Tuesday, October 18, 2016

Wednesday October 19 20916 Housing and Economic stories


Illinois lawmaker pushes to ban post-retirement bonuses for educators - (www.chicagotribune.com) Suburban Chicago lawmaker is pushing to ban the cash bonuses that some school districts give to retired educators, a practice that costs local taxpayers thousands of dollars. State Rep. David McSweeney, R-Barrington Hills, said he wasn't aware of the so-called post-retirement bonuses until the Tribune last month highlighted the little-noticed payouts that are tucked into teacher and administrator contracts. McSweeney filed legislation Friday that would prohibit suburban and downstate school districts from including post-retirement bonuses in contracts.

Hedge Funds Cost N.Y. Pension Plan $3.8 Billion, Report Says - (www.bloomberg.com) The New York state comptroller’s decision to stick with hedge funds despite their poor returns has cost the Common Retirement Fund $3.8 billion in fees and underperformance, according to a critical report by the Department of Financial Services. The state comptroller, who invests $181 billion for two systems covering local employees, police and fire personnel, "has over relied on so-called ‘active’ management by outside hedge fund managers," the department said Monday in the 20-page report. "For years the State Comptroller has been frozen in place, letting outside managers rake in millions of dollars in fees regardless of hedge fund performance." Spokeswoman Jennifer Freeman defended the office of comptroller Thomas DiNapoli, accusing the department of harboring political motives.

China Property Boom Spurs Fear of Bubble’s Burst - (www.nytimes.com) Zheng Ruizhen counted herself among the last holdouts on Lufeng Road. Even as high-rises sprang up in recent years to surround her dilapidated home, Ms. Zheng, a 50-year-old schoolteacher, and her husband, Sun Guojian, held firm. He grew up there. Her school was a 20-minute bicycle ride away. They raised their son there, though he eventually grew so tall that his head grazed the ceiling of his cramped room. When city officials pushed them to sell, they said no. Then came China’s latest property bubble — a frothy surge in prices that could have global repercussions if it pops. In August, an unremarkable piece of land around the corner from Ms. Zheng sold for nearly $2,000 a square foot, a national record and nearly three times the average land price in Manhattan. Local officials grew more insistent and threatened to tear down their bathroom.

Hong Kong Stocks Slump as Casinos Plunge After Crown Detentions - (www.bloomberg.com) Hong Kong stocks extended last week’s slump as casino operators declined after Chinese authorities detained employees from billionaire James Packer’s Crown Resorts Ltd., while property developers paced losses by financial shares. The Hang Seng Index fell 0.8 percent at the close, after dropping 2.6 percent last week. Sands China Ltd. and Galaxy Entertainment Group Ltd. retreated as the detentions, which include the head of Crown’s VIP International team, highlight the industry’s vulnerability to Chinese crackdowns. A gauge of real estate companies closed at its lowest since Aug. 4. A measure of U.S. dollar-denominated shares traded in Shanghai tumbled the most in nine months.

Deutsche Bank's options to solve capital dilemma seen to be limited – (www.reuters.com) Deutsche Bank needs to move quickly to boost capital and deliver healthy profits if it is to restore investor confidence, but its room for maneuver appears limited, bankers, analysts and investors say. When John Cryan took over as chief executive last year, he announced steps to cut staff and overheads and to sell off non-core businesses. But a $14 billion fine sought by the U.S. Department of Justice (DOJ) for the bank's mis-selling of mortgage securities has exposed a potential capital shortfall of between 5 to 10 billion euros, while progress in implementing Cryan's strategy has been slow. The bank has no solvency or liquidity problems and it says it currently has no plans for a capital increase and that it is meeting all its regulatory requirements.


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