Feds turn up heat on hedge-fund mogul Steven Cohen

Steven Cohen of SAC Capital.

NEW YORK (CNNMoney)

Michael Steinberg, apprehended in Manhattan on Friday morning, is one of at least seven current or former SAC Capital employees to be charged in insider-trading cases over the past few years.

SAC is renowned as one of the country's top investment firms, generating annualized returns averaging more than 25% since it was founded in 1992. Cohen himself is a Wall Street celebrity, with a net worth estimated at $9.3 billion by Forbes Magazine.

SAC's mounting legal troubles, however, have brought the firm unwanted attention, and threaten to ensnare Cohen himself. With Steinberg's arrest, the government is likely hoping to "work its way up the chain" to Cohen, said Michael Weinstein, a defense attorney and former federal prosecutor.

"This is absolutely standard operating procedure for bringing a big defendant down," Weinstein said. "The government's going to continue to pressure people around him."

Related: Should Steve Cohen shut down SAC?

Steinberg, who's been with SAC since 1997, pleaded not guilty in a court appearance Friday morning and posted $3 million bail.

"Mike has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity," SAC spokesman Jonathan Gasthalter said in an email.

Cohen himself hasn't been accused of any wrongdoing, and the firm has repeatedly denied that he has done anything improper.

But investors have been monitoring the government's SAC cases warily, requesting the withdrawal of more than $1.68 billion before the quarterly deadline to do so last month.

The firm was already under pressure after federal officials levied charges in November against Mathew Martoma, a former portfolio manager at an SAC subsidiary, accusing him of participating in a $276 million insider-trading scheme. That indictment claims Cohen made trades based on Martoma's recommendations, though it does not allege that Cohen knew Martoma had obtained information illegally.

Martoma has denied the allegations against him, though other SAC alums have struck cooperation deals with the government. That group includes former analyst Jon Horvath, whose testimony is likely to figure in the case against his one-time boss, Steinberg.

Among the charges Steinberg faces are four counts of securities fraud, each of which carries a maximum sentence of 20 years in prison. The government has a sterling record in insider-trading cases -- 71 convictions and no acquittals since August 2009 -- and analysts say prosecutors will likely put serious pressure on Steinberg to testify against Cohen.

"They're going to start exerting pressure on Steinberg and exerting pressure on Martoma," said Michael Bachner, a lawyer who has represented defendants in insider-trading cases. "They are looking to try and get as many individuals charged who could cooperate and corroborate each other."

On the civil side, SAC agreed earlier this month to pay more than $600 million in a settlement with the Securities and Exchange Commission over the trades at issue in Martoma's case. In a court hearing Thursday, however, a federal judge reportedly questioned why the firm was allowed to settle without admitting or denying wrongdoing, raising doubt as to whether the settlement will be approved.

The firm reached a $14 million settlement with the SEC over the trades in Steinberg's case, though that also awaits court approval.

In the meantime, both the SEC and the Justice Department say their investigations are continuing. As for Cohen, he's apparently finding ways to take his mind off the controversy -- reports emerged this week that he recently purchased Picasso's "Le Reve" for $155 million, the most expensive art purchase ever by a U.S. collector.

CNN Wires staff and CNNMoney's Aaron Smith contributed reporting.

First Published: March 29, 2013: 6:49 PM ET

21.29 | 0 komentar | Read More

Beer and hot dogs: Which ballparks charge most

CNNMoney surveyed Major League Baseball stadiums to see which offer the most bang for your buck.

NEW YORK (CNNMoney)

Classic baseball refreshments like hot dogs and beer can vary widely in price depending on the ballpark, CNNMoney found when it surveyed the 30 major league teams.

To avoid catching the attention of the IRS, beware of these pitfalls.

Mets fans at New York's Citi Field shell out the most for a regular hot dog -- $6.25 a pop. Meanwhile, Cincinnati Reds' watchers at Great American Ball Park can get a dog for just a buck -- the cheapest of any of the 26 stadiums that replied to our price requests. So Cincinnati fans can get six franks for less than the price of a single hot dog at Citi Field.

Meanwhile, thirsty fans pay the most at Washington Nationals games -- where, unless they take advantage of a $5 drink special before the first pitch, the cheapest beer available is a 16-ounce can for $8. For half that, beer drinkers can get a 12-ounce draft at Cleveland Indians games. The best deal? A 14-ounce beer for $4 at Arizona Diamondbacks' Chase Field.

Related: Hot dogs and beer: See what $20 buys at the ballpark

Some stadiums offer unique food options to cater to local taste buds -- those items generally carry even higher price tags.

At Giants games, seafood lovers can enjoy an $8.75 bread bowl of clam chowder or a $16.50 crab sandwich on San Francisco sourdough bread. For those with a sweet tooth, the stadium offers a $10 Ghirardelli hot fudge sundae in homage to San Francisco's famous Ghirardelli Square.

At Comerica Park, Detroit Tigers fans can buy a variety of fried options, including a $7 deep-fried red hot sausage on a stick and a $5 package of deep-fried peanuts.

Minnesota Twins fans can enjoy "state fair classics" like fried pickles ($7.50) and turkey drumsticks ($9.75) at Target Field in Minneapolis.

Texas Rangers Ballpark in Arlington, Texas, is home to a $26 monster of a hot dog dubbed the "Boomstick," a 2-foot-long beef hot dog, smothered in chili, nacho cheese, jalapenos and caramelized onions on a potato bun.

Some stadiums are trying to lure more fans with lower food prices. At most stadiums, fans pay between $3 and $5 for a basic hot dog and $5 to $7 for the cheapest beer -- for a total of $8 to $12. But at Arizona Diamondbacks' ballpark, a 14-ounce beer and a "value" hot dog costs just $5.50 -- less than a beer alone at other parks.

Low concession prices became a priority after the financial crisis of 2008, said Diamondbacks President and CEO Derrick Hall.

"For us, it was a challenge to make sure that we can remain affordable and get as many people to the ballpark despite the economy," he said.

After fan surveys listed food and drink prices as a top concern, Progressive Field in Cleveland, Ohio will feature lower food prices this year, said Kurt Schloss, vice president of concessions.

"We've spent the past year and a half trying to get to know our fans better," he said. "One of the biggest barriers to attending a game was the entire expense of coming down here."

