TGIF! Today is June 26th and markets rose on word regulators will loosen some rules put in place after the ’09 Great Recession— the move from the FDIC gives banks more freedom with cash deposits, like the ability to more easily invest large sums in venture capital. JP Morgan and Citi jumped on the news. Treasury sent more than $1 million coronavirus stimulus payments to dead people, the Fed is limiting dividend payouts, and Amazon just made a bold purchase acquiring a self-driving tech company Zoox.
The federal government sent coronavirus stimulus payments to almost 1.1 million dead people totaling nearly $1.4 billion, Congress’ independent watchdog reported Thursday. The U.S. The Government Accountability Office said it had received the information from the Treasury Inspector General for Tax Administration in an accounting as of April 30.The IRS has previously said that stimulus payments issued in the name of dead people must be returned, but no action has yet been put into plan.
The pandemic downturn marks the first time the Fed has issues such across-the-board limits at banks since the aftermath of the Great Recession. For the first time since the aftermath of the Great Recession, the Federal Reserve is putting new restrictions on how the country’s biggest banks spend capital.
Amazon has just taken its boldest step yet into self-driving vehicles, acquiring six-year-old start-up Zoox, they announced Friday. Zoox was valued at over $3 billion in 2018, but has struggled with management turnover in its efforts to develop a self-driving car. The company hired Qatalyst Partners to help it find a buyer. The acquisition is notable for Amazon, which paid $13.7 billion for Whole Foods in 2017.
The number of active mortgage forbearance plans rose by 79,000 this past week, taking away roughly half of the improvement seen since the peak of May 22. Increases happened every day for the past five business days. As of Tuesday, 4.68 million homeowners were in forbearance plans, allowing them to delay their mortgage payments for at least three months. This represents 8.8% of all active mortgages, up from 8.7% last week.
Microsoft on Friday announced it will permanently close its Microsoft Store retail locations. In the past decade or so, Microsoft began to expand its retail presence in an effort to create a shopping experience similar to Apple’s. Microsoft said the closing of its physical locations will “result in a pre-tax charge of approximately $450 million, or $0.05 per share,” which it will record in the current quarter that ends June 30.