Report details Hispanic workers economic contributions

In commemoration of National Hispanic Heritage Month, a recently released Congressional Hispanic Caucus (CHC) and the U.S. Congress Joint Economic Committee (JEC) report details Hispanic workers’ contributions to the nation’s economy.© Shutterstock The effort was spearheaded by Reps. Raul Ruiz (D-CA) and Don Beyer (D-VA), and examines the manner in which Hispanic workers are aiding […]

The post Report details Hispanic workers economic contributions appeared first on Financial Regulation News.

In commemoration of National Hispanic Heritage Month, a recently released Congressional Hispanic Caucus (CHC) and the U.S. Congress Joint Economic Committee (JEC) report details Hispanic workers’ contributions to the nation’s economy.

© Shutterstock

The effort was spearheaded by Reps. Raul Ruiz (D-CA) and Don Beyer (D-VA), and examines the manner in which Hispanic workers are aiding the progression of economic recovery and serving as future economic growth catalysts.

Per the report, Hispanic total contribution to the economy is estimated to be over $2 trillion despite being among those most impacted by the COVID-19 pandemic. The report also acknowledges that there are challenges suppressing earnings, negatively impacting working conditions and reducing quality of life.

“Hispanic families have carried the brunt of the COVID-19 pandemic while courageously stepping up, helping the U.S., and risking their lives as essential workers on the frontlines to keep us safe, healthy and fed,” Ruiz said. “The report by the Joint Economic Committee under Chair Don Beyer’s leadership clearly shows America’s Hispanic workforce is driving economic growth today and will continue to do so for years to come.”

Beyer said Hispanic workers, families and businesses are integral to society and the nation’s economy.

“During the darkest days of the pandemic and economic crisis, many Hispanic workers put their own lives and the lives of their families at risk to carry out the essential work and care that was needed to keep the country going,” he said. “And despite suffering disproportionate job losses during the recession, Hispanic workers, who are returning to work in higher numbers than other workers, are helping to fuel the economic recovery.”

The post Report details Hispanic workers economic contributions appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/report-details-hispanic-workers-economic-contributions/

Treasury Department report shows child care system overburdens families

A new report from the U.S. Department of Treasury says the child care market in the United States causes undue burden on American families due to high cost and insufficient supply. © Shutterstock The report bolsters President Joe Biden’s Build Back Better agenda which calls for universal preschool for all 3- and 4-year-old children, expands […]

The post Treasury Department report shows child care system overburdens families appeared first on Financial Regulation News.

A new report from the U.S. Department of Treasury says the child care market in the United States causes undue burden on American families due to high cost and insufficient supply.

© Shutterstock

The report bolsters President Joe Biden’s Build Back Better agenda which calls for universal preschool for all 3- and 4-year-old children, expands tax credits for child care, and provides access to high-quality child care for low- and middle-income families.

“It’s past time that we treat child care as what it is – an element whose contribution to economic growth is as essential as infrastructure or energy,” said U.S. Treasury Secretary Janet Yellen during an event announcing the study. “This is why the Biden Administration has prioritized the Build Back Better proposals, many of which are now moving through Congress. Enacting them is the single most important thing we can do to build a stronger economy over the next several decades.”

According to the report, existing child care in the United States relies on private financing. The report estimated that the average family with at least one child under the age of five would spend approximately 13 percent of the family’s income on childcare. Often, the report said, this expense comes with the family can least afford it and lacks the ability to borrow against future savings to cover the costs.

Additionally, the report said, the current childcare market often fails to provide children with a high-quality early educational experience.

The administration said adopting their child care plan would cut spending in half for most American families allowing them to spend no more than 7 percent of their income on childcare by creating subsidized care, and extending the expanded child and dependent care tax credit. The plan would address revenue shortfalls while allowing families to contribute more to the nation’s economy, the administration said.

The post Treasury Department report shows child care system overburdens families appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/treasury-department-report-shows-child-care-system-overburdens-families/

FMI survey shows spike in food e-commerce sales

Survey findings from FMI, the Food Industry Association, determined 95 percent of food retailers with e-commerce options experienced online sales increases in 2020 due to pandemic-related changes in consumer shopping behaviors.© Shutterstock The Food Retailing Industry Speaks 2021 report detailed while consumer demand for groceries increased by half over last year, eight in 10 retailers […]

The post FMI survey shows spike in food e-commerce sales appeared first on Financial Regulation News.

Survey findings from FMI, the Food Industry Association, determined 95 percent of food retailers with e-commerce options experienced online sales increases in 2020 due to pandemic-related changes in consumer shopping behaviors.

