October 24th, 2012
12:25 PM ET

U.S. suing Bank of America for $1 billion

The U.S. government is suing Bank of America for more than a billion dollars.

The lawsuit claims the bank waged a "multi-year mortgage fraud against government-sponsored entities Fannie Mae and Freddie Mac," according to the U.S. Attorney's office in Manhattan.

Follow CNNMoney for details.

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Filed under: Business • Economy • Finance
August 3rd, 2012
08:59 AM ET

Hiring picks up, but unemployment rises

Businesses stepped up their hiring in July, but the unemployment rate ticked higher anyway.

Employers said they added 163,000 jobs in the month, according to a Labor Department report released Friday, much better than the 95,000 jobs economists had forecast.

But at the same time, the unemployment rate unexpectedly rose to 8.3% as households claimed they lost 195,000 jobs.

The government's monthly jobs report comes from two separate surveys: one that looks at company payrolls, and the other that questions households. Those two reports went in opposite directions in July, confusing the overall reading on the job market.

According to the employer survey, the public sector continues to be a drag on overall hiring. The government cut 9,000 jobs in the month, while private businesses added 172,000 jobs.

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Filed under: Economy • Jobs
July 13th, 2012
02:28 PM ET

Brokerage's founder arrested after fraud allegations

The founder of futures brokerage Peregrine Financial Group, which filed for bankruptcy protection after regulators said more than $200 million went missing from the firm, has been arrested and charged with making and using false statements, authorities said Friday.

Russell Wasendorf Sr. was arrested Friday by FBI agents and is due to make an initial appearance in federal court in Cedar Rapids, Iowa, on Friday afternoon, the U.S. Justice Department said.

Peregrine filed for Chapter 7 bankruptcy protection on Tuesday after Wasendorf Sr. attempted suicide amid allegations of fraud, CNNMoney reported Wednesday.

The Commodities Futures Trading Commission filed a complaint against Peregrine on Tuesday, accusing the firm and Wasendorf Sr. of committing fraud by misappropriating funds and falsifying bank records.

Friday's charges allege that, from 2010 through July 2012, Wasendorf made false statements to the commission regarding the value of customer segregated funds held by Peregrine, the Justice Department said.

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Filed under: Courts • Crime • Justice
July 6th, 2012
09:11 AM ET

Not enough new jobs to drop unemployment, June report says

Hiring was lukewarm last month, with employers adding jobs but not enough to bring the unemployment rate down.

The economy added 80,000 jobs in June, the Labor Department reported Friday, barely an improvement from the 77,000 jobs added in May.

Meanwhile, the unemployment rate remained at 8.2%.

Economists surveyed by CNNMoney had expected to see employers add 95,000 jobs and the unemployment rate to remain unchanged.

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Filed under: Uncategorized
June 15th, 2012
12:21 PM ET

Ex-Goldman Sachs director convicted of insider trading

Rajat Gupta, the consummate corporate insider who was a former director at Goldman Sachs, was convicted of insider trading on Friday - the highest-profile conviction yet in a wave of federal cases focused on Wall Street misconduct.

The jury in New York, after just more than one day of deliberations, found him guilty of four of six criminal counts. The trial started on May 21, and Gupta did not testify in his own defense.

Gupta, who also served as head of consulting firm McKinsey & Co. and a director at Procter & Gamble, was indicted in October. The case is part of a wave of insider trading probes over the past two-and-a-half years that have yielded 66 indictments and 60 convictions. None of these defendants have been acquitted so far, though several cases are still pending.

Dubbed "Operation Perfect Hedge," the effort has utilized investigative tools like wiretaps and informants that are more commonly associated with other kinds of crime.

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Filed under: Courts • Crime • Justice
Warren Buffett announces he has prostate cancer
April 17th, 2012
05:14 PM ET

Warren Buffett announces he has prostate cancer

Berkshire Hathaway CEO Warren Buffett has disclosed he has been diagnosed with stage I prostate cancer, but says it is not life-threatening.

In a letter to Berkshire Hathaway shareholders, the 81-year-old billionaire (pictured) said he received his diagnosis last week.