The Boston Red Sox, New York Yankees, Tampa Bay Rays and Toronto Blue Jays did not respond to requests for 2013 stadium food prices.

First Published: March 31, 2013: 10:07 AM ET

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Meet the 'Boomstick,' baseball's largest hot dog

NEW YORK (CNNMoney)

Named after the bat used by Texas Rangers slugger Nelson Cruz, the $26 Boomstick is a 2-foot all-beef hot dog, smothered in chili, nacho cheese, jalapenos and caramelized onions, all on top of a massive potato bun. The whole thing weighs in at 3 pounds.

To avoid catching the attention of the IRS, beware of these pitfalls.

The ballpark sold nearly 20,000 of the monster hot dogs during the 2012 season — the Boomstick's inaugural year — raking in an estimated $500,000 in sales.

"We knew it was going to be a fun novelty type item, but it just really took off," said Shawn Mattox, the general manager for Delaware North Sportservice, which runs food operations at Rangers Ballpark in Arlington, Texas. "It quickly became a fan favorite."

Related: Hot dogs and beer: See what $20 buys at the ballpark

After a large hot dog dubbed the Texas Rangers "Big Dog" sold well during 2011 playoffs, Mattox's team decided to top that, with the 24-inch beast. "'We're Texas,' I said. 'I want to have the biggest hot dog,'" Mattox recalled telling his staff.

They hit a roadblock when they discovered that they couldn't find a company that made hot dogs -- and buns -- so large. Not to be stopped, they partnered with a local food services company and a bakery to custom make the super-sized hot dogs and buns.

The Boomstick was so popular that Delaware North introduced the giant hot dog at six other MLB stadiums for the month of July under the name the "Giant Slugger."

To build upon the Boomstick's success, Rangers Stadium will sell Boomstick lapel pins and plush toys. And a "24"-themed food stand will be opened, featuring a variety of super-sized menu options.

Related: 10 things you'll pay more for this year

The Boomstick will be joined by the "Totally Rossome" Boomstick ($32), named after Rangers relief pitcher Robbie Ross, which is smothered with smoked brisket, fresh pico, sour cream and Doritos chips. Also on the menu is a whopping 24-ounce bacon burger ($26), a 24-inch sausage ($26), a 24-inch pretzel ($13) and a 24-inch quesadilla ($26) covered with brisket and served on a bed of nacho cheese Doritos.

"When we first started talking about it, I was like gosh that's a lot of meat," Mattox said of the 1-pound burger topped with 8 ounces of bacon, grilled onions and cheese, dubbed "The Beltre Buster" after Rangers third baseman Adrian Beltre.

Mattox said he's not sure what the massive eats come in at nutrition-wise, but acknowledged it's got to be close to a day's worth of calories.

While some brave fans may attempt to tackle the food alone -- as one who devoured a Boomstick in less than four minutes did in an eating contest last year -- Mattox said the "24" menu items are really meant to be shared among friends or family.

"There are those that have the badge of honor and will over the course of several innings eat the whole thing," he said. "God bless them, but it's not really designed for that."

First Published: March 31, 2013: 10:21 AM ET

21.29 | 0 komentar | Read More

Incomes bounce back in February

NEW YORK (CNNMoney)

Personal incomes rose 1.1% in February, while spending rose 0.7%, the Commerce Department said.

Both figures were larger than expected. Economists were expecting a 0.8% rise in incomes and a 0.6% gain in spending, according to consensus estimates from Briefing.com.

The surprise jump in take-home pay came after incomes plunged 3.7% in January, driven lower by certain "special factors," the government said.

Incomes in January were depressed by the expiration of the "payroll tax holiday," as well as bonus and dividend payments that were made early in anticipation of tax hikes that took effect in 2013.

Excluding these factors, personal income increased 0.4% in February.

Meanwhile, personal spending continued to rise despite higher payroll taxes.

"We have yet to see the effect of increased payroll taxes on outlays," said Tanweer Akram, senior economist at ING U.S. Investment Management.

Stronger job growth, rising home prices and stocks at all-time highs have consumers feeling more optimistic about the economy recently. But it remains to be seen whether this increase in wealth will translate to a sustained rise in spending, Akram said.

"I'm cautiously optimistic, but I don't expect strong spending this year," he said.

Friday's report came one day after the government said U.S. gross domestic product rose at a 0.4% annual rate in the final three months of 2013. That was better than the previous estimate of 0.1% and the initial reading, which showed a 0.1% decline.

First Published: March 29, 2013: 10:35 AM ET

19.33 | 0 komentar | Read More

Fortune Brainstorm Podcast: Lena Dunham

NEW YORK (Fortune)

Fortune wants to make it even easier for you to eavesdrop. The weekly Fortune Brainstorm podcast features recorded conversations from Fortune's live events.

In this week's installment, actor and writer Lena Dunham -- creator of Girls (which just wrapped up its second season on HBO) -- takes center stage with CNN's Soledad O'Brien. Recorded at last year's Most Powerful Women Summit, Dunham discusses the (other) women in her life, how artists also function as small business owners, her critics, and her career. Don't worry: No spoilers.

Subscribe to and download the podcast from iTunes.

Or stick the podcast's RSS feed into your favorite podcast app: http://fortunebrainstormpodcast.libsyn.com/rss

First Published: March 29, 2013: 11:10 AM ET

19.33 | 0 komentar | Read More

Feds turn up heat on hedge-fund mogul Steven Cohen

Steven Cohen of SAC Capital.

NEW YORK (CNNMoney)

Michael Steinberg, apprehended in Manhattan on Friday morning, is one of at least seven current or former SAC Capital employees to be charged in insider-trading cases over the past few years.

SAC is renowned as one of the country's top investment firms, generating annualized returns averaging more than 25% since it was founded in 1992. Cohen himself is a Wall Street celebrity, with a net worth estimated at $9.3 billion by Forbes Magazine.

SAC's mounting legal troubles, however, have brought the firm unwanted attention, and threaten to ensnare Cohen himself. With Steinberg's arrest, the government is likely hoping to "work its way up the chain" to Cohen, said Michael Weinstein, a defense attorney and former federal prosecutor.

"This is absolutely standard operating procedure for bringing a big defendant down," Weinstein said. "The government's going to continue to pressure people around him."

Related: Should Steve Cohen shut down SAC?

