Category Archives: Banking

Remington: US gunmaker files for bankruptcy amid 'Trump slump'

Company’s downfall coincides with protests across America for stricter gun control

Remington Outdoor, one of the US’s biggest gunmakers, has filed for bankruptcy protection as it struggles against a mountain of debts and falling sales.

The 202-year-old company, which made the Bushmaster AR-15-style rifle used in the Sandy Hook shooting in Connecticut that left 20 first-graders and six teachers dead, filed for chapter 11 protection in Delaware bankruptcy court on Sunday.

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Source: gad

Is it time to break up the tech giants such as Facebook? | Larry Elliott

Amazon, Facebook and Google are as dominant as Standard Oil and AT&T were. But breaking them up is not going to be easy

In the first decade of the 20th century, Standard Oil was as mighty as the tech giants of Silicon Valley are today. The company had grown from a single refinery in Cleveland in 1863 to produce 87% of all US refined oil output. In 1911, the supreme court decided that Standard Oil was in breach of anti-trust legislation passed by Congress and ordered that the company be broken up.

Even before the data mining revelations that have engulfed Facebook, there was pressure in the US for similar action to be taken against the social media networking site and two other globally dominant companies – Google and Amazon – that have come from nowhere in the past two decades.

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Source: gad

Goldman Sachs pay gap reveals men paid twice as much as women

More men than women in senior positions contributing to 55.5% gender pay disparity, investment bank says

Men at Goldman Sachs earn more than twice the average hourly pay of women at the US investment bank’s British business and take home much bigger bonuses, in the latest example of pay disparity in the City.

The business’s gender pay gap report, published on Friday under new rules designed to shine a light on big variations in earning power between men and women, reveal that women earn 55.5% less an hour than men by the mean average measure at Goldman Sachs International.

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Source: gad

Elizabeth Warren attacks 'dangerous, wrong' bill to relax rules on US banks

Democratic senator says Congress has forgotten the ‘devastating impact of the financial crisis’ and vows to stop bill passing the Senate

Congress has forgotten the “devastating impact of the financial crisis”, Senator Elizabeth Warren said on Tuesday as Republicans moved closer to relaxing banking regulations implemented after the financial crash of 2008.

Related: Three ways to remake the American economy for all | Elizabeth Warren

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Source: gad

Bank of America hiring brand safety officer to 'clean up' online ads

New role created after fears about questionable content, following Unilever’s public stand against ‘fake news, racism, sexism and hate’

Bank of America is to hire a “brand safety officer”, a full-time job dedicated to ensuring that the company’s advertising doesn’t appear alongside questionable content online.

The new role, announced at the MWC conference in Barcelona, comes weeks after Unilever threatened to pull adverts entirely from Facebook and Google.

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Source: gadt

Hawk or dove? Bitcoin is forcing central banks to take sides | Howard Davies

Love them or hate them it seems cryptocurrencies and the blockchain are too big to ignore

A few days ago, President Nicolás Maduro of Venezuela announced that his government had launched the petro, a new state-sponsored cryptocurrency. He claimed that $735m (£529m) worth of the new currency had already been sold, though observers are sceptical, unless state entities have been obliged to buy them. Even they will find it hard to do so, however, as the technology platform on which the petro will be traded has not yet been confirmed.

Related: Venezuela’s new bitcoin: an ingenious plan or worthless cryptocurrency?

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Source: gad

Zimbabwe and Kenya lead the way in Africa's dash from cash

Efficiency and safety of mobile money has millions forgoing notes and coins

“Drunks love paying by M-Pesa,” the owner of a bar in a low-income area of Kenya’s capital, Nairobi, explained drily. “It’s easy to get conned when you have cash.”

The well-known mobile money platform may not choose to commandeer this observation as a marketing slogan, but it does capture some of the reasons why M-Pesa is starting to shift Kenyans away from using cash.

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Source: gad

Amazon and Warren Buffett to create 'reasonable cost' healthcare company

  • Business giants partner with JP Morgan to help employees find care
  • ‘The ballooning costs act as a hungry tapeworm on the US economy’

Amazon is diving into healthcare, teaming up with Warren Buffett’s Berkshire Hathaway and the New York bank JP Morgan to create a company that helps their US employees find quality care “at a reasonable cost” and tackle the “hungry tapeworm on the American economy”.

The business giants offered few details on Tuesday and said the project is in the early planning stage. But the move from Amazon, which has long eyed the US’s enormous health market, sent shares in health insurance companies and pharmacy chains into a tailspin.

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Source: gadt

Jackpotting: hackers are making ATMs give away cash

Two of world’s largest cash machine makers and US Secret Service warn of attacks that empty ATMs at rate of 40 notes per 20 seconds

Cybercriminals are hacking cash machines to force them to give out money in what is known as “jackpotting”, according to two of the world’s largest ATM makers and the US Secret Service.

Diebold Nixdorf and NCR sent out an alert to their customers over the weekend, but did not identify victims or specify how much money had been stolen. The US Secret Service started warning financial institutions that jackpotting was now a risk in the US last week, having started in Mexico last year, according to a confidental alert seen by Krebs on Security.

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Source: gadt

Are we heading for another developing world debt crisis? | Larry Elliott

Western bank loans for projects in Africa were to be paid off via rising commodity prices. At least that was the theory …

Global interest rates are rising. Poor countries are finding it tough to pay back money borrowed from banks in anticipation of a commodity windfall that never materialised. Stir in some dirty dealing that has seen funds stolen and what do you have? That’s right: the makings of another debt crisis.

Poor country debt was supposed to have been sorted back in 2005, the year the Guardian changed from a broadsheet to its Berliner format. Now, 13 years later, we are changing format again and debt is back albeit in a different form. Last time, the focus was on public debt, money that poor-country governments owed to the International Monetary Fund, the World Bank and individual rich nations – and which was mostly forgiven as a result of the Gleneagles G8 agreement in 2005. These days, the issue is private-sector debt and while as yet only a handful of countries – mostly in sub-Saharan Africa – are in serious trouble, the warning signs are there. The IMF and the World Bank both know it.

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Source: gad