The question then is: Is the cancellation charge a ‘genuine pre-estimate’ of the losses to the airlines? Most airlines provide that the entire fare will be retained in the case of no show or cancellation one or two hours before the scheduled departure of the flight. What is the loss to an airline if a passenger does not show up? A seat will go unoccupied. The benefit to the airline will be slightly lower fuel consumption on account of the lower carrying weight of the aircraft. This is a small benefit and can be ignored. Thus, the entire fare is a loss to the airline. The entire fare qualifies to be a ‘genuine pre-estimate’ of the losses. … [Read more...] about Are the high airline cancellation charges legally valid?
High yield business savings account
Creates a Financial Stability Oversight Council (“FSOC”) with authority over bank holding companies with assets over $50 billion and nonbank financial companies which the FSOC deems a systemic risk to financial stability.Once designated systemically important, nonbank financial companies have 180 days to register with the Fed.The FSOC is charged with the task of identifying risks and emerging threats to the financial stability of the United States arising from large bank holding companies and systemically important nonbank financial companies and responding with appropriate regulation to reduce the risk from their size and activities.U.S. and foreign nonbank firms will be identified by the FSOC as systemically important by a two-thirds vote. These firms will be brought under the purview of the Fed and subject to prudential standards.The Council will recommend enhanced supervision and prudential standards which will be implemented by the Fed. Examples of enhanced prudential … [Read more...] about Dodd-Frank Bill Reshapes Businesses
Economic JustificationsThe SEC will have to consider whether it can justify the costs associated with requiring high-frequency traders to register against whatever benefits, real or perceived, such registration would yield. For example, in a recent proposed rulemaking, the SEC estimated the initial cost of registering a broker-dealer to be $275,000, with ongoing yearly costs of $50,000.18 If the SEC’s goal in registering high-frequency traders is intended as a risk management measure, it would have to economically justify doing so in light of other mechanisms at its disposal for such purposes. For example, the SEC could impose additional obligations on the registered broker-dealers that provide high-frequency traders with access to the market, much like the SEC did by adopting Exchange Act Rule 15c3-5.19 If the SEC’s goal is to increase market oversight, it may have to explain why the existing patchwork of regulations that were implemented for these oversight … [Read more...] about Challenges in Requiring High-Frequency Traders to Register as Dealers
If cash is abolished or taxed, there will no longer be an “effective lower bound” (ELB) for interest rates. Traditionally, the ELB has been zero because of the existence of a bearer instrument known as cash. Eliminate that, and you eliminate the ELB. Eliminate the ELB, and governments and central banks have no bounds on how low they can drive interest rates into negative territory, essentially charging people and businesses for saving their money rather than spending it or investing it in riskier ventures like the stock market, real estate, or commodities. … [Read more...] about Experts on High Alert over Negative Interest Rates
"Even in the worst case, I promise that the basic needs of Iranians will be provided. We have enough sugar, wheat, and cooking oil. We have enough foreign currency to inject into the market," Rouhani said in a speech broadcast live on state television. … [Read more...] about Rouhani: Iran Won’t Yield to Pressure From Trump