Steinberg, who's been with SAC since 1997, pleaded not guilty in a court appearance Friday morning and posted $3 million bail.

"Mike has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity," SAC spokesman Jonathan Gasthalter said in an email.

Cohen himself hasn't been accused of any wrongdoing, and the firm has repeatedly denied that he has done anything improper.

But investors have been monitoring the government's SAC cases warily, requesting the withdrawal of more than $1.68 billion before the quarterly deadline to do so last month.

The firm was already under pressure after federal officials levied charges in November against Mathew Martoma, a former portfolio manager at an SAC subsidiary, accusing him of participating in a $276 million insider-trading scheme. That indictment claims Cohen made trades based on Martoma's recommendations, though it does not allege that Cohen knew Martoma had obtained information illegally.

Martoma has denied the allegations against him, though other SAC alums have struck cooperation deals with the government. That group includes former analyst Jon Horvath, whose testimony is likely to figure in the case against his one-time boss, Steinberg.

Among the charges Steinberg faces are four counts of securities fraud, each of which carries a maximum sentence of 20 years in prison. The government has a sterling record in insider-trading cases -- 71 convictions and no acquittals since August 2009 -- and analysts say prosecutors will likely put serious pressure on Steinberg to testify against Cohen.

"They're going to start exerting pressure on Steinberg and exerting pressure on Martoma," said Michael Bachner, a lawyer who has represented defendants in insider-trading cases. "They are looking to try and get as many individuals charged who could cooperate and corroborate each other."

On the civil side, SAC agreed earlier this month to pay more than $600 million in a settlement with the Securities and Exchange Commission over the trades at issue in Martoma's case. In a court hearing Thursday, however, a federal judge reportedly questioned why the firm was allowed to settle without admitting or denying wrongdoing, raising doubt as to whether the settlement will be approved.

The firm reached a $14 million settlement with the SEC over the trades in Steinberg's case, though that also awaits court approval.

In the meantime, both the SEC and the Justice Department say their investigations are continuing. As for Cohen, he's apparently finding ways to take his mind off the controversy -- reports emerged this week that he recently purchased Picasso's "Le Reve" for $155 million, the most expensive art purchase ever by a U.S. collector.

CNN Wires staff and CNNMoney's Aaron Smith contributed reporting.

First Published: March 29, 2013: 6:49 PM ET

19.33 | 0 komentar | Read More

Incomes bounce back in February

NEW YORK (CNNMoney)

Personal incomes rose 1.1% in February, while spending rose 0.7%, the Commerce Department said.

Both figures were larger than expected. Economists were expecting a 0.8% rise in incomes and a 0.6% gain in spending, according to consensus estimates from Briefing.com.

The surprise jump in take-home pay came after incomes plunged 3.7% in January, driven lower by certain "special factors," the government said.

Incomes in January were depressed by the expiration of the "payroll tax holiday," as well as bonus and dividend payments that were made early in anticipation of tax hikes that took effect in 2013.

Excluding these factors, personal income increased 0.4% in February.

Meanwhile, personal spending continued to rise despite higher payroll taxes.

"We have yet to see the effect of increased payroll taxes on outlays," said Tanweer Akram, senior economist at ING U.S. Investment Management.

Stronger job growth, rising home prices and stocks at all-time highs have consumers feeling more optimistic about the economy recently. But it remains to be seen whether this increase in wealth will translate to a sustained rise in spending, Akram said.

"I'm cautiously optimistic, but I don't expect strong spending this year," he said.

Friday's report came one day after the government said U.S. gross domestic product rose at a 0.4% annual rate in the final three months of 2013. That was better than the previous estimate of 0.1% and the initial reading, which showed a 0.1% decline.

First Published: March 29, 2013: 10:35 AM ET

21.29 | 0 komentar | Read More

Fortune Brainstorm Podcast: Lena Dunham

NEW YORK (Fortune)

Fortune wants to make it even easier for you to eavesdrop. The weekly Fortune Brainstorm podcast features recorded conversations from Fortune's live events.

In this week's installment, actor and writer Lena Dunham -- creator of Girls (which just wrapped up its second season on HBO) -- takes center stage with CNN's Soledad O'Brien. Recorded at last year's Most Powerful Women Summit, Dunham discusses the (other) women in her life, how artists also function as small business owners, her critics, and her career. Don't worry: No spoilers.

Subscribe to and download the podcast from iTunes.

Or stick the podcast's RSS feed into your favorite podcast app: http://fortunebrainstormpodcast.libsyn.com/rss

First Published: March 29, 2013: 11:10 AM ET

21.29 | 0 komentar | Read More

Feds turn up heat on hedge-fund mogul Steven Cohen

Steven Cohen of SAC Capital.

NEW YORK (CNNMoney)

Michael Steinberg, apprehended in Manhattan on Friday morning, is one of at least seven current or former SAC Capital employees to be charged in insider-trading cases over the past few years.

SAC is renowned as one of the country's top investment firms, generating annualized returns averaging more than 25% since it was founded in 1992. Cohen himself is a Wall Street celebrity, with a net worth estimated at $9.3 billion by Forbes Magazine.

SAC's mounting legal troubles, however, have brought the firm unwanted attention, and threaten to ensnare Cohen himself. With Steinberg's arrest, the government is likely hoping to "work its way up the chain" to Cohen, said Michael Weinstein, a defense attorney and former federal prosecutor.

"This is absolutely standard operating procedure for bringing a big defendant down," Weinstein said. "The government's going to continue to pressure people around him."

Related: Should Steve Cohen shut down SAC?

Steinberg, who's been with SAC since 1997, pleaded not guilty in a court appearance Friday morning and posted $3 million bail.

"Mike has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity," SAC spokesman Jonathan Gasthalter said in an email.

Cohen himself hasn't been accused of any wrongdoing, and the firm has repeatedly denied that he has done anything improper.

But investors have been monitoring the government's SAC cases warily, requesting the withdrawal of more than $1.68 billion before the quarterly deadline to do so last month.

The firm was already under pressure after federal officials levied charges in November against Mathew Martoma, a former portfolio manager at an SAC subsidiary, accusing him of participating in a $276 million insider-trading scheme. That indictment claims Cohen made trades based on Martoma's recommendations, though it does not allege that Cohen knew Martoma had obtained information illegally.

