November 17, 2017

Since Uber’s founding in 2009, the ride-hailing service has relied on tens of thousands of drivers that it considers to be independent contractors. Although this policy has been controversial from the start, executives claim it is a vital component of the company’s historic growth rate. After all, the money that Uber saves from paying employment benefits allows it to charge lower fares. That explanation simply isn’t good enough for many critics, however, who claim the company is depriving drivers of Continue reading

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November 10, 2017

Even before the release of the Paradise Papers this week, Apple has faced plenty of criticism over the years for exploiting foreign loopholes to avoid paying taxes. The most prominent example of this occurred in 2013 during a Congressional inquiry of CEO Tim Cook. A Senate committee brought in the executive for questioning after they discovered Apple had hidden billions in taxable income through a series of “ghost companies” in Ireland. Cook admitted nothing, however, telling legislators, “We don’t depend Continue reading

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November 9, 2017

This week a group of investigative journalists released an enormous cache of leaked documents called the Paradise Papers. Like last year’s Panama Papers incident, these records detail the offshore financial activities of some of the world’s richest people and companies. But while 2016’s leak focused mainly on the tax avoidance strategies of foreign entities, the Paradise Papers are full of names that will be familiar to Americans. The video below provides a quick overview of this complex story. Tomorrow, we’ll Continue reading

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October 31, 2017

In the past year we’ve featured a few stories about the Consumer Financial Protection Bureau and how it aims to keep consumers safe from predatory business practices. From collecting consumer complaints to limiting the power of payday lenders, the CFPB was formed to put regular people on somewhat equal footing with big companies. Still, not everyone sees the relatively new government agency this way. Opponents claim the CFPB has too much power to regulate businesses, thus harming both companies Continue reading

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October 10, 2017

aliman-senaiEach year some 12 million Americans take out a payday loan in order to get cash fast. But just because these borrowers can receive a quick injection of capital doesn’t mean they can pay it back with comparable speed. Many people who take out a payday loan end up drowning in a flood of loan fees and high interest rates. Last year alone the industry collected more than $7 billion in fees from customers. Borrowers can become so overwhelmed by Continue reading

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September 7, 2017

iidar-sagdejevLast year we took a close look at how Wells Fargo fostered a culture of fraud that encouraged employees to open unauthorized credit and debit card accounts for customers. Investigators at the time estimated the bank had created more than 1.5 million fraudulent accounts, leading Wells Fargo to fire thousands of employees. Further inquiries from Congress also caused the company to replace managers and roll back executive pay as part of an overhaul of its retail division. The scandal Continue reading

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September 5, 2017

marshall-astorSince Hurricane Harvey made landfall in Texas a couple of weeks ago, the region has been hit with devastating floods that have upended the lives of millions. And although the waters are finally starting to recede in cities like Houston, that just means the serious cleanup work is about to begin. The financial forecasting firm Moody’s Analytics now estimates that Harvey inflicted as much as $108 billion in damage to the region. Thankfully, dedicated volunteers have been working around the Continue reading

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August 24, 2017

roger-h-gounLast year beverage companies sold $16 billion worth of bottled water, a 10 percent increase from 2016. The drink is even more popular than soda, but it certainly isn’t a hit with everyone. Along with being a frequent target for environmentalists, critics have also accused companies of lying about the origin of the water in their bottles. In fact, that’s the basis of a class action lawsuit recently filed against Nestle’s Poland Spring brand.

According to the complaint, “Not Continue reading

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August 17, 2017

momoneympproblemzAfter its founding in 1892, General Electric spent decades growing into one of the country’s most successful companies. It continued to expand in the years following World War II, only this time GE began thinking globally rather than domestically. The company built its first international supply chains by establishing manufacturing centers in industrialized nations like France and Japan. By the 1990s GE moved on to developing economies like India and China where the company could produce items like jet engines Continue reading

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August 4, 2017

Since the passage of the Dodd-Frank financial reform act, banks have been required to keep a certain amount of cash on hand relative to their assets. Legislators put the rule in place so that institutions would have enough money in their vaults to bail themselves out in the event of another credit crisis. This video explains the concept of bank capital and why these regulations have caused some frustration in the finance industry.

Questions:

  1. Why are banks required to keep Continue reading
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