Obamacare deadlines clarified

Customers who enroll in coverage by March 31 won't be on the hook for a "shared responsibility payment."

NEW YORK (CNNMoney)

That's the 2014 deadline to apply for coverage and not face tax penalties under an extension announced late Monday by the Obama administration.

The six-week delay resolves two conflicting dates: the open enrollment window extended beyond the deadline to obtain coverage. The extension does not involve people covered under employer health plans or government coverage such as Medicare or Medicaid.

Coverage through the health exchanges begins Jan. 1, but customers don't have to enroll in a plan that quickly. The Affordable Care Act allows individuals to go without coverage for up to three months at a time. It also specifies a mid-month application deadline for coverage to begin the next month.

Related: Obamacare pricier for individual buyers

The law says the open enrollment window is open through March 31. But if individuals waited until that day to register, their coverage wouldn't begin until May, long after the three-month clock that started Jan. 1 reached zero.

That meant a Feb. 15 application deadline.

The extension removes this confusion.

Related: Silicon Valley could have built a better site

Faced with a malfunctioning website and confusion over the deadline, the agency running the insurance marketplace said it would give customers the extra time.

The penalty is known as the "shared responsibility payment." Someone who is required to but does not have health coverage in 2014 would pay it in their taxes due April 15, 2015. It is $95 or 1% of income, whichever is greater, and increases quickly -- to at least $325 for 2015 and $695 for 2016.

First Published: October 29, 2013: 2:43 PM ET

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Obamacare site has another 'outage'

Marilyn Tavenner, head of the agency overseeing the site, testified at a congressional hearing Tuesday.

NEW YORK (CNNMoney)

Verizon, which provides some technology services behind HealthCare.gov, said federal officials asked the company to provide additional computing and storage ability.

"At the request of HHS's deputy CIO, we are now undertaking infrastructure maintenance, which should be complete overnight," spokesman Jeffrey Nelson said. "We anticipate the strengthened infrastructure will help eliminate application downtimes."

An official with the agency that oversees HealthCare.gov acknowledged the systems outage, and said the website would be brought back online when maintenance was complete.

A spokeswoman from the Connecticut state exchange said the outage was preventing users from completing the full registration process, but some functions were still working.

Verizon had no immediate response to questions about how customers using the site would be impacted.

On Sunday, an outage traced back to Verizon left customers unable to apply for coverage. The snafu affected the federally-run HealthCare.gov and more a dozen state-run sites. Fourteen states and the District of Columbia are running their own insurance marketplaces; the other 36 states use the federal exchange.

Since going live on Oct. 1, major issues with HealthCare.gov have prevented people from registering and applying for coverage.

Related: Security hole found in Obamacare website

Marilyn Tavenner, head of the government agency overseeing the site, told lawmakers at a hearing that the massive issues were a "surprise" and "did not show up in testing."

"We know that consumers are eager to purchase this coverage and to the millions of Americans who have attempted to use HealthCare.gov to shop and enroll in health care coverage, I want to apologize to you that the website has not worked as well as it should," she said.

President Obama said technical teams were "working out the kinks in the system," and a former White House official he appointed to oversee the repairs said the site would be working for "vast majority" of users next month.

First Published: October 29, 2013: 10:02 PM ET

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Thirsty? There's a global wine shortage

NEW YORK (CNNMoney)

The industry is experiencing an "undersupply of nearly 300 million cases" a year, according to a report from Morgan Stanley Research.

Australia-based analysts Tom Kierath and Crystal Wang say the shortage comes despite the fact that there are one million wine producers globally, making 2.8 billion cases each year. About half of that comes from Europe.

But that's not enough to keep up with worldwide demand

Global production fell by more than 5% last year - to its lowest level since the 1960s - primarily due to bad weather in France and Argentina.

Production in Europe alone dropped 10% in 2012, the report said. That same year, worldwide consumption rose by 1%.

Related: Four secret wine tasting destinations

The French consume the most wine, followed by Americans, and then the Chinese.

Wine has become particularly popular in China, as the economy booms and the standard of living there rises. China is also producing more wine of its own, said the report.

America consumes 12% of the world's wine but produces just 8%. And the U.S. is only getting thirstier ; consumption rose 2% last year.

The U.S. wine making industry is also growing. The number of American wineries has "expanded dramatically" in the last 15 years, according to the report. But most of them are "boutique" operators rather than major producers, so they're not driving any real growth in supply.

And there is little reason to believe that global wine production will pick up any time soon.

Morgan Stanley said that output from newer producers like the U.S., Argentina, Chile, Australia, New Zealand and South Africa has already peaked.

-- Correction: An earlier version of this story incorrectly stated that wine production totals 2.8 million cases per year. It is 2.8 billion cases.

First Published: October 29, 2013: 2:13 PM ET

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Barack Obama's tweets hacked

Hackers from the Syrian Electronic Army claimed responsibility for re-directing links sent by President Barack Obama to a pro-Assad video.

NEW YORK (CNNMoney)

One tweet about immigration reform was supposed to send followers to an article from The Washington Post. Instead, it linked to a video montage of terror attacks, starting with the attacks on 9/11.

In a statement to CNNMoney, the hacktivist group known as the Syrian Electronic Army took responsibility for the hack, claiming to have broken into the president's ShortSwitch account -- a link-shortening service.

The account, @BarackObama, is used by the president's Organizing For Action campaign.

"OFA links that were posted on Twitter/Facebook was hacked and redirected to a video showing the truth about Syria," a member of the Syrian Electronic Army told CNNMoney. The hacktivist group claims that it gained access to multiple OFA email accounts, in addition to MyBarackObama.com and donate.barackobama.com.

Related story: News links on Washington Post, Time and CNN hacked

The two manipulated tweets were retweeted hundreds of times. The links were compromised for part of Monday afternoon before they were once again directed to their intended targets.

The hack was likely accomplished by a phishing attack launched against members of Organizing for Action. A member of the SEA sent CNNMoney a screenshot of an organizer's inbox confirming they had accessed her email. CNNMoney also received screenshots confirming their ability to re-direct links and access BarackObama.com.

An official from Organizing for Action acknowledged the attack, telling CNN that "an account to our link shortener was hacked." A spokesman fro ShortSwitch said the site itself wasn't hacked, but the company believes OFA's account credentials were obtained elsewhere.

The SEA, which is comprised of hackers supporting Syrian President Bashar al-Assad, have hacked several high profile Twitter handles and advertisements in the past.

Though the hack of the president's tweets was relatively minor, security expert David Kennedy said the SEA could expose more if they gained access to other Website and Twitter management tools for the OFA campaign.

First Published: October 28, 2013: 5:44 PM ET

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Retiring? Time to look for a part-time gig

In the 1980s, Kevin Howard started buying houses, fixing them up, and renting them out. That rental income let him leave his job at 55.

NEW YORK (Money Magazine)

Rule 5: A second paycheck comes in handy

No question, picking up a part-time gig after you walk away from 9-to-5 work will ease the pressure on your finances. And that's the plan for many: Three-quarters of workers believe they will have a job in retirement, a May Gallup poll found.

