In a 24/7 Wall St. article titled “Government Share of ACA Premium Hikes Adds $194 Billion to Federal Deficit,” it was reported:
Total federal subsidies for health insurance in the nongroup (i.e., individual market) — in particular, the sum of the premium tax credits and the CSR payments — would increase for two reasons: The average amount of subsidy per person would be greater, and more people would receive subsidies in most years. The cost of the premiums would be offset by CSRs unless President Trump makes good on his plan to eliminate CSR payments.
Implementing CSR payments would increase the federal deficit, on net, by $194 billion from 2017 through 2026, according to the CBO and JCT estimate.
The International Monetary Fund has warned about an increasing debt problem in China. In a new report about the People’s Republic of China, its experts wrote:
International experience suggests that China’s current credit trajectory is dangerous with increasing risks of a disruptive adjustment and/or a marked growth slowdown. We identify 43 cases of credit booms in which the credit-to-GDP ratio increased by more than 30 percentage points over a 5-year period. Among these, only 5 cases ended without a major growth slowdown or a financial crisis immediately afterwards.
Subprime car loans have become a major problem, according to a Bloomberg report:
Amid all the reflection on the 10-year anniversary of the start of the subprime loan crisis, here’s a throwback that investors could probably do without.
There’s a section of the auto-loan market — known in industry parlance as deep subprime — where delinquency rates have ticked up to levels last seen in 2007, according to data compiled by credit reporting bureau Equifax.
“Performance of recent deep subprime vintages is awful,” Equifax said in a slide show on second-quarter credit trends.
Among the many claims and counterclaims in the Uber board war, the latest is that one of the ride-sharing directors wants to remove board member Arianna Huffington. According to ReCode:
Early Uber investor Shervin Pishevar sent Benchmark Capital another letter asking the firm to step away from the company’s board of directors. In the letter, which Recode obtained, Pishevar claims that Benchmark is working with another major investor — Lowercase Capital — in its effort to remove former CEO Travis Kalanick from the board.
Pishevar also claims that Benchmark is seeking to remove Arianna Huffington from the board of directors.
Scandal plagued bank Wells Fargo & Co. (NYSE: WFC) has named a new chairman. According to the company:
Wells Fargo & Company today announced that its Board of Directors has taken a range of Board refreshment actions, including naming Elizabeth A. “Betsy” Duke to succeed Stephen W. Sanger as independent Chair, effective January 1, 2018; having three long-serving directors (including Sanger) retire at year-end 2017; and adding a new independent director and changing the composition of Board committees, both effective September 1, 2017.
The actions announced today are in addition to the appointment earlier this year of two new independent directors, Karen B. Peetz and Ronald L. Sargent. The Board expects to name up to three additional independent directors before the 2018 Annual Meeting.
According to the New York Post, Time Inc. (NYSE: TIME) has picked a consultant to run a restructuring of the company:
The publisher of People, Time, Sports Illustrated and Fortune has apparently dropped plans to name an official “chief transformation officer” and instead tapped a consultant — a McKinsey partner — who will be overseeing his own staffers devoted to the project.
Jaison Blair, Time Inc.’s head of investor relations, had tossed his hat into the ring to be named CTO, one source said, only to see the company ultimately hand the job instead to McKinsey partner Christian Schmitz.