Category Archives: News

Business Versus Labor: Creating New Immigration Laws

News, , ,

Usually at odds over immigration laws, the AFL-CIO, the giant labor organization, and the Chamber of Commerce, have been requested to chisel out a proposal that will make everyone on both sides of the aisle in Congress happy.

This request was made by Senator Charles Schumer, Democrat of New York, in the hope that, given these two groups’ opposing interests, a compromise both Republicans and Democrats can live with will be created.

Most controversial on the list of reforms that labor and business don’t see eye to eye on is a guest worker program which will allow future immigrants to come into the country legally. Labor groups see the permission of foreign workers into the country as threatening since these workers will work for low wages. Business, on the other hand, would like to see more low-wage workers brought into the country, and the more legal they are, the better.

At the moment both sides of the issue appear optimistic that they can reach an agreement. Schumer is cautious however, since he and other observers note that this issue derailed a similar attempt at creating comprehensive immigration reform legislation back in 2007.

Merchants Can Now Add Surcharge to Credit Card Purchases in Forty States

Consumerism, News, , ,
Surcharge Instituted on Credit Card Purchases

As of January 27 retailers in 40 states in America will be permitted to add a 4 percent surcharge, or “checkout fee” to their bill if their customer chooses to pay with a credit card. The charge can be added to both goods and services charged to a credit card, but not to a debit card. This practice is still illegal in California, Texas, New York and seven other states.

Each business is allowed to make its own decision about whether or not to charge this fee, but if they do they are obliged to inform their customers.

The surcharge was instituted as a result of the largest anti-trust settlement in US history. In 2005 merchants joined together to sue the big credit card companies, including Mastercard, Visa, JP Morgan Chase and eight other companies, claiming that they conspired to fix the fees that stores must pay the credit card companies to accept credit purchases.

Negotiations to settle the case took years while the lawsuit was in the US District Court for the Eastern District of New York. Finally a settlement was reached in which the banks agreed to pay $6 billion to the suing merchants.

Part of the settlement included the provision to allow merchants to charge their customers a fee equal to the cost of accepting the credit card, typically between 1.5 percent and 3 percent of the purchase price.

Consumers can avoid the surcharge by using a debit card or cash to make a purchase. To avoid the surcharge on-line purchases can be done through PayPal or other electronic payment options.

Better Late Than Never: Sandy Victims Applaud Aid Package Passage in House

Economy, News, , , ,
New Jersey Governor Chris Christie

In a joint statement delivered by New Jersey Republican Governmor Chris Christie and Democratic New York Governor Andrew Cuomo, the leaders stated their appreciation of the passage of a $50.5 billion Hurricane Sandy recovery aid package  in the House of Representatives.

“The tradition of Congress of being there and providing support for Americans in times of crisis, no matter where they live across this great country, lives on in today’s vote in the House of Representatives.”

The legislation allocating the funds will now have to go to the Democratic- controlled Senate, where it is sure to pass through quickly.

Republicans in the House did not move to pass the aid package as quickly as they could, debating on the effects of such a large allotment of funds on US debt reduction, spending and taxes.

More Resignations From Best Buy’s Board

Companies, News, , ,
Best Buy Going Through Hard Times

Two board members of Best Buy Company announced their resignation from the struggling company’s board. The announcement comes within only seven months of the departure of Best Buy’s founder from the board.

The resignation of the two, which includes a former chief executive, will leave Best Buy’s 11-member board with four empty seats.

The company has been facing hard times as consumers use the electronic consumer goods stores as showrooms, and then go home and make their preferred purchases on-line.
The company said that G. Mike Mikan, who had served as the interim CEO from April to September 2012 had resigned from the board, effective immediately. Mikan was enlisted to fill in for the former head Brian Dunn who was forced to resign after having an inappropriate relationship with a woman employee.

Mikan will now become the president of ESL Investments, a hedge fund founded by billionaire Edward Lampert.

"Mike's background fits with our strategy and he will be a great asset to me and to ESL's portfolio companies," Lampert said in a statement on Monday.

The second departure will be when Matthew Paull retires in April, 2013 after serving on Best Buy’s board since 2008.

Paull and Mikan have not indicated that their resignations are related in any way to any disputes they may be having with the company’s management.

The fourth vacancy on the board goes back to last June when Rogelio Rebolledo was required to retire from the board due to his compliance with the rules of the company’s retirement policy.
 

New SEC Head May Push Through Advertising Proposal for Hedge Funds

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New SEC Chairman Elisse Walter

Elisse Walter, the newest head of the Securities and Exchange Commission, is likely to successfully push through a deal to ease rules which have been in place for decades restricting hedge funds, buyout shops and small businesses from marketing their wares in public.

Walter, a Democrat who took over the reins of the SEC last week, recently expressed her concern about the proposal. She has fears that loosening the restrictions on public advertising could result in instances of fraud or the sales of securities whose risks investors do not completely understand. Walter pointed out that although the regulators stand to benefit from the change in rules it is still the responsibility of the SEC to insure that investors are protected from risks and oversee hedge fund compliance.

Walter is the head of a commission split between two Republican members and two Democrats, one of them her. This make-up of the commission makes it appear like a compromise proposal will be hard, if not impossible, to achieve.

Analysts contend, however, that Walter will be able to persuade at least one of the Republicans to come to her side and adopt the new rule. It is believed that she will find common interests with the Republican members of the commission who want to allow advertising in this industry. The JOBS act mandated the provision for solicitation of investors by legislation which was approved in April by Congress.

“I am optimistic that Walter and the two Republicans can reach a deal,” said Brian Lane, a former director of the corporation finance division at the SEC while Arthur Levitt was chairman during the Clinton administration.