These important tax changes in the Secure Act have nothing to do with retirement - MarketWatch

On Dec. 20, President Donald Trump signed into law the imaginatively acronym-ed Setting Every Community Up for Retirement Enhancement Act (SECURE Act). The new law is mainly intended to expand opportunities for individuals to increase their retirement savings. It also includes some other important tax changes that have nothing to do with retirement.

In an earlier column, I covered the three most important changes that can affect individuals. See here. But there’s more. In this column, I’ll cover the rest of the important changes for individuals. Here goes.

Penalty-free early retirement plan and IRA distributions allowed for births and adoptions

If you receive a distribution from a qualified retirement plan, a Section 403(b) tax-sheltered annuity plan, an eligible Section 457(b) deferred compensation plan, or an IRA, you must report the taxable portion as income on your return. Fair enough. But if you receive a distribution before age 59½ (an early distribution) you’ll also get hit with the dreaded 10% early distribution penalty tax on the taxable portion — unless a tax-law exception grants you relief.

New law: For 2020 and beyond, the SECURE Act allows penalty-free treatment for a qualified birth or adoption distribution. That means a distribution made during the one-year period beginning on the date when an eligible child of the account owner is born or the date when the legal adoption of an eligible adoptee of the account owner is finalized. An eligible adoptee means any individual (other than a child of the account owner’s spouse) who has not attained age 18 or is physically or mentally incapable of self-support.

Key point: The maximum penalty-free qualified birth or adoption distribution is $5,000, and this limit is apparently applied on an individual-by-individual basis. So, if both you and your spouse have an eligible retirement plan account or IRA, you can each apparently receive a $5,000 penalty-free qualified birth or adoption distribution.

Graduate fellowship and stipend payments can count as compensation for IRS contribution purposes

IRA contributions for the year generally cannot exceed your compensation (as defined) plus any net self-employment income for that year. However, if you’re married you can count your spouse’s compensation and/or self-employment income.

New law: For 2020 and beyond, the Secure Act stipulates that taxable amounts paid to aid you in the pursuit of graduate or postdoctoral study (such as a fellowship, stipend, or similar payment) count as compensation for IRA contribution purposes.

No more retirement plan loan borrowings through credit cards

Subject to tax-law limitations, employer-sponsored qualified retirement plans can make loans to plan participants. Some plans have allowed employees to access their plan loans using a credit card or similar mechanism.

New law: For plan loans taken out after 12/20/19, the Secure Act stipulates that borrowings cannot be distributed through credit cards or similar arrangements without causing the distributed amounts to be treated as deemed taxable distributions rather than tax-free loan amounts.

Unfavorable TCJA kiddie tax rates retroactively repealed

Before the Tax Cuts and Jobs Act (TCJA), the Kiddie Tax rules taxed a portion of an affected child or young adult’s unearned income (typically from investments) at the parent’s marginal federal income tax rate if that rate was higher than the rate the child or young adult would otherwise pay. The Kiddie Tax rules can potentially apply until the year an affected young adult reaches age 24.

For tax years beginning after 2017, the TCJA changed the deal to tax a portion of an affected child or young adult’s unearned income at the rates paid by trusts and estates. That change could cause the Kiddie Tax to be much more expensive when an affected child or young adult had substantial unearned income.

New law: Belatedly, our beloved Congress became concerned that the TCJA change unfairly increased the federal income tax bills of certain children and young adults, including those who are survivors of deceased military personnel, first responders and emergency medical workers. In effect, the Secure Act retroactively repeals the TCJA Kiddie Tax rate change for all affected children and young adults and reinstates the pre-TCJA Kiddie Tax calculation. So, the calculation is once again based on the parent’s marginal tax rate like before the TCJA was hatched. This development will be a meaningful tax-saver for kids and young adults with substantial investment income. Good!

Effective date: While the Secure Act’s repeal provision is generally effective for 2020 and beyond, you can choose to apply the repeal to 2018 and/or 2019 returns of Kiddie Tax victims. So, if you have a Kiddie Tax victim in your family, an amended 2018 return may be in order. You’ll probably want to follow the Secure Act change for the victim’s 2019 return as well.

