Showing posts with label targeted. Show all posts
Showing posts with label targeted. Show all posts

Saturday, October 20

Middle class, whatever it is, targeted by candidates

What is the middle class, anyway? There's no official definition, but Americans and their leaders seem to know it when they see it.

And after five tough years of a recession and slow economy, there's plenty of evidence that fewer people see a middle-class life when they look in the mirror.

“You can’t define middle class, but you can ask people, ‘Do you still feel middle class?’ And more and more people don’t,” said Tim Smeeding, director of the Institute for Research on Poverty at the University of Wisconsin.

Still, as election season heats up, that’s not stopping many politicians from promising to help the middle class, whoever they may be.

"The whole attraction of middle class … is it doesn’t mean anything," said Dennis Gilbert, a sociology professor at Hamilton College who studies class issues. "Middle class means anybody who might vote for you."

The focus on the middle class starts at the top of the ticket, where President Barack Obama and Republican challenger Mitt Romney have both repeatedly invoked the middle class in their quest to win the presidency next month.

Obama told voters during last week's debate that he cut taxes for middle-class families “because I believe that we do best when the middle class is doing well.”

Then he questioned whether Romney had the same dedication to the middle class.

“And at some point, I think the American people have to ask themselves, is the reason that Governor Romney is keeping all these plans to replace secret because they're too good? Is it -- is it because that somehow middle-class families are going to benefit too much from them?” Obama said, according to a transcript provided by the Commission on Presidential Debates.

Romney argued that Obama’s policies have hurt the middle class and would continue to do so.

“There's no question in my mind that if the president were to be re-elected you'll continue to see a middle-class squeeze with incomes going down and prices going up,” he said during the debate. “I'll get incomes up again.”

The traditional political focus on the middle class comes as fewer people feel like they’re still part of it. A Pew Research Center report this year found that 49 percent of people define themselves as middle class, down from 53 percent from four years ago.

“Statistically, that’s a significant shift, but beyond statistics it feels right,” said Rich Morin, a senior editor with Pew Research Center. “It’s been a tough four years.”

In fact, Morin said, Americans’ sense of how the middle part of the economic spectrum is doing is surprisingly accurate. The polling data on whether Americans feel like they are still part of the middle class matches well with the researchers’ economic data on median income in the United States, which has fallen in recent years after adjusting for inflation.

Still, experts say the term middle class has a cultural connotation that goes beyond the number on your paycheck or tax stub.

Kevin Leicht, director of the Iowa Social Science Research Center at the University of Iowa, said many Americans think of a middle-class life as being one in which you have a stable job, own your own home and occasionally buy something substantial like a new car. You also either went to college or have the aspiration of sending your children to college.

Beyond that, he said, the term middle class invokes the type of person who gets married and has kids, pays their bills on time, doesn’t get in trouble with the law and maybe goes to church.

“In the United States, it’s probably more of a cultural category than an economic one,” he said.

He thinks Americans’ affinity for the middle class also comes partly from a natural suspicion for both the richest and the poorest Americans. Audacious wealth has traditionally been frowned upon in this country, he said, while there’s also often a fear-based bias against people who are poor.

“Because a lot of us are two missed paychecks away from being in exactly the same position, we have to act like there’s something systematically wrong with people who are in that position,” Leicht said.

The sense of a shrinking middle class also comes amid evidence that the rich are getting richer and the poor are getting poorer, discouraging many Americans.

“They are aware that economic inequality is growing. And a majority – a substantial majority – say it’s a bad thing,” Morin said. “Everyone aspires to be upper class, but people are aware that as more Americans move up into the upper class, more Americans are moving down, and that’s not a good thing.”

The big question now is whether Americans’ discouraged attitudes about the middle class will change if the economic recovery starts to pick up.

In general, experts say that history would show that Americans will grow more optimistic about the middle class, and the American dream, as economic conditions improve. But, they note, this recession and weak recovery has been different from any other we’ve experienced in recent decades, and the future remains uncertain.

