Banks and the Economy

Personal Income Increased in November

Personal income increased $1.6 billion in November, or less than 0.1%, according to the Bureau of Economic Analysis, down from a 0.5% increase in October. Personal consumption expenditures also increased, rising 0.2% or $24.0 billion. Disposable personal income – personal income less personal taxes – decreased $1.3 billion, or less than 0.1%. The personal savings rate – personal savings as ...

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GDP Revised Up to 3.5% for Third Quarter

Real GDP for the third quarter of 2016 grew at a seasonally adjusted annual rate of 3.5%, according to the Bureau of Economic Analysis’s third estimate, up from the second estimate of 3.2%. The general picture of economic growth remains the same. The change in GDP estimates reflected upward revisions to nonresidential fixed investment, personal consumption expenditures, and state and ...

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Durable Goods Orders Fall in November

New orders for manufactured durable goods decreased 4.6% in November to $228.2 billion, following four consecutive monthly increases, according to the U.S. Census Bureau. New orders excluding defense fell 6.6% on the month, as orders of nondefense capital goods decreased 19.5% to $64.4 billion. Shipments of manufactured durable goods, up two of the last three months, rose 0.1% to $234.2 ...

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Existing-Home Sales Increased in November

Existing-home sales rose 0.7% to a seasonally adjusted annual rate of 5.61 million in November, according to the National Association of Realtors (NAR). November’s sales pace was the highest since February 2007 (5.79 million). A large increase in home sales in the Northeast and a smaller gain in the South helped push total sales up for the third consecutive month. ...

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OCC: Underwriting Standards Relax as Credit Risk Increases

Underwriting standards for both retail and commercial loan products have eased for the fourth consecutive year as banks continue to respond to competitive pressure, grow their portfolios and increase their appetite for risk, the OCC said in its 22nd annual Survey of Credit Underwriting Practices.

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IRS Issues Guidance on Tax Treatment of TLAC Debt

The Internal Revenue Service has issued a revenue procedure that provides guidance on the tax treatment of certain internal debt that is required to be issued by intermediate holding companies to parent foreign holding companies to meet recently finalized total loss absorbing capacity, or TLAC, requirements.

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Fed Approves Final TLAC Rule

The Federal Reserve Board today finalized a rule on how much total loss absorbing capacity, or TLAC, the eight U.S. global systemically important banks are required to hold.

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