It's not just about the money. In a survey of 44- to 70-year-olds by the second-act job site Encore.org, a third of those who want to work part-time cited enjoyment as the reason.

But reality doesn't match expectations. In EBRI's 2013 Retirement Confidence Survey, only 25% of retirees report ever having worked for pay after calling it a career.

Would-be retirees are often unrealistic about landing meaningful part-time work, says Colorado planner Leitz. Lining up a 15- to 20-hour-a-week job sounds great, but there aren't too many stimulating and well-paying jobs in professional fields that allow that. "Flexibility is great for you, but not really for employers," says Leitz.

What to do

Go for projects, not a job. Even when firms don't want a 20-hour-a-week senior staffer, they still may have high-level work that needs to get done. Set yourself up to be the consultant they hire, says Dick Dawson of CareerCurve, a coaching firm for 55-plus workers.

Related: Will you have enough to retire?

Start where you're known: your old workplace and your network. Keep going to industry events and seek out contractors who do similar work and may hear of jobs they can't take. Visit elance.com and peopleperhour.com, which match employers with freelancers in fields such as marketing, writing, and design.

Make your hobby pay. Working doesn't have to mean sticking with the same career. Before retiring at 58, Susan Morgan Hoth was a high school teacher in Richmond who spent summers painting silk scarves. As she approached retirement, she started selling her scarves online through sites like Etsy.

Her business nets about $4,000 a year, enough to let Hoth, now 64, splurge more. "It helps me afford things I would not spend money on otherwise," she says.

Similarly, you might find that a part-time retail job that matches your interests -- in a golf shop, say, or a health-food store -- is all you need to pad your income. Discounts on greens fees or organic granola are an added bonus.

Don't get too comfortable. A lot can happen over 40 years, from a financial pinch to boredom. So even if you don't work out of the gate, keep yourself employable. That means maintaining professional credentials, following changes in your industry, and staying in touch with former colleagues.

Think way ahead. Many early retirees plant the seeds for a second paycheck well before retirement. One way to do that is by investing in rental real estate. Hearts & Wallets found that 27% of those who successfully retired before 62 went that route.

Related: Can you retire early?

Rental income is what made it possible for Kevin Howard, 57, to leave his full-time job as a procurement manager for Boeing two years ago. In the mid-1980s he began rehabbing and renting out houses. The properties -- three in Seattle, where he lives, and one in his former hometown of Houston -- provide half his annual $140,000 income (the rest is a pension and savings).

Still, "I don't want to fix plumbing as I get older," he says. He plans to sell his Houston house soon and the others within five years.

Now, instead of working on aerospace projects, Howard is learning to play the standing bass. He's clocked 14,000 miles in 26 states on his motorcycle, and takes his VW Vanagon camper to blues festivals.

"I worked for 30 years," Howard says. "I want another 30 years doing the things I want to do."

MORE: New rules for early retirement

Rule 1: Early retirees: Don't fear losing your health insurance
Rule 2: Getting ready to retire? Save more, spend less
Rule 3: Use your home to boost retirement savings
Rule 4: Get the first decade of retirement right

Shrink your savings target

To retire early, you'll have to amass daunting multiples of your income (based on making $100,000). Working part-time until you get full Social Security softens the blow.

55	12.25	18
60	11.5	17
62	11	16

NOTES: Replace 70% to 75% of income in retirement; distribution rates of 3.25% to 4.5% depending on age and part-time income; 4% real returns; Social Security at full retirement age; part-time work replacing 30% of pre-retirement income until age 65. SOURCE: Charles Farrell, Northstar Investment Advisors

First Published: October 28, 2013: 3:05 PM ET

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Apple's profit concerns linger

NEW YORK (CNNMoney)

The company on Monday reported quarterly sales and profit that handily beat Wall Street estimates, but the stock fell as investors focused on crunched earnings.

The problem: Consumers are increasingly interested in a mix of older and less-expensive Apple products, and that weighs on profits.

Apple's gross profit margin fell to 37% in its fiscal fourth quarter, down from 40% in the same period last year. Margins have fallen on an annual basis for seven straight quarters.

For the current quarter, Apple said it expects a gross margin of between 36.5% and 37.5% -- well below the median estimate of 38.6% that analysts surveyed by Thomson Reuters had expected.

Investors have continued to focus on that issue, and they sent Apple (AAPL, Fortune 500) shares down as much as 4% in after-hours trading Monday. Shares recovered to trade close to flat by the end of the company's post-earnings conference call.

While on that call, analysts also hammered on the profit-margin issue. Apple CFO Peter Oppenheimer said the company is "happy" to expect flat margins on a quarterly basis, given the slate of new products that are more costly to produce.

Also on the call, Apple CEO Tim Cook insisted that "Apple's business is stronger than ever."

Overall, the company netted $7.5 billion in profit last quarter. That easily beat Wall Street estimates, but it was still down from the $8.2 billion it booked a year ago. It's the third consecutive quarter in which Apple's profit fell from a year earlier.

Related story: Bill Gross tells Icahn to leave Apple alone

Product sales: Apple sold 33.8 million iPhones in its fiscal fourth quarter, which ended September 30. Those sales represented a 26% increase over last year, and they were slightly above the 33.4 million Wall Street was expecting.

Apple unveiled the iPhone 5S and plastic iPhone 5C late in the quarter, on September 20. At that time, Apple announced it sold a record 9 million devices during their first weekend on sale -- boosted by the fact that China was included in the initial launch, and that two new devices went on sale instead of one.

Reports have been rampant about Apple supposedly scaling back iPhone 5C production, due to lackluster demand for the cheaper device -- which costs more overseas than analysts had expected.

Cook said on the earnings call that it was "never [Apple's] intent" to market the 5C as a low-end device -- in fact, he called it "mid-tier." Instead, Apple now sees the two-year-old iPhone 4S as its entry-level device.

On the tablet side, Apple announced the new iPad Air and iPad mini earlier this month, so they didn't affect last quarter's results. Apple sold 14.1 million iPads during the quarter, just slightly higher than the 14 million sold in the same quarter last year.

Apple sold 4.5 million Macs during the quarter, down 7% from a year ago. IPod sales continued to fall rapidly, down 35% over the year to 3.4 million.

Overall, Apple's fourth-quarter sales came in at $37.5 billion, topping analysts' forecasts of $37 billion. For the current quarter, Apple expects revenue to come in between $55 billion and $58 billion, slightly higher than analysts' forecasts.

First Published: October 28, 2013: 5:04 PM ET

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Ketchup switch-up at McDonald's

Would you like ketchup with that?

NEW YORK (CNNMoney)

McDonald's (MCD, Fortune 500) is ending its relationship of four decades with Heinz, citing "recent management changes." The ketchup maker recently installed as CEO a former top executive of rival Burger King (BKW).

Most McDonald's customers won't notice the change, the company suggested.

Related: McDonald's helps workers get food stamps

"We only used Heinz in the Minneapolis and Pittsburgh markets in the U.S," said Becca Hary, McDonalds' director of global media relations. "Globally, Heinz represents a small percentage of McDonald's condiment and sauce business."

