In the credit market, a debt settlement program can create a win-win situation for both the debtor and creditor. The creditor gains since they get a part payment, which is more beneficial than receiving a bankruptcy notice. The debtor gains since he is freed from his obligation to pay off his debts by paying an amount which is less than what he originally owed.

More often than not, debt settlement companies are the forerunners in the business of debt relief. Debtors enroll for debt settlement programs to relieve their debt burden. These programs are useful options for paying off unsecured debts when they become unmanageable. The settlement companies have the right to negotiate on behalf of their customers with their creditors to do anything which is necessary to set up a reasonable repayment plan. For every debtor, this can be a suitable way to achieve debt relief.

So how does a debt settlement program work? Given below are the different steps involved in a settlement program:

• A debtor searches for a debt settlement company and talks to them. He informs them about his financial condition in detail. This is the time when you should make queries about their background and fees. It is better that you shop around.

• A settlement account is opened for the debtor. In this account, all the money payable for the administrative services of the settlement company and your creditors would be deposited. You only have to make a single monthly payment to your settlement company rather than your creditors.

• The debtor enrolls in a debt reduction program of the company to bargain for the lowest amount of repayment possible.  

• Negotiations begin. This procedure would reduce your interest rates, eliminate late fees, stop disturbing creditor calls and lower your overall debt burden.

• If the negotiation is productive, the debtor would be told regarding the final outcome.

• Majority of companies are willing to accept this part payment and the debt is stated on the credit report of the customers as “settled” rather than “paid”.

• Some companies provide credit repair services following this as well.

Debt settlement might be demonstrated on your credit report as a blemish, nevertheless, this is better than filing for bankruptcy which is more damaging and stays on your credit report for up to 10 years. Settlement has garnered considerable popularity in the credit market. It works as a useful option to get back your financial life on track and helps you make wiser decisions in future.  

SEC Considering Ban on Flash Trading

http://www.bloomberg.com/apps/news?pid=20601103&sid=aq22pEr9qZIA

The Securities & Exchange Commission is expected to announce a ban on flash trading besides considering new rules for credit rating companies. The SEC members are expected to discuss and vote on a proposal to bar trading exchanges and platforms from showing their clients information about stock orders for a fraction of second before the market opens. Several lawmakers believe that such information provides undue advantages to some traders. Besides the ban on flash trading the SEC is also likely to recommend that credit  rating companies should be subjected to greater scrutiny and asked to make increased and more detailed disclosures. Credit raters such as Moody’s, Standard & Poor’s and Fitch have been criticized for their inability to judge the risk involved in investment in toxic mortgage securities.

No Decision Yet On Opel

http://news.yahoo.com/s/ap/20090823/ap_on_bi_ge/eu_germany_opel;_ylt=AlUvlZWKo2kp5o1Blky8xxmyBhIF;_ylu=X3oDMTJrY3EwYmlmBGFzc2V0A2FwLzIwMDkwODIzL2V1X2dlcm1hbnlfb3BlbARjcG9zAzQEcG9zAzEEc2VjA3luX2hlYWRsaW5lX2xpc3QEc2xrA2dlcm1hbnlzbWVyaw–

It’s been quite a while since GM put up a “for sale” notice on Opel, but no decision has yet been taken on who the buyer will be. In the meanwhile, GM filed for bankruptcy, formed a new GM, parked its assets for sale in the old GM, and also came out of bankruptcy. Status of the stake sale in Opel however remains in limbo.

There are two offers, and the company continues to evaluate both. The German government is beginning to get fidgety; there is a lot at stake here. Opel employs 25,000 people in Germany; protecting jobs is naturally a priority.

The government does have some say in the decision as they have put forward a financial aid package for the beleaguered company.  Uncertainty is very unproductive; Opel and its workers will be waiting to start afresh soon.

Finally A New Dawn For The Housing Market

http://news.yahoo.com/s/nm/20090825/bs_nm/us_usa_economy

After a long, long seemingly unending winter, spring has again come to the housing market. Single family home prices rose for the second month in a row in June, the first time in three years. It is now being perceived that the worst is over for this segment. Recovery, though will take some time in coming but expectations have improved. What are the challenges that lie ahead for this, crucial segment of the economy? The first is the continuing high rate of foreclosures on homes. As these foreclosed homes revert to bank ownership, they are put on the market at very deep discounts. Such discounts pull down prices of all homes in the neighborhood. This problem has plagued the housing industry for a while now. Genuine sellers have found it extremely difficult to get a reasonable price for their homes.