“I’m sure a strong recovery would help, but that’s a ways off,” Smeeding said. “Our standard of living is lower now than it was in 2006.”

Readers, how do you define a middle class life and do you think you are living it? Send me an e-mail, including contact information, and and we’ll use some of your responses in an upcoming story.

Mitt Romney's campaign has released a new ad suggesting President Obama would raise taxes on the middle class. Vice President Joe Biden went on the defensive saying the president would raise taxes, but not on the middle class. The Washington Post's Eugene Robinson joins a Friday wrap-up analyzing the first presidential debate of 2012.

Wednesday, July 18

Big banks targeted as rate-fixing probe widens

An international probe into alleged interest rate fixing that led to $453 million in fines against Barclays Bank is taking aim at four other banks, including Citigroup, UBS, HSBC and Royal Bank of Scotland, British officials said Thursday.

Investors were punishing bank shares amid worries that the banks will also be hit with hefty fines.

British Treasury chief George Osborne said the four banks were being probed for allegedly providing false figures on key interest rates upon which mortgages and consumer loans are priced.

On Wednesday, U.S and British regulators imposed the fines on Barclays for manipulating the so-called LIBOR — the London interbank offered rate — to its advantage from 2005 to 2009.

The probe is part of a multiyear investigation into whether banks manipulated the key rate during the financial crisis to help boost profits and hide their ailing financial condition. The Wall Street Journal, which initially raised questions about the rate in a series of stories in 2008, said the fine against Barclays was the biggest victory yet for regulators in the probe.

Barclays made the deal with regulators in the U.S. and in Britain.

"Banks were clearly acting in concert," said Andrew Tyrie, a British lawmaker, who is also chairman of the influential Treasury Committee in the House of Commons. "I fear it's not going to be the end of the story, that we are going to find that other banks have been involved."

Tyrie said his committee would summon Barclays chief executive Bob Diamond to explain what happened at the bank.

Diamond has decided to waive his 2012 bonus in wake of the fines and is facing calls to step down.

Prime Minister David Cameron, when asked whether Diamond should resign, said he thinks "the whole management team have got some serious questions to answer. Let them answer those questions first."

The massive fines are unlikely to be the end of the pain for Barclays. The cost of lawsuits related to the LIBOR scandal will likely be bigger, said Sandy Chen, banking analyst at Cenkos Securities.

"Since Royal Bank of Scotland, HSBC and Lloyds Banking Group have also been named in lawsuits, we expect they will also face significant fines and damages. We are penciling in multiyear provisions that could run into the billions," Chen said.

The LIBOR is an average rate set by banks each morning that measures how much they're going to charge each other for loans. That rate, in turn, affects rates on many loans for consumers and businesses.

The U.S. Justice Department said Barclays would not face criminal prosecution, subject to certain conditions, but individual employees or officers could be prosecuted.

Diamond waived any bonus for this year, as did finance director Chris Lucas, chief operating officer Jerry del Missier and Rich Ricci, the chief executive of corporate and investment banking. Diamond said the decision reflected "our collective responsibility as leaders."

Martin Taylor, who was CEO of Barclays between 1995 and 1998, said the bank's board will have to make a decision whether Diamond can carry on in his post.

Though Taylor does not believe Diamond ordered anyone to fiddle the rates, and thinks Diamond should stay if he can "help clean out the stables," he told BBC radio that only the board can make that judgment.

The traders involved in the manipulations worked in Barclays Capital, the investment bank which Diamond headed between 2005 and 2009.

Former Barclays chief Taylor said he was confident that Diamond hadn't sanctioned the misbehavior in the unit, but added that the company's culture might have been a factor behind the misdemeanors.

"Bob runs an extraordinarily competitive and aggressive ship, and that is one reason why Barclays Capital has been very successful in the first decade of the century," Taylor said.