Martoma has denied the allegations against him, though other SAC alums have struck cooperation deals with the government. That group includes former analyst Jon Horvath, whose testimony is likely to figure in the case against his one-time boss, Steinberg.

Among the charges Steinberg faces are four counts of securities fraud, each of which carries a maximum sentence of 20 years in prison. The government has a sterling record in insider-trading cases -- 71 convictions and no acquittals since August 2009 -- and analysts say prosecutors will likely put serious pressure on Steinberg to testify against Cohen.

"They're going to start exerting pressure on Steinberg and exerting pressure on Martoma," said Michael Bachner, a lawyer who has represented defendants in insider-trading cases. "They are looking to try and get as many individuals charged who could cooperate and corroborate each other."

On the civil side, SAC agreed earlier this month to pay more than $600 million in a settlement with the Securities and Exchange Commission over the trades at issue in Martoma's case. In a court hearing Thursday, however, a federal judge reportedly questioned why the firm was allowed to settle without admitting or denying wrongdoing, raising doubt as to whether the settlement will be approved.

The firm reached a $14 million settlement with the SEC over the trades in Steinberg's case, though that also awaits court approval.

In the meantime, both the SEC and the Justice Department say their investigations are continuing. As for Cohen, he's apparently finding ways to take his mind off the controversy -- reports emerged this week that he recently purchased Picasso's "Le Reve" for $155 million, the most expensive art purchase ever by a U.S. collector.

CNN Wires staff and CNNMoney's Aaron Smith contributed reporting.

First Published: March 29, 2013: 6:49 PM ET

21.29 | 0 komentar | Read More

Incomes bounce back in February

NEW YORK (CNNMoney)

Personal incomes rose 1.1% in February, while spending rose 0.7%, the Commerce Department said.

Both figures were larger than expected. Economists were expecting a 0.8% rise in incomes and a 0.6% gain in spending, according to consensus estimates from Briefing.com.

The surprise jump in take-home pay came after incomes plunged 3.7% in January, driven lower by certain "special factors," the government said.

Incomes in January were depressed by the expiration of the "payroll tax holiday," as well as bonus and dividend payments that were made early in anticipation of tax hikes that took effect in 2013.

Excluding these factors, personal income increased 0.4% in February.

Meanwhile, personal spending continued to rise despite higher payroll taxes.

"We have yet to see the effect of increased payroll taxes on outlays," said Tanweer Akram, senior economist at ING U.S. Investment Management.

Stronger job growth, rising home prices and stocks at all-time highs have consumers feeling more optimistic about the economy recently. But it remains to be seen whether this increase in wealth will translate to a sustained rise in spending, Akram said.

"I'm cautiously optimistic, but I don't expect strong spending this year," he said.

Friday's report came one day after the government said U.S. gross domestic product rose at a 0.4% annual rate in the final three months of 2013. That was better than the previous estimate of 0.1% and the initial reading, which showed a 0.1% decline.

First Published: March 29, 2013: 10:35 AM ET

19.33 | 0 komentar | Read More

Fortune Brainstorm Podcast: Lena Dunham

NEW YORK (Fortune)

Fortune wants to make it even easier for you to eavesdrop. The weekly Fortune Brainstorm podcast features recorded conversations from Fortune's live events.

In this week's installment, actor and writer Lena Dunham -- creator of Girls (which just wrapped up its second season on HBO) -- takes center stage with CNN's Soledad O'Brien. Recorded at last year's Most Powerful Women Summit, Dunham discusses the (other) women in her life, how artists also function as small business owners, her critics, and her career. Don't worry: No spoilers.

Subscribe to and download the podcast from iTunes.

Or stick the podcast's RSS feed into your favorite podcast app: http://fortunebrainstormpodcast.libsyn.com/rss

First Published: March 29, 2013: 11:10 AM ET

19.33 | 0 komentar | Read More

Feds turn up heat on hedge-fund mogul Steven Cohen

Steven Cohen of SAC Capital.

NEW YORK (CNNMoney)

Michael Steinberg, apprehended in Manhattan on Friday morning, is one of at least seven current or former SAC Capital employees to be charged in insider-trading cases over the past few years.

SAC is renowned as one of the country's top investment firms, generating annualized returns averaging more than 25% since it was founded in 1992. Cohen himself is a Wall Street celebrity, with a net worth estimated at $9.3 billion by Forbes Magazine.

SAC's mounting legal troubles, however, have brought the firm unwanted attention, and threaten to ensnare Cohen himself. With Steinberg's arrest, the government is likely hoping to "work its way up the chain" to Cohen, said Michael Weinstein, a defense attorney and former federal prosecutor.

"This is absolutely standard operating procedure for bringing a big defendant down," Weinstein said. "The government's going to continue to pressure people around him."

Related: Should Steve Cohen shut down SAC?

Steinberg, who's been with SAC since 1997, pleaded not guilty in a court appearance Friday morning and posted $3 million bail.

"Mike has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity," SAC spokesman Jonathan Gasthalter said in an email.

Cohen himself hasn't been accused of any wrongdoing, and the firm has repeatedly denied that he has done anything improper.

But investors have been monitoring the government's SAC cases warily, requesting the withdrawal of more than $1.68 billion before the quarterly deadline to do so last month.

The firm was already under pressure after federal officials levied charges in November against Mathew Martoma, a former portfolio manager at an SAC subsidiary, accusing him of participating in a $276 million insider-trading scheme. That indictment claims Cohen made trades based on Martoma's recommendations, though it does not allege that Cohen knew Martoma had obtained information illegally.

Martoma has denied the allegations against him, though other SAC alums have struck cooperation deals with the government. That group includes former analyst Jon Horvath, whose testimony is likely to figure in the case against his one-time boss, Steinberg.

Among the charges Steinberg faces are four counts of securities fraud, each of which carries a maximum sentence of 20 years in prison. The government has a sterling record in insider-trading cases -- 71 convictions and no acquittals since August 2009 -- and analysts say prosecutors will likely put serious pressure on Steinberg to testify against Cohen.

"They're going to start exerting pressure on Steinberg and exerting pressure on Martoma," said Michael Bachner, a lawyer who has represented defendants in insider-trading cases. "They are looking to try and get as many individuals charged who could cooperate and corroborate each other."

