Posts Tagged ‘SEC’

Do bill collector phone calls factor in to who gets laid off? I received a short one-line email the other day that said, “Go after them because their calls at work cost me my job.” The law says you can tell callers not to call you at work, and theoretically all calls will cease. Employers are cutting back in a bad economy. Some employers are simply looking for an excuse.

The headline said ”Banks Profit from Unemployed Customer”. Well, duh. That is what banks do, if they can. Banks aren’t selective. They profit from the employed and unemployed alike. Except in this case, the customer is the state. The state has the contract with the credit card company in order to use their services to distribute unemployment benefits.

We cannot blame the credit crisis on poor people any longer, as if anyone actually believed that anyway. Rating agency Moody’s said last month that it was revising upwards the expected losses on 90% of Alt-A mortgage securities. It describes the collapse as ‘unprecedented for its asset class’. These are not the subprime households who would probably have been better off without a mortgage in the first place. Alt-A borrowers tend to be middle-income earners.

The SEC claims to be awake and actually doing something. The U.S. Securities and Exchange Commission expects to file additional subprime-related enforcement actions and has dozens of “very active” investigations underway, an SEC official said on Friday. Will this result in questions the SEC does not want to answer? Only a few days after Washington told the SEC they “failed miserably in their mission” the SEC has a brilliant idea, if doing something is to be believed.

Whether you think it is good strategy or a huge hole in security, banks are cutting IT workers. Among the gruesome numbers to come out of the financial crisis are the ones hitting corporate IT, especially at major banks. In a recent round of cuts, 650 IT jobs will go at Credit Suisse, 500 at HSBC and up to 1,800 at Barclays. Many are also slashing their spending with contractors. Goldman Sachs and Citigroup, for example, have demanded that contractors accept a 15% cut in daily rates, while HBOS and Barclays made take-it-or-leave-it offers of 10% reductions.

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