible Out of ContextRandom Quotes from the Bible
Confess your faults one to another, and pray one for another, that ye may be healed. The effectual fervent prayer of a righteous man availeth much. KJV: James 5:16
Therefore, confess your sins to one another, and pray for one another so that you may be healed The effective prayer of a righteous man can accomplish much. NASB: James 5:16
Therefore confess your sins to each other and pray for each other so that you may be healed. The prayer of a righteous man is powerful and effective. NIV: James 5:16
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Bible Out of ContextRandom Quotes from the Bible
As far as the east is from the west, so far hath he removed our transgressions from us. KJV: Psalms 103:12
As far as the east is from the west, So far has He removed our transgressions from us. NASB: Psalms 103:12
as far as the east is from the west, so far has he removed our transgressions from us. NIV: Psalms 103:12
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Washington Post:
Financial Industry News
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- Asia stocks dip on China tightening fears, yen up (Thu, 11 Mar 2010 02:02:10 EST)
SINGAPORE (Reuters) - Asian stocks fell on Thursday as investors worried strong loan growth and quickening inflation in China would spur Beijing to tighten monetary policy sooner than expected, while the yen rebounded against major currencies.
- China limits bonuses for bankers to manage risk (Thu, 11 Mar 2010 01:21:04 EST)
BEIJING -- China has tightened controls on pay for its top bankers, joining global efforts to try to limit financial risks by linking longer-term performance more closely to compensation.
- U.S. bailout watchdog criticizes Treasury over GMAC (Thu, 11 Mar 2010 00:11:52 EST)
WASHINGTON (Reuters) - The U.S. Treasury's decision against a bankruptcy restructuring for GMAC may have increased taxpayer bailout costs for the auto finance company and made it less viable, an oversight group said on Thursday.
- Watchdog: GMAC bailout could cost taxpayers $6.3B (Thu, 11 Mar 2010 00:06:56 EST)
WASHINGTON -- The Treasury Department sank billions into auto finance giant GMAC Inc. without an exit strategy or proof the company was viable - a decision that could cost taxpayers $6.3 billion, a new watchdog report says.
- Politics, shaky economy create no rush to restructure Fannie and Freddie (Thu, 11 Mar 2010 00:00:00 EST)
The federal government has spent the past half year seeking to roll back its emergency efforts at propping up the financial markets -- with the notable exception of its involvement in mortgage giants Fannie Mae and Freddie Mac.
- Compromise would shield payday lenders, pawnbrokers and car dealers from oversight (Thu, 11 Mar 2010 00:00:00 EST)
Payday lenders, pawnbrokers, car dealers and other companies that make loans but do not hold bank charters would be shielded from the scrutiny of a proposed federal consumer protection regulator under the terms of a tentative compromise between senators who are attempting to craft a bipartisan bill.
- Ex-official David Loglisci's guilty plea advances N.Y. state pension probe (Thu, 11 Mar 2010 00:00:00 EST)
NEW YORK -- A former New York state official pleaded guilty Wednesday to a felony in connection with an alleged pay-to-play scheme involving the state's pension system, a move that legal experts said could bring the investigation closer to one of Wall Street's most prominent financiers, Steven Rattner.
- Finding solid footing as banks' overdrafts get overhauled (Thu, 11 Mar 2010 00:00:00 EST)
I've been noticing a lot of notice fatigue lately. By now, you may have become a bit overwhelmed with correspondence from your bank or credit union about mandated changes to your credit card account.
- The trouble with China's economic bubble (Thu, 11 Mar 2010 00:00:00 EST)
The bubbly enthusiasm that many analysts express about the Chinese economy reminds me of the old-time variety show host Lawrence Welk, who banished worries each week with soothing sounds from his Champagne Music Makers.
- Fed recovers, gets new look as financial regulator (Wed, 10 Mar 2010 20:06:04 EST)
WASHINGTON -- The Federal Reserve, still dusting itself off from a fight that threatened to trim its powers, could emerge from a congressional overhaul of banking rules as the top cop over the nation's largest financial institutions.
- Credit card users: Not so responsible after all? (Wed, 10 Mar 2010 18:45:50 EST)
NEW YORK -- With unemployment high and personal wealth diminished, how was it that strapped consumers were paying down their credit card debt last year? It turns out they probably weren't.
- Volcker rule gets lift in Senate amid reform talks (Wed, 10 Mar 2010 18:41:35 EST)
WASHINGTON (Reuters) - The controversial "Volcker rule" to curb risky trading by banks got a boost in the Senate on Wednesday, as two Democrats introduced a bill that would enact and expand the rule.
- Stocks rise after inventories fall and sales gain (Wed, 10 Mar 2010 18:17:01 EST)
NEW YORK -- Scant buying lifted stocks for a second day Wednesday after the government reported a drop in companies' inventories.
- Derivatives debate splits US and Europe regulators (Wed, 10 Mar 2010 18:16:10 EST)
NEW YORK -- To European officials, financial derivatives are dangerous weapons that worsened Greece's debt crisis and should be curbed.
- Geithner urges reform on housing finance market (Wed, 10 Mar 2010 18:10:30 EST)
WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner said on Wednesday that "fundamental reform" of the government's role in the housing finance market is needed and it will be next year before proposals are ready for Congress.