On the civil side, SAC agreed earlier this month to pay more than $600 million in a settlement with the Securities and Exchange Commission over the trades at issue in Martoma's case. In a court hearing Thursday, however, a federal judge reportedly questioned why the firm was allowed to settle without admitting or denying wrongdoing, raising doubt as to whether the settlement will be approved.

The firm reached a $14 million settlement with the SEC over the trades in Steinberg's case, though that also awaits court approval.

In the meantime, both the SEC and the Justice Department say their investigations are continuing. As for Cohen, he's apparently finding ways to take his mind off the controversy -- reports emerged this week that he recently purchased Picasso's "Le Reve" for $155 million, the most expensive art purchase ever by a U.S. collector.

CNN Wires staff and CNNMoney's Aaron Smith contributed reporting.

First Published: March 29, 2013: 6:49 PM ET

19.33 | 0 komentar | Read More

Triangle home with 'drawbridge'

NEW YORK (CNNMoney)

"It's not totally clear what the building is because it's such an odd or unusual shape," said Russell, who designed the property himself.

The 3,200-square-foot home is built on a triangular plot of land flanked by Interstate 5 and San Diego International Airport.

With planes and cars whizzing by, the home is louder than most. And with its peculiar shape, it's narrower too. In fact, it's just 8 feet on one side. But at its widest, the house spans more than 28 feet.

Still, Russell wanted at least one traditional feature -- a deck. So he built what he calls a "drawbridge." It's actually a windowed wall that can be lowered by towing cables to sit perpendicular to the home. Voila, a patio.

"A lot of people build their dream house and everything has to be perfect and everything has to be right," said Russell. "This was more about how much fun can you have with this pile of sticks and bricks."

More Unique Homes:

Mansion for sale: swim in your living room

Slide through NYC's penthouse playground

Life inside a far-out design project

First Published: March 29, 2013: 7:08 AM ET

19.33 | 0 komentar | Read More

One in four U.S. firms in China report data theft

HONG KONG (CNNMoney)

Many American businesses in the country also reported worrying more about data security, with over 40% of respondents saying the risk of a data breach is rising. Fifty-three percent said the risk is static, while only 5% said the risk is decreasing.

"This poses a substantial obstacle for businesses in China, especially when considered alongside the concerns over [intellectual property rights] enforcement and de facto technology transfer requirements," the report said.

While 78% of businesses said they were optimistic when asked to describe their two-year outlook, the percentage who said the investment environment is improving dropped from 43% in 2012 to 28% this year.

Rising labor costs and slower economic growth in China were most frequently cited as the greatest risks facing foreign businesses in China. The survey was conducted last November and December, and included 325 respondents.

The report comes amid elevated tensions between China and the U.S. over the issues of cybersecurity and computer hacking.

Last month, an American cybersecurity firm linked one of the world's most prolific groups of computer hackers to the Chinese government, setting off a war of words between the two countries.

The security firm, Mandiant, detailed its allegations in a 60-page report that described the tactics of the hacking group over a six-year period. Mandiant claimed it observed the hackers -- called the "comment crew" -- systematically steal hundreds of terabytes of data from at least 141 organizations across 20 industries worldwide.

Related story: Wake up, America! China is attacking

Mandiant claims the activity could be traced to four networks near Shanghai -- with some operations taking place in a location that is also the headquarters of Unit 61398, a secret division of China's military.

The Chinese government dismissed the hacking charges, insisting that China is the victim of many cyberattacks, most originating in the United States.

Despite the threat, many businesses are taking a lackadaisical approach to cybersecurity. Multiple industry studies have shown that the vast majority of companies don't begin following cybersecurity best practices until after they've been hit.

First Published: March 29, 2013: 7:38 AM ET

19.33 | 0 komentar | Read More

SAC Capital trader arrested

FBI agents arrested a high profile trader from SAC Capital on Friday, as part of an investigation into insider trading.

NEW YORK (CNNMoney)

Michael Steinberg, a portfolio manager at SAC Capital, was arrested following an investigation of insider trading, according to an FBI spokesman. The spokesman did not specify the charges against Steinberg, saying that there will be a formal announcement later in the day.

Steinberg was arrested at 6 a.m. at his Manhattan residence.

"Michael Steinberg did absolutely nothing wrong," his lawyer, Barry Berke, said in an e-mail to CNNMoney. "At all times, his trading decisions were based on detailed analysis as well as information that he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis."

"Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation," Berke added.

Related: SAC Capital pays $614 million for insider trading

The arrest follows on the heels of a settlement, reached earlier this month, between SAC Capital and the Securities and Exchange Commission, the largest settlement in SEC history.

On March 15, two units of hedge fund SAC Capital agreed to pay $614 million to the SEC to settle charges of insider trading.

Cohen, the founder of SAC Capital, was not been charged, though federal investigators have been circling him for months, sniffing around for signs of insider trading and making peripheral strikes on his employees.

First Published: March 29, 2013: 8:15 AM ET

19.33 | 0 komentar | Read More

The new CNNMoney Portfolio

NEW YORK (CNNMoney)

You'll see that it is leaps ahead of the last portfolio you used, bringing together your entire investing life into one simple tool.

Check out some of what it can do and you'll see what we mean:

- Automatically sync all your brokerage, IRA and 401(k) accounts and show them in a single view.

- "Tell a story in an eye-blink" charts and graphs, instantly showing real-time performance and risk.

- Run more than 100 tests on your holdings and trading behavior to give the best possible personalized advice.

- Get up to the second quotes, breaking news and commentary from 500-plus sources.

With the markets at all-time highs, we know you demand and need this real-time utility paired with our latest news and analysis.

With the addition of our new portfolio, we aim to help you make even better investing decisions.

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First Published: March 28, 2013: 9:26 AM ET

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Dow poised for best first quarter since 1998

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and Nasdaq all flipped between small gains and losses of less than 0.1% in the early going Thursday.

Stocks have been on a tear in 2013. The Dow, which has been trading at record highs since early March, is up more than 11% and poised to book its best first quarter since 1998. The S&P 500 is up almost 10%, and came within 0.06 points of its all-time closing high of 1,565.15, reached in October 2007.

Despite the big run-up, experts argue that valuations remain attractive for U.S. stocks. The S&P 500 is trading at just 16 times 2012 earnings. At its all-time high in October 2007, the S&P 500's valuation was just above 17 times profits for the past 12 months.

