From The AssestBuilder's Scott Burns

      "If you are in your twenties or thirties, I have a tip for you:
       Learn about IRA accounts. They are the retirement vehicles for
       your future.

       Few have figured this out.

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In the "Am I the only one who (literally) missed the memo?" category:

On 5/6 a Prosperity CSR stated, among other information, that all Coppermark RCAs had been converted to regular checking accounts at Prosperity as of the merger date.  I went to a branch today to close my accounts and was asked why I was doing so.  I explained that it was primarily because the Coppermark Bank RCA had dropped to 1.25% APY prior to the merger and politely added that I was disappointed that Prosperity Bank had not done anything to welcome former Coppermark Bank customers. 

"Not so", said the associate. 

It appears that indeed the Coppermark Bank RCAs were converted to checking accounts at Prosperity Bank - but special ones, with unique account codes.  The old RCA accounts have been grandfathered into a special arrangement which has no qualification requirements to receive the 1.25% APY other than to receive E-statements.  No 16 debit transactions, no direct deposit, just continue to receive E-statements and you continue to earn 1.25%APY on balances up to $25k per account.   As is customary, the APY can change at any time.   This special account type is unique to former Coppermark Bank customers and is not offered to current Prosperity Bank customers.    So, for all intents and purposes, a 1.25% account with no transaction requirements for as long as it lasts.

I later confirmed the information with the Customer Service phone associates and they repeated the same thing.  The special accounts are grandfathered until the customer closes the account or is notified by Prosperity Bank that the account is being eliminated. 

The CSR went on to state that letters had been sent with this information, although she admitted that the information about the reduced requirements was not specifically mentioned. 

I would be curious if other (former) Coppermark Bank RCA customers received such notification, as I did not. 

Ally Financial agreed Thursday to pay $2.1 billion to settle legal claims tied to its bankrupt Residential Capital unit—nearly triple the amount it had initially offered.

Ally hopes that the deal will put an end to allegations that ResCap was stripped of choice assets such as Ally Bank before being put into bankruptcy, leaving creditors of the subprime mortgage business empty-handed.

Ally to Pay $2.1 Billion to Settle ResCap Claims

From The New York Times

     “Nothing in the toolbox of economists makes us good stock pickers.
      Yet we economists have written countless studies about the stock
      market. Here is a summary of what we know.

      ...THE MARKET PROCESSES INFORMATION QUICKLY...
      ...PRICE MOVES ARE OFTEN INEXPLICABLE...
      ...HOLDING STOCKS IS A GOOD BET...
      ...DIVERSIFICATION IS ESSENTIAL...
      ...SMART INVESTORS THINK GLOBALLY...

      ...If I could pick just one stock for someone to buy, what would
      it be? I would now suggest something like the Vanguard Total World
      Stock exchange-traded fund, which started trading in 2008. In one
      package, you can get low cost and maximal diversification.

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One thing that could hurt reward checking accounts is if debit card interchange fees go down. Those fees help pay the high interest rates of reward checking accounts. There was concern that the interchange fee caps that resulted from the Dodd-Frank financial-overhaul law would force down these interchange fees for all banks, even small banks that were exempt from the law. A new Fed study has shown this has not happened. According to this Wall Street Journal article:

Small banks and credit unions last year were able to charge slightly more than double the average fee of large lenders for debit-card transactions in which the customer has to sign a receipt, the Fed study found.

However, there is still concern that interchange fees will trend down. From the article:

Patrick Keefe, a spokesman for the Credit Union National Association, an industry group, said the short-term results were welcome but the data were limited. "We continue to have grave concerns about debit-interchange income for credit unions over the longer term and question whether these results will stand over time," Mr. Keefe said.

From the NYT DealB%k:

Bank lobbyists are not leaving it to lawmakers to draft legislation that softens financial regulations. Instead, the lobbyists are helping to write it themselves.

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Utility companies throughout the US and Canada are warning their customers about a new con. Scammers are calling residents and impersonating utility staff, claiming to be collecting on late bills.

Instead of accepting payment by credit card or check, the caller wants you to pay by prepaid debit card. The scammer instructs you to obtain a prepaid debit card and call him/her back.