© Shutterstock

The Food Retailing Industry Speaks 2021 report detailed while consumer demand for groceries increased by half over last year, eight in 10 retailers surveyed noted difficulties attracting and retaining employees is negatively impacting business.

“The pandemic transformed almost every aspect of the food retail industry — from the way consumers shop for groceries and consume their meals to how food is grown, produced and transported to supermarket shelves, to our ability to staff our stores and serve our communities,” Leslie G. Sarasin, president and CEO of FMI, said. “Throughout the past year and a half, the food retail industry has been adapting to meet the shifting needs of the communities they serve. This year’s Speaks report outlines the resilience and transformation of the food retail industry amid the COVID-19 pandemic and examines the proactive strategies and investments retailers have made to adapt to the changing food retail landscape.”

Per the FMI, the findings, garnered from feedback from over 38,000 food retail stores, also revealed ongoing global supply chain issues generated via the pandemic continue to persist for food retailers in 2021 as 42 percent of survey respondents declared supply chain disruptions continue to hurt their businesses.

The post FMI survey shows spike in food e-commerce sales appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/fmi-survey-shows-spike-in-food-e-commerce-sales/

SEC files complaint against media companies alleging unregistered stock offering

Securities and Exchange Commission (SEC) filed a complaint against a trio of media companies, alleging illegal unregistered offering of common stock.© Shutterstock The SEC recently levied charges against New York City-based GTV Media Group Inc. and Saraca Media Group Inc., as well as Phoenix, Arizona-based Voice of Guo Media Inc., regarding illegal unregistered offering of […]

The post SEC files complaint against media companies alleging unregistered stock offering appeared first on Financial Regulation News.

Securities and Exchange Commission (SEC) filed a complaint against a trio of media companies, alleging illegal unregistered offering of common stock.

© Shutterstock

The SEC recently levied charges against New York City-based GTV Media Group Inc. and Saraca Media Group Inc., as well as Phoenix, Arizona-based Voice of Guo Media Inc., regarding illegal unregistered offering of GTV common stock.

The agency also indicated, per authorities, charges were to be issued against GTV and Saraca for conducting an illegal unregistered offering of a digital asset security referred to as either G-Coins or G-Dollars.

According to the SEC, without admitting or denying the SEC’s findings that they violated Section 5 of the Securities Act of 1933, GTV and Saraca reached an agreement on a cease-and-desist order — resulting in paying disgorgement of over $434 million plus prejudgment interest of approximately $16 million on a joint and several basis. Each entity will pay a civil penalty of $15 million, officials noted.

Voice of Guo agreed to a cease-and-desist order resulting in payment of disgorgement of more than $52 million plus prejudgment interest of nearly $2 million while agreeing to pay a civil penalty of $5 million.

“Issuers seeking to access the markets through a public securities offering must provide investors with the disclosures required under the federal securities laws,” Sanjay Wadhwa, deputy Director of the SEC’s Enforcement Division, said. “When they fail to do so, the Commission will seek remedies that make harmed investors whole, such as an unwinding of the offering and a return of the funds to the investors.”

Richard R. Best, director of the SEC’s New York Regional Office, said the remedies ordered by the SEC would provide meaningful relief to investors.

The post SEC files complaint against media companies alleging unregistered stock offering appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/sec-files-complaint-against-media-companies-alleging-unregistered-stock-offering/

CFPB examines college credit card agreement decline

A new report from the Consumer Financial Protection Bureau (CFPB) said the market for college credit cards continued its general declining trend in 2020. The 12th annual college credit card report found that agreements with alumni associations made up the largest share of the market in terms of the number of agreements, accounts and amounts […]

The post CFPB examines college credit card agreement decline appeared first on Financial Regulation News.

A new report from the Consumer Financial Protection Bureau (CFPB) said the market for college credit cards continued its general declining trend in 2020.

The 12th annual college credit card report found that agreements with alumni associations made up the largest share of the market in terms of the number of agreements, accounts and amounts of payments made by issuers to their counterparties. The report revealed that the total volume of payments by issuers decreased to $20,882,930, from $24,980,457 in 2019 while 10 percent of active 2019 agreements were terminated during the year.

“The CFPB remains steadfast in its efforts to ensure our financial markets work for consumers, responsible providers, and the economy as a whole, especially for students,” CFPB Acting Director Uejio said. “Our duty to collect and publish data on these credit card agreements supports transparency and an informed public.”

The report was issued in accordance with Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act) requirements. The CARD Act requires credit card issuers to annually submit to the CFPB the terms and conditions of any college credit card agreement in effect at any time during the preceding calendar year between an issuer and an institution of higher education.