Liberalized rules for tax-free Section 529 plan distributions

Section 529 plans are state-sponsored programs that allow you to make contributions to an account established to cover the designated account beneficiary’s qualified college expenses or to prepay qualified college tuition for the account beneficiary. Distributions to cover the beneficiary’s qualified college expenses are federal-income-tax-free. Tax-free 529 account distributions can also be used to cover up to $10,000 of annual qualified expenses to attend public, private, or religious elementary or secondary schools.

New law: The Secure Act sweetens the already-sweet 529 plan deal by allowing federal-income-tax-free 529 distributions to cover eligible apprenticeship costs. This change applies to distributions made after 12/31/18. The Secure Act also allows federal-income-tax-free 529 distributions to cover up to $10,000 of qualified student loan principal and/or interest payments. This change also applies to distributions made after 12/31/18.

Key point: The limited deduction for student loan interest is disallowed to the extent the interest is paid with a tax-free 529 distribution.

Increased penalty for failure to file federal returns

The Secure Act increases the penalty for failure to file affected federal tax returns to the lesser of: (1) $400 or (2) 100% of the amount of tax due. This change applies to returns that are due in 2020 and beyond, including any extensions. Previously, the dollar limit for returns due in 2020 was $330.

The bottom line

The SECURE Act includes important tax changes, including some that have nothing to do with retirement. Now you know. You’re welcome.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9zdG9yeS90aGVzZS1pbXBvcnRhbnQtdGF4LWNoYW5nZXMtaW4tdGhlLXNlY3VyZS1hY3QtaGF2ZS1ub3RoaW5nLXRvLWRvLXdpdGgtcmV0aXJlbWVudC0yMDIwLTAxLTEz0gFPaHR0cHM6Ly93d3cubWFya2V0d2F0Y2guY29tL2FtcC9zdG9yeS9ndWlkL0ZEQzgzNTVBLTMzRUUtMTFFQS04MTdELTRGMTM3NUM4QTBEQQ?oc=5

2020-01-13 13:41:00Z
CAIiEMSrsnq-m_m3op1GTFphv44qGAgEKg8IACoHCAowjujJATDXzBUwuJS0AQ

Jeff Bezos says Amazon is donating $690,000 to Australian bushfire efforts - CNBC

Jeff Bezos, founder and CEO of Amazon, pictured on September 13, 2018.

Bloomberg | Getty Images

Billionaire Amazon founder Jeff Bezos has announced his company will donate $690,000 donation to bushfire relief efforts in Australia.

In an Instagram post on Sunday, Bezos pledged 1 million Australian dollars ($690,000) on behalf of the tech giant — an amount that has faced criticism by some on social media.

"Our hearts go out to all Australians as they cope with these devastating bushfires," Bezos said. "Amazon is donating 1 million AU dollars in needed provisions and services."

The figure was derided by some online, with people comparing the sum with Bezos' personal net worth.

Bezos has a net worth of $116.7 billion, according to Forbes, and according to a 2019 Business Insider analysis was earning almost $9 million an hour in 2018. Meanwhile, Amazon has a market capitalization of more than $930 billion.

The conglomerate's move to help tackle the bushfires was also compared to other high-profile contributions, with many pointing out that a string of celebrities with far less personal wealth than Bezos had donated more out of their own pockets.

Marvel star Chris Hemsworth, whose net worth is estimated at $76 million, matched Amazon's donation, while singer Pink, who Forbes says has a fortune of $57 million, pledged $500,000.

Billionaire Kylie Jenner has donated $1 million, while actress Bette Midler matched Pink's donation and rock bank Metallica gave more than $500,000.

Meanwhile, the CEOs of tech giants Apple and Google have also publicly responded to the crisis in Australia.

Alphabet CEO Sundar Pichai said on Twitter last week that the bushfires were "devastating" to witness, adding that the organization had donated to support relief efforts.

At the end of last year, Apple Chief Executive Tim Cook took to Twitter to announce that the company would be donating to assist with efforts in Australia. Neither Pichai nor Cook disclosed how much the companies had donated.

