WASHINGTON, Sept 28 (Reuters) – The struggling U.S. Postal
Service expects to default this weekend, the second time in
recent months the cash-strapped agency will have missed a
deadline to set aside funds for future retiree health benefits.
The mail agency, which relies on its own revenue from the
sale of stamps and other products rather than taxpayer funds,
has lost billions of dollars each quarter as Americans move to
online communications. It has struggled for years to make the
massive annual payments.
(Reuters) – Hours before the Postal Service’s expected first-ever default on an obligation, senators blasted the Republican-led House of Representatives for not advancing legislation to overhaul the cash-strapped service before a month-long recess.
The mail agency, which relies on the sale of stamps and other products rather than taxpayer dollars, confirmed this week that it could not make a $5.5 billion payment for future retiree health benefits that is due by midnight on Wednesday.
WASHINGTON, July 30 (Reuters) – Mail industry companies are
concerned about a looming default by the U.S. Postal Service on
a $5.5 billion payment for future retiree health benefits,
saying it adds to uncertainty about agency and helps speed the
movement away from traditional mail.
The Postal Service has said for months that it could not
afford to make the massive payment, which was originally due in
2011 but was delayed by Congress until Aug. 1.
WASHINGTON (Reuters) – The Postal Service is set this week to default on a giant payment, the latest blow illustrating Congress’ slow progress toward fixing the agency’s deep financial woes and one that could damage some customers’ confidence.
The Postal Service has said for months that it could not afford to make the $5.5 billion payment for future retiree health benefits, which was originally due in 2011 but was delayed by Congress until August 1.
(Reuters) – Borrowers who took out private student loans in the run-up to the financial crisis are facing higher levels of default, reflecting the risky lending practices at the time, the Obama administration said in a new report.
The Department of Education and the Consumer Financial Protection Bureau said private lenders have since cleaned up some of the worst activities, but lawmakers should still work to improve the private loan market and enhance protections for students.
(Reuters) – The unfolding scandal involving global banks’ attempts to manipulate benchmark interest rates undermines the financial system by chipping away at public trust, Goldman Sachs Chief Executive Lloyd Blankfein said on Wednesday.
Blankfein said financial scandals like the one surrounding the London Interbank Offered Rate, or Libor, create uncertainty that only builds on the American public’s mistrust of the industry after the 2007-2009 financial crisis.
July 16 (Reuters) – The U.S. consumer watchdog agency said
o n M onday it will start closely supervising credit reporting
companies in September, bringing the industry under strict
federal supervision for the first time.
The Consumer Financial Protection Bureau, in adopting a rule
to oversee the companies, said the industry has a tremendous
influence over Americans’ financial well-being.
WASHINGTON, July 12 (Reuters) – A group of Democratic U.S.
senators pressured Attorney General Eric Holder and financial
regulators on Thursday to step up investigations into whether
global banks manipulated benchmark interest rates.
The senators, including Carl Levin, Jack Reed and Dianne
Feinstein, said investigators should also look into allegations
that U.S. and foreign bank regulators may have been aware for
years of wrongdoing in the setting of the London Interbank
Offered Rate, or LIBOR.
(Reuters) – A senator from Iowa wants the Senate Agriculture Committee to look into the scandal surrounding now-bankrupt futures broker PFGBest during a hearing scheduled for next month.
The committee already plans to meet on August 1 to discuss the fallout from the failure last fall of a larger futures broker, MF Global.
WASHINGTON (Reuters) – A fresh burst of scandals, including allegations that major banks tried to manipulate global benchmark interest rates and another case of missing customer funds at a futures brokerage, has raised Washington’s ire on both sides of the political aisle.
One leading Republican in Congress blasted regulators for failing to detect banks’ attempted manipulation of the London Interbank Offered Rate, or Libor, and House Republicans have requested documents to determine when U.S. regulators knew of problems with the index.