And looking at earnings projections, stocks still appear reasonably valued. The S&P 500 is trading at just 14 times 2013 estimates.

Volume is expected to remain low Thursday, ahead of Good Friday, when markets will be closed in the United States and most of Europe.

Banks in Cyprus reopened Thursday morning after being closed since March 16. The island nation plans to limit the amount of money that depositors can withdraw in an attempt to prevent bank runs.

Cyprus agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and to shrink its banking sector in return for a €10 billion European Union bailout.

Back in the United States, the government released its weekly data on initial jobless claims and its final reading on fourth-quarter GDP.

Jobless claims totaled 357,000 in the week ended March 23, an increase of 16,000 from the prior week and much worse than expected. The forecast called for a total of 335,000, according to a consensus of economists complied by Briefing.com.

The final government report for fourth-quarter GDP showed an annual increase of 0.4%, slightly higher than the expected increase of 0.3%. The prior reading showed the economy grew at a 0.1% pace.

Fear & Greed Index gets greedy

In corporate news, struggling smartphone maker Blackberry (BBRY) reported a surprise profit before the opening bell, but sales missed forecasts. The stock rose almost 4% in morning trading.

European markets were higher in afternoon trading, while Asian markets ended lower. The FTSE 100 in London, the DAX in Frankfurt and the CAC 40 in Paris all made gains. The Nikkei closed lower by 1.3%, the Hang Seng dropped 0.9% and the Shanghai Composite was off 2.8%.

The dollar fell against the euro, British pound and the Japanese yen.

Oil and gold prices edged lower.

The price on the 10-year Treasury slipped, pushing the yield up to 1.86% from 1.85% late Wednesday.

First Published: March 28, 2013: 9:58 AM ET

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Furlough means I can't pay my student loan

Laurie Vroman, a single mom to three kids, including Micah, 8, will have to delay paying off $10,000 in student loans if furloughs cut her pay by 20%.

WASHINGTON (CNNMoney)

Laurie Vroman has already made her decision. She has three young children and makes $37,000 a year as a management assistant at an Army arsenal near Albany, N.Y.

Come May, furloughs will slice her pay by $410 each month, forcing her to cut back on expenses. One casualty would be the $250 monthly payment on the $10,000 she owes the government in Stafford student loans.

"I have to put a roof over my head, and I have to drive, so paying off my student loans is going on the back burner," said Vroman, 31, an Air Force veteran, who pays $985 in rent and $250 for her car each month.

Federal workers nationwide have been preparing months for the forced unpaid time off, triggered by the $85 billion in budget cuts that took effect earlier this month.

Furloughs are scheduled to kick in at government agencies like the Justice Department the week of April 21, and at Defense by May 6, at the earliest.

It's unclear, how many federal workers have student loans. But roughly 200,000 of some 2.1 million federal workers are in their 20s, according to the Office of Personnel Management.

Related: Federal defense workers fret over two-week furlough delay

Delaying student loan payments seems like an obvious option for defense employees, who are in the worst situation among federal workers. They've been warned to expect the longest furloughs -- up to 22 days between May and September, or a 20% pay cut for five months.

Joe Hyde has already filled out the forms to put his $13,000 in federal student loans into forbearance, where he would ask for more time to repay the debt.

Hyde, 25, a travel assistant at the Naval Postgraduate School in Monterrey, Calif., says he'll file the paperwork as soon as he gets his furlough notice.

He makes $41,000 a year, and will make $683 less each month if furloughed. Hyde spends $1,400 a month on rent, which eats up most of his paycheck, and his student loan payments amount to $227 each month.

"If we only end up getting furloughed a few days, I think I can take it," said Hyde, who graduated from California University of Pennsylvania in 2010 with a degree in sports management. "But if we're going to get a 20% pay cut, see ya later student loans."

Vroman, meanwhile, is just five weeks away from getting a criminal justice associate's degree from the University of Phoenix. She hopes it will help her land a better-paying job in law enforcement, as an investigator.

Deciding to delay student loan payments wasn't easy, she said.

"There's no other way for me to support my family," said Vroman, an Air Force veteran. "It's not just a 20% pay cut, it's a complete lifestyle change."

She's already traded in her Hyundai Santa Fe for a more fuel efficient Sonata, and cut dinners out with her family.

"We're doing more free museums and things that don't cost," she said.

First Published: March 28, 2013: 9:36 AM ET

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IRS says taxpayers making fewer mistakes

NEW YORK (CNNMoney)

Last year, the IRS identified 2.7 million math mistakes made by 2 million taxpayers on their 2011 returns, according to new data from the agency. That's less than half of the 6.6 million errors found in 2011 on 5 million 2010 tax returns.

To avoid catching the attention of the IRS, beware of these pitfalls.

The most common error, which accounted for 24% of all mistakes last year, was calculating the amount of tax owed. About 15% of mistakes were made in reporting exemptions, and another 13% were made claiming the Earned Income Tax Credit.

In 2011, roughly half of the mistakes were related to the Making Work Pay Credit, which could be claimed on 2010 tax returns and provided up to $400 per worker. Many taxpayers failed to claim the credit because they didn't realize they qualified, so the IRS had to alter those returns and factor that amount into its calculations.

Related: 12 tax audit red flags

"As there are new laws or changes [to credits], the chance of math errors increases," said Brent Lipschultz, partner at accounting firm EisnerAmper.

But even without the 3.3 million errors related to the Making Work Pay Credit, last year's 2.7 million errors was still a considerable improvement from the year before.

The IRS can thank the growing use and availability of tax software programs, like H&R Block and TurboTax, for the decline in errors, said Thomas Cooke, a professor of accounting and business law at Georgetown University.

"One of the most common mistakes made by taxpayers is math -- calculating the numbers," said Cooke. "It is a lot harder to make a math mistake when a computer program is doing the work for you."

It's free to file a basic federal return with many tax filing programs, and you simply plug in numbers straight from your W-2, answer a handful of questions and your tax liability or refund is automatically calculated. Your return is then electronically filed straight to the IRS, which has its own screening system that scans returns for mistakes before accepting them. If something doesn't add up, it will kick the return back.