- Bets on economy lift Wall Street; banks, tech lead (Wed, 10 Mar 2010 17:56:43 EST)
NEW YORK (Reuters) - Bank and technology shares lifted Wall Street on Wednesday on hopes a revival in business demand will boost corporate profits.
- Ex-official admits guilt in NY pension probe (Wed, 10 Mar 2010 17:15:54 EST)
NEW YORK -- A former top investment officer for New York's state pension fund admitted Wednesday that he helped channel hundreds of millions of dollars in public retirement money to investment firms that paid kickbacks to other officials to get the business.
- Washington Federal warrants bring $15.39 million (Wed, 10 Mar 2010 16:07:07 EST)
WASHINGTON -- The Treasury Department has received $15.39 million from the sale of warrants it received from Washington Federal Inc. as part of the support it provided from the government's $700 billion bailout program.
- BofA overdraft fee change will bring lower revenue (Wed, 10 Mar 2010 15:27:31 EST)
CHARLOTTE, North Carolina (Reuters) - Bank of America Corp <BAC.N> Chief Executive Brian Moynihan said on Wednesday the company's decision to eliminate overdraft fees on debit card transactions will "give up a lot of revenue" for the largest U.S. bank by assets.
- Analysis: Greece's crisis could presage America's (Wed, 10 Mar 2010 13:46:56 EST)
WASHINGTON -- Greece is a financial basket case, begging for international help. Is America heading down that same road?
- Sen Corker: no exemptions in new watchdog bill (Wed, 10 Mar 2010 13:42:53 EST)
WASHINGTON (Reuters) - An influential Republican in U.S. Senate talks on financial regulatory reform said on Wednesday there are no special exemptions for particular institutions in a proposed new government financial watchdog agency.
- AIG aircraft unit debt offering has strength (Wed, 10 Mar 2010 13:35:54 EST)
CHARLOTTE, N.C. -- International Lease Finance Corp., the aircraft-leasing unit of American International Group Inc., is looking to raise $1.3 billion in loan offerings as it seeks new funds to help repay some of its debt.
- Curbing derivatives might hurt, not help, Greece (Wed, 10 Mar 2010 12:12:44 EST)
NEW YORK -- Derivatives have become a dirty word.
- Citigroup tests waters in preferred securities sale (Wed, 10 Mar 2010 12:08:43 EST)
NEW YORK (Reuters) - Citigroup's <C.N> launch of preferred securities on Wednesday is a potentially major test of market sentiment, one year after prices of bank bonds and stocks plunged to multi-year lows, analysts said.
- A decade later, lessons in the Nasdaq collapse (Wed, 10 Mar 2010 11:37:58 EST)
SAN FRANCISCO (Reuters) - Ten years ago today, before the dot-com bubble burst, the Nasdaq composite index hit a record 5,132.52 points -- a peak that the technology-heavy market shows no sign of scaling again any time soon.
- Bank of America to stop debit card overdrafts (Wed, 10 Mar 2010 11:35:44 EST)
NEW YORK -- Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It's a step that may become a common move ahead of new regulations limiting overdraft fees.
- High stakes in China's big dig (Wed, 10 Mar 2010 11:22:19 EST)
SHENYANG, China (Reuters) - In a tunnel deep beneath Shenyang's busy streets, Lu Ze flicked a switch and a lone light bulb revealed a cluttered concrete floor.
- Lawsuits, poker and the death of a boutique bank (Wed, 10 Mar 2010 11:08:25 EST)
NEW YORK (Reuters) - In September 2008, as Lehman Brothers was breaking into a million pieces, a young investment bank was pushing up through the rubble.
- Home loan demand nudges higher in latest week (Wed, 10 Mar 2010 10:00:52 EST)
NEW YORK (Reuters) - U.S. mortgage applications nudged higher last week, reflecting increased demand for home purchase loans even as interest rates trekked higher, data from an industry group showed on Wednesday.
- Barclays seen on lookout for U.S. bank deal (Wed, 10 Mar 2010 09:26:15 EST)
LONDON (Reuters) - Barclays <BARC.L> is on the lookout to buy a retail bank in the United States, according to reports, to build on its successful investment bank build-up there and create a buffer against regulatory reform.
- Dutch fine Fortis for false information (Wed, 10 Mar 2010 06:13:49 EST)
BRUSSELS -- Belgian insurer Fortis Holding said Wednesday that Dutch regulators fined it euro576,000 ($781,000) for giving incorrect information about the financial situation of Fortis bank, months before it nearly collapsed and sought government rescue.
- Northern Rock shrinks losses, arrears rise (Wed, 10 Mar 2010 05:50:35 EST)
LONDON (Reuters) - State-owned Northern Rock shrank its losses in 2009, helped by a lower bad debt charge in the second half as house prices stabilized, but arrears rose and the lender warned loan impairments would stay high in 2010.
- Insurers' Chile quake hit won't up prices (Wed, 10 Mar 2010 04:43:51 EST)
MUNICH/ZURICH (Reuters) - Last month's huge earthquake in Chile might cost the insurance industry up to $7 billion in damage claims, the world's top two reinsurers said, but it looks unlikely to raise reinsurance prices.