Hary pledged "a smooth and orderly transition" over time to new ketchup suppliers in those cities.

A senior official with Heinz said the company had "virtually no business" with McDonald's.

Related: Burger King snipes at McDonald's with lower-fat fries

The condiment change appears unrelated to other shuffles at the fast food giant. It is adjusting the famed Dollar Menu, including adding pricier options. McDonald's reported this month that sales grew only slightly in the past year.

Bernardo Hees, the new Heinz chief, led Burger King through a menu redesign of its own.

First Published: October 27, 2013: 12:07 PM ET

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New York will stockpile gas to prevent storm outages

Lines outside some gas stations stretched for miles.

NEW YORK (CNNMoney)

Gov. Andrew Cuomo on Saturday announced the state would create a Strategic Gasoline Reserve -- a $10 million pilot program that includes tanks for the fuel on Long Island. Should outages occur in an emergency elsewhere, the gas could be delivered, he said.

It's being called the first such state-based fuel reserve in the nation.

Lines outside of gas stations stretched for miles in the tri-state area after the fatal late-October storm slammed the East Coast and left millions without power. Portions of New York and New Jersey rationed gas as people mobbed stations seeking fuel for vehicles and generators. Emergency responders also found themselves without enough fuel.

Related: Ravaged by Sandy but back in business

Four days after the storm hit, AAA estimated between 60% and 65% of gas stations in the region were not operational.

Many stations were left without power to pump the gas from underground tanks. Others ran out of fuel, and some resupply efforts were hindered by traffic jams. In June, Cuomo announced $17 million to help more gas stations install the emergency generators.

His office said in a similar emergency, "gasoline from the reserve will be released to meet fuel needs while the industry recovers from a disruption in routine operations."

A contract with Northville Industries, the private company slated to store the fuel, needs to be finalized, the governor's office said.

First Published: October 27, 2013: 2:03 PM ET

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Obamacare malfunction shuts down application tool

Health Secretary Kathleen Sebelius touted the "Hub" as one piece of Obamacare that was working -- one day before it broke.

NEW YORK (CNNMoney)

Joanne Peters, a spokeswoman for the Department of Health and Human Services, said a vendor networking issue at Verizon subsidiary Terremark was to blame. Peters said the vendor had "experienced a failure in a networking component," and the attempted fix crashed the system.

Peters said that HHS chief Kathleen Sebelius had discussed the problem with Verizon CEO Lowell McAdam.

Verizon (VZ, Fortune 500) spokesman Jeff Nelson said his company was working on the issue and it would be "fixed as quickly as possible."

The outage was the latest issue to hit the troubled HealthCare.gov. Since a disappointing debut on Oct. 1, some users have been unable to create accounts or sign up for coverage.

Related: To fix Obamacare website, blow it up, start over

This malfunction impacted the "Data Services Hub," which connects the website to IRS and other databases used to determine eligibility. On Saturday, HHS Secretary Kathleen Sebelius touted the "hub" as one of the Obamacare technologies that was working.

The malfunction not only impacted the troubled federal website, but also hit some state-based exchanges. Peters said the problem was "likely impacting several other sites," and Kathleen Tallarita of the Connecticut insurance marketplace said some customers there could not sign up. Fourteen states and the District of Columbia elected to set up their own exchanges, which have been largely error-free.

Related: Contractors paid over $300 million for Obamacare site

President Barack Obama said in a speech last week teams were "working out the kinks in the system." He appointed former White House budget official Jeffrey Zients to oversee the repairs. Zients said the site would be working for "vast majority" of users next month.

First Published: October 27, 2013: 8:16 PM ET

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United fined $1.1 million over Chicago delays

Passengers were stuck on planes for stretches ranging from just over three hours to nearly four-and-a-half hours.

NEW YORK (CNNMoney)

The DOT said the penalty is the largest for such a violation since a rule limiting long tarmac delays took effect in April 2010. The rule states that U.S. airlines with with 30 or more passenger seats on their domestic flights can't allow their planes to remain on the tarmac for more than three hours without giving passengers the opportunity to disembark.

Passengers on 13 United flights were stuck on their planes during severe thunderstorms on July 13, 2012 for stretches ranging from just over three hours to nearly four-and-a-half hours. Bathrooms were inaccessible on two planes for portions of the delays, the DOT said.

"It is unacceptable for passengers to be stranded in planes on the tarmac for hours on end," Transportation Secretary Anthony Foxx said in a statement.

Related: Toyota settles acceleration case after $3 million jury verdict

United said it was "committed to complying with the tarmac delay regulations, and we continue to improve our procedures while maintaining the safety of our customers and co-workers."

The fine amounts to a slap on the wrist for a company that reported $590 million in profits for the third quarter.

Correction: An earlier version of this story incorrectly stated that United was pursuing a merger with US Airways. The proposed merger is between American Airlines and US Airways.

First Published: October 25, 2013: 2:42 PM ET

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JPMorgan paying $5.1 billion to Fannie, Freddie over mortgages

It's been a rough year for JPMorgan.

NEW YORK (CNNMoney)

The bank has also been in talks with the Justice Department and other government officials over another potential settlement based on similar claims. That settlement will likely be even more expensive for JPMorgan.

The claims relate to conduct at JPMorgan and at Bear Stearns and Washington Mutual, which JPMorgan purchased in 2008. At issue are allegations that the firms sold risky mortgages and mortgage securities while misrepresenting their quality.

Among the purchasers were Fannie Mae and Freddie Mac, the government-backed housing finance giants that required a massive bailout in 2008 when their housing investments soured.

The deal was announced by the Federal Housing Finance Agency, which has overseen Fannie and Freddie since their 2008 rescue.

Agency head Edward DeMarco said the accord "provides greater certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers."

"This is a significant step as the government and JPMorgan Chase move to address outstanding mortgage-related issues," DeMarco said.

The firm reached the agreement without admitting or denying wrongdoing.

Related: More banks in crosshairs

JPMorgan will pay $4 billion to resolve claims related to the alleged misrepresentation of mortgage-backed securities -- investment products created by bundling payments from individual loans.

It will also repurchase $1.1 billion worth of mortgages sold to Fannie and Freddie between 2000 and 2008 that the firms say do not meet their quality standards.

JPMorgan (JPM, Fortune 500)said the settlements "are an important step towards a broader resolution of the firm's [mortgage-backed-securities]-related matters with governmental entities, and reflect significant efforts by the Department of Justice and other federal and state governmental agencies."

JPMorgan acquired Washington Mutual in 2008 after the failed bank had been taken over by the Federal Deposit Insurance Corporation. It's unclear whether JPMorgan will be able to pursue reimbursement claims with the FDIC for the portion of the settlement related to WaMu.

This issue has been a point of contention in JPMorgan's negotiations with the Justice Department, which wants to prevent the bank from passing on any settlement costs.

Securities sold by WaMu accounted for roughly $1.15 billion worth of the FHFA settlement.

Related: Half of nation's foreclosed homes still occupied

Investors initially shrugged off the news, which has been rumored for weeks. JPMorgan shares were up slightly in after-hours trading Friday, and have gained 20% so far this year.

