Oplecenter Business & Finance News

WASHINGTON – After struggling for months to avoid bankruptcy, CIT Group, which is one of the largest lenders to small and medium businesses the largest in the United States, filed for bankruptcy protection.

The submission made 101-year-old company had to cut $ 10 billion debt, after the credit crisis makes liquidity dried. This was done so that the company can continue lending to small and medium businesses, two sectors which are still considered important for the State economy Uwak Sam.

Quoted by Bloomberg, on Monday (2/11/2009), CIT reported assets worth USD71 billion and USD64 debt, 9 billion for Chapter 11 protection in Bankruptcy Court in Manhattan, local time Sunday.

Filing for bankruptcy protection this is one of the largest in U.S. corporate history, after Lehman Brothers, Washington Mutual, WorldCom, and General Motors.

Treasury Department spokesman Andrew Williams said the government would monitor the process of this bankruptcy

Frankfurt – European Central Bank (The European Central Bank / ECB) announced a funding loan of 20 billion euros ($ 25 billion). This fund is intended to keep interbank money market flows.

ECB says commercial banks in the euro area need to pay for financial operations in dollars, but on the interbank market has been trading above the ice of distrust to repay their loans due to the international financial RISIS.

In essence, the central bank has changed the market by providing an unlimited amount of liquidity at this time, or cash. This is done to ensure banks can meet minimum reserve requirements are used as a proponent of credit to the economy.

ECB to make sure his company would focus on the money markets to get money to walk again with the number of mass inoculation in the world. Included with the major currencies votes will achieve some success for the world economy.

Because, they assess the financial markets determine the availability of credit to people around the world. As managers who try to finance their businesses to families and students looking for housing loans and personal loans.

ECB says these funds are often referred to as mutual funds swap, which includes the sales dollar on Tuesday (4/11/2008) and buying them back on Wednesday (5/11/2008).
exchange rate 0.000604 dollars per euro, or 6.04 swap points, would apply to the transaction. Figures used a reference spot rate of 1.4535 for the operation.

In practice, to take into account foreign exchange risk that the ECB will be registered to take the initial margin of 1.3808. Then one week to assess 1.380196.

For information, yesterday, the European single currency fell below $ 1, 24 in early London trading, or the lowest level since April 2006. This perceived fear a recession and the withdrawal of funds into the dollar.

The level of demand for the dollars offered by the ECB will be released at a later date.

Previously, eight major banks in the UK also has agreed to advance funds by 50 billion pounds or about 64 billion euros (USD87 billion). This bailout is given as part of their nationalism to stabilize the British banking system from the financial crisis that hit the United States (U.S.).

This package includes the 200 billion pounds of funds for credit at several banks. Like the Royal Bank of Scotland, HSBC and Barclays. According to the British government, this rescue package will be used almost 50 billion pounds of taxpayers to buy a major stake in the bank. Namely HBOS, Lloyds TSB, Standard Chartered, Abbey and Nationwide Building Society.

Bailout is also intended to shore up balance sheets of leading banks in the UK. Later an agreement was expected to provide a standby loan facility for any funds that may be necessary operational security banks.

Then, the U.S. will provide approximately USD250 billion fund to buy some shares in the bank this year. This is also a decisive step to overcome the global financial crisis that threatens the United States fell into recession.

U.S. President George W. Bush has announced that after the leaders of banks in the country’s largest countries gathered in an extraordinary meeting at the Ministry of Finance (MoF) on Monday (13/10) local time.

Secretary of Finance Henry Paulson basically told the bank if the leaders (CEO) should receive a share purchase plan in the bank by the government. It is intended for the good of the U.S. economy itself. In addition, it is also to restore back the interbank lending patterns of safer and healthier.

The plan, the U.S. government plans to use the USD250 billion rescue package from the government program for USD700 billion Congress has agreed on October 3. The plan, buying back shares will take place at the nine largest banks in the U.S.. Like Wells Fargo & Co.., JPMorgan Chase & Co.., Bank of America Corp.., Merrill Lynch & Co.., Morgan Stanley, State Street Corp.. and Bank of New York Mellon Corp..

This new policy also followed previous policies made between France, Spain, the Netherlands, and Austria committed $ 1, 8 trillion to guarantee bank loans and existing stocks

Credit Card is not only your lifestyle, but it is a necessity for urban communities to support all activities in life. But behind the credit cards, many problems which threaten, if you do not use it wisely.

Credit cards are like a luxury that can pay for everything and in a short time and quickly. For that, Vice President Customer Care Center Head Citibank Indonesia, Hotman Simbolon describes how a wise step using credit cards.

“Credit to the collateral is a loan obtained by a man with a pledge something to the creditor. Collateral is something of value equal to or greater than the number of loans, such as cars, homes or cash deposits. Credit without collateral is a loan obtained by someone without warranties of any kind,” he said when found in the Ballroom Mandari Oriental Hotel, Jakarta, Saturday (7/11/2009).

“Credit card is one type of personal loan without collateral, the most common. Use the same credit card to borrow money. Every time you swipe your credit card the same as borrowing money. Every time the swipe card, you actually apply for a loan to purchase it,” continued.

Someone will face many problems if you do not pay credit card bills or loans on time. Which will eventually lead to legal action. Delaying payment of a loan or credit card bills can be a serious problem.

“To avoid problems, use your credit wisely. Therefore, you first need to know how much the loan are willing to pay. You should carefully examine your financial situation at present and the future before making a loan . Make sure you are also able to make loans, “he added.

Furthermore, Hotman urged to create a realistic budget while paying the loans by calculating the ratio of the loan. Where the loan ratio is the ratio of the loan amount with the amount of income.

This loan ratio is the percentage of net monthly income used to pay the monthly fee pijaman and others.

“Thus, the smaller your loan ratio, the greater the money you set aside for savings or used for other purposes. And never use a credit card to another credit card mebayar or to get cash,” he said.

Many financial experts suggest that the ratio used to pay loans and credit Katu not exceed 15 to 20 percent of net income, and total payment of all debts including mortgage should not exceed 40 percent of your income.