"The good news is that I’ve been told by my doctors that my condition is not remotely life-threatening or even debilitating in any meaningful way," Buffett said in the letter, which the company released Tuesday.

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Filed under: Business • Health
April 11th, 2012
11:23 AM ET

Justice Department sues Apple over alleged price-fixing scheme

The U.S. Department of Justice on Wednesday brought a lawsuit against Apple and several publishing companies over an alleged scheme to fix e-book prices, a source with knowledge of the investigation told CNNMoney.

The suit likely stems from the 2010 release of the iPad, when Apple reached an agreement with five publishers to release books on its then-new iBookstore.

A similar investigation led by the European Commission is probing whether Apple colluded to raise the price of e-books with CBS's Simon & Schuster, News Corp.'s HarperCollins; Hachette Book Group; Pearson's Penguin unit and Macmillan.

Before the release of the iPad, Amazon's Kindle was the preeminent e-book reader on the market. Amazon forced publishers to sell most books at $9.99 - a price that came in below the cost of the books.

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Filed under: Apple • Business • Technology
April 6th, 2012
09:13 AM ET

Hiring slows, unemployment falls

Hiring slowed dramatically in March, clouding optimism about the strength of the recovery, CNNMoney's Annalyn Censky reports.

Employers added 120,000 jobs in the month, the Labor Department reported Friday, marking a significant slowdown in hiring from February, when the economy added 240,000 jobs.

Meanwhile, the unemployment rate fell to 8.2% as workers dropped out of the labor force.

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Filed under: Economy • Jobs
Ahead of the curve: The next 7 days
February 26th, 2012
05:32 PM ET

Ahead of the curve: The next 7 days

Here is a look at some of the stories that CNN plans to follow this week:

Polls show tight GOP races in Michigan, Arizona

A recent surge in support for GOP presidential candidate Rick Santorum gets important tests this week in Michigan and Arizona, both of which hold primaries on Tuesday, one week before the Super Tuesday contests in 10 states.

A poll taken late last week showed that the overall front-runner for the GOP presidential nomination, Mitt Romney, was leading Santorum 39% to 35% among likely primary voters in Arizona. In Michigan, recent polls show Romney and Santorum neck-and-neck.

Also this week, Wyoming will announce the results of its 20-day caucus process on Wednesday. And Washington state's caucuses are scheduled for Saturday.

Santorum has led Romney in national polling in recent days, thanks in part to strong primary and caucus performances in Colorado, Minnesota and Missouri earlier this month. But by Sunday, Santorum's lead was down to 1 percentage point in one poll, with Romney closing the gap after a debate in Arizona on Wednesday.


February 9th, 2012
04:02 PM ET

First new nuclear reactors OK'd in over 30 years

The U.S. Nuclear Regulatory Commission approved licenses to build two new nuclear reactors Thursday, the first authorized in over 30 years.

The reactors are being built in Georgia by a consortium of utilities led by Southern Co. They will be sited at the Vogtle nuclear power plant complex, about 170 miles east of Atlanta. The plant already houses two older reactors.

"Today marks an advancement in our nation's energy policy," Southern Company chief executive Thomas Fanning said at a press conference after the approval. "The project is on track, and our targets related to cost and schedule are achievable."

The five-member NRC voted in favor of the licenses four to one, with Chairman Gregory Jaczko dissenting.

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Filed under: Energy • Nuclear
February 9th, 2012
10:22 AM ET

Deal could bring billions in mortgage relief

In the largest deal to date aimed at addressing the housing meltdown, federal and state officials on Thursday announced a $26 billion foreclosure settlement with five of the largest home lenders.

The settlement settles potential state charges about allegations of improper foreclosures based on "robosigning," seizures made without proper paperwork.

Most of the relief will go to those who owe far more than their homes are worth, known as being underwater on the loans. That relief will come over the course of the next three years, with the banks having incentives to provide most of the relief in the next 12 months.

At least $17 billion of the settlement will go to reducing the principal owed by homeowners who are both underwater and behind on their mortgages. Depending on which loans have the amount owed cut, the amount of principal relief could reach as much as $34 billion.