JPMorgan is just one of 18 banks sued by the FHFA back in 2011 over the alleged misrepresentation of mortgage-backed securities, and is only the fourth to reach a settlement.

UBS (UBS) agreed to a settlement with the FHFA in July for $885 million. The agency has also settled with Citigroup (C, Fortune 500) and General Electric (GE, Fortune 500) for undisclosed sums.

JPMorgan is large enough to easily absorb the settlement costs. It's the biggest bank in the nation, with assets of $2.5 trillion and net income of $21.3 billion in 2012.

The bank has been buffeted by legal problems in the past few months, however.

It has paid over $1 billion in fines in connection with last year's "London Whale" trading debacle, and $80 million more over its allegedly unfair credit card billing practices.

In July, the bank agreed to pay $410 million to settle charges that it manipulated electricity prices in California and the Midwest. It is also facing scrutiny over its hiring practices in China and its alleged involvement in the Libor rate-fixing scandal.

JPMorgan posted a loss for the third quarter based on its massive legal expenses. CEO Jamie Dimon called the loss "painful" and warned that litigation costs could continue to be a drag on earnings for several quarters.

First Published: October 25, 2013: 5:26 PM ET

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Feds seize $28 million in bitcoins from alleged Silk Road operator

There are currently about 11.9 million bitcoins in circulation, according to the website Blockchain.

NEW YORK (CNNMoney)

Bitcoin, which allows users to conduct online transactions while obscuring their identities, was the only currency accepted on Silk Road. Law enforcement officials arrested the site's alleged proprietor, Ross Ulbricht, earlier this month, and have shuttered the operation.

Ulbricht faces a potentially lengthy prison sentence for charges ranging from narcotics trafficking to computer hacking to money laundering. Federal officials have now seized over $33.6 million worth of bitcoins in connection with the case.

"This seizure sends a clear notice to those who think they can commit crimes and conceal the fruits of their criminal activities in digital anonymity," IRS Special-Agent-in-Charge Toni Weirauch said in a statement.

Ulbricht's lawyer could not be reached for comment.

Related: How porn links and Ben Bernanke slipped into Bitcoin's code

Silk Road operated on an anonymous network known as Tor, making activity on the site virtually untraceable.

The use of bitcoin gave buyers and sellers an extra layer of protection. The currency is anonymous, decentralized and can only be used in digital form.

To process bitcoin transactions, Silk Road used what the FBI described as a "tumbler," a complex system that used countless dummy transactions to digitally conceal a payment's origins.

Over the past two and a half years, federal officials say the site generated sales of more than 9.5 million bitcoins, a sum valued at about $1.8 billion at Friday's exchange rate. In addition to illegal drugs, the site offered weapons, hacking software and other illicit products.

Bitcoin surged in value earlier this year, when a banking crisis in Cyprus shook confidence in government-issued currencies.

First Published: October 25, 2013: 9:31 PM ET

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United fined $1.1 million over Chicago delays

Passengers were stuck on planes for stretches ranging from just over three hours to nearly four-and-a-half hours.

NEW YORK (CNNMoney)

The DOT said the penalty is the largest for such a violation since a rule limiting long tarmac delays took effect in April 2010. The rule states that U.S. airlines with with 30 or more passenger seats on their domestic flights can't allow their planes to remain on the tarmac for more than three hours without giving passengers the opportunity to disembark.

Passengers on 13 United flights were stuck on their planes during severe thunderstorms on July 13, 2012 for stretches ranging from just over three hours to nearly four-and-a-half hours. Bathrooms were inaccessible on two planes for portions of the delays, the DOT said.

"It is unacceptable for passengers to be stranded in planes on the tarmac for hours on end," Transportation Secretary Anthony Foxx said in a statement.

Related: Toyota settles acceleration case after $3 million jury verdict

United said it was "committed to complying with the tarmac delay regulations, and we continue to improve our procedures while maintaining the safety of our customers and co-workers."

The fine amounts to a slap on the wrist for a company that reported $590 million in profits for the third quarter.

Correction: An earlier version of this story incorrectly stated that United was pursuing a merger with US Airways. The proposed merger is between American Airlines and US Airways.

First Published: October 25, 2013: 2:42 PM ET

10.20 | 0 komentar | Read More

JPMorgan paying $5.1 billion to Fannie, Freddie over mortgages

It's been a rough year for JPMorgan.

NEW YORK (CNNMoney)

The bank has also been in talks with the Justice Department and other government officials over another potential settlement based on similar claims. That settlement will likely be even more expensive for JPMorgan.

The claims relate to conduct at JPMorgan and at Bear Stearns and Washington Mutual, which JPMorgan purchased in 2008. At issue are allegations that the firms sold risky mortgages and mortgage securities while misrepresenting their quality.

Among the purchasers were Fannie Mae and Freddie Mac, the government-backed housing finance giants that required a massive bailout in 2008 when their housing investments soured.

The deal was announced by the Federal Housing Finance Agency, which has overseen Fannie and Freddie since their 2008 rescue.

Agency head Edward DeMarco said the accord "provides greater certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers."

"This is a significant step as the government and JPMorgan Chase move to address outstanding mortgage-related issues," DeMarco said.

The firm reached the agreement without admitting or denying wrongdoing.

Related: More banks in crosshairs

JPMorgan will pay $4 billion to resolve claims related to the alleged misrepresentation of mortgage-backed securities -- investment products created by bundling payments from individual loans.

It will also repurchase $1.1 billion worth of mortgages sold to Fannie and Freddie between 2000 and 2008 that the firms say do not meet their quality standards.

JPMorgan (JPM, Fortune 500)said the settlements "are an important step towards a broader resolution of the firm's [mortgage-backed-securities]-related matters with governmental entities, and reflect significant efforts by the Department of Justice and other federal and state governmental agencies."

JPMorgan acquired Washington Mutual in 2008 after the failed bank had been taken over by the Federal Deposit Insurance Corporation. It's unclear whether JPMorgan will be able to pursue reimbursement claims with the FDIC for the portion of the settlement related to WaMu.

This issue has been a point of contention in JPMorgan's negotiations with the Justice Department, which wants to prevent the bank from passing on any settlement costs.

Securities sold by WaMu accounted for roughly $1.15 billion worth of the FHFA settlement.

Related: Half of nation's foreclosed homes still occupied

Investors initially shrugged off the news, which has been rumored for weeks. JPMorgan shares were up slightly in after-hours trading Friday, and have gained 20% so far this year.

JPMorgan is just one of 18 banks sued by the FHFA back in 2011 over the alleged misrepresentation of mortgage-backed securities, and is only the fourth to reach a settlement.

UBS (UBS) agreed to a settlement with the FHFA in July for $885 million. The agency has also settled with Citigroup (C, Fortune 500) and General Electric (GE, Fortune 500) for undisclosed sums.

JPMorgan is large enough to easily absorb the settlement costs. It's the biggest bank in the nation, with assets of $2.5 trillion and net income of $21.3 billion in 2012.

The bank has been buffeted by legal problems in the past few months, however.