A spokesperson for Amazon was not immediately available for comment when contacted by CNBC.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiZ2h0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjAvMDEvMTMvamVmZi1iZXpvcy1jcml0aWNpemVkLWZvci1hbWF6b25zLTY5MDAwMC1hdXN0cmFsaWFuLWZpcmVzLWRvbmF0aW9uLmh0bWzSAWtodHRwczovL3d3dy5jbmJjLmNvbS9hbXAvMjAyMC8wMS8xMy9qZWZmLWJlem9zLWNyaXRpY2l6ZWQtZm9yLWFtYXpvbnMtNjkwMDAwLWF1c3RyYWxpYW4tZmlyZXMtZG9uYXRpb24uaHRtbA?oc=5

2020-01-13 12:56:00Z
52780549187314

History will repeat itself when it comes to stocks in 2020, Goldman Sachs says - MarketWatch

Getty Images

Goldman Sachs predicts slower-paced gains in 2020

The imminent signing of a “phase one” trade deal between the U.S. and China after months of negotiations and tensions looks set to boost stocks further. The Dow Jones Industrial DJIA, -0.46%  briefly broke the 29,000 milestone on Friday before dropping back, with the index set to rise again on Monday.

After a blockbuster 2019 for stocks it has been a volatile start to the year, but a trade truce should improve sentiment.

Goldman Sachs’ chief global equity strategist Peter Oppenheimer, in our call of the day, said the strong gains of 2019 were driven by valuation expansion, which history shows will lead to more gains this year.

Oppenheimer said: “Years of strong valuation expansion are generally followed by positive returns in the equity market, although typically at a slower pace. Moderate profit growth this year and higher starting multiples point to total returns in the high single digits for the asset class globally in 2020.”

He added that there was a “compelling case” for equities to outperform other asset classes in 2020, far ahead of government bonds, cash and credit.

The investment bank expects the economic cycle to continue to expand, with profits likely to grow and equities making progress through the year.

U.S. stocks have outperformed those in Europe and Asia over the past decade, and while Goldman said it did not believe there were compelling reasons for that reversing in 2020, it said the gap would start to narrow.

“With investors likely to become increasingly focused on U.S. election risk, and less on risks in Europe and Asia, we think there is a good argument for more geographic diversification,” Oppenheimer said.

The market

After the Dow Jones Industrial Average closed 133.13 points lower on Friday - having briefly broken the 29,000 milestone - Dow YM00, +0.39%, S&P ES00, +0.37% and Nasdaq NQ00, +0.49%  futures are on the rise. Asian markets moved higher overnight ahead of the signing of a phase one trade deal between the U.S. and China later this week. European stocks also rose in early trading.

The stat

The percentage of U.S.-listed companies losing money over the past 12 months has risen close to 40% - the highest level since the late 1990s outside of a post-recession period, The Wall Street Journal reported. Shares in the two most valuable loss-making companies have soared in the past three months, with electric vehicle maker Tesla’s TSLA, -0.66% stock doubling and technology and financial services company General Electric GE, -2.02% up 44%.

The buzz

The U.S. has “reached out” to North Korea in a bid to restart denuclearization talks, news website Axios reported on Sunday.

Saudi Aramco 2222, +2.34% said it scooped an extra $3.8 billion from its record IPO last month as it sold more shares to meet investor demand. The Saudi state oil giant sold three billion shares at 32 Saudi riyals ($8.53) each to raise $25.6 billion. The company said it sold a further 450 million shares to investors during the book-building process.

The pound slipped below $1.30 on Monday after a Bank of England policymaker hinted at an interest-rate cut. The currency dropped 0.6% to $1.2979 after Monetary Policy Committee member Gertjan Vlieghe said, in a Financial Times interview, that he would vote for lower interest rates if data doesn’t show the economy perking up after last month’s general election.

Yoga apparel maker Lululemon Athletica LULU, -0.45% lifted its earnings and revenue guidance for the fourth quarter after momentum over the holiday period. The stock climbed 0.5% in pre-market trading.

Random reads

Japanese billionaire fashion tycoon seeks ‘life partner’ for trip to the moon

‘Take care of that chicken!’ - Marshawn Lynch dishes out financial advice for young players

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

Follow MarketWatch on Twitter, Instagram, Facebook.