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Filed under: Economy • Housing
Micron CEO dies in Idaho plane crash
February 3rd, 2012
04:11 PM ET

Micron CEO dies in Idaho plane crash

Micron CEO and chairman Steve Appleton died Friday morning in a small-plane crash in Boise.

Micron, a maker of semiconductors and flash memory, confirmed Appleton's death at age 51 in a press release that praised his "passion and energy."

Appleton (pictured) was flying a Lancair fixed-wing single-engine plane that crashed at 8:58 a.m. local time at Boise Airport, a spokeswoman for the airport told CNN's John Fricke. She could not confirm whether the accident took place at takeoff, landing or during flight.

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Filed under: Aviation • Idaho • Technology
U.S. unemployment rate down to 8.3%
February 3rd, 2012
09:32 AM ET

U.S. unemployment rate down to 8.3%

American employers substantially stepped up their hiring in January, bringing the unemployment rate down for the fifth month in a row.

Employers added 243,000 jobs in January, the Labor Department reported Friday, marking a pick-up in hiring from December, when the economy added 203,000 jobs.

Meanwhile, the unemployment rate fell to 8.3%. That is the lowest since February 2009.

Job growth was much stronger than expected. Economists surveyed by CNNMoney had forecast 130,000 jobs added in the month, and that the unemployment rate likely ticked up to 8.6%.

"This is an optimistic jobs report, especially in light of very poor jobs reports for almost three years," said Brian Hamilton, CEO of Sageworks, a financial information company. "We don't know if the positive jobs trend will continue, but it is definitely a good trend."

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Filed under: Economy • Jobs
February 1st, 2012
05:12 PM ET

Facebook files for $5 billion IPO

At long last, the Holy Grail of Internet IPOs is here. Facebook filed Wednesday to raise $5 billion in an initial public offering.

It's not yet known on which stock exchange Facebook will trade, or what its ticker symbol will be.

In 2011, Facebook earned $1 billion on sales of $3.7 billion. As of December 31, Facebook had 845 million daily active users.

The vast majority of Facebook's revenue comes from advertising: a combination of search and display ads.

Facebook's other revenue stream is its payment system for purchases within apps and games: Facebook Credits. Facebook keeps 30% of the revenue from those payments, and passes the remaining 70% on to the app developer.

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Filed under: Business • Facebook • Finance • Technology
February 1st, 2012
02:22 PM ET

American Airlines to cut 13,000 jobs

American Airlines says it plans to cut 13,000 jobs as it attempts to emerge from bankruptcy, according to CNNMoney.

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Filed under: Uncategorized
Eastman Kodak files Chapter 11 bankruptcy
People visit the Kodak display at the International Consumer Electronics Show (CES) in Las Vegas earlier this month.
January 19th, 2012
05:53 AM ET

Eastman Kodak files Chapter 11 bankruptcy

Eastman Kodak Company filed for Chapter 11 bankruptcy protection in New York early Thursday.

Kodak listed total assets of $5.1 billion and debts of $6.75 billion in the filing in the southern district of New York.

Kodak said it has obtained $950 million in financing from Citibank to maintain operations. The company said the credit facility is still subject to court approval.

Kodak said it has enough liquidity to continue to operate during the bankruptcy process.

The company's shares, which had already dropped more than 90% in the past year, fell further this month after the Wall Street Journal reported that the company was preparing for a bankruptcy filing in case an attempt to sell a number of digital patents failed.

A day before that report Kodak disclosed that the New York Stock Exchange had warned that it could be delisted in six months if its struggling stock price does not recover. The warning was triggered by the fact that the stock's average closing price has been less than $1 per share for thirty consecutive trading days.

Earlier this month, Kodak announced it had streamlined its corporate structure as part of the ongoing effort to evolve from film to digital.

Kodak said the company is now structured into two divisions, the commercial segment and the consumer segment, as of Jan. 1. These segments will report to the newly created chief operating office, which is led by Philip Faraci and Laura Quatela.

The company was previously organized into three divisions, the graphic communications group, the consumer digital imaging group and the film, photofinishing and entertainment group.

