Financial Communique » debt

New bankruptcies in USA

Viliyana Filipova — Sat, 29 Jan 2011 15:45:23 +0000

The U.S. regulators have closed four banks with total assets of 3.38 billion dollars. One of the failed bank is First Community Bank in Taos, New Mexico, it will be acquired by US Bancorp – the fifth largest commercial bank in the U.S. in size of deposits. Is spite of the debt reduction of the creditors the bank realized terrible financial report and bankrupted. The U.S. Bancorp now has 38 branches and over 1.8 billion dollars in deposits. The other bankrupted banks in Colorado, Oklahoma and Wisconsin, says the message of the FDIC for deposit insurance (FDIC). The closure of banks will cost the fund for insuring deposits FDIC total 545.5 million dollars. The main reason for the bankruptcy is the credit card debt. In spite of the credit card debt relief, which the bankrupted banks made to their clients, the payment was impossible for the citizens. Since the beginning of the year in the U.S. are 11 banks failed, but by early 2008 their number reached 333. Continued failures due to bad loans in the portfolio of banks to the sector of commercial real estate. From the government offered debt settlement lawyers for the credit owners, who will renegotiate their terms.
From the FDIC said in November that the list of troubled banks by the regulator, ie those who are at increased risk of bankruptcy, rose by 3.7 percent in the third quarter to 860 financial institutions – the highest number in 17 years.

Is debt management a good idea?

Viliyana Filipova — Fri, 01 Oct 2010 13:21:05 +0000

If you’re looking at your debts and wondering about the best way of clearing them, you might already have looked into the different debt solutions out there. You might have come across the idea of a debt management plan – and be wondering if it’s a good idea.
Some people like the idea of a professional debt management plan, and others don’t.
A debt management company can get in touch with your creditors for you and talk to them about accepting lower monthly payments, since you can’t afford the repayments you should be making to them. If it all works out, they’ll take your money every month and use it to pay a certain amount to each creditor.
They might also take some of that money for themselves as a fee for their services. So the question is: Do you personally think it’s worth paying a fee?
You can do all this yourself without even talking to a debt management company, but a lot of people would rather pay the fee and let someone else do it all for them – things like making sense of their finances, negotiating the lower payments, answering letters, distributing payments and renegotiating payments if that becomes necessary later on.
And a lot of people would just rather do it themselves. For some people, the thought of all that organising, communicating, calculating, distributing… is pretty alarming. But others are quite happy to do it on their own.
So basically it’s up to you to decide if you like the idea or if you’d rather handle things yourself.
Whether you go with a professional debt management company or not, just remember that making smaller payments to your creditors means you’re not upholding the repayment agreement you signed when you borrowed the money – and this can affect your credit rating.
Also, remember that interest means if you’re repaying something for longer, it can cost you more. So if you do it on your own, make sure you ask your creditors if they’ll freeze interest.
And finally, remember that your lenders don’t actually have to agree to any changes to the way you’re repaying your debts.
Check out this debt test to help you better understand your situation.

China approved debt emitting in USA

Viliyana Filipova — Mon, 14 Jun 2010 12:57:44 +0000

Year after China called on U.S. fiscal policy “irresponsible” Asian country shows signs of increasing confidence in the policies of U.S. President Barack Obama. This is evident from the data on the size of China’s position in U.S. government bonds. In March and April this year grew by 2.6 percent to 900.2 billion after last year between November and February that she was reduced to 6.5 per cent. So long series of negative has been reported a decade, official data showed. During the two months considered China increased its position in U.S. government bonds with 22.7 billion dollars. This is only part of the increase in foreign assets of the Asian country, which amounted to 205.2 billion dollars. Purchases in recent months have focused on the acquisition of long-term U.S. debt. Unlike now, in 2008 China increased mainly purchases of short-term bonds. For the 12 months to the end of April this year the increase of the position in U.S. bonds with a maturity of two years or more with 46 percent, data show. With the acquisition of long-term bonds China helps the U.S. to keep its funding costs at a record low. Analysts also support companies and consumers in the U.S. and accelerates the process of economic recovery.
This year U.S. government bonds registered its strongest performance since 2003, to June 18 as the return was 4.51 percent. As a reason for this state of Europe’s problems, directing capital to the U.S. free market.

Keen interest in Greek bonds expensed the EUR

Viliyana Filipova — Tue, 26 Jan 2010 10:07:39 +0000

In less than an hour after the opening of auction the sale of a 5-year Greek government bond was declared interest securities 9 billion, says Reuters. Market expectations of the Greek government was neighbor to distribute securities up within the framework of 3 to 5 billion, says Finance.news.bg. According to various sources of interest for the purchase of securities worth 16-17 billion. According to a banker involved in today’s auction, the average price achieved for this auction is for approximately 350 basis points interest rate spread. Thus the yield of 5-year Greek bonds is now at 5.97% to 2.32% return for their German equivalent (Bunds). This very successful auction and lead to a decline in interest rate spread between 10-years Greek and German bonds to 297 points after earlier today spread was 309 points to a record peak on Friday at 318 basis points. The news caused contraction of the interest spread between 10-year debt of Spain / Germany by 5 basis points to 87 points. The news helped to a strong surge in share prices of Greek banks on stock markets around 4 percent since the last weeks they were subjected to aggressive sales.
The euro has also risen since 1.4182 EUR / USD rose after the news at 1.4197 EUR / USD.