- Strong China trade data point to rise in yuan (Wed, 10 Mar 2010 04:41:34 EST)
BEIJING (Reuters) - Chinese exports and imports grew faster than expected in February, underlining the momentum behind the world's third-largest economy and reinforcing the case for a rise in the yuan.
- Nationalized UK bank Northern Rock back in profit (Wed, 10 Mar 2010 03:47:59 EST)
LONDON -- Nationalized mortgage lender Northern Rock said Wednesday that it returned to profit in the second half of 2009 as interest income rose and losses on loans fell.
- Soaring China home prices thwart ordinary buyers (Wed, 10 Mar 2010 00:45:16 EST)
SHANGHAI -- The luxury apartment buildings Yang Xuhua passes on her way to work are a daily reminder of her own frustrated efforts to buy a home. Prices for even modest apartments in Shanghai have soared, putting home purchases out of reach for white collar workers and professionals.
- Curbing derivatives might hurt, not help, Greece (Wed, 10 Mar 2010 00:24:49 EST)
NEW YORK -- Derivatives have become a dirty word.
- Bank of America ends overdraft fees on debit cards (Wed, 10 Mar 2010 00:21:35 EST)
NEW YORK -- Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It's a step that may become a common move ahead of new regulations limiting overdraft fees.
- Europe moves to ban trading in credit default swaps (Wed, 10 Mar 2010 00:00:00 EST)
Europe moved ahead of the United States on Tuesday in advocating new measures to ban certain types of financial speculation after concerns surfaced that traders used complex financial instruments to push Greece deeper into a fiscal crisis and threaten the European economy.
- Senate financial bill appears likely to keep Fed as regulator of big banks (Wed, 10 Mar 2010 00:00:00 EST)
Key members of the Senate banking committee are coalescing around legislation that would strip the Federal Reserve of much of its regulatory authority but would leave the central bank with oversight of the nation's largest banks, according to aides familiar with the ongoing negotiations.
- Shares of bailed out companies surge (Tue, 09 Mar 2010 21:32:39 EST)
WASHINGTON -- Shares of four companies that have received huge infusions of taxpayer cash soared Tuesday after a report that the government would sell its stake in Citigroup Inc. raised hopes that other bailed-out companies would follow.
- Obama: Greece, facing bad days, has US as ally (Tue, 09 Mar 2010 21:19:25 EST)
WASHINGTON -- President Barack Obama stood with Greek Prime Minister George Papandreou on Tuesday and pledged that the United States would work with its ally, even as Greece's enormous debts sparked frenzied trading.
- SEC chief economist leaving (Tue, 09 Mar 2010 19:25:02 EST)
WASHINGTON -- The chief economist of the Securities and Exchange Commission, who is an expert on the financial instruments that figured largely in the 2008 crisis, is leaving his position for the private sector.
- Analysis: Greece's crisis could presage America's (Tue, 09 Mar 2010 18:42:42 EST)
WASHINGTON -- Greece is a financial basket case, begging for international help. Is America heading down that same road?
- Governor candidate wants to open Mich. state bank (Tue, 09 Mar 2010 18:16:17 EST)
LANSING, Mich. -- Lansing Mayor Virg Bernero on Tuesday proposed having Michigan follow the lead of North Dakota and open a state-owned bank that could make low-interest loans to businesses and college students.
- How the major stock indexes fared on Tuesday (Tue, 09 Mar 2010 18:03:05 EST)
-- Financial companies led stocks higher Tuesday on the one-year anniversary of the market's hitting a 12-year low. The gain in bank stocks came as traders reacted to rumors that the government might prohibit the trades known as short sales in the stocks of companies it owns. Such a move would be aimed at preventing sharp drops in stocks including Citigroup Inc. and American International Group Inc.
- Stock investors ask: What's the next big thing? (Tue, 09 Mar 2010 18:00:54 EST)
NEW YORK -- A year after the stock market began its comeback from 12-year lows, investors are looking for the next big thing.
- Telecoms lead Wall St rise (Tue, 09 Mar 2010 16:44:01 EST)
NEW YORK (Reuters) - One year to the day after stocks fell to their worst close in more than 12 years, the U.S. market spent most of Tuesday spinning its wheels.
- Woes at family bank loom over Ill. Senate race (Tue, 09 Mar 2010 15:10:15 EST)
CHICAGO -- With the public still furious over bank bailouts, Democrats desperate to keep President Barack Obama's old Senate seat are scrambling to counter revelations that a bank owned by their candidate's family may be nearing collapse.
- US Bancorp CEO's compensation falls 2 percent (Tue, 09 Mar 2010 14:05:46 EST)
NEW YORK -- U.S. Bancorp CEO Richard Davis took home 2 percent less in total compensation in 2009 than he did the previous year.
- Leibovitz can keep portfolio under new debt deal (Tue, 09 Mar 2010 13:29:10 EST)
NEW YORK -- Annie Leibovitz, the photographer who mismanaged her fortune so badly that she faced losing legal rights to some of pop culture's most enduring images, has reached a long-term agreement with a private investment firm to help manage her debt and market her vast portfolio, both sides said Tuesday.
- Market rebounds, but workers have minimal savings (Tue, 09 Mar 2010 11:56:27 EST)
DES MOINES, Iowa -- Tom Taormina is 65 and has no retirement savings.
