According to a regulatory document filed Wednesday with the SEC, former chief operating officer, Henrique de Castro, left Yahoo and received a severance package worth $58 million. CNN also reported this morning this package is the most lucrative severance agreement ever offered to an executive and is especially notable because De Castro only worked at Yahoo for fifteen months. Not only is the pay high, it’s been given to someone who, according to reports, was let go by Yahoo CEO Marissa Mayer because his efforts had failed to improve Yahoo’s advertising revenue.
The Department of Agriculture and the Census Bureau reports there are now more people participating in the food stamp program than women working full-time. According to their information there are 46,609,000 people participating in the food stamp program compared to 44,059,000 women who worked full-time.
Reuters reports another bankruptcy hurdle in the Detroit bankruptcy case has been overcome as U.S. Bankruptcy Court Judge Steven Rhodes ruled this morning that the court is planning to approve a new settlement deal between Detroit and two investment banks which have been used to hedge interest rate risk on the city’s pension debt.
Reuters reports the city of Detroit is one step closer to completing its bankruptcy. According to the report, Detroit and certain bondholders have agreed on a plan to significantly reduce bondholder losses and potentially help Detroit make agreements with other creditors.
This month Policymic published several little known facts about recent college graduates. They found two thirds of college graduates graduate with student loans. Student loan debt is generally held by families who have a net worth of less than $8,500. The average student owes $29,400 in 2012. Forty million Americans hold $1 trillion in outstanding student loan debt. Seventy-percent of people with student loan debt are 30 years or older. And 52% percent of college graduates strongly or somewhat agree student loan debt is hindering their career choices. Now, combine those facts with the increasing number of college graduates who now hold minimum wage jobs, and the United States has a real employment problem.
Do you think your actions, behaviors, propensity for crime or buying patterns can be encapsulated by a scoring system? Data brokers, analytics firms, retailers and even law enforcement agencies believe they can. In fact, according to a new report by CNN, it’s not just the famous credit score that is used to determine your actions, but other businesses and groups are now creating hundreds of “secret” consumer scores which are helping a variety of agencies and companies do everything from “promoting new products to investigating crimes.”
Bloomberg reports that a jury has convicted five former Bernie Madoff employees for perpetuating the fraud. The decision was made by a federal jury in Manhattan, New York, yesterday. According to the conviction these employees were “guilty of aiding his fraud for decades by creating fake trading documents and account statements.” The fraud was perpetrated against not only the wealthy but also against retirees, charities and family and friends.
Reuters reports Brookstone, the specialty retailer, could file bankruptcy as early as this Sunday. Plans are already in place, however, for Spencer Spirit Holdings Inc, which owns the retail chain Spencer’s and costume retailer Spirit, to purchase Brookstone. Both companies have been in discussions for weeks and are attempting to finalize the deal over the weekend.
One of the most common questions debtors ask is, “Can I discharge student loans through bankruptcy?” Given that several months ago the Federal Reserve Bank of New York reported for the first time in history the student loan 90 day delinquency rate had moved above 11% and now exceeds $965 billion (which is more than credit card and auto loan debts) there are thousands of students who have this question.
Reuters reports MModal, a medical transcription company, has filed for bankruptcy protection today in efforts to reduce its debt. MModal, which is owned by J.P. Morgan Chase & Co’s private-equity arm, has listed their assets and liabilities in the $500 million to $1 billion range. In 2012, this company was taken private by One Equity Partners in a $1.1 billion all-cash deal.