Page 24 - aruba-today-24dec-2016

Saturday 24 december 2016 BUSINESS
A24

Midwest buying spree lifted US new-home sales in November

PAUL WISEMAN fastest pace since July’s $305,400. the fastest pace since Feb- higher because they be-
AP Economics Writer 622,000. Sales were up 16.5 Demand for houses has ruary 2007. lieve President-elect Don-
WASHINGTON (AP) — A percent from November been strong this year, But the cheap loans that ald Trump’s plans for tax
buying spree in the Mid- 2015. Sales in the Midwest helped by a healthy job have supported stronger cuts and higher infrastruc-
west spurred new U.S. shot up 43.8 percent, the market and low mortgage sales may be vanishing. ture spending will drive
home sales last month to region’s biggest monthly in- rates. The unemployment Long-term mortgage rates up economic growth and
the fastest pace since July. crease since October 2012. rate is at a nine-year low 4.6 have quickly risen since inflation. And last week,
The Commerce Depart- Sales were up 7.7 percent percent, and most workers the election. The average the Federal Reserve, cit-
ment said Friday that new- in the West, flat in the North- enjoy job security. 30-year, fixed-rate mort- ing improvement in the
home sales in November east and down 3.1 percent The National Association of gage rose to 4.30 percent U.S. economy, raised short-
rose 5.2 percent to a sea- in the South. Realtors said Wednesday this week, the highest level term U.S. interest rates for
sonally adjusted annual The median price of new that Americans bought ex- since April 2014. only the second time in a
rate 592,000. It was the home sold last month was isting homes last month at Investors have bid rates decade.q
Deutsche, Credit Suisse to compensate consumers post-crisis

DAVID McHUGH billion, including $2.8 bil- interest for some borrow- it toward the settlement dled mortgages from peo-
JAMEY KEATEN lion in consumer relief, pro- ers, and donated money to amounts for activities they ple with shaky credit into
Associated Press vided details on what the community development would have undertaken bonds whose risks many in-
FRANKFURT, Germany (AP) vestors did not understand.
— Nine years after the When the mortgages went
collapse of the U.S. hous- into default as the U.S. real
ing market sent shock- estate market collapsed, so
waves through the global did the bonds, spreading
economy, two European losses and panic through
banks have agreed to of- the financial system.
fer American homeowners The Deutsche Bank agree-
and borrowers billions of ment lessens the finan-
dollars’ worth of help under cial cloud over the bank’s
a settlement related to the shares, since it had earlier
sale of risky securities that this year said it might have
helped spark the 2008 crisis. to pay as much as $14 bil-
Deutsche Bank and Cred- lion.
it Suisse said Friday they The bank has been strug-
agreed to the tentative gling to put expensive litiga-
settlements with the U.S. tion from past misconduct
Justice Department over behind it. It said it would
their dealings in mortgage- take a $1.17 billion hit to its
backed bonds. fourth-quarter earnings aris-
Deutsche Bank, Germany’s ing from the civil penalty.
biggest, agreed to pay This photo shows a logo of Swiss bank Credit Suisse in Zurich, Switzerland. Credit Suisse says Friday, CEO John Cryan is putting
$7.2 billion — $3.1 billion in Dec. 23, 2016 it has reached a settlement totaling nearly US dollar 5.3 billion with U.S. authorities in the bank through a tough
fines and $4.1 billion in con- connection with its mortgage-backed securities business during the run-up to the 2008 financial restructuring in an attempt
sumer relief. crisis. (Steffen Schmidt/Keystone via AP) to improve profitability and
That relief could include strengthen its finances.
easier terms on loan repay- Deutsche Bank’s share
ments terms for homeown- consumer compensation groups, all under the super- anyway. price, which had initially ris-
ers and borrowers. would entail. vision of appointed moni- The settlements, which fo- en strongly, closed up only
Neither Deutsche nor Cred- Previous settlements related tors who track compliance. cus on activities in 2005- 0.3 percent at 17.81 euros,
it Suisse, which agreed to to mortgage-backed secu- Housing advocates howev- 2007, revisit an ugly chap- while Credit Suisse’s ended
a similar settlement under rities have meant banks re- er have complained that ter of the global financial 0.9 percent lower at 15.19
which it would pay $5.3 duced loan amounts and banks have claimed cred- crisis, in which banks bun- Swiss francs.q

GM’s main China venture fined $29M in anti-monopoly case

JOE McDONALD cal devices under a 2008 nopoly regulators. many markets but lawyers joint venture in China to en-
AP Business Writer anti-monopoly law in what The Shanghai Price Bureau say Chinese regulators ap- sure that all responsive and
BEIJING (AP) — General appears to be an effort to said Shanghai GM, a joint pear to regard it as an im- appropriate actions are
Motors Co.’s main joint ven- force down consumer pric- venture with state-owned proper restraint on compe- taken with respect to this
ture in China was fined $29 es. Shanghai Automotive In- tition. matter.”
million on Friday on charg- Friday’s announcement dustries Corp., improperly A statement by the price GM vies with Germany’s
es it suppressed competi- followed public criticism by suppressed competition by bureau said the penalty Volkswagen AG for the sta-
tion by enforcing minimum U.S. President-elect Don- enforcing minimum prices was set at 4 percent of tus of the top-selling vehicle
sales prices for dealers, the ald Trump of Chinese trade dealers were allowed to Shanghai GM’s annual brand in China.
latest in a string of penal- practices but there was no charge for Cadillac, Chev- sales, or 201 million yuan Sales of GM vehicles in
ties against foreign auto indication the case was rolet and Buick models. ($29 million). China rose 7 percent in No-
brands under the country’s linked to that. That “disrupted the normal In a statement, GM said: vember over a year earlier
anti-monopoly law. GM had announced in Au- order of market competi- “GM fully respects local to 371,740 units. Year-to-
Chinese regulators have gust 2014 its joint venture, tion,” the statement said. laws and regulations wher- date sales rose 8.5 percent
punished companies in in- Shanghai GM, was under Setting minimum retail pric- ever we operate. We will to 3.4 million.q
dustries from milk to medi- investigation by anti-mo- es is a common practice in provide full support to our