- China: US assets should not be 'politicized' (Tue, 09 Mar 2010 03:02:49 EST)
BEIJING -- An official in charge of China's foreign reserves tried to ease American concern Tuesday about the political impact of its huge holdings of U.S. government debt and indicated Beijing has no plans for a big increase in its gold stockpile.
- China says committed to U.S. debt, wary on gold (Tue, 09 Mar 2010 02:27:40 EST)
BEIJING (Reuters) - China, the world's biggest holder of foreign exchange reserves, renewed its commitment to the U.S. Treasury market on Tuesday but said it would be wary of substantially boosting its gold holdings.
- Obama launches attack on health insurance companies (Tue, 09 Mar 2010 00:00:00 EST)
The White House is mounting a stinging, sustained broadside against health insurance rate increases as President Obama and his aides enter what they hope will be the final stretch of a year-long political war over health-care reform.
- Greece seeks U.S. help regulating speculators (Tue, 09 Mar 2010 00:00:00 EST)
Greek Prime Minister George Papandreou will seek President Obama's support at the White House on Tuesday for a European campaign to crack down on global financial speculation that critics say has exacerbated Europe's worst debt crisis in decades.
- AIG sells Alico unit to MetLife for $15.5 billion (Tue, 09 Mar 2010 00:00:00 EST)
American International Group announced Monday the sale of one of its major global insurance units to MetLife for $15.5 billion, the latest step in the insurance giant's quest to pay down its massive debt to U.S. taxpayers.
- If only financial reform really were funny (Tue, 09 Mar 2010 00:00:00 EST)
In a hilarious video plug for the proposed Consumer Financial Protection Agency, the popular comedy Web site funnyordie.com gathers Saturday Night Live's famed presidential impersonators -- from Chevy Chase to Will Farrell -- to advise a slumbering Barack Obama (Fred Armisen). Dana Carvey, reprising Daddy Bush, tersely sums up the whole shebang about financial reform:
- Obama pitches health plan in spirited appearance (Mon, 08 Mar 2010 23:31:31 EST)
GLENSIDE, Pa. -- Stirring memories of his campaign for the White House, President Barack Obama made a spirited, shirt-sleeved appeal for passage of long-stalled health care changes Monday as Democratic congressional leaders worked behind the scenes on legislation they hope can quickly gain passage.
- Obama targets insurers, sells reform plan (Mon, 08 Mar 2010 19:20:52 EST)
WASHINGTON (Reuters) - President Barack Obama launched a sharp attack on health insurers on Monday and called on his fellow Democrats to rise above politics and pass a healthcare overhaul in the next few weeks.
- Stock market rebound shows its age at 1-year mark (Mon, 08 Mar 2010 18:52:48 EST)
NEW YORK -- A year after the stock market hit bottom and began a spectacular comeback, it's getting harder to dazzle investors.
- Greece urging US to better regulate hedge funds (Mon, 08 Mar 2010 18:52:42 EST)
WASHINGTON -- Greece is urging the United States to step up regulation of hedge funds that Athens blames for making Greece's economic crisis worse.
- Summary Box: AIG's $15.5B Alico sale to MetLife (Mon, 08 Mar 2010 18:11:42 EST)
-- THE SALE: American International Group Inc. sold its American Life Insurance Co. division, or Alico, to MetLife Inc. for $15.5 billion. The deal is AIG's second big asset sale in two weeks. On March 1, it said it would sell its AIA Group unit to Prudential PLC for $35.5 billion.
- AIG sells Alico unit to MetLife for $15.5 billion (Mon, 08 Mar 2010 17:33:30 EST)
CHARLOTTE, N.C. -- American International Group Inc. said Monday that it will sell its American Life Insurance Co. division for $15.5 billion to MetLife Inc. The government-approved deal, AIG's second big asset sale in two weeks, will give the insurer more cash to repay the billions of bailout dollars it still owes the government.
- Critics hit Senate tilt toward Fed status quo (Mon, 08 Mar 2010 17:26:45 EST)
WASHINGTON (Reuters) - Senators leaning toward preserving the Federal Reserve's role as a bank supervisor and consumer protection regulator came under criticism on Monday from academics and consumer activists.
- T. Rowe Price CEO's 2009 compensation slips (Mon, 08 Mar 2010 17:11:29 EST)
BOSTON -- The president and chief executive of T. Rowe Price Group Inc., James A.C. Kennedy, saw his total compensation fall 17 percent to $4.7 million last year, according to an Associated Press analysis of the investment management company's proxy statement.
- Nasdaq rises on upgrades, market barely budges (Mon, 08 Mar 2010 16:37:12 EST)
NEW YORK (Reuters) - Technology shares pushed the Nasdaq higher on Monday on an otherwise flat day for stocks, led by BlackBerry maker Research in Motion and Cisco Systems.
- MetLife seals Alico deal after two-year quest (Mon, 08 Mar 2010 16:22:41 EST)
NEW YORK (Reuters) - MetLife Inc <MET.N> pursued AIG's <AIG.N> foreign life insurance business for two years before finally clinching a $15.5 billion purchase that will give it beachheads in 47 nations from Peru to Bangladesh.
