 Banks overall made $21.6 billion in net income in the April-to-June quarter, the Federal Deposit Insurance Corp. said. It was the highest quarterly level since 2007 and was led by the largest institutions. The industry lost $4.4 billion in the second quarter of 2009. But the number of banks on the FDIC's confidential "problem" list increased by 54 in the quarter -- growing to 829 from 775 in the first quarter. Most of the banks that have failed this year have been smaller or regional banks. The decline in bank lending stemming from the financial crisis showed signs of leveling off, the data show. Total lending declined by $107.5 billion, or 1.4 percent from the first quarter. It posted the steepest drop since World War II -- 7.5 percent -- in 2009 from the year before. FDIC Chairman Sheila Bair said banks' lending standards are beginning to ease for some types of credit. "But lending will not pick up until businesses and consumers gain the confidence they need to hire and spend," Bair said. She said the economic recovery is starting to be reflected in banks' higher earnings and the improved quality of loans, with fewer defaults and delinquencies. For the first time since late 2006, banks overall set aside less to cover future losses on loans than they had a year earlier, the FDIC said. Total reserves declined by $11.8 billion, or 4.5 percent. The biggest banks have mounted a strong recovery with help from federal bailout money and record-low borrowing rates from the Federal Reserve. They also have been able to cut back on lending in troubled parts of the country such as Florida and Nevada. Smaller and regional banks, however, have less flexibility. They have accounted for nearly all the banks that have failed this year. The FDIC's deposit insurance fund, which fell into the red about a year ago, posted a slight improvement. Its deficit declined to $20.7 billion from $20.9 billion. The FDIC expects U.S. bank failures to cost the insurance fund around $100 billion through 2013. The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to help replenish the fund. Last year, 140 federally insured institutions failed and were shut down by regulators. It was the highest annual number since 1992, when the savings and loan crisis hit its peak. Last year's failures extended a string of collapses that began in 2008, triggered by loan defaults in the financial crisis. The pace of bank collapses this year exceeds last year's. So far, 118 banks have failed in 2010. The pace has quickened as banks' losses mount on loans made for commercial property and development. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers. |
Banks Post Profit of $21.6 Billion in 2nd Quarter
Alfred Kahn Testifies on FERC's 'Parity' Proposal
In his testimony, Kahn emphasizes that “demand response is in all essential respects economically equivalent to supply response,” and that “economic efficiency requires, as the NOPR recognizes, that it should be rewarded with the same Locational Marginal Price (LMP) that clears the market.”
Kahn further advocates that “any increase in the efficient responsiveness of demand (to prices competitively determined, as in the ISO-conducted auctions) will move us in the direction of correcting the most severe deficiency in most such markets in the US, the lack of an adequately, price-responsive demand side.”
Kahn’s testimony comes on the heels of comments filed by opponents to demand response parity, including the Electric Power Supply Association, which, according to Dr. Kahn, mischaracterized full LMP compensation for demand response as a “subsidy” rather than a legitimate investment.
“That electricity generators have opposed this plan should not be surprising: their primary business is to sell power, not to encourage its conservation, and I have myself publicly cited evidence that they reap the preponderance of their profits on those occasions when demand is at its peak,” Kahn said in his comments.
Kahn is a world-renowned economist and the Robert Julius Thorne Professor of Political Economy, Emeritus, at Cornell University. He served as an economic advisor to President Carter, the Chairman of the New York Public Service Commission, and the Chairman of the Council on Wage and Price Stability. Dr. Kahn is the author of many publications including "The Economics of Regulation," the first comprehensive integration of the economic theory and institutional practice of economic regulation.
“Having Dr. Kahn, one of our country’s most respected economists, advocate so articulately for full LMP compensation for demand response as set forth in the FERC NOPR is a significant win for ratepayers, for the demand response industry, and for the businesses and organizations that provide this valuable service to the grid,” EnerNOC President David Brewster said.
Viridity Energy President and CEO Audrey Zibelman added, “I am pleased to see such a strong statement from Professor Kahn highlighting the impact of demand response in bringing greater levels of competition to the organized electricity markets and in improving the operation of the markets for consumers."