"And I think that when people are pushed to go to the limit, you know what traders are like, they sometimes go beyond it. They don't need to have an instruction from headquarters to go beyond it, they think it is what the bank might expect, perhaps."

"Somebody at senior level somewhere will certainly have known. I can't believe that Barclays haven't identified who that is," Taylor added.

Reuters contributed to this report.

CNBC's Kelly Evans reports Barclays has serious questions to answer over an investigation on whether the banking giant manipulated interbank lending rates over several years.

Tuesday, October 4

Daimler CEO targeted in test-track death

AppId is over the quota AppId is over the quota German public prosecutors have started investigating Daimler Chief Executive Dieter Zetsche on suspicions of involuntary manslaughter involving the fatal accident of a 27-year-old engineer caused by an intern on a test track.


"There is an investigation," senior public prosecutor Alexander Retemeyer told Reuters on Friday, confirming a report in German daily Stuttgarter Zeitung.


"It is highly doubtful that the chief executive personally can be held responsible for this, however."


A spokesman for Daimler said the company was not informed of any investigation, and if there was one, it should be directed at the group's management board and not Zetsche personally.


The Stuttgarter Zeitung reported earlier that the parents of the 27-year old engineer felt the company should not have put the intern behind the wheel of a fast car on a test track.


"There is already a ruling from the district court in Papenburg in which the judge expressly found that Daimler could not be held at fault in any way for the accident," the Daimler spokesman added.


Copyright 2011 Thomson Reuters.

Friday, July 29

Credit Suisse targeted in the United States tax evasion probe

Geneva - the Ministry of Justice of the United States is examining whether to evade taxes by the fact that money in secret accounts the Swiss Bank helped, said Friday the American customers wealthy Credit Suisse Group.

The investigation is part of a major checkpoint in edge role played in facilitating tax evasion by U.S. citizens.

Credit Suisse is highest profile Swiss Bank forwarded, as rival UBS AG to help three years ago, in the Switzerland and elsewhere US clients admitted hiding money in offshore accounts. It ended up paying a 780 million fine and give U.S. authorities information on thousands of American account holders.

RS to soften strict bank secrecy offering rules with the agreed Switzerland prompted more information to foreign authorities investigate alleged tax evasion.

Credit Suisse said it was informed of the investigation by letter Thursday and will cooperate with US authorities in the framework of Swiss banking secrecy banking laws.

The bank providing stopped cross-border private banking services for Americans in 2008.

The Switzerland Supreme Court on Friday confirmed the Swiss Government to shop right on the data of UBS customers, a move that has been provided by some of the affected clients in question. The Federal Tribunal in Lausanne said the Government has the right to prevent emergency powers with "serious and virtually uncontrollable economic consequences for the Switzerland", that failed, to order the version of the files.

Observers had expected that a formal investigation against Credit Suisse Bank accused American tax by three former and one current employee of US authorities in February on charges of conspiracy to help, cheats.

Analysts at Zurich Kantonalbank, that a new Treaty, which currently discussed by Bern and Washington - which would automatically control the accounts of the American Bank customers in the Switzerland - could the pressure on the Credit Suisse and other Swiss banks facilitate.

A spokesman for the Swiss Finance Department, Mario Tuor, said the associated press last month that the talks aimed at it, would reach a "comprehensive solution", covering all past tax violations by US-clients and Swiss banks.

Tax experts say that Switzerland has few assets, the links to play during the US authorities pile of evidence against Swiss banks from voluntary information from U.S. clients, which is a reduced accumulable are punishment for tax evasion.

"What the Swiss to do try solved this whole thing only get," said Milan k. Patel, a Zurich tax attorney. When she reach no agreement, said Swiss banks could lose their license to operate in the United States and face could be tracking, corporate executives he.

Shares in Credit Suisse, which the results of the second quarter July 28 releases, closed 1.5 percent of lower 30.12 Swiss francs ($36.91) on the Zurich stock exchange.

Copyright 2011 associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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