- Private equity firm CCMP buys InfoGroup for $460M (Mon, 08 Mar 2010 15:40:48 EST)
OMAHA, Neb. -- Private equity firm CCMP Capital Advisors said Monday it plans to buy database provider InfoGroup Inc. for roughly $460 million cash.
- Capital One CEO receives $6.1 million in 2009 (Mon, 08 Mar 2010 15:28:43 EST)
NEW YORK -- Capital One Financial Corp. awarded its CEO, Richard Fairbank, a compensation package worth $6.1 million in 2009.
- FDIC's Bair eyes low interest rates, more lending (Mon, 08 Mar 2010 12:02:49 EST)
ARLINGTON, Virginia (Reuters) - U.S. banking regulator Sheila Bair said on Monday that a low interest rate policy is "clearly appropriate" to get credit flowing, while also saying regulators should stop short of ordering banks to lend.
- Canada Now Somewhat Less Anti-Startup (Mon, 08 Mar 2010 10:40:52 EST)
Canada isn't shy about making life difficult for startups, and we've had one or two personal brawls with the country as well. But a change in Canadian tax law last week is designed to spur U.S. venture investments in Canadian startups and make Canada less of a leper colony for tech entrepreneurs.The change allows foreign investors in most Canadian startups to avoid "literally hundreds of pages of documents" to be filed and processed on a sale of a startup, sometimes by each limited partner in a venture fund. That burden meant that most venture firms simply ignored the Canadian market, says Deloitte:A 2007 survey by Deloitte and Canada?s Venture Capital & Private Equity Association (CVCA) of 528 VCs from around the world found that 40% of U.S. respondents and 28% of global respondents cited Canada?s unfavourable tax environment as a key reason for not investing in Canadian companies. This level of concern is five times higher than for any other country in the survey and reflects the current investment crisis within Canada?s venture capital industry. The survey also found that Canada is attracting the attention of just 11% of U.S. VCs as a primary country for expansion ? behind China (34%) and India (24%).?I predict that over time this farsighted tax legislation will help propel Canada?s extraordinary technology into global industry leadership in numerous markets, and will likely be viewed in the future as a defining moment for the Harper government in Canadian innovation," says Stephen Hurwitz, a partner at U.S. law firm Choate Hall & Stewart.That may be a bit optimistic, but the tax change is a nice start. Perhaps over time our frozen neighbors to the north will be known for being great at something more than playing hockey and eating poutine. A robust startups community would be very welcome.More information:Change in tax law sends a strong signal to international investors that Canada is ?open for business?Government removes tax barriers and stimulates flow of capital across Canadian borderTORONTO, March 4, 2010 ? Canadian companies across the country are likely applauding today?s federal budget, which contains tax law changes that give them the advantage they need to compete on the global stage. By amending the definition of ?taxable Canadian property? to exclude shares of Canadian private companies (where not more than 50% of their value is derived from real property in Canada, Canadian resource property or timber resource property), the government has significantly reduced administrative and, in some cases, economic barriers to foreign investment in Canadian-based innovation and technology. This change puts Canada at the top of the list of places to invest globally. ?The changes in tax legislation announced in today?s budget are among the most significant changes to capital gains taxation since the introduction of taxation of capital gains in 1972,? explains John Ruffolo, Global Tax Technology, Media & Telecommunications Leader, Deloitte. ?The Canadian government has listened to the financing community, understood the severity of the problem and removed the major tax barriers that have prevented critically needed international investment capital from crossing our borders.? ?At a minimal cost to the government, this amendment will have an immediate, positive and direct impact on Canada?s ability to grow a robust Canadian technology industry,? explains Terry Matthews, Chairman, Wesley Clover. ?By sending a clear message to international investors that Canada is ?open for business?, the government will make Canadian companies more attractive to foreign investors overnight. This will help Canadian companies raise the capital they need to achieve global leadership status.? The change means a much more welcoming environment for foreign investors. In the vast majority of cases, non-residents who were not taxable on the disposition of their investments in such shares due to Canada?s broad international tax treaty network, are now exempt from tax under Canadian domestic law without having to apply for treaty relief. As a result, they are no longer required to comply with the Section 116 tax clearance certificate procedure or file a Canadian income tax return. The changes also remove what were perceived to be insurmountable barriers for many venture capitalists who considered the previous administrative requirements and economic delays for each investor to be strong deterrents to investing in Canada. ?The removal of the Section 116 tax barrier is a tax master stroke by the Canadian government enabling Canada?s emerging technology companies to access deep pools of international capital and the vast global customer markets to which those pools are connected," notes Stephen Hurwitz, Partner, Choate Hall & Stewart LLP in Boston. ?I predict that over time this farsighted tax legislation will help propel Canada?s extraordinary technology into global industry leadership in numerous markets, and will likely be viewed in the future as a defining moment for the Harper government in Canadian innovation.?BACKGROUND INFORMATION ON THE SECTION 116 