It has paid over $1 billion in fines in connection with last year's "London Whale" trading debacle, and $80 million more over its allegedly unfair credit card billing practices.

In July, the bank agreed to pay $410 million to settle charges that it manipulated electricity prices in California and the Midwest. It is also facing scrutiny over its hiring practices in China and its alleged involvement in the Libor rate-fixing scandal.

JPMorgan posted a loss for the third quarter based on its massive legal expenses. CEO Jamie Dimon called the loss "painful" and warned that litigation costs could continue to be a drag on earnings for several quarters.

First Published: October 25, 2013: 5:26 PM ET

10.20 | 0 komentar | Read More

Feds seize $28 million in bitcoins from alleged Silk Road operator

There are currently about 11.9 million bitcoins in circulation, according to the website Blockchain.

NEW YORK (CNNMoney)

Bitcoin, which allows users to conduct online transactions while obscuring their identities, was the only currency accepted on Silk Road. Law enforcement officials arrested the site's alleged proprietor, Ross Ulbricht, earlier this month, and have shuttered the operation.

Ulbricht faces a potentially lengthy prison sentence for charges ranging from narcotics trafficking to computer hacking to money laundering. Federal officials have now seized over $33.6 million worth of bitcoins in connection with the case.

"This seizure sends a clear notice to those who think they can commit crimes and conceal the fruits of their criminal activities in digital anonymity," IRS Special-Agent-in-Charge Toni Weirauch said in a statement.

Ulbricht's lawyer could not be reached for comment.

Related: How porn links and Ben Bernanke slipped into Bitcoin's code

Silk Road operated on an anonymous network known as Tor, making activity on the site virtually untraceable.

The use of bitcoin gave buyers and sellers an extra layer of protection. The currency is anonymous, decentralized and can only be used in digital form.

To process bitcoin transactions, Silk Road used what the FBI described as a "tumbler," a complex system that used countless dummy transactions to digitally conceal a payment's origins.

Over the past two and a half years, federal officials say the site generated sales of more than 9.5 million bitcoins, a sum valued at about $1.8 billion at Friday's exchange rate. In addition to illegal drugs, the site offered weapons, hacking software and other illicit products.

Bitcoin surged in value earlier this year, when a banking crisis in Cyprus shook confidence in government-issued currencies.

First Published: October 25, 2013: 9:31 PM ET

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U.S. lagging behind on gender equality

Women hold 98 of the 535 seats in Congress -- just 18%. That's far fewer than in some other countries, which is one reason why the United States ranks in the middle of the pack on gender equality.

NEW YORK (CNNMoney)

The U.S. has a larger gender gap than 22 other countries including Germany, Ireland, Nicaragua and Cuba, according to a World Economic Forum report released Thursday.

The report rates 136 countries on gender equality, and factors in four categories: economic opportunity, educational attainment, health and political empowerment.

By that metric, Iceland has had the narrowest gender gap for five straight years. Other Nordic countries like Finland, Norway and Sweden follow close behind.

Related: See an interactive map of the gender gap

Why wasn't the U.S. even close to the top? While the country scores high on economic opportunity and education for women, it scores poorly on political empowerment.

Not only has the United States never had a female president, women still make up far less than half of Congress.

This year, women hold 98 of 535 seats in Congress. That's just 18%.

In contrast, Iceland scores the highest in the world for political empowerment of women. Female heads of state led the country for 20 out of the last 50 years. Women also make up about 40% of the country's parliament.

Places like Cuba and Nicaragua also have a far greater percentage of women serving in their legislatures than in the U.S.

India and Ireland had female heads of state lead their countries 21 out of the last 50 years.

Related: Best countries for working moms and dads

Iceland and other Nordic countries consistently score high on gender surveys. Their labor force participation rates for women are among the highest in the world, salary gaps between women and men are narrow and women have abundant opportunities to rise to positions of leadership, the report said.

These countries also have generous paid parental leave policies, and ensure workers are given plentiful vacation time.

The United States does give some workers the right to 12 weeks off from work after the birth of a child, but pay is not guaranteed. It's also the only developed nation that doesn't guarantee workers paid vacation time.

First Published: October 24, 2013: 6:04 PM ET

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Zynga surges 12% after sales beat projections

Zynga is best known for the social media game FarmVille.

NEW YORK (CNNMoney)

Shares of the social gaming company surged 12% in after-hours trading Thursday after it reported third-quarter sales of $202.6 million, beating the analyst projection of $187.9 million. The company also posted a smaller-than-expected loss -- $16 million, or two cents a share, against a projection of four cents.

Zynga still faces a difficult road ahead, having struggled to replicate earlier successes like FarmVille and Words With Friends.

The company's daily active user total slipped 23% versus the second quarter to 30 million, and 49% versus a year ago. Monthly active users fell to 133 million, from 311 million a year ago.

Related: Twitter sets IPO stock price

Zynga (ZNGA) CEO Don Mattrick said the company is "working hard to compete more aggressively on the web, move to mobile and develop new hits, and I am happy with the early progress we have made."

Zynga announced multiple rounds of layoffs earlier this year, and co-founder Mark Pincus stepped down as CEO at the beginning of July.

The company raised hopes among investors last year by applying for an online gambling license, exploring a new potential revenue source. But Zynga dropped those plans in July, focusing on its core social gaming business.

Related: Microsoft profit jumps 17%

Zynga has offered online gambling in the U.K. since April.

First Published: October 24, 2013: 5:52 PM ET

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Microsoft profit jumps 17%

NEW YORK (CNNMoney)

The Redmond, Wash.-based software giant said its net income in its fiscal first quarter jumped 17% to $5.2 billion, or 62 cents per share. Analysts polled by Thomson Reuters forecast earnings of 54 cents per share.

Sales also came in higher than expected. Microsoft's revenue rose 16% over the year to $18.5 billion, topping forecasts of $17.8 billion.

Those strong results pushed Microsoft (MSFT, Fortune 500) 6% higher after hours.

Microsoft CFO Amy Hood struck an upbeat tone on the post-earnings conference call with analysts and members of the press.

Microsoft's customers are happy with "the innovation and roadmap that we've shown," Hood said. She later added: "I do feel quite good about our competitive position."

While most of Microsoft's businesses did well in the quarter, one big sector bucked the trend: Windows sales slumped 7%. The completely redesigned Windows 8 operating system has largely failed to take off with consumers, which is a big disappointment for the company.

Still, the rest of Microsoft's businesses gained steam.

Ad sales for the much-maligned Bing search engine grew by 47% over last year. Microsoft partners with Yahoo (YHOO, Fortune 500) in online search. Microsoft's giant -- and largely underappreciated -- corporate software business grew its sales by 10%.

Even Surface tablet sales took off after Microsoft slashed prices. Microsoft said it sold $400 million worth of Surface tablets in the quarter. In July, Microsoft was forced to write off a whopping $900 million worth of inventory Surface inventory.

Related story: Meet one of Steve Jobs' only bosses

Busy quarter: It was an extremely busy fiscal first quarter for Microsoft. In July, Microsoft instituted yet another management reorganization. One month later, CEO Steve Ballmer announced he will retire within the next 12 months.