Reference
EPA to Establish Environmental Justice Guidelines
srensberry@rensberrypublishing.com
(RPC) - 8/27/2010 - The concept of environmental justice isn't one you hear about very often. Although it's been discussed for years, it's a sure bet that many people have never even heard of it. Others simply might not care, or may label it a political issue.
But the concept has been gaining steam as some of the more obvious disparities in environmental regulation, planning and policies have surfaced, policies with a direct impact on poor and minority populations who very often have neither the power nor means to do anything about it.
There's a quarterly journal by the same name at: Environmental Justice, published by Mary Ann Liebert, Inc. There's an Environmental Justice Resource Center at Clark Atlanta University (EJRC), an Environmental Justice Foundation (EJF) and an environmental justice focus among a number of government agencies, particularly the U.S. Department of Transportation and now perhaps the U.S. Environmental Protection Agency.
As the EPA defines it: "Environmental Justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies."
This past month the EPA announced that it was releasing an "interim guidance document" to assist its staff in incorporating environmental justice concerns into its rule making process, calling it a positive step in protecting communities who are disproportionately impacted by pollution.
"Historically, the low-income and minority communities that carry the greatest environmental burdens haven't had a voice in our policy development or rule making. We want to expand the conversation to the places where EPA's work can make a real difference for health and the economy," EPA Administrator Lisa P. Jackson said. "This plan is part of my ongoing commitment to give all communities a seat at the decision-making table. Making environmental justice a consideration in our rule making changes both the perception and practice of how we work with overburdened communities, and opens this conversation up to new voices."
The document is entitled "Guidance on Considering Environmental Justice During the Development of Action," and focuses specifically on low-income, indigenous and minority communities and tribal government who, it says, have been under-represented in the regulatory decision-making process.
"The guidance also outlines the multiple steps that every EPA program office can take to incorporate the needs of overburdened neighborhoods into the agency's decision-making, scientific analysis, and rule development. EPA staff is encouraged to become familiar with environmental justice concepts and the many ways they should inform agency decision-making," the notice says.
Public input is being sought on how to best implement and improve the guide. See: EPA Source.
The page contains a PDF link to a 55-page document explaining the guide and the agency's overall purpose.
An example of issues the document looks at is seen on page 29 in a serious of questions to be considered with whatever action is being taken.
"Does the action involve a topic that is likely to be of interest to or have particular impact upon minority, low income, or indigenous populations, or tribes?" it asks. "If you answer yes, please check a minimum of one of the following,"
- The action is likely to impact the health of these populations.
- The action is likely to impact the environmental conditions of these populations.
- The action is likely to present an opportunity to address an existing disproportionate impact on these populations.
- The action is likely to result in the collection of information or data that could be used to assess potential impacts on the health or environmental conditions of these populations or tribes.
- The action is likely to affect the availability of information to these populations or tribes.
Refinancing Your Home in a Depressed Market
To help families dealing with lower home values and other personal crises, the Obama Administration announced the Making Home Affordable initiative that is designed to help between 7 million and 9 million Americans improve the affordability of their mortgage and prevent foreclosure.
There are several programs under the Making Home Affordable initiative. One of these is the Home Affordable Refinance Program (HARP). HARP is a refinance program for homeowners who are current on their mortgage payments, but unable to take advantage of the current low interest rates due to their home's depressed value. The program is also designed to assist borrowers in changing from a risky loan, like a negatively amortizing adjustable, into a more stable 30-year fixed rate. There are several eligibility requirements for the HARP program, however the most important one is that your loan be owned or guaranteed by either Fannie Mae or Freddie Mac, and you must work directly through your lender (the company that currently services your loan).
Borrowers interested in knowing if they qualify for a HARP refinance program must contact their lender. You can also obtain general information about HARP, as well as access links to determine whether your loan is Fannie Mae- or Freddie Mac-owned or guaranteed, from the Making Home Affordable web site: http://www.makinghomeaffordable.gov/loan_lookup.html.
Before your lender can make you an offer, you will need to fully document your income, which generally requires providing: your W-2s, recent bank statements and pay stubs. The PMI Mortgage Insurance Co. has a helpful mortgage-assessment form at www.homesafepmi.com, where you can input the information your lender will likely require.
Given the backlog of requests, the process from phone call to decision may take 60 to 90 days.
Source: NewsUSA
