Missteps in GMAC Bailout Could Cost Taxpayers $6.3 Billion

In their bailout of GMAC, U.S. officials took some key missteps that may have resulted in higher taxpayer costs and an uncertain outlook for the financial services giant, according to the most recent report by the government’s official overseer of bailout expenditures. The government should have pursued other options — including a bankruptcy restructuring — for GMAC, the in-house credit arm of General Motors that has expanded over the years to providing home mortgages, insurance and commercial loan products, said the Congressional Oversight Panel.

Weather, Mortgage Redos Slow Foreclosure Filings in February

U.S. foreclosure filings declined by 2 percent in February at 308,524 properties compared to the previous month, and up 6 percent from a year ago – the smallest annual increase in four years, according to RealtyTrac’s latest monthly update. One in every 418 U.S. households received a foreclosure filing in February, including default notices, scheduled auctions and bank repossessions, reported the online foreclosure resource. “It still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, chief executive officer of RealtyTrac.

Beyond Volcker Rule: Dems Push Trading Limits for Banks

Five Democratic senators today proposed to broadly limit proprietary trading, such as speculating in stocks commodities and derivatives, by the major banks that hold much of the federally-insured deposits of Americans. The proposal, though, goes beyond the initial ‘Volcker rule’ concept by requiring “large, important nonbank” financial institutions to set aside capital and also follow strict limits on their speculative trading.

Bank of America: Low-Balance Alerts Part of Overdraft Plan

In addition to its ground-breaking plan this summer to end overdraft fees on its debit card purchases, Bank of America is also going to offer alerts to online customers if their checking account balance is too low or overdrawn. The nation’s largest bank will end the frustrating and much-maligned practice of overdraft fees on debit cards, but customers can still be charged for being overdrawn on checking accounts by writing too many checks or having too many debits through automated bill-pay.

Obama Short Sale Plan Avoids Foreclosure with Less Debt

A new initiative by the Obama Administration in its slow-moving and often-criticized foreclosure rescue effort will now offer a short-sale alternative that includes some principal forbearance and $1,500 in “relocation” assistance to borrowers. The plan kicking off April 5 — Home Affordable Foreclosure Alternatives, or HAFA – is for homeowners who have already qualified for the government’s primary foreclosure-prevention campaign, the $75 billion Home Affordable Modification Program, HAMP, and have failed to complete its reduced-mortgage payments trial.

Twitter Takes Action Against Phishing, ‘Deceitful Attacks’

In behind-the-scenes security adjustments, Twitter said it is cracking down on phishing attacks that have accelerated in recent weeks in what it describes as a “a major blow” against “deceitful attacks.” Utilizing Twitter’s direct messaging system, phishing links have nearly overrun the micro-blogging giant as scammers have taken over user accounts to tweet followers.

Bank of America to End Debit Card Overdraft Fees

Just about when new rules take effect forcing banks to halt overdraft fees unless a customer opts-in, Bank of America has decided to do away with overdraft fees on debit card purchases altogether. The nation’s largest bank stands to lose tens of millions, or more, in fee revenue. And now may force top competitors to follow suit.

LifeLock Settles with FTC on I.D.-Theft Protection ‘False Claims’

LifeLock — whose CEO brashly displayed his Social Security number in commercials to demonstrate his company’s anti-identity theft prowess — has settled with the Federal Trade Commission on charges it used false claims in promotions. The FTC called it one of its largest “coordinated settlements on record.” LifeLock has agreed to pay $11 million to the FTC and $1 million to a group of 35 state attorneys general.

Small Businesses Down on Outlook & Jobs Tax Credit

A national Index of Small Business Optimism lost 1.3 points in February, falling back to December’s level of 88 – out of 100 – and only 7 points higher than its lowest reading ever, according to the National Federation of Independent Business. The lowest reading on the NFIB’s index was 80.1 in 1980. “The persistence of index readings below 90 is unprecedented in survey history,” the NFIB said today in a statement.

American Express, TakePart Launch during Oscar Telecast

If you watched the commercials during the Academy Awards, you may have caught the launch of “Members Project” by American Express and TakePart.com, the online philanthropic channel for those interested in entertainment with a social conscience. The credit card giant has formed a partnership with Participant Media, the creator of TakePart.com that showcases innovative documentaries, such as the Academy Award-winning An Inconvenient Truth and the Oscar-nominated Food, Inc., “to drive citizen engagement and social action.”

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