Ballmer's decision to step down has been viewed by some on Wall Street as a recognition of the company's missteps in mobile. Apple (AAPL, Fortune 500) and Google (GOOG, Fortune 500) have a significant market share lead over Microsoft in mobile.

But Microsoft may have also bought a successor to Ballmer during the quarter. The company agreed to purchase the mobile devices business of Nokia (NOK) in September. Former Nokia CEO Stephen Elop, who left Microsoft to take the top spot at Nokia a few years ago, will be returning to Microsoft and is widely expected to be one of the frontrunners to replace Ballmer.

More recently though, there has been speculation that Microsoft's top choice may be Ford (F, Fortune 500) CEO Alan Mulally.

First Published: October 24, 2013: 4:34 PM ET

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Countrywide defrauded Fannie and Freddie, jury rules

Bank of America acquired Countrywide in 2008.

NEW YORK (CNNMoney)

A former Countrywide executive, Rebecca Mairone, was also found liable in the case.

The Justice Department lawsuit concerned a Countrywide program established in 2007 called the High-Speed Swim Lane -- nicknamed "the Hustle" -- that prosecutors say was "intentionally designed to process loans at high speed and without quality checkpoints, and generated thousands of fraudulent and otherwise defective residential mortgage loans." Borrowers were able to secure mortgages in many cases without even having their income verified.

These loans were then misrepresented as high-quality to Fannie and Freddie, who were told Countrywide had "strengthened its underwriting guidelines and scaled back on risker loan products," the complaint says.

Bank of America (BAC, Fortune 500) acquired Countrywide in 2008 and is now responsible for its liabilities. Fannie and Freddie suffered "hundreds of millions of dollars in losses" after borrowers whose mortgages they purchased from Countrywide defaulted, according to the suit.

Judge Jed Rakoff has yet to determine penalties in the case, which will be limited to fines because the charges were civil rather than criminal.

Manhattan U.S. Attorney Preet Bharara said the Countrywide program "treated quality control and underwriting as a joke."

"In a rush to feed at the trough of easy mortgage money on the eve of the financial crisis, Bank of America purchased Countrywide, thinking it had gobbled up a cash cow," Bharara said in a statement. "That profit, however, was built on fraud, as the jury unanimously found."

Related: More banks in the crosshairs after JPM deal

The U.S. joined a whistleblower lawsuit filed by Edward O'Donnell, a former Countrywide executive who claims to have complained repeatedly about loan quality standards at the firm. O'Donnell could be awarded up to $1.6 million as a portion of the damages.

Bank of America spokesman Lawrence Grayson said the decision "concerned a single Countrywide program that lasted several months and ended before Bank of America's acquisition of the company."

"We will evaluate our options for appeal," Grayson said.

Mairone formerly served as chief operating officer of Countrywide's Full Spectrum Lending division. Prosecutors say the "Hustle" program was implemented under her direction.

Marc Mukasey, a lawyer for Mairone, called her "a model of honesty, integrity and ethics" and said the defense team would appeal.

"She never engaged in any fraud because there was no fraud," Mukasey said in an email.

Bank of America reached a $10.3 billion settlement with Fannie Mae earlier this year over questionable Countrywide loans originated between 2001 and 2008.

JPMorgan (JPM, Fortune 500), meanwhile, is currently in talks with the government over a potential multi-billion-dollar settlement that would resolve claims that the bank misrepresented mortgage-backed securities sold to Fannie and Freddie ahead of the crisis.

The Federal Housing Finance Agency, which has overseen Fannie and Freddie since their 2008 bailout, has also filed lawsuits against more than a dozen other banks over mortgage securities sold to the firms.

First Published: October 23, 2013: 6:01 PM ET

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McDonald's helps workers get food stamps

McDonald's workers have been protesting for higher wages and better hours since last November.

NEW YORK (CNNMoney)

The hamburger chain pretty much admits that in a call made by a worker to "McResources"-- a helpline set up for its workers.

The advocacy group Low Pay is not Ok recorded a phone call made to the helpline by one McDonald's worker Nancy Salgado. The group circulated an edited video of the recording. CNNMoney reviewed the full recording of the call.

Salgado, who has worked at a Chicago McDonald's for 10 years and makes $8.25 an hour, asked the McResources representative a number of questions related to getting assistance to pay for her heating bill, her groceries and her sister's medical expenses. Salgado told the representative that she was recording the call for her sister.

The helpline operator never asked Salgado how much she made per hour, and how many hours per week she worked beyond the fact that she was a full-time employee. But she said that Salgado "definitely should be able to qualify for both food stamps and heating assistance."

The representative then pointed her toward a number of resources in Chicago, such as food pantries and a program that would help cover some of her heating bill. She said she would email her specific phone numbers and programs.

Related: The real budgets of McDonald's workers

The operator also explained that the McResources Line is available to help McDonald's workers who need help navigating the process of getting public assistance. The helpline's phone number is posted in fliers at many McDonald's locations.

But the line is not open to all McDonald's workers. Franchise owners need to pay for the service in order for their employees to use it.

Salgado's franchise owner in Chicago, for example, had not paid for the service. The operator said that none of the Chicago franchises had.

"We can be a good program," the operator said. "We can do a lot of the leg work that takes a lot of the stresses off of you making a million phone calls trying to find services."

News of the McResources Line comes a week after a report found that more than half of fast food workers have to rely on public assistance programs since their wages aren't enough to support them.

The report estimated that this public aid carries a $7 billion price tag for taxpayers each year.

A separate report by the National Employment Law Project released on the same day showed that McDonald's alone was responsible for $1.2 billion of that $7 billion alone.

The recorded phone call supports what the reports found and also the claims of hundreds of fast food workers that their pay is too low, they don't get scheduled for enough hours and they get no benefits. Since last November, workers have organized protests around the country, including New York City, Los Angeles, Memphis and Detroit calling for a minimum wage of $15 an hour and the right to organize without retaliation.

Earlier this year, McDonald's came under fire for releasing a budget planning guide for its employees. The sample budget it provided didn't account for either food or gasoline, a big expense for low income workers. The budget also left room for an income from a second job, which many called an admission by the fast food giant that its workers can't live on wages from one job at McDonald's.

McDonald's did not return a request for comment.

First Published: October 23, 2013: 5:09 PM ET

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China factories power ahead

HONG KONG (CNNMoney)

HSBC said on Thursday that its "flash" measure of sentiment among manufacturing purchasing managers advanced to 50.9 in October, its highest level in seven months.

The index is an early gauge of the health of the sector, which is seen as a bellwether for China's export-heavy economy.

It had fallen below 50 for months, but finally perked up again in August and September. Any number under 50 indicates a slower pace of manufacturing activity.

HSBC's China economist Hongbin Qu said that the index rose "on the back of broad-based modest improvements."

"This momentum is likely to continue in the coming months, creating favorable conditions for speeding up structural reforms," he said.

China reported last week that third quarter economic growth hit 7.8%, which should take some pressure off the country's leaders as they seek to execute painful structural reforms.

