Here are three of the week’s top financial news, gathered from the web:
The bank that continues to take
“Wells Fargo continues to find ingenious ways” to take advantage of its customers, David Lazarus said in the Los Angeles Times. At 68, Rick Yelinek had finally “raised enough money to pay off his mortgage.” He deposited a cashier’s check into the checking account used for his mortgage. But the bank said it was still under-resourced: it had to shell out an additional $ 30 for the wire transfer “to move his mortgage payment from one division of the bank to another.” Wells Fargo says Yelinek would not have been charged had he used a certified check instead, a distinction no regular customer is likely to know. The bank has since waived the fee, but Yelinek believes Wells Fargo “will do anything to get money from customers.” He would know – he worked there for seven years as a loan officer.
Venture capital loses its magic
Only three of the top 10 venture capitalists today are venture capitalists, said The Economist. Private equity, hedge funds and other Wall Street companies are fueling a record year for venture capital investing, which “is on track to hit an all-time high of $ 580 billion this year.” They have also disrupted the functioning of venture capital. The original approach “was to support risky startups” with seed money “in the hope that a big hit, like Google, would carry a whole wallet.” VC funds could also provide experience and access to a network of contacts. Investors today demand a faster return on their investment, and the relationship with young companies is more âtransactionalâ than personal. Meanwhile, traditional venture capital funds are more like other investors, retaining stakes in companies even after they go public.
Better social security declaration
The Social Security Administration has made it easier to understand your benefits with a redesigned annual statement, said Richard Eisenberg in Market surveillance. The biggest improvement is probably the elimination of the term âearly retirement benefitsâ. The previous incarnation of the declaration led many to “think it wise to start claiming Social Security as soon as possible”. But âSocial Security rules essentially give you an 8% higher benefit for each year you defer claiming benefits after your full retirement age, until you turn 70. You can access your statement on the Social Security website. In fact, unless you’re 60 or older, the web is the only way to get it. The agency stopped sending statements to young workers ten years ago.
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