More from MarketWatch

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiemh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9zdG9yeS9oaXN0b3J5LXdpbGwtcmVwZWF0LWl0c2VsZi13aGVuLWl0LWNvbWVzLXRvLXN0b2Nrcy1pbi0yMDIwLWdvbGRtYW4tc2FjaHMtc2F5cy0yMDIwLTAxLTEz0gFPaHR0cHM6Ly93d3cubWFya2V0d2F0Y2guY29tL2FtcC9zdG9yeS9ndWlkLzFBRjMxNDA2LTM1RTgtMTFFQS04RUVFLTVDQzE5QzM5QUFGMQ?oc=5

2020-01-13 12:32:00Z
52780552703014

Nissan Examines Possibility of Breaking Away From Renault - Yahoo Finance

(Bloomberg) -- Nissan Motor Co. executives have examined the possibility of breaking away from Renault SA amid concerns that relations with the longtime French partner have turned dysfunctional after the ouster of former chief Carlos Ghosn, according to a person familiar with the matter.

Since last year, Nissan has been exploring the pros and cons of sustaining the alliance, particularly when it comes to engineering and technology sharing, according to the person, who asked not to be identified discussing confidential matters. Those studies predate Ghosn’s escape from Japan and were preliminary, so no decision has been made, the person said.

It’s unclear how feasible any separation would be given that Renault is Nissan’s biggest shareholder and the French partner has been pushing for a repair of ties.

Still, the comments illustrate the fragile state of the relationship between the Japanese and French auto giants after Ghosn, who balanced the world’s largest automotive alliance for years as head of both companies, was arrested late 2018 in Japan on allegations of financial misconduct. Ghosn’s legal odyssey took a dramatic turn recently when he fled Japan for Lebanon and became the world’s most famous fugitive.

Since Ghosn’s downfall, the two carmakers have struggled financially — their shares were the two worst performers among major automakers last year — and drifted apart at a time when the costs of electrification and autonomous driving are pressuring incumbent carmakers to team up or consolidate.

Relations between the two companies are “broken and likely beyond the point of repair,” Evercore ISI analyst Arndt Ellinghorst wrote in a note on Monday.

Nissan didn’t immediately respond to a request for comment on Monday, a holiday in Japan. Renault declined to comment. The Financial Times reported earlier that Ghosn’s escape from Japan had spurred Nissan executives to accelerate secret contingency plans to potentially split from Renault.

The board of the Renault-Nissan alliance is scheduled to meet on Jan. 30 and the meeting could lead to announcements about joint projects, according to another person familiar with the matter.

(Updates with scheduled alliance meeting in final paragraph)

--With assistance from Reed Stevenson.

To contact the reporters on this story: Kae Inoue in Tokyo at kinoue@bloomberg.net;Ania Nussbaum in Paris at anussbaum5@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Tara Patel at tpatel2@bloomberg.net, Ville Heiskanen

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiV2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9uaXNzYW4tZXhhbWluZXMtcG9zc2liaWxpdHktYnJlYWtpbmctYXdheS0xMDA3NDE4MjQuaHRtbNIBX2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzL25pc3Nhbi1leGFtaW5lcy1wb3NzaWJpbGl0eS1icmVha2luZy1hd2F5LTEwMDc0MTgyNC5odG1s?oc=5

2020-01-13 11:26:00Z
52780551206615

Kratom's Benefits And Dangers Debated Amid Marketing Push : Shots - Health News - NPR

Enlarge this image

Kratom products are legal in most states and are widely available. But the federal Food and Drug Administration and the Drug Enforcement Administration worry that kratom carries the risk of physical and psychological dependency and, in some people, addiction. Catie Dull/NPR hide caption

toggle caption

Catie Dull/NPR

Americans know the dangers of drugs such as morphine and heroin. But what about a supplement that acts in the brain a bit like an opiate and is available in many places to kids — even from vending machines.

Kratom, an herb that's abundant, legal in most states and potentially dangerous, is the subject of an ongoing debate over its risks and benefits.

Usually, the leaf, which comes from a tropical Southeast Asian tree, is chewed, brewed or crushed into a bitter green powder. The chemicals in the herb interact with different types of receptors in the brain — some that respond to opioids, and others to stimulants. Often sold in the U.S. in a processed form — as pills, capsules or extracts — a small amount of kratom can perk you up, while a large dose has a sedative effect.

Some people who have struggled with an opioid addiction and switched to kratom swear the substance salvaged their health, livelihood and relationships.

