G20 ministers call for deficit reduction
SEOUL, June 5 (UPI) -- Excessive budget deficits should be tackled immediately to ensure continued recovery from the global economic crisis, G20 finances minister in South Korea said.
Worldwide, the economy has recovered faster than expected from the crisis, but key challenges remain, said ministers and central bankers meeting in Seoul. The meeting Friday set the agenda for a summit of G20 leaders in Toronto June 26 and 27.
Countries need to rein in budget deficits and ensure sustainable public finances, the ministers said in a statement.
"The recent volatility in financial markets reminds us that significant challenges remain and underscores the importance of international co-operation," the ministers said.
The G20 ministers did not come to an agreement on a global bank tax or refer to such a tax in their statement. A global bank tax is supported by the United States and Europe, but opposed by some developing nations, as well as Canada and Australia, the BBC reported Saturday.
Consumer watchdogs seek strong final bill
WASHINGTON, June 5 (UPI) -- Consumer advocates say they're working to ensure financial reform legislation isn't weakened in a compromise between the U.S. House and Senate.
A conference committee of House and Senate leaders is to meet next week to resolve differences between their bills.
The Senate bill would create an independent agency within the Federal Reserve to protect borrowers from abuses by lenders. The House version would authorize a stand-alone agency with the same powers, though some groups such as car dealers and real estate brokers would be exempt from oversight.
Elizabeth Warren, a Harvard law professor and advocate for a consumer watchdog, said lawmakers must ensure the new agency can enforce the rules it writes, including the ability to work easily with state attorneys general.
Consumer advocates also want to keep a provision in the Senate bill that would force federally insured banks to spin off lucrative swaps desks involving financial derivatives, The Washington Post reported Saturday. Lobbyists for the financial industry said such a regulation would hurt U.S. competitiveness in the banking world.
Three more U.S. banks fail
WASHINGTON, June 5 (UPI) -- Bank closings in Mississippi, Illinois and Nebraska have brought the number of failed U.S. banks to 81 so far this year, officials said.
First National Bank in Mississippi, Arcola Homestead Savings Bank in Illinois and TierOne Bank in Nebraska were taken over Friday by state and federal regulators, The Wall Street Journal reported.
The Federal Deposit Insurance Corp., FDIC, took over as receiver for First National. Jefferson Bank assumed all deposits and most assets of First National, reported at about $63.5 million in deposits and $60.4 million in assets at the end of March.
Illinois regulators appointed the FDIC as receiver of Arcola savings. If no other bank is willing to take over operations, the FDIC will send retail depositors checks for insured funds. The FDIC also was appointed receiver for TierOne, whose deposits will be assumed by Great Western Bank, Sioux Falls, S.D.
Last month, the FDIC raised the number of anticipated "problem" banks to 775 from 702 at the end of 2009.
In 2009, 140 U.S. banks failed -- the highest number since 1992.
Smartphone shipments rising quickly
SAN FRANCISCO, June 5 (UPI) -- Deliveries of smartphones are expected to more than double in the next four years, a report indicates.
Smartphone shipments will rise 105 percent, to 506 million units, in 2014 from 246.9 million in 2010, a report scheduled for Monday release will show, The Wall Street Journal reported Saturday.
That could mean big growth for smartphones like Apple's 4th generation iPhone, The Wall Street Journal reported.
The report, by market tracker iSuppli Corp., said smartphones are the fastest-growing segment of the cellphone market.
"Because of this, companies that are exclusively focused on this area, like Apple, have managed to move up to near the top tier of the global cellphone business," iSuppli analyst Tina Teng said in a statement. "This shows that the smartphone is reshaping the competitive landscape of the wireless business."
Apple, expected to unveil its next generation iPhone Monday, shipped 8.8 million iPhones in the first quarter, ranking No. 6 in the global cellphone market, iSuppli said.