Hang Up on New Utility Bill Phone Scam

It was no small matter for the ILM Group’s executives when they froze the pension plan that has provided retirement security for the firm’s employees since 1947.

Meager interest rates are squeezing the fast-dwindling number of traditional pensions still offered by private employers, even as policymakers are searching for ways to bolster retirement savings.

Low interest rates are the final straw for many company pensions - The Washington Post

In early 2010, Nish Bhalla sat down at his computer with one objective: steal a huge amount of money from a bank.

It wasn't a typical heist. Bhalla is the chief executive of Security Compass, a company that tests security systems at banks, retailers, energy companies and other organizations with sensitive data. His clients -- including the bank branch in the United States that he targeted in his 2010 attack -- pay him to break into their systems.

It can be easier than most people think.

How I 'Stole' $14 Million From a Bank: A Security Tester's Tale - DailyFinance

A big security black eye for banks: The fact that it's easier to hack into your bank account than it is to crack your Facebook account.

Why Your Facebook Account Is More Secure Than Your Bank Account - DailyFinance

I felt the MINT's CD rates and relatively strong rating justified the 60 mile trek to investigate this little bank in Kingwood, TX.  Although the staff is small the CSR, Erin, was competent and efficient in processing our new account.  The transaction was visible online the next day, and I felt confident in extending my CD ladder with one of the few banks still offering a 5 yr. rate over 2%.            

How bad have things gotten for millennials?

Their financial situation is so grim that they may never get completely out of debt — in their entire lives.

Millennials In 'Overwhelming' Debt Trouble | Credit Center | Get the best rates on mortgage, home equity loans, CD, money markets and checking accounts | BankingMyWay

This looks too much like a bank...

From the Credit Union Times:

The $1.4 billion CFE Federal Credit Union in Lake Mary, Fla., said it has signed a seven-year, $3.95 million deal to purchase the naming rights of the 10,000-seat UCF Arena, which has been renamed CFE Arena.

[...]

In November 2011, CFE acquired UCF Federal Credit Union with an on-campus location and a location across from campus.

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From Chuck Jaff of MarketWatch.com:

Bernanke dares you to buy stocks - Chuck Jaffe - MarketWatch

"“Individual investors are starting to come into the market some, which I hate to see now that the market is at a high,” said Jeffrey Hirsch, co-author of the Stock Trader’s Almanac. “It would have been better last fall, when we had a major buy signal, or at some other time. But there’s always going to be a time that might be better, the problem is that if you just missed the last good time to get in the market, how do you know you will recognize the next ‘best time.’

“With the Fed providing a tailwind of liquidity,” he added, “I don’t think there will be a downdraft until Bernanke takes the punch bowl away. … But investors who want to take a chance now need to keep perspective on the risk versus the reward.”

Clearly, balancing risk requires diversification, not going all-or-nothing on Bernanke’s wager. It also means looking at the market not entirely in terms of percentages, but in real-dollar terms."

I personally think to be a bit conservative for Summer is good; come back into the market during Thanksgiving.

From USA Today

The U.S. House of Representatives approved a GOP-backed student loan bill Thursday to address an impending July 1 interest rate hike on subsidized Stafford college loans by tying future interest rates to the market instead of allowing Washington to determine the rate.

The bill was approved on party lines, 221-198. Senate Democrats oppose the bill and the White House issued a veto threat on Wednesday, so its prospects are dim.

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From The Motley Fool

What explains these banks' popularity? In a sense, they're probably at least partially "popular for being popular." They're New York's 10 most important banks precisely because of their size. Because with great size comes great ease of access for their customers

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From The Motley Fool

Of course, I'm far from the first to say that Countrywide was essentially a bought-and-paid-for cancer for Bank of America. This has been said to such an extent that some investors may wonder if Countrywide is simply the scapegoat for an overall ailing bank. But, rest assured, that's not the case -- the Countrywide acquisition was every bit as bad as billed.

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It's interesting to note that BofA killed off one of the very few good things about Countrywide (its internet bank).

Bay State Savings Bank in Worcester, Massachusetts is offering a 3 year IRA CD at 1.5%. Unfortunately, you can't open online or by phone. If you are not already a customer you do have to visit a branch to open.

Pressure mounts on Europe's richest country as campaign against tax evasion heats up.