Related: 12 smart ways to cut your tax bill

Roughly 81% of individual tax returns were filed electronically last year, up from 77% in 2011 and 66% in 2009, according to the IRS. And it's not just taxpayers who e-file -- these percentages include tax returns filed electronically by tax preparers as well, said Dominique Molina, president of the American Institute of Certified Tax Coaches.

And while electronic filing may reduce math errors, there can be a downside to relying solely on software, she said.

"No matter how sophisticated the tax preparation program, it's never a substitute for judgment and it's not always going to tell you what you're missing or whether there are other opportunities you could take advantage of," said Molina. "But for those folks who have very simple returns, the software makes it so much easier."

First Published: March 28, 2013: 6:27 AM ET

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Cyprus banks reopen with tough cash limits

Banks in Cyprus reopened Thursday for the first time since they were shut March 16 throughout fraught bailout negotiations.

LONDON (CNNMoney)

Cyprus became the first eurozone country since the currency was launched on Jan. 1, 1999, to place restrictions on how much money individuals and companies can take across its borders after confidence in its outsized financial system was shaken by the bailout terms.

Queues formed outside bank branches in the capital Nicosia amid tight security but there was no evidence of panic. The controls were announced Wednesday in a bid to prevent a run on the banks, which had been shut since March 16.

Cypriots queued at cash machines during the extended bank closure as it became clear that deposits would be raided as part of the bailout by the EU and International Monetary Fund.

The tiny island nation was brought to the brink of financial collapse and possible exit from the eurozone by the losses its two biggest banks -- Bank of Cyprus and Popular Bank -- sustained on Greek government debt, which wiped out a third of their combined capital.

It turned to its eurozone partners for help and after months of negotiations signed up Monday for a 10 billion euro rescue, equivalent to nearly 60% of gross domestic product.

In return, Cyprus committed to raise billions from big depositors to fund the winding down of Popular Bank and to recapitalize Bank of Cyprus. The EU wants Cyprus to shrink its bloated banking industry to average size by 2018, meaning shedding about half its assets.

Deposits above 100,000 euros have been frozen at both banks. They could be wiped out entirely at Popular. At Bank of Cyprus, about 40% will be converted into equity.

Related: Tough times for Cyprus after EU bailout

All deposits of less than 100,000 euros are guaranteed. And the bailout does not affect smaller banks in Cyprus, which account for about 60% of the country's total deposits of 68 billion euros.

Many of those deposits belong to foreign investors, in particular Russians, and Cypriot authorities fear an uncontrolled flight of capital that would cause the economy to implode.

Credit and debit card use abroad has been limited to 5,000 euros per month, and people leaving Cyprus can only take 3,000 euros in cash each trip.

Bans on the early withdrawal of funds on term deposits and transfers of more than 5,000 euros abroad, unless approved for trade purposes, have been introduced. Checks can be paid into accounts but not cashed, and a daily withdrawal limit of 300 euros has been set.

--CNN's Ivan Watson contributed to this report from Nicosia.

First Published: March 28, 2013: 7:10 AM ET

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BlackBerry sells 1 million Z10 phones

BlackBerry sold 1 million of its new Z10 smartphones in the fourth quarter. But overall revenue missed forecasts.

NEW YORK (CNNMoney)

BlackBerry's (BBRY) fiscal fourth quarter, which ended March 2, was a transitional one. The company finally launched its long-delayed BlackBerry 10 operating system in January, and rolled out the first phone to run on the new software a few weeks later.

That phone, the Z10, launched in February in Canada, the U.K. and the United Arab Emirates -- only a few weeks before the end of the quarter. The Z10 went on sale in the United States at AT&T (T, Fortune 500) last Friday and hits Verizon (VZ, Fortune 500) stores today.

Overall, BlackBerry earned $94 million, or 18 cents per share, in the fourth quarter from its ongoing businesses. Analysts polled by Thomson Reuters had expected a the company to lose 29 cents per share. The company said it was able to swing to a profit due to a cost-cutting initiative that began during the quarter, including making its supply chain more efficient. BlackBerry lost $118 million a year ago.

CEO Thorsten Heins credited "numerous changes at BlackBerry over the past year" with the company's return to profitability.

Still, BlackBerry's sales of $2.7 billion during the quarter disappointed. Wall Street analysts had expected the company to bring in $2.8 billion in revenue. The company sold just 6 million total smartphones and its subscriber base fell to 76 million.

Investors knew BlackBerry's fourth-quarter results wouldn't say much about the success or failure of the newly launched phones. For that, analysts will be looking to the company's first-quarter results. BlackBerry said it expects to break even during the current quarter, despite raising its marketing spending by 50%. Wall Street analysts had been expecting a small loss.

Shares fell 1% in pre-market trading.

Related story: Inside BlackBerry's last stand

BlackBerry's stock has enjoyed a strong comeback since the company said last year that BlackBerry 10 would finally be unveiled in January after long delays. Shares are up 91% over the past six months, but the stock has been extremely volatile.

That's partly because many investors are still betting against BlackBerry. As of March 15, nearly one-third of shares were held by short-sellers who think that BlackBerry's stock will fall. That's a whopping percentage, and it has contributed to BlackBerry's wild swings as "shorts" are occasionally forced to buy up shares in order to cover their positions.

Ultimately, investors will want to see more evidence that BlackBerry's new phones can make a dent in what's a highly competitive mobile market.

Devices made by Samsung and others that run on Google's (GOOG, Fortune 500) Android operating system have become popular. Apple (AAPL, Fortune 500)is, of course, still a significant player. And Nokia (NOK) is also gunning for smartphone users with new Lumia phones that run on mobile software from Microsoft (MSFT, Fortune 500).

BlackBerry is hoping its new operating system will usher in a new era for the company. Meanwhile, another era is ending: Mike Lazaridis, who co-founded the company in 1984 and served as co-CEO until 2012, is stepping down from the board on May 1. Last week, Lazaridis announced he is starting a venture fund called Quantum Valley Investments.

First Published: March 28, 2013: 7:30 AM ET

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British banks need $38 billion to fill cash gap

Bank of England says UK banks need to be raise capital this year

LONDON (CNNMoney)

The Bank of England said it would ensure that all major British lenders take action to plug the gap by the end of 2013 after regulators found that the industry was underestimating medium-term risks.

Losses on commercial real estate and high-risk loans to eurozone borrowers could exceed existing provisions by about £30 billion, and the cost of future misconduct cases -- such as the recent Libor scandal -- was understated by about £10 billion.

