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Top pay at Freddie, Fannie need gov't OK
WASHINGTON -- Congress wants to require executives at Fannie Mae and Freddie Mac to have their pay packages approved by the government as part of a bill to throw a federal lifeline to the mortgage giants. The idea comes as lawmakers scramble to limit the potential taxpayer costs of the rescue plan and satisfy critics of the government-sponsored companies who fear an open-ended bailout. Rep. Barney Frank, chairman of the House Financial Services Committee, also wants to mandate that the companies delay issuing dividends until they reimburse the government, if the Treasury Department had to prop them up. JPMorgan bests forecasts NEW YORK -- The banking sector looked a little brighter for a second straight day Thursday after JPMorgan Chase & Co. reported better-than-expected results despite a spike in mortgage and other loan defaults. The bank's shares gained more than 13 percent Thursday after it reported a 53 percent drop in profit. Following Wells Fargo & Co.'s stronger-than-expected results released Wednesday, investors appear more confident that the banking sector, while struggling, will be propped up by some of its healthier players. However, JPMorgan Chase, like its weaker competitors, still has a tough environment to slog through as the aftermath of the mortgage and credit crisis continues. Even the bank's more creditworthy borrowers are now failing to make their mortgage payments. Witness details U.S. tax evasion abroad WASHINGTON -- A man wanted by Liechtenstein for leaking secret banking information that identified millionaire tax cheats across Europe and the United States has described to congressional investigators how money was concealed. Lawmakers played a videotape of the testimony by Heinrich Kieber at a congressional hearing Thursday that revealed rare details of offshore practices at two European banks. At the hearing, Swiss banking giant, UBS AG, announced that because of recent revelations, it will stop offering U.S. clients offshore services through branches based abroad. Kieber is living under a new name in an undisclosed witness protection program, and has never spoken publicly about his role in exposing tax shelters he says were used by Liechtenstein's LGT group. Microsoft 4Q profit jumps 42 percent SEATTLE -- Microsoft Corp. said Thursday its fiscal fourth-quarter profit jumped 42 percent, helped by strong sales of its Office and Windows software, but investors sent shares down on disappointing first-quarter guidance. |
