FINANCIAL NEWS

In the wake of news that the European Central Bank cut interest rates to spur the economy, U.S. stocks opened lower on Thursday morning. While the ECB’s cut was an attempt to temper its growing debt crisis, investors feared that European leaders may not be able to hold off a likely recession.

European Central Bank Drops Interest Rate to Record Low

The White House announced on Wednesday that it seeks to simplify the credit card agreements customers are issued from credit card companies. Through the Consumer Financial Protection Bureau (CFPB), the plan is to release new forms that will standardize the agreements, making interest rates and fees easier to understand.

Prototype Credit Card Agreements to Simplify Language

Occupy Wall Street demonstrators and other housing activists are heading to neighborhoods hardest hit by the foreclosure crisis to protest mortgage lenders’ mistreatment of homeowners. Protesters in New York, Los Angeles, Chicago and other cities are expected to visit neighborhoods for one scheduled day of protests on Dec. 6.

Occupy Our Homes Rallies Against Foreclosure Crisis

A new report from First Data finds that consumers have significantly increased credit card use in recent months. In fact, the company, which processes credit card transactions for 4.1 million merchant locations, revealed that card use is returning to pre-recession levels.

Credit Card Use Trends are Reversing

Fannie Mae, Freddie Mac and several large mortgage lenders have announced that they will not foreclose on delinquent borrowers during the Christmas season. The mortgage servicers said they are taking this step to help struggling homeowners rest assured that they won’t have to think about facing a stressful foreclosure for at least a few more weeks.

A new report from the Labor Department revealed that the U.S. unemployment rate has experienced a significant one-month drop, reaching the lowest level since March 2009. According to the report, an increase in hiring in the month of November resulted in the unemployment rate falling to 8.6 percent.

Job Creation Adds 120,000 Jobs as Unemployment Rate Lowers

Lawmakers started issuing proposals to extend the payroll tax cut into 2012 and they’re doing so along party lines. Both Republican and Democratic parties are prepared to extend the payroll tax cut for another year. However, they have different ideas regarding how the extensions should be implemented, meaning continued debates over how to execute an extension could extend dangerously close to the payroll tax cut expiration date at the end of the year.

Payroll Tax Cut Overview

As demonstrators around the country continue their efforts to protest corporate greed via the Occupy Wall Street Movement, protesters taking part in Occupy Los Angeles have found troubles with the law. Wednesday morning, more than 1,400 police officers cleared camp from park surrounding City Hall, arresting nearly 300 people who refused to leave the grounds.

Occupy Los Angeles Protesters Forcibly Removed

Following its promise issued less than two weeks ago, S&P downgraded the credit ratings of dozens of banks on Tuesday. This is following S&P’s announcement on Nov. 18 about a pending credit rating downgrade decision within the next three weeks.

Bank of America, Citigroup and Goldman Sachs Affected by S&P Downgrade

By Beth McKenna

Seems Santa came early to Wal-Mart (WMT) in 2011–the day before Thanksgiving, in fact–in the form of the Federal Reserve Board members. On November 23, the Fed voted 4-1 to approve Green Dot Corp’s (GDOT)–the largest U.S. provider of reloadable prepaid debit cards–application to buy a bank. The Fed also approved Green Dot’s application to become a financial holding company.