Deutsche Bank is seen as the biggest single risk to the global financial system, but the danger isn’t on par with Lehman Brothers. Here’s why.
Subprime and prime auto loans, and the bonds linked to those loans, suffered increased losses in August. That won’t slow heading into year end.
Daymond John, the CEO of FUBU, is no stranger to being stopped and frisked by police. …read more
By Dividend Channel Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of CF Industries Holdings Inc (NYSE: CF) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.20), with the stock changing hands as low as $23.95 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. CF Industries Holdings Inc (NYSE: CF) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. …read more
By Steven R. Weisman Donald Trump handed Hillary Clinton a great political gift last week with his ill-advised interjection at their presidential debate. When she suggested that he didn’t pay his federal income taxes, Trump replied, “That makes me smart.” With that declaration, Trump appeared to admit that, as many suspected, he used various legal loopholes to pay no […] …read more
A sign with a DEA badge marks the entrance to the U.S. Drug Enforcement Administration (DEA) Museum in Arlington, Virginia, August 8, 2013. REUTERS/Jonathan Ernst
A bipartisan group of nine senators is calling on the Drug Enforcement Administration to delay its “unprecedented” decision to ban kratom, a plant that researchers say holds great potential for mitigating the effects of the opioid epidemic.
The DEA recently decided to place kratom into schedule 1 of the Controlled Substances Act, the most restrictive regulatory category, on a temporary, emergency basis “to avoid an imminent hazard to the public safety.”
The Senate letter, spearheaded by Republican Orrin Hatch of Utah, says that “Congress granted emergency scheduling authority to the DEA based on the need for law enforcement interdiction of new and previously unknown illegal synthetic street drugs that result in injuries and death. The use of this emergency authority for a natural substance is unprecedented, so it is important to determine whether the circumstances here necessitate a jump to Schedule I.”
“Given the long reported history of Kratom use,” the letter continues, “coupled with the public’s sentiment that it is a safe alternative to prescription opioids, we believe using the regular review process would provide for a much-needed discussion among all stakeholders.”
The DEA announced its plan to place kratom in Schedule 1 only one month ago, using an emergency authority that does not require it to solicit public feedback on the decision. Blowback from pain patients was swift and furious and appears to have caught the DEA off-guard.
People who take the plant have shared their stories on how kratom helped them overcome addiction to opiates or alcohol, or how its helped them to treat otherwise intractable pain. Researchers say that their work with the …read more
Warehouse retail king Costco recently ended its relationship with American Express in favor of a new one with Visa and Citigroup. And after a bit of a bumpy start, it looks like the new deal is starting to pay off. …read more
By Drew Harwell
Republican presidential candidate Donald Trump at a campaign rally in Bedford, N.H. (John Locher/AP)
Donald Trump’s business empire owes hundreds of millions of dollars to a giant German bank cast into crisis by settlement negotiations with the Justice Department, a relationship some lawyers say sheds light on the massive financial entanglements he could face as president.
Federal regulators are seeking a $14 billion fine from Deutsche Bank, Trump’s top lender, to settle claims that the bank issued toxic mortgages amid the housing crisis. German media have suggested the bank has sought a state bailout that could lead to partial ownership of the bank by the German government.
A settlement could be reached before a new president takes office, but government-ethics experts say the Deutsche Bank situation is a stark reminder of how Trump could face a conflicting set of interests as the nation’s negotiator in chief.
As head of the executive branch, he’d oversee the Justice Department and the United States’ relations with the rest of the world. But he’d still have a lengthy series of financial relationships with private institutions and countries with business before the United States.
“It’s certainly foreseeable that he could intervene with the DOJ so as to not upset the financing of his companies,” said Trevor Potter, a former Federal Election Commission chairman and general counsel of George H.W. Bush and Sen. John McCain (R-Ariz.).
It’s “unthinkable in recent history,” Potter said, that “there’s the possibility of a president being able to affect his own personal financial interests, conceivably to the detriment of the general public.”
Alan Garten, executive vice president and general counsel of the Trump Organization, said, “I don’t see the conflict,” and drew a parallel to Democratic nominee …read more