Tuesday, January 7, 2014

Wednesday January 8 Housing and Economic stories


The City Of Camden, New Jersey Is Under Intense, Military-Style Surveillance - (www.businessinsider.com) Big Brother is watching Camden, N.J. A Rolling Stone article published earlier this month highlighted the intense surveillance tactics police have employed in an effort to drive out drugs and reduce crime in Camden, one of America's most dangerous cities. It sounds pretty intimidating: Energized county officials say they have a plan now for retaking Camden's streets one impenetrable neighborhood at a time, using old-school techniques like foot patrols and simple get-to-know-you community interactions (new officers stop and talk to residents as a matter of strategy and policy). But the plan also involves the use of space-age cameras and military-style surveillance, which ironically will turn this crumbling dead-poor dopescape of barred row homes and deserted factories into a high-end proving ground for futuristic crowd-control technology.

BofA's legal costs mount in Countrywide mortgage fiasco - (www.latimes.com) A federal judge will soon decide how much Bank of America should pay for some of Countrywide Financial Corp.'s sins in the lead-up to the financial crisis. Federal prosecutors want BofA to pay $864 million after the bank's stinging defeat in a major civil fraud trial in October. A jury found BofA liable in a case centered on a Countrywide program called "The Hustle," which churned out risky home loans before selling them to mortgage giants Fannie Mae and Freddie Mac. But whatever penalty the bank might pay, it will amount to a mere drop in the bucket of BofA's legal bills — much of it stemming from its ill-fated acquisition of the former Calabasas mortgage lender in 2008. "It's chump change," said Dick Bove, bank analyst at Rafferty Capital Markets. The bank already has shouldered about $50 billion in loan and foreclosure losses, lawsuit settlements and investigations and legal defense costs stemming from its purchase of Countrywide, just as the housing market cratered.

Ally Financial pays $98 million to settle auto lending bias probe - (www.latimes.com) Ally Financial Inc., a former General Motors Corp. lending arm that taxpayers bailed out during the financial crisis, will pay $98 million to settle federal government allegations that car dealers overcharged blacks, Latinos and Asians for Ally’s auto loans. Without admitting wrongdoing, Ally agreed to pay restitution of $80 million and an $18 million penalty. It also agreed to work with the Consumer Financial Protection Bureau and the Department of Justice to monitor dealer loan pricing to prevent discrimination. Ally, which is no longer part of GM, has the option of eliminating dealer markups of interest rates altogether, government officials said Friday.

The real problem with France's 75% tax - (www.cnbc.com) Plans for a 75 percent tax on the superwealthy in France will finally become reality in 2014. (Read more: France approves 75 percent tax on high earners) Following a French court ruling published Sunday, the tax will be leveled on companies paying salaries of more than one million euros ($1.4 million). Earlier versions of the bill, one of the key tenet of France's left-leaning Prime Minister Francois Hollande's election promises, had already raised the ire of the country's footballers -- who threatened to strike earlier this year -- and actor Gerard Depardieu, who registered as a Russian citizen as well as moving moved to Belgium in protest. The tax was originally supposed to be paid directly by individuals, but that was ruled to be illegal. Hollande reformulated the tax to make it so that companies or organisations paying salaries above 1 million euros would have to pay the tax. However, the tax's impact appears to be a lot less than the controversy it has generated: it is expected to raise less than 1 billion euros, which will not go very far towards solving France's economic problems.

AMERICA TODAY: Heartbreaking Pictures From New Jersey's Homeless 'Tent City' - (www.businessinsider.com) Doug Hardman wakes up every morning with a song in his head—a vague memory of his days on stage. Inside his tepee in the woods outside Lakewood, NJ, at the homeless Tent City, the roosters wake early and the mornings are already cooler. A musician who lost his Florida home in the housing crisis, Hardman says he floats in and out of Tent City, that he's proud of his kids, and misses the life he no longer has. He has a lot of company out here. Click here for the pictures and story > Tent City made the news recently and while community leader Steven Brigham says the media attention brought in greater donations, it also brought unwanted attention from the local politicians.



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