But the federal Food and Drug Administration and the Drug Enforcement Administration worry that kratom carries the risk of physical and psychological dependency and, in some people, addiction. The FDA warns consumers not to use kratom, and the DEA threatened to prohibit kratom's sale and use in the U.S. (outside of research) in 2016; advocates and lawmakers subsequently pushed back, and the stricter scheduling of kratom that would have prompted that sort of ban never occurred. These days, the DEA lists it as a drug of concern.

"Kratom changed my life"

Enlarge this image

Linda Kline owns Bumble Bee Botanicals, which sells kratom in five upscale shops throughout the West, including this one in San Francisco. All her products are lab tested to ensure purity, Kline says. Lesley McClurg/KQED hide caption

toggle caption

Lesley McClurg/KQED

Linda Kline, 33, based in Reno, Nev., sells kratom for a living. She says her several stores throughout the West have given her a new purpose in life. And while she herself doesn't have an opioid dependency, she credits kratom with turning around her mental health.

"I went from feeling desperate and hopeless to finding an alternative where I had full control over how I felt," she says.

She used to be paralyzed by anxiety and panic attacks. When her insurance carrier threatened to cut her Prozac prescription, she felt desperate. A friend suggested kratom, so she picked some up at a smoke shop.

"It almost feels like you're having just a little glass of wine," Kline says. "It's really relaxing. There's no melting of the walls."

The new habit cost about $6 a day — less than a glass of wine or fancy cup of coffee. But Kline says she couldn't always find a high-quality supply. The FDA has recalled dozens of salmonella-tainted products sold online or in convenience stores. The agency has also found toxic heavy metals in kratom supplements.

That's one reason Kline started her own chic boutiques, Bumble Bee Botanicals, devoted exclusively to kratom products that, she says, are all lab tested to ensure purity. She just opened her fifth location in less than two years. The shops offer 15 kratom strains at outlets in California, Idaho and Nevada.

Though Kline's website has a disclaimer that her products have not been evaluated by the FDA and "are not intended to cure, treat or prevent any disease/illness," some of her clients' online Yelp reviews claim kratom has dramatically relieved their chronic pain, insomnia, restless legs syndrome and more.

Enlarge this image

Gold Bali is a strain of kratom sold at Bumble Bee Botanicals in San Francisco. "It almost feels like you're having just a little glass of wine," Kline says of kratom. "It's really relaxing." Lesley McClurg/KQED hide caption

toggle caption

Lesley McClurg/KQED

Potential dangers

Glowing reviews like that haunt Mateo Martinez.

"My brother believed the marketing of kratom — that it was a natural herbal supplement that could provide you with the same benefits of an opioid without the risks," Mateo says.

Mateo's younger brother, Marco, struggled with an opioid addiction in high school. Mateo describes Marco as a charismatic, creative teen, passionate about video games, cartoons and anime. Marco got hooked on painkillers, Mateo says, after his dentist pulled his wisdom teeth.

"He was using them in a way that wasn't just for treating pain," Mateo says.

Email receipts show Marco used bitcoin to also buy Vicodin and fentanyl on the dark web.

Eventually Marco wanted to kick his opioid addiction and saw testimonials on YouTube and Reddit that promised that kratom could be a way out. Soon Marco was popping kratom capsules multiple times a day.

During his freshman year at the University of California, Davis, the 19-year-old started hyperventilating regularly. The incidents worsened, becoming seizure-like episodes and ending in trips to the emergency room. During each hospitalization, the doctors were stumped. No one thought to test for kratom.

Marco died in his UC Davis dorm in February 2018, late on a Sunday night. The toxicology report listed "acute mitragynine intoxication" — a chemical constituent of kratom — as the cause of death.

"I think kratom needs to come with a much more serious caution that it is not harmless," Mateo says. "I'm very heartbroken."

In a recent 18-month period, the federal Centers for Disease Control and Prevention reported 90 kratom overdoses, although most involved a combination of other substances too.

Slim science, so far

"The data to support either the benefits or the harms for kratom is really, really poor," says C. Michael White, head of the Department of Pharmacy Practice at the University of Connecticut. "A lot of the information we have comes from single-case reports."

White says that animal studies suggest kratom could be an effective pain reliever, but the collection of human data has only just begun. He says scientists need to conduct a lot more research before the appropriate level of regulation is clear. White recently argued in the American Journal of Health-System Pharmacy that the safest place for kratom is behind pharmacy counters, for adults only, but with no prescription required.