TAX BARRIERSThe following describes the tax barriers that were removed in today?s budget and that are no longer preventing international investment in Canada:?Withholding and Section 116 certificate process ? The overwhelming majority of foreign VCs are not subject to Canadian tax when they sell an investment, but face a delay of many months to work through the Section 116 tax clearance process until funds can freely flow to them. Many foreign VCs are structured such that each of the investors in the VC ? sometimes hundreds or even thousands ? is subject to this clearance process as if they held the investment directly. This delay results in lower returns and frequently causes direct financial loss to investors. Canadians who invest in the United States, the United Kingdom and other major global markets do not face such taxes or delays from red tape. ?Requirement to file Canadian tax returns by foreigners who don?t owe taxes creates hundreds of pages of unnecessary paperwork ? Canada imposed tax filing requirements in circumstances where no taxes were payable by these investors. When a foreign VC sells an investment, each investor of the foreign VC has to file a Canadian tax return even if they don?t owe any taxes. This results in literally hundreds of pages of documents that are required for signature and processing for a single sale. This tax return filing issue also applies to certain Canadian public companies. Why Canada was perceived by VCs as having an unfavourable tax environment A 2007 survey by Deloitte and Canada?s Venture Capital & Private Equity Association (CVCA) of 528 VCs from around the world found that 40% of U.S. respondents and 28% of global respondents cited Canada?s unfavourable tax environment as a key reason for not investing in Canadian companies. This level of concern is five times higher than for any other country in the survey and reflects the current investment crisis within Canada?s venture capital industry. The survey also found that Canada is attracting the attention of just 11% of U.S. VCs as a primary country for expansion ? behind China (34%) and India (24%). About Deloitte Canada?s tax practice With the largest tax practice in the country (over 1,500 professionals in 44 offices), Deloitte offers a full suite of tax services to clients in all industries across the country. The market leader in shaping the ?future of tax?, Deloitte influences Canadian tax policy with the goal of creating a business climate which propels corporate growth and furthers Canada?s international competitiveness. Known for its industry-leading expertise, Deloitte?s tax practice sets the standard of excellence in Canada and is the only Big Four professional services firm in the country to receive a Tier 1 ranking in the prestigious International Tax Review (ITR)?s ?World Tax 2010? report. For further information on Deloitte?s tax practice, visit www.deloitte.ca and for further information on the ?future of tax?, visit www.thefutureoftax.ca.About Deloitte Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,700 people in 58 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.
- Dubai World deal hope lifts markets, divides creditors (Mon, 08 Mar 2010 10:23:39 EST)
DUBAI (Reuters) - Hopes of progress this week on Dubai World's <DBWLD.UL> $26 billion debt restructuring lifted stocks and eased fears of default, but potential divisions emerged among creditors to the state-owned conglomerate.
- Senators wrestle with Fed bank oversight issues (Mon, 08 Mar 2010 07:26:53 EST)
WASHINGTON (Reuters) - The Federal Reserve could retain oversight of large bank holding companies under a scaled-back regulatory reform plan being considered by key senators, but important questions remained unanswered, lobbyists said on Sunday.
- China cautions against expecting fast yuan rise (Mon, 08 Mar 2010 05:04:57 EST)
BEIJING (Reuters) - Any rise in the yuan's exchange rate will be gradual, China's trade chief said on Monday in comments that underline the competing interests at the heart of Chinese policy-making.
- Senators wrestle with Fed bank oversight issues (Mon, 08 Mar 2010 01:12:57 EST)
WASHINGTON (Reuters) - The Federal Reserve could retain oversight of large bank holding companies under a scaled-back regulatory reform plan being considered by key senators, but important questions remained unanswered, lobbyists said on Sunday.
- Senators wrestle with Fed bank oversight issues (Mon, 08 Mar 2010 01:12:57 EST)
WASHINGTON (Reuters) - The Federal Reserve could retain oversight of large bank holding companies under a scaled-back regulatory reform plan being considered by key senators, but important questions remained unanswered, lobbyists said on Sunday.
- With bank credit frozen, small U.S. businesses starting to turn to microlenders (Mon, 08 Mar 2010 00:00:00 EST)
Ryan Fochler's life changed six years ago when he left his job in the computer industry to buy an Arlington County-based dog-walking business with $50,000 in personal savings and a home-equity line of credit. The firm grew quickly, with revenue more than doubling each year. By 2008, Fochler was ready to expand the business into a full-fledged pet day-care service called Dog Paws 'n Cat Claws.
- Key vacancies give Obama a chance to steer financial reform (Mon, 08 Mar 2010 00:00:00 EST)
President Obama has the chance during his first term to appoint leaders for each of the federal agencies that oversee banks, an important opportunity to reshape the government's approach to regulation even as the White House struggles to push structural reforms through the Senate.
- MetLife set to buy AIG's Alico unit: sources (Sun, 07 Mar 2010 22:39:43 EST)
NEW YORK (Reuters) - AIG <AIG.N> was closing in on a deal on Sunday to sell its foreign life insurance unit to MetLife Inc <MET.N> for about $15.5 billion in cash and stock, leaving it with a substantial minority stake in MetLife, sources familiar with the matter said.