Related story: Alarm bells ring over China's debt problem

The country averaged growth of around 10% a year in the past three decades, propelling it up the list of biggest economies, generating wealth for its growing middle class and boosting global trade.

The third quarter result all but confirms that Beijing will meet its 7.5% annual growth target for the year. But questions remain about the quality of growth achieved.

Related: Smog chokes Chinese city of 11 million

As China seeks more sustainable growth, it is trying to shift from an export-driven model toward one led by consumption. Economists believe the path ahead could be rather bumpy.

One major headwind is the country's addiction to credit -- which shows no signs of slowing, even as debt piles up.

First Published: October 23, 2013: 11:00 PM ET

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The iPad mini is now the iPad

NEW YORK (CNNMoney)

The new eight-inch iPad mini now matches the larger iPad Air in processor power, screen resolution and battery life. It runs all the same apps.

But the iPad mini has two things that make it more attractive to many consumers than the iPad Air: It's easier to handle, and it's $100 cheaper.

Even though the iPad mini's screen is a third smaller than its full-sized counterpart, Apple (AAPL, Fortune 500) bumped its screen resolution to a "Retina display." That will lessen the already minor impact of staring at a smaller screen.

By putting the smaller iPad mini on level ground with the iPad Air, Apple tacitly announced that it is focusing its tablet strategy on the iPad mini. Despite all the marketing theatrics surrounding the iPad Air, make no mistake about it: the iPad mini is THE iPad now.

Related story: Meet one of Steve Jobs' only bosses

Looking forward, the upgraded iPad mini should be the better selling iPad. Unless you have a real, tangible need for the extra real estate on your tablet screen, there's no real reason to buy the iPad Air.

That's not to say that the iPad Air will fade into total obscurity. Creative types, professionals in specialized fields, and road warriors still hell bent on using their iPad as a laptop will find utility in the iPad Air. But for anyone who is primarily looking for a media consumption device, the iPad mini is more than game.

Perhaps the most ironic part about the emergence of the iPad mini is how much Apple initially resisted the idea of producing a smaller tablet. The company insisted that it was a bad idea and dismissed the notion entirely.

But Apple couldn't dismiss the market trends. When Apple released the iPad mini last year, it was an experiment of sorts for the company, and Apple found a way to make it work. Four months after the release of the first-generation iPad mini, tech consultancy NPD was already noticing that the iPad mini was cannibalizing sales of the 9.7-inch iPad.

In a rare moment for consumer technology, everyone wins as a result.

First Published: October 22, 2013: 3:43 PM ET

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IRS: Tax season delayed due to shutdown

The IRS won't be able to start processing tax returns on Jan. 21 this year.

NEW YORK (CNNMoney)

The start of the 2014 tax season, which was scheduled for Jan. 21, will be delayed by one to two weeks, the IRS announced Tuesday.

That means the IRS will start accepting and processing returns somewhere between Jan. 28 and Feb. 4. The agency said it is working to minimize the delay, and it will announce its decision as to the official start of the tax season in December.

While you can still send in a paper return any time, the IRS won't look at it until the season officially starts. And e-filing won't be available until then either.

The decision comes after the agency lost 16 days -- or three work weeks -- to the government shutdown, during which 90% of its operations were closed. Now it has to catch up on everything it was unable to do during that time. Specifically, it still has a lot of work to do on its processing systems before they are prepared for a flood of tax returns.

Related: 2 numbers that could cause another shutdown

"The government closure came during the peak period for preparing IRS systems for the 2014 filing season," the agency said in a statement. "Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns."

But if you're hoping this means the filing deadline will also be pushed back, tough luck. The same April 15 due date still applies.

First Published: October 22, 2013: 4:37 PM ET

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Carl Icahn dumps more than half of his Netflix stake

Activist investor Carl Icahn

NEW YORK (CNNMoney)

A year ago this month, the activist investor directly bought or took out options on 5.5 million Netflix shares, representing a 10% stake in the company. Icahn has now sold off 5.5% of that stake, he disclosed in a regulatory filing late Tuesday. Netflix shares fell more than 2% in after-hours trading on the news.

Netflix shares are up a stunning 460% since Icahn bought his stake.

As he is wont to do, Icahn tweeted about the sale of his "block of NFLX." He thanked Netflix executives and staffers, as well as Kevin Spacey, the star of the buzzy Netflix-original series "House of Cards."

Icahn and Netflix weren't so chummy when the investor purchased his stake in 2012. Icahn is known for exerting his will on the companies he takes an interest in, and when he bought his Netflix shares, he said the company would be a nice takeover target for a larger company looking to add streaming video to their portfolio.

Related story: Netflix CEO: Settle down about our stock

Netflix was spooked. Just one week later, the company announced it had adopted a "stockholder rights plan" designed to prevent activist shareholders from launching a hostile takeover.

The plan, known as a "poison pill," would kick in if an individual or group tried to buy a sizable chunk of the company without approval from Netflix's board. If that happened, Netflix (NFLX) could opt to flood the market with new shares and make a takeover prohibitively expensive.

Icahn lashed back at Netflix at that time, calling the move "discriminatory" and blasting the company's board for having too much power over shareholders.

But Netflix began to turn around soon after Icahn bought his stake, so the investor made his money and the company remained independent.

Late Monday, Netflix reported third-quarter earnings that handily beat Wall Street estimates.

First Published: October 22, 2013: 6:22 PM ET

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J.C. Penney scales back Martha Stewart partnership

Martha Stewart has provided testimony in the J.C. Penney-Macy's dispute.

NEW YORK (CNNMoney)

Macy's (M, Fortune 500), J.C. Penney (JCP, Fortune 500) and Martha Stewart Living Omnimedia (MSO) have been locked in a closely watched legal battle over Macy's claim that it has exclusive rights to sell certain categories of Martha Stewart products.

The dispute started in December 2011 with the announcement that J.C. Penney would sell Martha Stewart-branded goods in "mini-stores" at its locations across the country. As part of the deal, J.C. Penney paid $38.5 million for a 16.6% stake in MSLO.

The deal incensed Macy's, which had already been selling Stewart-branded products. Macy's filed lawsuits against both companies in February 2012, claiming they had violated a 2006 agreement giving Macy's "an exclusive license" to make and sell Stewart-branded products in categories including bedding and dinnerware.

J.C. Penney and MSLO said in a joint statement Monday that their new agreement "covers a more focused range of product categories over a shorter period of time...than the original agreement."

The partnership is now limited to window treatments and hardware, lighting, rugs and holiday products. J.C. Penney has agreed to give up its stake in Stewart's company as well as its seat on the board of directors.

Related: Is J.C. Penney becoming a penny stock?

Macy's called the agreement "a tacit admission by both Penney and MSLO that Macy's is the only store that can sell Martha Stewart bed, bath, and kitchen goods and that the contract that Penney and MSLO entered into to sell Martha Stewart bed, bath, and kitchen goods at Penney was illegal."

Top executives, including CEOs of both companies as well as Martha Stewart herself, have provided colorful testimony during the legal case this year. The trial began in February, and the judge ordered the parties into mediation in March, though those talks went nowhere.

