WASHINGTON(AP) – Chrysler will file for bankruptcy after talks with a small group of creditors crumbled just a day before a government deadline for the automaker to come up with a restructuring plan, two administration officials said Thursday.
The Obama administration had long hoped to stave off bankruptcy for Chrysler LLC, but it became clear that a holdout group wouldn’t budge on proposals to reduce Chrysler’s $6.9 billion in secured debt, according to the officials, who spoke on condition of anonymity because the filing plans are not public. Clearing those debts was a needed step for Chrysler restructure by the Thursday night deadline.
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Have you heard of NCO Financial Systems Incorporated? If not, you definitely need to know about them. This is a collection agency that is known for their dirty tactics.
NCO Financial Systems sends voicemails simply stated that so-and-so was calling from NCO, that it is an attempt to collect a debt, and to call a certain phone number with the specified confirmation code.
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NEW YORK (Reuters) – A surge of troubled loans overshadowed better-than-expected earnings at Bank of America Corp, and the largest U.S. bank said it expects the credit situation to worsen, driving its shares down 24.3 percent.
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Bank stocks traded mixed Thursday following JPMorgan Chase’s (JPM Quote) better-than-expected earnings report.
JPMorgan’s first-quarter profit slipped 10% from a year ago, but earnings of $2.14 billion, or 40 cents a share, were better than analyst forecasts. The bank also recorded revenue of $26.9 billion, compared with the Thomson Reuters average estimate of $22.9 billion.
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Finally, a bit of good news from the forefront.
U.S. stocks rallied, capping the market’s steepest two-week gain since 1938, as investors speculated the Obama administration’s plan to rid banks of toxic assets will spur growth and investor Mark Mobius said a new bull market has begun. Treasuries and the dollar fell.
Bank of America Corp. and Citigroup Inc. both soared at least 19 percent as the U.S. Treasury said it will finance as much as $1 trillion in purchases of distressed assets. Exxon Mobil Corp. and Chevron Corp. jumped more than 6.7 percent after oil rose to an almost four-month high. The Standard & Poor’s 500 Index extended its rebound from a 12-year closing low on March 9 to 22 percent as all 10 of its main industry groups advanced.
Credits of Note
Two special tax credits worth noting for 2008 are the recovery rebate and first-time homebuyer credits.
Deductions You Want to Consider
Even though credits save you more than deductions, you still want to take deductions when you can.
Finally, exemptions are another area of tax breaks to know about. There is a personal exemption of up to $3,500 available to most taxpayers. If you’re lucky enough to work for an employer that offers Qualified Transportation Fringe Benefits, you also don’t have to pay income taxes on these benefits. Additionally, if you are in the military, any pay you received while serving in a combat zone in 2008 is exempt from income tax.
There is a lot of speculation and anticipation in the market in the past weeks about the new Troubled Asset Relief Program. Ideas such as the creation of “bad banks” and the nationalization of banks that avail of it have been tossed around. However, one strong reassurance from the Obama administration that this plan contains ideas that work to loosen the money from the banks’ tight fisted grip and get the credit market moving again.
One early concept was the idea of the “bad bank” that would acquire the toxic mortgage assets from other banks’ balance sheets. This would help the banks get rid of assets that would otherwise remain illiquid and this make banks more comfortable with providing credit to consumers. Right now, it’s a balance between hurting the taxpayers or not helping the bank enough.
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