Tax haven no longer? Luxembourg resists change to lax regulations | GlobalPost

From mild to wild...

Commentary: "Prepare now because easy money will dry up"

http://www.marketwatch.com/story/bernanke-out-by-august-qe-ends-rates-up-crash-2013-05-22

The old maxim “waste not, want not” may be lost on U.S. men; a study says guys appear to be wasting big money by ignoring credit card rewards points.

Why Are Men Wasting Credit Card Reward Points? | Credit Center | Credit Cards | Get the best rates on mortgage, home equity loans, CD, money markets and checking accounts | BankingMyWay
 

From Credit Union Times:

The $10.7 million HealthOne Federal Credit Union in Denver has merged into the $236 million Partner Colorado Credit Union in Arvada, Colo., the credit unions said.

... HealthONE said in a prepared statement that it managed to strong financial position over the years, the credit union lacked the ability to expand services and operations to serve the other six HealthONE hospitals in Colorado.

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Partner Colorado has a reward checking account that may be of some interest to the new credit union members, although the account has a few downsides.

From Credit Union Times:

In a release, the NCUA said it made the decision to liquidate the credit union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.

That’s an understatement, according to the 527-member credit union’s financial performance reports posted on the NCUA’s website. As of March 31, net worth plummeted to -36.07%, down from 7.23% the previous quarter.

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Investors can never escape all fear and threat of loss. But as a start, it helps to know what’s worth being afraid of.

http://finance.yahoo.com/blogs/mi...017532.htm

The managing director of the world's foremost economic institution has been summoned by the Court of Justice of the Republic (CJR) in Paris over claims that she squandered 403 million euros of taxpayers' money in an illegal deal.

Christine Lagarde summoned to face fraud charge | The Times

From AssetBuilder:

I have some questions regarding limits on required minimum distributions. I am a 70-year-old divorced female in good health. I retired late last year. In January I set up monthly RMD withdrawals to meet my obligation for 2013. The withdrawals are to be deducted from my money market fund in my SEP IRA account. The amount of my annual RMD was based on a percentage of my account balance at the end of 2012. The total value of my account rose by nearly $8,000 during the first quarter of 2013. I’m not sure, but I think at some point my RMDs are legally obligated to empty the SEP IRA account. In the event I should be able to continue growing the account balance while making future RMD’s, could I continue to invest? If that is permissible, will I be required at some point in the future to move all the remaining funds to a taxable account?

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This is definitely a good problem to have.  

From AssetBuilder:

I have two questions about bond investments. First, with individual bonds, would a person be better off keeping the bonds to maturity when rates went up and receiving the full value at maturity? Or should he sell and reinvest in higher interest rate bonds? Second, does this work with bond funds?  Do fund managers hold bonds to maturity, or do they generally sell and reinvest when interest rates are going up?

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From NPR:

For ordinary Americans deemed unbankable — those who don't have a traditional checking or savings account — it can be hard to simply pay bills.

And that absence of a bank account is about to become a big problem for those who also lack health coverage — and for the health insurance companies trying to sell them coverage. After all, how do you sell a product to a customer who has no easy way to pay you?

The federal health law requires most Americans to carry health insurance starting next January. The presents a particular problem for those households. Most health plans accept a credit card for the first month's premium payment and then require customers to pay monthly with a check or an electronic funds transfer from a checking account.

Those options won't work for the so-called unbankables looking to purchase health coverage with federal subsidies through online insurance marketplaces.  

The consequences could be severe. When your cable gets turned off, you miss The Walking Dead or Pawn Stars. But starting next year, if your insurance is canceled, you'll be breaking federal law and liable for any medical bills.

Read more

From Consumerist:

A personal banker at a Wells Fargo branch in Atlanta has been arrested and charged with felony theft for allegedly tricking an elderly customer into giving him more than $10,000. And she may not be the only victim.

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From Kiplingers:

Remember the early 1980s, when Pac-Man and MTV were brand new? That era also marked the birth of a bond-market bull run—a three-decade stretch of strong performance that taught a generation of investors to rely on bonds for steady income and portfolio stability.

... Much darker days are ahead for the bond market, fixed-income experts say, and they'll pose particular challenges for older investors relying on bonds to cover expenses.  Yes, it's "bad," and not in that cool King-of-Pop way.

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