Macy's said Monday that it is still pursuing damages in the case.

J.C. Penney has suffered massive losses in recent quarters following a failed turnaround effort led by former Apple (AAPL, Fortune 500) executive Ron Johnson. Johnson, who was ousted as CEO earlier this year, brokered the deal with Stewart as part of a broader plan to bring well-known designers to J.C. Penney shelves.

First Published: October 21, 2013: 5:43 PM ET

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Chamber of Commerce: Raise gas tax to fix roads

Chamber of Commerce President Thomas Donohue calls for a hike in the federal gas tax to fix roads and bridges.

WASHINGTON (CNNMoney)

"Twenty years. It's been 20 years since we had an increase in the federal fuel tax. What kind of car were you driving 20 years ago?" asked Thomas Donohue, president of the Chamber of Commerce, at a breakfast Monday morning sponsored by The Christian Science Monitor.

Donohue said Congress should consider increasing the federal gas tax to pay for major infrastructure needs.

Related: Eight states raise gas tax

A higher gasoline tax would be extremely unpopular in a country where almost 90% people drive to work. It's also not a favorite of either the Obama Administration or the Tea Party Republicans.

But it's one of the few economic policy ideas that big business groups and big labor unions agree on.

The last hike of 18.4 cents a gallon took place on Oct. 1, 1993. Currently, the tax raises about $30 billion a year for the country's coffers, according to the Institute on Taxation and Economic Policy.

The idea of raising the gas tax could be picking up steam.

Last week, former Transportation Secretary Ray LaHood, a Republican, said Congress should raise the federal gas tax by 10 cents a gallon. LaHood's made the remarks at a conference in Arlington, Va., as reported by Washington, DC radio station WAMU 88.5 A.M.

LaHood suggested that even to make a "scratch" in the nation's infrastructure needs, the U.S. would need to raise close to $500 or $600 billion dollars.

The chamber has been calling for a hike to the federal gas tax since 2009. But Congress has yet to make any real progress on the idea.

In April, a Gallup poll found two-thirds of Americans opposed a hike in state gas taxes of up to 20 cents, even if it went to pay for infrastructure.

First Published: October 21, 2013: 1:37 PM ET

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Netflix jumps 10% on robust growth and rosy outlook

Netflix CEO Reed Hastings

NEW YORK (CNNMoney)

Netflix cynics have been waiting for the company's stock bubble to pop: Netflix shares are up a shocking 440% in the past 12 months, and analysts expected third-quarter earnings nearly to quadruple over the year.

But Netflix (NFLX) delivered. The company reported third-quarter earnings of 52 cents a share, well above the 49 cents that analysts polled by Thomson Reuters were expecting.

Sales came in at $1.1 billion, in line with estimates.

Netflix expects more happy news for the current quarter. The company predicted earnings of 47 cents to 73 cents per share. That's an extremely wide range -- common for Netflix -- but it's far above the 46 cents a share that Wall Street expected.

Shares of Netflix jumped 10% in after-hours trading.

Netflix CEO Reed Hastings isn't comfortable with the huge stock run-up, however. On a post-earnings conference call with analysts, he said Netflix thinks "momentum investors" are "driving the price more than we like normally" -- but that it's out of the company's control.

Subscriber growth and original content: Hastings was happier with Netflix's third-quarter subscriber growth, which also impressed. Netflix added nearly 1.3 million new American subscribers during the third quarter, near the top range of the 690,000-1.49 million range the company predicted in July.

International subscriber growth was even more striking: 1.44 million new overseas streaming customers. That pushed Netflix above the 40 million subscriber mark for the first time. But Netflix warned of a surge in free-trial signups in Latin America that artificially boosted the international additions figure.

In order to continue that user-base growth, Netflix has spent years transforming itself into not only a purveyor of other studios' content, but a creator of original content as well.

Netflix CEO Reed Hastings and other company executives have repeatedly said Netflix "wants to become HBO faster than HBO can become Netflix." (HBO is owned by CNNMoney parent company Time Warner (TWX, Fortune 500).)

Related story: RIP television, hello mobile gaming

That original-content strategy has included a new season of "Arrested Development," a U.S. remake of "House of Cards," and -- most notably -- the new series "Orange is the New Black." Netflix called the comedy-drama "one of the most critically well received TV shows of 2013" and said it will end the year as Netflix's most watched original series to date.

Three of those original series netted Netflix a total of 14 Emmy nominations and three wins (all for "Cards") this year, but some analysts are still concerned about Netflix's mounting costs. The company reportedly spent $100 million producing and shooting two seasons of "House of Cards," the first of which was released in February.

Netflix appears unfazed by that criticism. The company said it expects to double its spending on original content in 2014. Content chief Ted Sarandos said on the earnings call that the company is actively looking for documentaries to debut on Netflix and will keep an open mind about feature films -- but Netflix still isn't interested in airing sports.

Meanwhile, the content licensing side of Netflix's business is also expensive. Studios have demanded more money for their content as rival services proliferate: Amazon (AMZN, Fortune 500), Hulu and Redbox (OUTR) are only a handful of the competitors. Premium channels like HBO and CBS' (CBS, Fortune 500) Showtime are also expanding their streaming offerings.

First Published: October 21, 2013: 4:34 PM ET

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Lew pushes to eliminate spending cuts

Treasury Secretary Jack Lew.

NEW YORK (CNNMoney)

He laid out the Obama administration's case in an op-ed for The International New York Times that the failure to replace the across-the-board "blunt spending cuts" would hurt the U.S. economy.

"As independent economists and business leaders will tell you, these cuts have already slowed economic growth, just as the economy was getting traction," he wrote. "The nonpartisan Congressional Budget Office has estimated that by the third quarter of next year, sequestration will have reduced real gross domestic product by as much as 1.2 percent, which means as many as 1.6 million fewer American jobs."

Related: Spending cuts are hurting economy

The blanket cuts are a product of the 2011 fiscal stalemate and subsequent failed attempts to produce an alternative. The sequester is widely disliked but took effect anyways, shaving spending from nearly every piece of the federal budget, except funds for mandatory programs like Social Security.

Even some Republicans who favor cutting government spending see the sequester cuts as too indiscriminate.

"The real problems are that we're continuing to spend money that we don't have on things that we don't need," Sen. Tom Coburn said Sunday on NBC.

"There's tremendous amounts of waste and fraud. We have to protect the promises made to American people. And we can do that, but we can do that spending a whole lot less money than we're doing today," he continued.

Related: What the heck is the sequester?

The next scheduled round of cuts will be even deeper.

The debt ceiling deal Congress reached this month funded the government at current levels and put off a decision on the sequester until January 15.

But their track record of resolving these issues isn't great.

Related: Congress votes to do its job

Lew, however, said the U.S. remains a stable "backbone of the global financial system."

"The world now knows we are and will remain the safest, most reliable place to invest," he wrote, according to a copy of the text from the Treasury Department. "Make no mistake: What took place was a political crisis, not an economic one."

First Published: October 20, 2013: 3:24 PM ET

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