Study: Most Americans Don't Get Basic Economics
WASHINGTON-According to a study by the Center for Economic and Entrepreneurial Literacy (CEEL) there is a need for increased education on personal finance and economic issues.
The national survey found an overwhelming number of Americans are unable to answer some of the most basic questions about borrowing, interest rates, terminology, and even basic math.
More troubling, according to the authors, is the fact many Americans admit to making poor decisions with their own personal finances.
Highlights from the survey include:
* 54% couldn't ID a subprime mortgage.
* 56% could not identify FICO score as the most important factor in getting a loan.
* 65% could not identify what would remain if you subtracted 25% from eight.
* 75% didn't know that bouncing a check costs more than wire transfers, credit card advances, and short-term payday loans.
* Half of respondents have overdrafted their checking account at one time.
For info: www.econ4u.org
Crimeware-Spreading Sites Increased Rapidly in 2008
LOS ALTOS, Calif.-The crimeware scourge is menacing the Web at levels never before detected, with crimeware-spreading websites nearly tripling in number in the 12 months before the end of Quarter 2 2008-and the number of recorded crimeware variants shattering all previous records, according to one anti-fraud organization.
The APWG, founded as the Anti-Phishing Working Group in 2003, is an industry, law enforcement and government coalition focused on eliminating the identity theft and fraud that result from the growing problem of phishing, e-mail spoofing and crimeware. The group said in the second quarter of 2008 the number of crimeware-spreading URLs exploded to a record high of 9,529 at quarter's end-258% higher than at the end of Q2/2007. Within the quarter, the number of malicious application variants hit a record high of 442 in May, up 105% from May 2007.
During the same Q2 period, the APWG reported the number of unique brand-domain pairs steadily decreased during the period of April through June, from 7,656 to 6,768. (The brand/domain pairs count the unique instances of a domain being used to target a specific brand).
For info: www.antiphishing.org
Survey Finds Changes in Middle Market Banking
NEW YORK-Recent surveys of the TNS Commercial Banking Momentum Monitor and the TNS Bank Advisory Board suggest middle market banking clients are feeling extremely vulnerable about the security of their deposits and the availability of credit.
One in five executives at middle market businesses admitted their firm is seriously considering changing banking providers, compared to the recent average of 4% change per year.
The most commonly cited reason:
* concerns related to the financial stability of the bank
* diversifying funds to maximize FDIC protection
* an attempt to seek out banks willing to extend credit
For info: www.tns-us.com
Celent: Seek Value-Based Commercial Lending
BOSTON-As firms head into a difficult economic environment, commercial lending institutions will need to be more disciplined and streamlined in the way technology enables lending operations.
That is the message from Celent, a financial research and consulting firm based here. Celent said the findings of its recent global commercial lending risk IT study demonstrate the need to adopt a value-based approach to optimize commercial credit technology practices.
The consultancy said its report, titled "Commercial Lending Credit Risk Management," found trends including:
* Traditional lending tends to be a loss leader for many banks when factoring in capital, risk, and operational costs. In a pre-crisis environment, the availability of cheap credit and aggressive competition meant net interest margins often were compressed, without properly taking into account "supply chain" overheads. With ongoing economic uncertainties, lending practices at most banks have changed.
* Firms can emphasize the following in order to successfully navigate downturn environments and maximize their chances of survival: tighter lending standards, increased depth and scrutiny in the approval process, capacity and efficiency of workout department, effectiveness of early warning systems, and efficacy of scenario analysis and stress testing.
* What differentiates between successful and lagging practices often will lie in, first, execution agility in responding to changing economic conditions; second, the quality and "connectedness" of actionable information delivered to key staff as a result of "linked up data"; and effective coordination of specialist know-how within the context of the lending cycle.
* Commercial lending in aggregate terms continues unabated, despite economic factors that should constrain it.
For info: www.celent.com
