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Mint Begins $1 Coin Pilot Promotions
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The U.S. Mint is beginning a pilot program in
four American cities to encourage regular use of the $1 coin. The
campaign begins this month in Austin, Texas; Charlotte, N.C.; Grand
Rapids, Mich.; and Portland, Ore.
According to the Mint, the $1 coin lasts for decades and is 100 percent
recyclable, which can save money for the United States. More than one
billion new $1 coins have been minted since 2007.
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Bernanke: Inflation Could Moderate
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Federal Reserve Chairman Ben Bernanke said declines in commodity
prices, increased stability of the dollar and slower growth could help
moderate inflation later this year and next year. Bernanke warned,
however, that "the financial storm that reached gale force... has
not yet subsided" and inflation pressure remains.
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FDIC Answers Deposit Insurance Questions
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The summer 2008 FDIC Consumer News includes
answers to common questions about deposit insurance. The FDIC's
quarterly newsletter includes information on the health of banking
institutions, deposit protection and what happens when a bank fails, so
depositors can rest assured their money is safe in FDIC-insured
accounts. The issue also includes articles on home equity lines of
credit, fraud prevention and "green" banking.
ICBA offers community bankers a variety of communications tools
promoting the safety and soundness of community banks. ICBA's Safety of Community Bank
Deposits online resource center offers news releases, posters,
newspaper ads, brochures and other communication materials community
bankers can use to teach consumers that community banks are healthy and
stable.
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Freddie Mac Hits Back at Barron's
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Freddie Mac Chief Financial Officer Buddy Piszel
challenged a Barron's article that many media outlets credited with
further driving down stock in the company and its fellow
mortgage-financing giant Fannie Mae. The financial weekly predicted a
government recapitalization of the government-sponsored enterprises.
Piszel responded that Freddie Mac is taking losses like many
mortgage-lending institutions, but the GSE still has $37 billion of
core regulatory capital and a mortgage-backed security portfolio of
approximately $470 billion. He also challenges Barron's assessment of
Freddie's fair value balance sheet and notes current mortgage
valuations are a less relevant measure of the company's financial
condition. "[A]s the housing market recovers and valuations likewise
recover, the market value of our assets will once again rise,"
Piszel wrote.
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SEC Issues 401(k) Debit Warning
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The SEC offered consumers advice about 401(k) debit
cards, which allow employees to take loans from their retirement plans.
Consumers must repay the money they withdraw from their 401(k) accounts
with fees and interest. The SEC warned consumers about possible
penalties and lower investment returns on funds set aside for borrowing.
ICBA offers a variety of consumer education tools community
banks can use to help customers advance their financial literacy.
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