- Brazil: The New Home of Financial Innovation? (Sun, 07 Mar 2010 16:37:05 EST)
Brazil is sort of a strange country to throw into the ?emerging market? category. It?s not a particularly young country like India or Israel, nor is it a country like China or Russia that embraced capitalism fairly recently. Brazil is as old as the US and has had a decently built out infrastructure of things like roads and phone lines for some time.Yes, it?s a growing country with a young and stabilizing democracy that has a long way to go in terms of technology, modernization and bridging a quality of life between very wealthy and very poor. In that sense, it shares enough in common with emerging markets that Wall Street, at least, tosses it in the ?BRIC? bucket. Indeed, Wall Street has had a way bigger crush on Brazil to date than Silicon Valley. That seems to have had two effects on the startup scene in Sao Paulo. The first is that there?s a good deal of innovation in the finance space. Banks in Brazil had to become advanced, many people told me, because of the runaway inflation that plagued the country for so many years. As opposed to other huge markets like Mexico, China or India that lagged in the adoption of checking accounts and other basic services, in Brazil you had to have your money in the bank, because the value of cash changed so rapidly. So it?s no surprise more of those there?s-a-better-way spin-offs have come in finance than, say, Web 2.0 or mobile. (There?s a ton in agriculture and other sectors outside the cities too, but more on that in a future post.) My favorite finance company that I met during my February trip to Brazil is called Crivo, and it left me wondering if that great wave of finance innovation might come from our Southern neighbors, not us.Crivo has developed a way to do lightning-fast, three-second credit checks. Its servers pull information from a variety of sources, including all the places you'd expect but but also sources like utility records to verify an applicant's address or ensuring that their phone number doesn't just go to a payphone. ?Even a single piece of information can be useful in detecting fraud,? says Daniel Turnini, one of Crivo?s founders. (Pictured above, on the right, with his co-founders.)There?s nothing like a FICO score in Brazil so, in the past, credit decisions were made based on negative data and positive data. In other words you are ?good? or ?bad? in the bank?s eyes. There?s little record for positive data in Brazil, because the wealthiest people don?t want how much they paid for a house or a car in public records. It?s a security issue, Turnini says. That only leaves negative data.So if there?s no information about you, it?s assumed you?re a good credit risk. But miss one payment and you have a ?dirty name,? Turini says. It?s a flawed system. Many good credit risks (indeed I?d bet most people) have missed a payment before, and it?s a huge assumption to make that someone with no credit history would be a good borrower. In recent years there have been banks, insurance companies, and similar institutions vying to cash in on Brazil?s emerging middle class and increasingly wealthy upper classes, but had no real way of knowing how to extend credit.Sound like great timing? It would have been if Crivo wasn?t started in 1998. Back then, few banks in the US would have been early adopters of something like this, let alone banks in Brazil. (Ok, most banks in the US still wouldn?t be.) Nailing that first customer was near impossible. The founders kept thinking they were on the right track because potential customers would freak out when they saw how quickly the software worked, but they'd never quite pull the trigger on a purchase. Always hoping things would finally click the next year, the founders kept bootstrapping the company. Finally, it did. Toyota?s Brazilian financial arm bought their software and used it to rapidly approve people for loans, beating other car makers who were flooding into the growing market. The company has been on a sharp growth rate for five years now. They did roughly $12 million in revenues last year, and expect that to double in 2010, Turini says. Crivo says it has more than 80 employees and 100 customers today.There are clear ripple effects if Crivo does well. More people getting credit cards helps grow spending and ecommerce, more small businesses can get loans, and more people who can?t afford to pay in cash can buy houses ¿ to name just a few advantages. We?ve seen the benefits of ?greenfield markets? when it comes to innovation in telecom and even physical infrastructure, like roads and trains. Might Brazil be able to come up with some greenfield solutions for finance? It?s easy to see how a FICO score could be improved on and, ahem, really easy to make the argument that way too much credit has been extended in the US in the last ten years. But while we have a system in place, who is going to upend the apple cart and force widespread-adoption of a newer, smarter system? It?s South Korea and telecom all over again.And there?s another benefit to an emerging market that plays host to lots of finance and consulting multinationals. While countries like Israel and India have gotten a raft of talented coders thanks to US outsourcing, their own startups struggle when it comes to finding locals with sales and management expertise. Those jobs are usually kept in the US or done by transplanted Americans.And just as Intel, Cisco, Oracle and Google have trained thousands of engineers in emerging markets, so the big consulting, finance and CPG companies are training hundreds of potential managers in Brazil.Yes, I realize that to many tech entrepreneurs, the idea of a country amassing an army of middle managers sounds about as appealing as a resurrection ship of Cylons. But a lot of the most talented local entrepreneurs, managers and even investors I met in Brazil had spun out of a year or two in consulting and finance.An example was Diego Simon of VivaReal (pictured right, working in his tiny home office), a broad Latin American real estate portal that has increasingly been focusing on Brazil. Neither of the founders are Brazilian ¿ or even live in Brazil ¿ so finding someone like Simon was essential. Entrepreneurs from other South American countries say selling to Brazil as an outsider is harder for them than selling to China. That makes Simon exactly the Droid any company like VivaReal is looking for: He had experience running his family?s business, worked a stint for a multinational but left because he wanted to do something vaguely entrepreneurial ¿ although he didn?t know exactly what. I?ve never been particularly bullish on real estate portals, but if VivaReal does well, it will be in no small part due to Simon criss-crossing Sao Paulo in his Fiat extolling the virtues of online listings under the auspices of a common culture and language.The problem is?like in China and India?the allure of the multi-national paycheck and prestige is strong in Brazil. The management expertise may be there in greater numbers, but convincing someone to take a gamble on an unproven startup for stock is as hard as it is anywhere in the emerging world.
