Summary
Congress is seeking to end the practice of paying million-dollar bonuses to executives at government-controlled mortgage giants Fannie Mae and Freddie Mac. The House Financial Services Committee approved legislation Tuesday that would suspend $12.8 million in Fannie and Freddie executive compensation packages and stop future bonuses. The vote was 52-4, with strong support from both parties. The Senate is expected to take up a similar measure in the near future. The government rescued Washington-based Fannie and McLean, Va.-based Freddie three years ago after they nearly folded because of big losses on risky mortgages they purchased. Taxpayers have spent about $170 billion to rescue the two, the most expensive bailout of the 2008 financial crisis. The government estimates the bailout could reach up to $220 billion through 2014.
American Express Co. on Tuesday reported an increase in the rate its customers defaulted on their cards in October, but said late payments fell slightly. The New York-based company continues to have the lowest rates for both measures among the major credit card issuers, due to its more affluent customer base and tight controls on problem customers. American Express wrote off $50.6 million, or 2.7 percent, of balances on an annualized basis, in October, up from 2.3 percent in September. The rate is sharply below the 4.7 percent charge-off rate a year ago. Payments on just 1.4 percent of balances were delinquent, or late by 30 days or more, in October. That's down from 1.5 percent in September. A year ago, the delinquency rate was 2.3 percent. Amex's worst month for charge-offs came in April 2009, when it hit 10.4 percent. Card companies typically write off loans after they are six months past due. Delinquencies reached their highest point in February 2009 at 5.3 percent. The figure is an indicator for what to expect for defaults in coming months. Shares of American Express rose 60 cents, to $50.05 in afternoon trading.See the full content of this document
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Ticker, Nov. 16
BP has lost two big rulings in its fight to shield itself from potentially having to pay billions of dollars ...
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