McClain Haddow, spokesperson for the American Kratom Association, agrees that the product should be sold only to people over age 18.

"We would like vendors to register their product with the FDA and get a chemical analysis from a certified lab to insure the only ingredient is the naturally occurring alkaloid in the kratom plant," Haddow says. "Some manufacturers are spiking products with fentanyl, heroin or morphine to give users a high."

Dr. Scott Steiger, deputy medical director of the opiate treatment outpatient program at Zuckerberg San Francisco General Hospital and Trauma Center, says he doesn't know how to advise patients who want to use kratom.

"I tell them I just don't know enough on the basis of science to tell them whether it's a great idea or not," says Steiger, who is also an associate clinical professor of medicine at the University of California, San Francisco.

The DEA describes kratom as an addictive substance that causes hallucinations, delusion and confusion.

"I have seen that people who use kratom end up having a very hard time stopping the use of it," says Steiger.

His patients report withdrawal symptoms such as nausea, sweats, aches and pains, loose stool, tearing and dysphoria. There is growing concern about kratom's effects on the heart and liver.

Steiger emphasizes that doctors have evidence-based treatments like buprenorphine and methadone to help people with an opioid addiction. He doesn't recommend self-medicating with kratom until more research is available.

"We just don't know enough about this chemical and the long-term use of it to know whether experimenting would lead to complications," Steiger says.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMib2h0dHBzOi8vd3d3Lm5wci5vcmcvc2VjdGlvbnMvaGVhbHRoLXNob3RzLzIwMjAvMDEvMTMvNzg5MTQ1OTQ4L3RoZS1rcmF0b20tZGViYXRlLWhlbHBmdWwtaGVyYi1vci1kYW5nZXJvdXMtZHJ1Z9IBAA?oc=5

2020-01-13 10:04:00Z
CAIiEIep1JQ57ps3aw76_SxTKiEqFggEKg4IACoGCAow9vBNMK3UCDCvpUk

As businesses hold back, U.S. consumers seen boosting big banks' profits - Reuters

NEW YORK (Reuters) - Consumer lending is expected to propel profits for big U.S. banks when they unveil fourth-quarter results this week, though stress in corporate lending and uneven capital markets may cast a shadow over results.

FILE PHOTO: Signs of JP Morgan Chase Bank, Citibank and Wells Fargo & Co. bank are seen in this combination photo from Reuters files. REUTERS/File Photos

Balances for individual borrowers keep reaching new records as the U.S. job market has stayed robust, prompting people to spend, and as interest rates have declined, prompting them to borrow — especially on credit cards.

Overall, U.S. consumer-loan balances at the 25 largest banks reached $1.19 trillion the last week of December, up 13% from a year earlier, according to Federal Reserve data. The biggest annual increase came from cards, where outstanding debt rose 16%.

The banks held another $1.46 trillion in residential mortgage loans.

(GRAPHIC: U.S. consumer leverage declined as incomes rose - here)

That spells good news for quarterly profits at JPMorgan Chase & Co and Citigroup Inc, which have been working to grow their card businesses in recent years. The Fed’s decision to lower rates in 2019 boosted mortgage activity, which will help major home lenders like Wells Fargo & Co. Those three banks are scheduled to report results on Tuesday.

“The consumer-lending business is going to be very profitable for the banks,” RBC Capital Markets analyst Gerard Cassidy said in an interview.

Americans borrowing to buy cars and pay for vacations has been a mainstay for industry profits recently. Consumer strength has helped offset weakness in trading, underwriting or business-loan demand at various points, with bank executives cheering it as a sign that the U.S. economy is not on the brink of recession.

Analysts expect tepid business borrowing to have continued through the fourth quarter. Global trade disputes, political uncertainties and market fluctuations have left CEOs wary of seeking financing to buy competitors or invest in operations, they said.

However, those issues could take a back seat to the thriving U.S. consumer.

As Americans’ loan balances have climbed, their incomes have grown even faster. That debt is now about equal to disposable personal income after climbing to as much as one-third higher in 2007.

Analysts say they are also encouraged that banks appear to be lending more responsibly to consumers, partly due to new regulations. Consumer delinquency rates are low at 2.8%, compared with an average of 4.3% since 2003, according to Fed data. In the recession, the rate reached 8.2%.