The post CFPB examines college credit card agreement decline appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/cfpb-examines-college-credit-card-agreement-decline/

NCUA details financial performance data

National Credit Union Administration (NCUA) financial performance data maintains federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021.© Shutterstock Officials indicated the rise in net income is attributed to growth in other operating income and a decrease in provisioning for loan, lease and credit loss expenses — […]

The post NCUA details financial performance data appeared first on Financial Regulation News.

National Credit Union Administration (NCUA) financial performance data maintains federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021.

© Shutterstock

Officials indicated the rise in net income is attributed to growth in other operating income and a decrease in provisioning for loan, lease and credit loss expenses — determining insured shares and deposits increased $196 billion, or 14.2 percent, to $1.58 trillion in comparison to the second quarter of 2020.

The number stem from the NCUA’s Quarterly Data Summary Report focusing on the second quarter of 2021.

“During the second quarter of 2021, the credit union system, as a whole, remained on a solid footing,” NCUA Chairman Todd M. Harper said. “While the economic outlook shows signs of improvement, COVID-19 pandemic-relief programs are coming to an end and may result in uncertainty in the months ahead. Additionally, the pandemic’s economic disruptions hit the poorest households hardest. For these households, the recovery could take longer. The top priority for credit unions should be managing their operational and financial risks while continuing to work with members who are struggling.”

The analysis showed federally insured credit unions net income in the second quarter of 2021 totaled $21.3 billion at an annual rate, up $11.9 billion from the second quarter of 2020; total loans outstanding increased $56.6 billion over the year to $1.19 trillion; and the federally insured credit unions delinquency rate was 46 basis points in the second quarter of 2021, in comparison with 58 basis points in the second quarter of 2020.

The post NCUA details financial performance data appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/ncua-details-financial-performance-data/

ICI releases 401(k) activity study findings

A new study from Investment Company Institute (ICI) found that Americans continued to save for retirement through their 401(k) plans despite ongoing COVID-19 pandemic economic stresses.© Shutterstock ICI’s Defined Contribution Plan Participants’ Activities, First Half 2021 breakdown tracks contributions, withdrawals and other 401(k) activity based on defined contribution (DC) plan recordkeeper data addressing over 30 […]

The post ICI releases 401(k) activity study findings appeared first on Financial Regulation News.

A new study from Investment Company Institute (ICI) found that Americans continued to save for retirement through their 401(k) plans despite ongoing COVID-19 pandemic economic stresses.

© Shutterstock

ICI’s Defined Contribution Plan Participants’ Activities, First Half 2021 breakdown tracks contributions, withdrawals and other 401(k) activity based on defined contribution (DC) plan recordkeeper data addressing over 30 million participant accounts in employer-based DC plans at the end of June 2021.

“Despite the economic challenges over the past year and a half, retirement savers show deep commitment to preserving their retirement nest eggs,” Sarah Holden, ICI senior director of retirement and investor research, said. “The combination of ongoing contributions and few participants taking withdrawals reflects DC plan participants’ long-term mindset and preference to keep this money earmarked for retirement and avoid dipping into it.”

The study found most DC plan participants continued their path regarding asset allocations, with stock values generally rising during the first six months of the year. In addition, it revealed that DC plan withdrawal activity remained low during the first half of the year, similar to activity observed in the first half of 2020. Finally, the study indicated that DC plan participants’ loan activity declined in the second quarter of 2021. At the end of June 2021, 13.5 percent of DC plan participants had loans outstanding, in comparison to 14.3 percent at the end of March 2021.

The post ICI releases 401(k) activity study findings appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/ici-releases-401k-activity-study-findings/

Nation’s banks see solid earnings growth in second quarter

The nationʻs banks had a strong quarter as they generated net income of $70.4 billion in second quarter, an increase of $51.9 billion, or 281 percent, from the second quarter of 2020, according to data from the Federal Deposit Insurance Corporation (FDIC).© Shutterstock The FDIC aggregates the performance of the nationʻs 4,951 commercial banks and […]

The post Nation’s banks see solid earnings growth in second quarter appeared first on Financial Regulation News.

The nationʻs banks had a strong quarter as they generated net income of $70.4 billion in second quarter, an increase of $51.9 billion, or 281 percent, from the second quarter of 2020, according to data from the Federal Deposit Insurance Corporation (FDIC).

© Shutterstock

The FDIC aggregates the performance of the nationʻs 4,951 commercial banks and savings institutions each quarter.

The increase was driven by further economic growth and improved credit conditions and lower provision from credit losses. The banking industry reported an aggregate return on average assets ratio of 1.24 percent, up 89 basis points from a year ago. However, this total was down 14 basis points from first quarter 2021.

Also, the average net interest margin (NIM) contracted 31 basis points from a year ago to 2.50 percent – the lowest level on record. This was accompanied by a decline in net interest income of $2.2 billion, OR 1.7 percent, from the same quarter a year ago.

