Financial Mines

News and notes from the business reporters for the Connecticut Media Group.

Archive for May, 2012

Household debt drops to $11.44 trillion despite student loan jump

Thursday, May 31, 2012 by:Rob Varnon

The New York Fed reported results of its quarterly survey for household debt this morning and found households across the nation have continued to deleverage, with much of that coming from reductions in mortgage debt.

Overall, the situation appears better than a year ago and at the peak of indebtedness in 2008, but with the per capita debt load of more than $36,000. Median household income in the U.S. in 2010 was $50,022.

The first quarter report said total consumer debt stood at $11.44 trillion in March of this year, down $100 billion from December 2011. The NY Fed said mortgage debt was down $81 billion in that time, but its not clear how much is due to people paying down debt or completed foreclosure.

The Fed did say about 291,000 Americans had a foreclosure notation added to their credit history in the first quarter of this year. And there were 371,000 new bankruptcies filed.

Student loan debt, however, continued to rise in the quarter up to $904 billion, a 3.4 percent increase over the fourth quarter of 2011.

Total household delinquency rates also trended down with 9.3 percent of consumer debt now delinquent compared to 9.8 percent in the fourth quarter of 2011. About $1.06 trillion in debt is delinquent.

Here’s the full report.

http://www.newyorkfed.org/research/national_economy/householdcredit/DistrictReport_Q12012.pdf

Veteran unemployment set to jump?

Wednesday, May 30, 2012 by:Rob Varnon

U.S. Sen. Richard Blumenthal warned businesses Wednesday of a potential wave of veterans who could swell the ranks of the unemployed unless the private sector starts to realize the value of former military personnel.

Blumenthal was a panelists at a Southern Connecticut Chapter of the Society of Human Resource Managers forum on Wednesday where experts discussed the problems veterans face in finding employment. We have more on the conference in the Hearst Business

He told the professionals the next defense budget will greatly reduce the size of U.S. forces and will put more veterans into the civilian labor market.

Veterans already have an unemployment rate 2 percent higher than the rest of the labor pool.

The biggest problem for the veterans will most likely be shouldered by enlisted men and women, many of whom joined after high school and have not had time to earn college degrees.

Like the rest of the work force, veterans with less than college degrees face a tougher time landing jobs, Ret. Lt. Col. Ken Williams and Randall D. Chase, a veteran and president of the SOCSHRM, agreed.

That’s why one might expect, officers, who often come from College ROTC programs or one of the Service Academies will do better than enlisted men in finding jobs, unless those enlisted men obtain degrees.

But, sometimes it’s difficult for soldiers to put up with the nonsense that underlies college, even when the government pays tuition.

The good news here is that universities appear to understand this and some are crating programs to help veterans adjust.

“We’re a yellow ribbon school,” said Edyta Kotowski, assistant director of the University of New Haven’s corporate outreach. She said veteran enrollment is up at the school in West Haven and the university is working on programs to aid servicemen and women adjust to a scholastic life.

Hopefully, more schools and businesses will also embrace veterans.

If you are a veteran or an employer who wants more information on programs, tax credits and other services visit:

www.ctvets.org.

National $26 million manufacturing competition

Tuesday, May 29, 2012 by:Rob Varnon

The Commerce Department and several other federal agencies are once again fielding applications for the Advanced Manufacturing Jobs and Innovation Accelerator Challenge, which could split $26 million between 12 companies.

The program is designed to help manufacturers that have developed new products or systems by putting them through a review process and providing some of the funding to take them to the next stage.

Applicants mus

This is the third time the competition has been held and last year, 20 firms split $37 million, though not a single one was in Connecticut.

The National Science Foundation has pledged to kick in extra money to winners who have also won NSF Small Business Innovation Research and Small Business Technology Transfer Pahas II grantees.

In Connecticut, there were seven SBIR grantees last year.

For more information, visit:

Farmington Bank’s holding company pays 3 cent dividend

Friday, May 25, 2012 by:Rob Varnon

Farmington-based First Connecticut Bancorp Inc.’s Board of Directors has voted Friday to pay a cash dividend in the amount of 3 cents per share on June 14, 2012 to all shareholders of record as of June 4, 2012.

“We are pleased to provide our third consecutive dividend to shareholders since completing our Initial Public Offering on June 29, 2011,” said John J. Patrick Jr., chairman, president and chief executive officer of First Connecticut Bancorp.

First Connecticut is the holding company for Farmington Bank, a full-service community bank with 18 branches throughout central Connecticut.

Pratt & Whitney cutting 200 jobs in the state

Thursday, May 24, 2012 by:Rob Varnon

About 200 salaried employees at East Hartford-based Pratt & Whitney lost their jobs today in a surprise layoff.

A tipster called this morning alerting Hearst Media the jet engine maker was making cuts.

Besides the 200 jobs in Connecticut, an additional 100 jobs are being cut in other states. The staff reductions affect both military and commercial programs but do not reach into the hourly work force.

Bryan Kidder, a Pratt spokesman, said the company was looking at a gap of several years between deliveries of older legacy engine lines that are winding down and the new geared turbo fan line, which has a large backlog of orders.

“We always have to look at our business needs to stay competitive,” Kidder said Thursday.

People were not aware of the layoff until this morning, Kidder said. They will be eligible for a severance package which includes medical coverage and up to a year of college education under parent company United Technologies Corp.’s continuing education program.

In better credit market stakes rise for businesses

Thursday, May 24, 2012 by:Rob Varnon

Businesses in the state are feeling better about credit conditions, with five percent more than a year ago reporting they are good in the quarterly CBIA/Farmington Bank Credit Availability Survey. But the survey also found the stakes are higher for those that need it than a year ago.

A total of 13 percent of respondents said conditions were good in the first quarter, while just 8 percent felt that way a year ago. Forty-seven percent said credit conditions were average, the same that reported that a year ago.

While there is some improvement in conditions, those companies struggling with credit reported more dire consequences for not getting it this year.

Five percent of companies said in the first quarter, without access to credit they will close. Last year for the same period, none reported closing as a result of not getting credit.

Pensions, Fuel Cells, Martha and a mother of invention

Wednesday, May 23, 2012 by:Rob Varnon

Be sure to catch Thursday’s Business section as we look at the possibility that Danbury-based FuelCell Energy will post a profit for the first time due in large part to a drop in natural gas prices.

Also, with Europe burning does that mean you’re pension will get smoked? We check out what the ruckus over the ocean could mean for the State pension funds and the surprising thing Treasurer Nappier is doing.

Martha Stewart is back on the page and news.

And as always on Thursday’s, don’t forget to check in on our small business features, this week includes a new take on the mother of invention…

Nasdaq files non-compliance notice on Interactive Brokers

Wednesday, May 23, 2012 by:Rob Varnon

Greenwich-based broker and market maker Interactive Brokers Group Inc. announced is received a non-compliance notice from the Nasdaq Stock Market last week.

IBG said Nasdaq said the Greenwich firm’s last 10-Q report was missing Sabannes-Oxly certifications and and had not been reviewed by auditors.

Nasdaq requires the company to file a plan by July 16 to correct the situation.

The company said it has to resolve a comment from its independent public accounting firm rearding the presentation of equity in its consolidated financial statements, but is moving to produce a final version of its results for auditors.

Page 1 of 512 3 4 5 Next »