Wells Fargo In the News, AGAIN!

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In a recent regulatory filing, Wells Fargo disclosed that between 2010 and 2015, they foreclosed on 400 homeowners after improperly denying them loan modifications that could have allowed them to stay in their homes. Questions: 1. According to the article, how did this happen? 2. How do they plan to compensate these people? 3. Do… Read more »

Trapped by Debt?

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Belkin Antonio Hernandez-Vargas was desperate to see his wife and get out of U.S. custody, so he turned to one of the biggest names in the business of helping immigrant detainees secure bail bonds. As a result, the company Libre by Nexus helped Belkin, an El Salvadorian secure an $8,000 bond after he was able… Read more »

American Apparel Bankruptcy

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American Apparel has been in the middle of a turnaround effort that includes store closings and some layoffs. The company also faces several lawsuits from ousted CEO Dov Charney. Now they face the bankruptcy court. Questions: 1. What were the allegations against previous CEO Charney and what types of financial strains has this put on… Read more »

Morbid Thought, but Necessary Resolution

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When a young person dies unexpectedly, his or her family could end up with the burden of paying off student loans. How can that be avoided? Questions: 1. According to the article, which loans are forgiven after a student’s death and which ones are not? What is a rough estimate of the total amount of… Read more »

More Woes in Greece

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Greece will close its banks on Monday to try to avert financial collapse. The anticipated closure is expected to last about a week. This temporary decision was made along with keeping the stock market closed on Monday after the European Central Bank said it would not expand an emergency loan program to prop up Greek… Read more »

A Big Bet!

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Pfizer is making a $15.2 billion bet on the drug industry’s new, more elite class of generics, which are costly, complex copies of already expensive biotech drugs. Questions: 1. What are biosimilars? 2. Why are there questions about the durability of the market for these specialty drugs? 3. What is the dollar estimate of the… Read more »

Watch Out! They Know Where You Live!

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Eric Merklein, 67, didn’t know he had outstanding student debt until he received his first Social Security check. He thought that his grandmother had paid it off. Unfortunately, Merklein is among the more than 2 million Americans age 60 and older carrying student debt, which is up from about 700,000 in 2005. Questions: 1. What… Read more »

Chapter 11 for Quiznos

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Quiznos, the Denver-based sandwich chain, is preparing to file for bankruptcy in the next few weeks, due to debt and declining sales. Questions: 1. This is not the first time that Quiznos has negotiated with creditors. Explain its out-of-court restructuring deal that occurred two years ago. 2. Assuming that the past debt load was similar… Read more »

Numbers tell the story

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Unless you have been vacationing on another planet, you have probably heard about the government shutdown this week. This video by the New York Times provides some quantification of the situation. Questions: 1. Which number in the video surprised you the most? 2. Explain why not reaching an agreement by Oct 17 on the debt… Read more »

Pension Advances to be Scrutinized by Congress and the Consumer Financial Protection Bureau

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This New York Times article discusses the allure of borrowing against pensions, which underscores an abrupt reversal in the financial fortunes of many retirees in recent years. The offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, both threatening their retirement savings and exacerbating mounting debt within… Read more »