US Likely To Sell GM Stake Ahead Of Chrsyler

http://www.nytimes.com/2009/08/06/business/06auto.html

Ron Bloom, the head of the US administration’s auto task force has said that the federal government is likely to begun selling its stake in General Motors in 2010, much before it sells its holding in Chrysler. An initial offering for Chrysler LLC is unlikely in 2010. Although the decision to sell government stake in the two automobile giants was a practicable one, it is not possible to detail a specific timetable. What is important is that the value of the government holding in the two companies does not get eroded over time. The financial performance of the two companies will play an important role in determining the time of disposal of the government stock. The two companies are required to file their quarterly reports with the Securities & Exchange Commission till the time the government owns stake in them.

US Likely To Sell GM Stake Ahead Of Chrsyler

http://www.nytimes.com/2009/08/06/business/06auto.html

Ron Bloom, the head of the US administration’s auto task force has said that the federal government is likely to begun selling its stake in General Motors in 2010, much before it sells its holding in Chrysler. An initial offering for Chrysler LLC is unlikely in 2010. Although the decision to sell government stake in the two automobile giants was a practicable one, it is not possible to detail a specific timetable. What is important is that the value of the government holding in the two companies does not get eroded over time. The financial performance of the two companies will play an important role in determining the time of disposal of the government stock. The two companies are required to file their quarterly reports with the Securities & Exchange Commission till the time the government owns stake in them.

US Likely To Sell GM Stake Ahead Of Chrsyler

http://www.nytimes.com/2009/08/06/business/06auto.html

Ron Bloom, the head of the US administration’s auto task force has said that the federal government is likely to begun selling its stake in General Motors in 2010, much before it sells its holding in Chrysler. An initial offering for Chrysler LLC is unlikely in 2010. Although the decision to sell government stake in the two automobile giants was a practicable one, it is not possible to detail a specific timetable. What is important is that the value of the government holding in the two companies does not get eroded over time. The financial performance of the two companies will play an important role in determining the time of disposal of the government stock. The two companies are required to file their quarterly reports with the Securities & Exchange Commission till the time the government owns stake in them.

SEC To Limit Short Selling Of Stocks

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/27/AR2009072702646.html

The Securities & Exchange Commission (SEC) has unveiled new measures to check the quantum of short selling of stocks. The move comes after several quarters expressed their concern regarding the role of the speculators in the stock market crash last year. The new measures aim to increase the disclosures while imposing no new restrictions on short selling. The SEC has also dropped a requirement that called for some financial firms to disclose their short positions on a confidential basis to the regulatory authority. The new rules also call for limiting abusive short sales by making it mandatory for the brokerage firms to locate shares that can be borrowed before being short sold. The SEC said while the new disclosure requirements will take effect in the next few weeks, it is considering several other options to restrict short selling.

Is The Money Reaching The Right Target?

http://www.msnbc.msn.com/id/31968704/ns/business-stocks_and_economy/

As per the Obama administration’s stimulus bill, the first to get the money to build highways and other projects were supposed to be the “distressed communities”. These were counties where the unemployment rate was higher than the national average and levels of income lower than the national average.

Has this objective been met? Not quite. Analysis of the spending activity has shown that much of the money has gone to projects in what is termed as “population centers”. These are cities, towns or localities where a large number of people reside. State governments and their administration justify allocation of the stimulus money to projects in these areas saying that these projects meet all other criteria for receiving aid. Getting aid to reach the right people has always been a challenge, and I think here too the challenge is the same.

US Telecom Companies May Be Probed

http://online.wsj.com/article/SB124689740762401297.html

The US Department of Justice is apparently studying whether large telecom companies such as AT&T and Verizon have abused their market power. The review is part of Obama administration’s efforts to ensure strict enforcement of antitrust laws. The Justice department has said that it will continue to restrict powerful companies from following monopolistic and anticompetitive practices. Several other industries including healthcare and agriculture are under the Justice department’s scanner. Although the telecom industry’s review is not a formal one and does not target any specific company, the regulators are planning to cover all areas from land line, voice and broadband service to wireless. The department is likely to check whether bigger operators are restricting the types of services that can be offered by other players on their networks. Regulation is really very important for ensuring fair play in the high growth telecom segment.