“The banking industry reported strong earnings in second quarter 2021, supported by continued economic growth and further improvements in credit quality,” FDIC Chair Jelena McWilliams said.

In addition, community banks, which make up the bulk of FDIC-insured banks, reported annual net income growth of $1.9 billion, supported by a decline in provision expense and an increase in net interest income. Provision expenses declined $2.3 billion, or 98.1 percent, from a year ago and $345.1 million, 88.2 percent, from the previous quarter. Also, loan volumes increased slightly, 0.3 percent, driven by an increase in credit card balances. Overall, 53.1 percent of 4,490 FDIC-insured community banks reported higher quarterly net income.

Finally, three new banks opened in the quarter while 28 institutions merged with other FDIC-insured institutions. No banks failed in second quarter 2021.

The post Nation’s banks see solid earnings growth in second quarter appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/nations-banks-see-solid-earnings-growth-in-second-quarter/

Organization urging SEC antitrust disclosure integration

The Center for American Progress (CAP) is urging the Securities and Exchange Commission (SEC) to integrate antitrust disclosures into its environmental, social and governance (ESG) regulatory framework.© Shutterstock CAP maintains that requiring firms to disclose markers of market power would help socially conscious investors identify firms engaging in anti-competitive behavior, in addition to helping investors […]

The post Organization urging SEC antitrust disclosure integration appeared first on Financial Regulation News.

The Center for American Progress (CAP) is urging the Securities and Exchange Commission (SEC) to integrate antitrust disclosures into its environmental, social and governance (ESG) regulatory framework.

© Shutterstock

CAP maintains that requiring firms to disclose markers of market power would help socially conscious investors identify firms engaging in anti-competitive behavior, in addition to helping investors escape economic shocks in the wake of antitrust enforcement.

“Requiring antitrust disclosures is well within the mission and legal authority of the SEC,” Marc Jarsulic, a senior fellow and chief economist at CAP, said. “Requiring companies to disclose markers of their anti-competitive behavior would not only be a boon to investors, but examining them in the aggregate would also allow policymakers and the public to better understand the pervasiveness of anti-competitive behavior in the United States.”

Statistical markers identified by CAP, per officials, include ratio of market value to replacement cost of capital; profit margin; ratio of net investment to profits; and labor share in firm value added.

CAP also noted antitrust disclosure integration would ease the process of lawmakers, regulators and antitrust agencies identifying firms and areas where competition is weak, thereby improving capital markets overall functioning.

And requiring the disclosures is consistent with the mission of the SEC and well within its legal authority, per CAP.

The post Organization urging SEC antitrust disclosure integration appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/organization-urging-sec-antitrust-disclosure-integration/

U.S. Chamber of Commerce releases report examining impact of capital gains tax hike

The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness released a report this week that examines the impact of a proposed 98 percent tax increase on carried interest capital gains that will be among the major tax hikes on businesses that will be considered as part of the $3.5 trillion budget reconciliation bill in […]

The post U.S. Chamber of Commerce releases report examining impact of capital gains tax hike appeared first on Financial Regulation News.

The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness released a report this week that examines the impact of a proposed 98 percent tax increase on carried interest capital gains that will be among the major tax hikes on businesses that will be considered as part of the $3.5 trillion budget reconciliation bill in Congress.

© Shutterstock

The report, entitled Impact on Jobs, Tax Revenue, and Economic Growth of Proposed Tax Increase on Carried Interest, said the tax increase would reduce investment, lead to job losses, and decrease tax revenues at the local, state, and federal levels.

“New carried interest taxes would harm the innovators who are leading America out of the pandemic and the main street businesses that are fueling the economic recovery,” Tom Quaadman, executive vice president of the U.S. Chamber Center for Capital Markets Competitiveness, said.

“Moderna, for example, was able to tap private equity and venture-capital funding to conduct the research that led to the Covid-19 vaccine. Similarly, private equity funding provided a lifeline to thousands of American businesses and real estate partnerships that are crucial for new home construction and affordable housing. Almost doubling certain taxes on private equity and venture capital investments will restrict access to capital, harming job creation and innovation,” Quaadman added.

The report estimates that it could result in 4.9 million job losses within five years and annual net revenue tax losses of $96 billion over that time. Also, it estimates that pension funds would lose up to $3 billion annually while private equity, venture capital, real estate partnerships, and their portfolio companies would be directly hit by the tax increase.

The post U.S. Chamber of Commerce releases report examining impact of capital gains tax hike appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/u-s-chamber-of-commerce-releases-report-examining-impact-of-capital-gains-tax-hike/