NYT: Justice Dept. Sets Record In Penalties For Fraud
The Justice Department collected a record $24.7 billion in penalties from fraud and other cases in the 2014 fiscal year, the agency said on Wednesday, as fines against banks for financial misconduct soared. Collections from civil and criminal actions, including money collected on behalf of other agencies, was $8 billion in 2013, and $13 billion in 2012. Collections in 2014 were bolstered by multibillion-dollar payouts from JPMorgan Chase and Citigroup to resolve claims they misled investors about the quality of mortgage bonds in the run-up to the financial crisis, and include $11 billion in payments made to federal agencies or states. Payouts in the 2014 fiscal year, which ended Sept. 30, also include hundreds of millions of dollars in fines levied on UBS and Royal Bank of Scotland.
NYT: Business Spending, Exports Spur Big Bounce In U.S. Economy
The U.S. economy grew at its fastest pace in 2-1/2 years in the second quarter with all sectors contributing to the jump in output in a bullish signal for the remainder of the year. The Commerce Department on Friday raised its estimate of growth in gross domestic product to a 4.6 percent annual rate from the 4.2 percent pace reported last month. The United States is bucking a spate of weaker overseas growth with the euro zone and Japan slumping, and growth in China slowing as well. the expansion in consumer spending, combined with strong business investment,
was nevertheless enough to push domestic demand ahead at its fastest pace since 2010. That suggests the economy’s recovery is becoming more durable after output slumped at a 2.1 percent rate in the first quarter because of an unusually cold winter. So far, data covering manufacturing, trade and housing suggest that much of the second quarter’s momentum spilled over into the third quarter. Growth estimates for the July-September quarter range as high as a 3.5 percent pace. When measured from the income side, the economy grew at a 5.2 percent pace during the second quarter…export growth was raised to an 11.1 percent pace, the fastest since the fourth quarter of 2010, from a 10.1 percent rate.
Jason Furman: Third Estimate of GDP For The Second Quarter Of 2014
1. Real gross domestic product (GDP) increased 4.6 percent at an annual rate in the second quarter of 2014, the fastest pace since the fourth quarter of 2011, according to the third estimate from the Bureau of Economic Analysis. The strong second-quarter growth represents a rebound from a first-quarter decline in GDP that largely reflected transitory factors like unusually severe winter weather and a sharp slowdown in inventory investment. Growth in consumer spending and business investment picked up in the second quarter, and residential investment increased following two straight quarters of decline. Additionally, State and local government spending grew at the fastest quarterly rate in five years. However, net exports subtracted from overall GDP growth, as imports grew slightly faster than exports.
Real gross domestic income (GDI), an alternative measure of the overall size of the economy, was up 5.2 percent at an annual rate in the second quarter. 3. Over the past four quarters, real GDP has risen 2.6 percent, faster than the 2.0 percent annualized pace observed over the preceding eight-quarter period. Looking at four- and eight-quarter changes to smooth some of the quarter-to-quarter volatility, it is clear that many components of GDP are showing improvement. The growth rates of consumer spending, business investment and exports have all picked up, and the pace of declines in the Federal sector have moderated a bit. In addition, the State and local government sector has turned positive, after several years of steady cutbacks. One area that has slowed over the last four quarters is residential investment, although it did rebound in the second quarter.
The Obama administration on Tuesday announced a series of moves aimed at cutting emissions of hydrofluorocarbons, or HFCs, powerful greenhouse gases that contribute to climate change. The White House has secured voluntary agreements from some of the nation’s largest companies to scale down or phase out their use of HFCs, which are factory-made gases used in air conditioning and refrigeration. Coca-Cola, Pepsi, Red Bull, Kroger, Honeywell and DuPont, the company that invented fluorinated refrigerants, have agreed to cut their use and replace them with climate-friendly alternatives.
Over all, the administration estimated that the agreements announced on Tuesday would reduce cumulative global consumption of HFCs by the equivalent of 700 million metric tons of carbon dioxide through 2025. That is about 1.5 percent of the world’s 2010 greenhouse gas emissions, or the same as taking 15 million cars off the road for 10 years. “Every drumbeat in this symphony helps. It drives it along. This is part of that drumbeat,” said Durwood Zaelke, president of the Institute for Governance and Sustainable Development, a research organization. “The benefits from cutting non-CO2 come much faster,” he added. “CO2 is like a supertanker – you can stop it, but it keeps drifting for a long time. Cutting HFCs are like stopping a steamboat. You stop it and that’s that.”