However, analysts cautioned that credit mistakes often occur in the best of times and that it is hard to see them with the economy growing for the 11th straight year.

Higher real-estate values have allowed property owners to raise cash by selling or refinancing. As competition has heated up in cards, some borrowers have been transferring zero-interest balances from one bank to another for a small fee, without paying off the debt.

And although unemployment is at a 50-year low and wages are higher, there are still lots of consumers living paycheck-to-paycheck.

A Fed survey last year found 39% of Americans would have a hard time handling an unexpected $400 expense. People with credit cards generally are not at such risk, but still about 16% said they would put the expense on a card.

Slideshow (3 Images)

Fred Cannon, research director at Keefe, Bruyette & Woods, said a rise in unemployment in the next recession would expose bad loans. “There certainly could be some problems,” he said.

(GRAPHIC: Consumers are making timely payments on their debt - here)

Reporting by David Henry in New York. Additional reporting by Imani Moise and Elizabeth Dilts Marshall; Editing by Nick Zieminski

Our Standards:The Thomson Reuters Trust Principles.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMijwFodHRwczovL3d3dy5yZXV0ZXJzLmNvbS9hcnRpY2xlL3VzLXVzYS1iYW5rcy1yZXN1bHRzLXByZXZpZXcvYXMtYnVzaW5lc3Nlcy1ob2xkLWJhY2stdXMtY29uc3VtZXJzLXNlZW4tYm9vc3RpbmctYmlnLWJhbmtzLXByb2ZpdHMtaWRVU0tCTjFaQzBDNNIBNGh0dHBzOi8vbW9iaWxlLnJldXRlcnMuY29tL2FydGljbGUvYW1wL2lkVVNLQk4xWkMwQzQ?oc=5

2020-01-13 06:10:00Z
52780552292918

Airline passenger allegedly storms cockpit, attacks flight attendant, injures 6 officers - New York Post

Authorities took a man into custody after he allegedly assaulted a flight attendant and attempted to storm the plane’s cockpit last week.

A fellow passenger on the flight described the Jan. 9 incident to news outlets, saying that the plane was about to land when the suspect headed towards the cockpit in a “full sprint.” A flight attendant and six law enforcement agents were injured in the ensuing scuffle.

Matthew Dingley was taken into custody after his flight United Express flight from Dulles International Airport landed at Newark, NBC New York reports. He reportedly began acting erratically during the flight and stormed the cockpit as the plane neared its destination.

“This guy was in a full sprint, right up to the cockpit, hits the cockpit, starts banging on it,” fellow passenger Mike Egbert told NBC New York. According to him, after a flight attendant attempted to intervene, Dingley began to attack her.

Egbert described the flight attendant as, “A slight woman, petite, and this guy was clocking her.”

Another passenger on the plane apparently had law enforcement experience and was able to help get the situation under control. Unfortunately, things didn’t end there.

Port Authority Police took Dingley into custody, but only after he continued to fight with them.

“He picks up a police officer, throws the police officer…his back,” Egbert described. “If he did actually get into that cockpit lord knows what would have happened.”

The flight attendant was taken to a nearby hospital, although she has since been released. Six Port Authority Officers were injured during the incident, although they are reportedly expected to recover.

Dingley has been charged with aggravated assault, criminal trespassing, resisting arrest and interfering with transportation, NJ.com reports.

Share this:

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMidGh0dHBzOi8vbnlwb3N0LmNvbS8yMDIwLzAxLzEzL2FpcmxpbmUtcGFzc2VuZ2VyLXN0b3Jtcy1jb2NrcGl0LWF0dGFja3MtZmxpZ2h0LWF0dGVuZGFudC1pbmp1cmVzLXNpeC1wb2xpY2Utb2ZmaWNlcnMv0gF4aHR0cHM6Ly9ueXBvc3QuY29tLzIwMjAvMDEvMTMvYWlybGluZS1wYXNzZW5nZXItc3Rvcm1zLWNvY2twaXQtYXR0YWNrcy1mbGlnaHQtYXR0ZW5kYW50LWluanVyZXMtc2l4LXBvbGljZS1vZmZpY2Vycy9hbXAv?oc=5

2020-01-13 08:45:00Z
52780550878650