Kodak was a relatively early pioneer in the field of digital photography, though it has been slow to leave behind its heavy reliance on outmoded film technology.

Polaroid puts Kodak's failures in focus

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Filed under: Business • Economy
On the Radar: Obama on appointment; van der Sloot case; jobs report
President Obama sparked controversy with his appointment of Richard Cordray to the Consumer Financial Protection Bureau.
January 6th, 2012
08:26 AM ET

On the Radar: Obama on appointment; van der Sloot case; jobs report

Three stories to know about Friday:

Obama addresses Consumer Financial Protection Bureau after controversial appointment - U.S. President Barack Obama is scheduled to make remarks at the new Consumer Financial Protection Bureau in Washington on Friday, just days after he decided to make a recess appointment of Richard Cordray to head the agency - a move protested by congressional Republicans.

Republicans say the move was unconstitutional because the Senate technically has met every three or four days over the holiday period and therefore was not in recess.

However, Senate Democrats defended the appointment, arguing the president's constitutional authority to fill top government posts outweighed whether Congress was technically in session or not. At issue is a disagreement over the meaning of the term "recess." The Constitution states the president can make recess appointments but fails to dictate how long a recess is. Legal experts have debated the point for years.


Verizon says it's scrapping $2 payment fee
December 30th, 2011
03:25 PM ET

Verizon says it's scrapping $2 payment fee

Verizon Wireless said it will scrap a proposed $2 fee for one-time online or telephone payments, citing "customer feedback."

The fee, which Verizon said would have been a "convenience charge" for customers who make one-time bill payments using a debit or credit card, either online or by telephone, was set to go into effect on January 15.

Verizon had said the fee was designed to "address costs incurred by us for only those customers who choose to make single bill payments."

The plan still would have allowed customers to enroll in a service that would debit their bank accounts or charge their credit cards on a recurring basis for free. Customers also could have avoided the fee by paying at a Verizon store or mailing checks to the company.

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Filed under: Business
December 13th, 2011
03:29 PM ET

Postal Service to delay closure plan

The U.S. Postal Service has agreed to hold off on closing any more post offices or mail facilities until May 15, 2012, to allow Congress time to work on a plan to save the service.

The service agreed to voluntarily enact a moratorium on closures, after a series of talks with senators. Sen. Richard Durbin said the postal service agreed to the deal, and he called it a challenge to Congress to "put up or shut up."

The news of the moratorium comes just a week after the service announced a plan that would slow down first-class mail, as the agency closes some 250 mail processing plants nationwide, which would eliminate 28,000 jobs.

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Filed under: U.S. Postal Service
What’s at stake in European Union summit
German Chancellor Angela Merkel, left, and French President Nicolas Sarkozy, will push for change at the EU summit.
December 8th, 2011
02:02 PM ET

What’s at stake in European Union summit

European Union leaders on Thursday begin a two-day summit in Belgium to determine how to save the euro, a roughly decade-old currency whose viability has been threatened because of EU members’ national debts.

Among the items of discussion will be proposals by the leaders of Germany and France, which want the European Union to have more influence over the budgets of the nations that use the euro. (Seventeen of the EU’s 27 countries use the common currency.) The French minister for European affairs, Jean Leonetti, warned Thursday that the euro could "explode" and Europe could "unravel" if a solution isn't found.

The following is a collection of information and links that will help you understand how the EU got to this point, and what EU members hope to do.

Events leading to this week's meeting

The national debts of euro members including Greece, Ireland and Portugal have pushed the euro to the brink of collapse, with a series of austerity measures and bailouts not yet convincing world markets that the single monetary system for 17 nations can survive.

Back in 2004 - two years after the euro debuted in note and coin form - Greece admitted it gave misleading financial information to gain admission to the eurozone, CNN's Peter Wilkinson and Irene Chapple report. Greece then revealed its 2009 budget deficit would be 12.7% of gross domestic product - well beyond the eurozone limit of 3%. Worried investors no longer would give Greece the money it needed to fund itself, and the country took a €110 billion bailout from its eurozone peers and the International Monetary Fund.


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