- The Rebound: Numbers tell story of market recovery (Sun, 07 Mar 2010 15:39:50 EST)
-- NEW YORK - On March 9, 2009, it felt like the world was ending.
- Diviners Divided: Economists clash, sow confusion (Sun, 07 Mar 2010 15:07:42 EST)
NEW YORK -- If you're confused about the outlook for the economy and stocks one year after the market hit bottom, then you've got good company - the Wall Street economists and strategists who are supposed to have this all figured out.
- Relationship over? Dollar, stocks break up (Sun, 07 Mar 2010 14:23:41 EST)
NEW YORK -- The relationship between the dollar and stocks that helped define last year's stock market rally is over.
- Iceland votes 'no' to debt deal for collapsed bank (Sun, 07 Mar 2010 14:17:35 EST)
REYKJAVIK, Iceland -- Icelanders blew whistles and set off fireworks in the capital as referendum results Sunday showed they had resoundingly rejected a $5.3 billion plan to repay Britain and the Netherlands for debts spawned by the collapse of an Icelandic bank.
- Dubai debt deal expected this week: bankers (Sun, 07 Mar 2010 11:41:09 EST)
DUBAI (Reuters) - Troubled conglomerate Dubai World expects to put its debt plan to creditors as early as this week but the final proposal is being delayed by efforts to accurately value developer Nakheel's assets, bankers said on Sunday.
- Bulls may run more from March 2009 lows (Sun, 07 Mar 2010 11:13:26 EST)
NEW YORK (Reuters) - Bulls may get more room to run this week on the anniversary of the March 2009 lows -- if U.S. stock investors see more signs of stability after Friday's rally on smaller-than-expected job losses.
- Why make government the prime source for student loans? (Sun, 07 Mar 2010 00:00:00 EST)
While health-care reform occupies the spotlight, the Obama administration is pushing for another Washington takeover -- this time of the student loan system. Last month, U.S. Education Secretary Arne Duncan made the administration's latest pitch on this page.
- Fairfax's affordable housing plan might not change Tysons (Sun, 07 Mar 2010 00:00:00 EST)
Priced out of living in Tysons Corner, many among the 100,000-member workforce have been known to commute from as far as Fredericksburg and Oxon Hill, and even from points in West Virginia.
- Financial reform bill likely to lose measure to protect Main Street investors (Sun, 07 Mar 2010 00:00:00 EST)
When financial reform legislation finally lands on the Senate floor, a provision that advocates call the single most important item for Main Street investors will probably have been banished from the ponderous bill.
- Financial pros offer strategies for financing a Roth conversion (Sun, 07 Mar 2010 00:00:00 EST)
Q: Should we borrow to pay the tax on a Roth IRA conversion?
- Billionaire Bubble: Ten players in the local tech scene look back, a decade later, at the frenzied days of the Internet boom and its fateful bust (Sun, 07 Mar 2010 00:00:00 EST)
There was a time, as 1999 rolled into 2000, when it seemed as if everyone was rich. Or, at least, as if they could be rich. They had equity. Or a big idea. Or a lock on friends-and-family shares in an IPO. With tech stocks soaring and venture capital money flowing, cashing in on the cyber revolution seemed a worthy bet.
- Banks shuttered in Fla., Ill., Md., Utah (Sat, 06 Mar 2010 05:47:04 EST)
CHARLOTTE, N.C. -- Regulators on Friday shuttered banks in Florida, Illinois, Maryland and Utah, boosting to 26 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.
- Digital Thieves Dominate Data Breaches (Sat, 06 Mar 2010 00:19:59 EST)
For the first time, hackers have become the biggest cause behind publicly reported data breaches, according to a recent report.
- Rep. Barney Frank warns of Fannie, Freddie risks (Sat, 06 Mar 2010 00:00:00 EST)
An influential voice on Capitol Hill has unexpectedly called into question the safety of investing in Fannie Mae and Freddie Mac, raising the specter that investors who have lent money to the two firms or bought their mortgage-backed securities could one day suffer losses.
- The recession has hurt many people's credit scores. How to fix it? (Sat, 06 Mar 2010 00:00:00 EST)
The recession may have done a number on your credit score, even if it spurred you to reform spendthrift ways and cut up your credit cards. For many, the drops have come at the same time that lenders have tightened their standards and demanded higher scores to get the best interest rates.
- Looking to refinance? Ask yourself these four crucial questions. (Sat, 06 Mar 2010 00:00:00 EST)
Q: We want to refinance our home loan. We are at 5.75 percent and might be able to get 4.85 percent on a 30-year, fixed-rate mortgage. We would save $87 to $104 per month, and we are thinking about adding extra money each month to pay off the loan faster.
- Squatters in their own house: When banks don't foreclose (Sat, 06 Mar 2010 00:00:00 EST)
It's been more than 16 months since Eugene and Patricia Harrison last paid the mortgage on their Perris, Calif., home. Eleven months since the notice got slapped on their front door, warning that the house would be sold at auction.
- Sometimes losing a home is just the beginning of the pain (Sat, 06 Mar 2010 00:00:00 EST)
As if losing one's home in a foreclosure or short sale were not already sufficiently traumatic, many former homeowners are learning that the day they turn in their keys may be only the start of an even more prolonged housing-induced misery.
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