Related: Stakes high as Cyprus sweats bank controls

A more prudent approach to the assessment of risk also revealed a £12 billion shortfall, the central bank said.

"Taken together, the effect of these three adjustments would be equivalent to around a £50 billion reduction in the regulatory capital of the major U.K. banks and building societies," the bank said in a statement.

Related: RBS plans Citizens IPO within two years

British banks such as HSBC (HBC), Barclays, RBS (RBS) and Lloyds (LLDTF)have been fined billions of pounds for the improper sale of payment protection insurance and interest rate swaps.

Barclays and RBS have also paid big penalties for their roles in attempting to rig the Libor benchmark interest rate, while HSBC paid $1.9 billion last year to settle money-laundering claims by U.S. authorities.

Related: Europe financial sector is fragile, says IMF

Some banks already have the capital they need to make higher provisions, but the total shortfall for those that do not was around £25 billion at the end of 2012. Others have begun to take measures to strengthen their balance sheets by issuing new bonds or reducing dividend payments to retain a greater proportion of earnings.

Those that haven't will need to achieve a core capital ratio of at least 7% of risk-weighted assets by the end of 2013 as a first step, to give them the capacity to absorb future losses without restricting lending to individuals and businesses.

The Bank of England, which has assumed responsibility for bank regulation from the Financial Services Authority, said capital ratios would need to rise further after 2013 to comply with a global set of rules known as Basel III and the government's plans to make the industry safer by separating retail and investment banking activities.

First Published: March 27, 2013: 7:34 AM ET

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Stocks pull back from near record levels

NEW YORK (CNNMoney)

The S&P 500 and Dow Jones industrial average both fell about 0.6%. The Nasdaq declined 0.7%. Trading volume on Wall Street is likely to be thin amid the Passover holiday and ahead of Good Friday and Easter.

"Given the holidays ... the first quarter is effectively over," wrote Marc Chandler, strategist for Brown Brothers Harriman, in a note to investors.

Few major corporate or economic reports are due Wednesday, though at 10 a.m. ET, the National Association of Realtors will release data on pending home sales. That figure is expected to have risen 2% in February, according to a Briefing.com consensus of economist forecasts.

U.S. stocks finished higher Tuesday, with the S&P 500 less than two points away from its all-time closing high of 1,565.15, following better-than-expected reports on the U.S. economy and easing concerns about Cyprus. The Dow Jones industrial average hit a record closing high of 14,559.65.

Related: Fear & Greed Index gets extremely greedy

Cyprus' banks will remain shut until Thursday to give regulators time to guard against a run on deposits. Some form of capital controls will be applied when the banks eventually reopen. Details are due to be published later Wednesday.

The island nation agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and to shrink its banking sector in return for a €10 billion European Union bailout.

European markets were weaker in morning trading on continuing uncertainty about the impact of the Cyprus crisis on the wider eurozone. Chandler noted that the European Central Bank may need to keep the door open to a rate cut given the continued problems in Europe.

Meanwhile, two reports from the European Union highlighted the gloomy economic and business outlook in Europe. The EU business climate indicator fell 0.14 points in March, extending a downturn that goes back to Sept. 2011. A separate survey showed that economic sentiment in Europe fell in March, while consumer confidence was little changed.

Also in Europe, British banks need to raise £25 billion, or about $38 billion, this year to buffer against the potential for future financial turmoil.

Asian markets ended higher. The Shanghai Composite and Nikkei added 0.2%, while the Hang Seng advanced 0.7%.

However, worries over attempts to rein in runaway real estate prices and rapid growth in China have capped Chinese indexes so far this year, while Japanese stocks have soared.

In corporate news, shares of Cliffs Natural Resources (CLF, Fortune 500) were down nearly 12% in early trading. The stock, which has been the worst performer in the S&P 500 this year, was hit with two analyst downgrades Wednesday.

First Published: March 27, 2013: 9:41 AM ET

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Honda unveils minivan with built-in vacuum cleaner

The built-in vacuum in the new Honda minivan, on display Wednesday at the New York Auto Show.

NEW YORK (CNNMoney)

At the New York Auto Show on Tuesday, Honda unveiled its 2014 Odyssey minivan -- and the feature getting most of the attention was a vacuum cleaner from Shop-Vac in the rear of the van.

Honda said the hose and attachments on what it is calling the HondaVac, can reach anywhere in the minivan and includes a replaceable filter and canister bag. It can run continuously while the engine is running or run for eight minutes with the engine off.

It comes in the Touring Elite version of the minivan and will go on sale this summer.

The Odyssey was the No. 2 selling minivan in the U.S. market last year, with about 126,000 sold. That put it behind only the Dodge Caravan, but ahead of the Toyota (TM) Sienna and the Chrysler Town & Country. But the minivan segment has been shrinking for years.

Related: New wheels from the New York auto show

General Motors (GM, Fortune 500) and Ford Motor (F, Fortune 500) stopped making minivans years ago as families in need of the space for hauling children, pets and other items have turned to SUVs and crossover vehicles. There were only 540,000 minivans sold in the United States last year, according to sales tracker Autodata, which is just less than half the sales that the segment achieved 10 years earlier.

Related: Iconic Jeep Cherokee's controversial return

Honda (HMC) has been an innovator in the segment, introducing the first van with a fold-down rear seat more than 10 years ago. Its sales have held up better than most in the segment, falling only 4% since 2001.

First Published: March 27, 2013: 7:50 AM ET

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Agency sacks employees over Ford art depicting tied-up women

HONG KONG (CNNMoney)

The cartoonish drawings, produced by WPP unit JWT, were never part of a paid campaign. But they have struck a nerve as India institutes new rules to protect women following a series of high-profile gang rapes.

One of the images depicts Silvio Berlusconi, former prime minister of Italy, driving a Ford Figo with three tied-up women in the back. Another image depicts Paris Hilton driving a Figo with what's meant to be the three Kardashian sisters tied up in the back. A third image shows three male race-car drivers tied up in the back.

"After a thorough internal review, we have taken appropriate disciplinary action with those involved, which included the exit of employees at JWT," the company said in a statement. "These were necessary steps owing to the direct accountability of the concerned individuals as we work to ensure that both the right oversight and processes are strictly enforced so that this never happens again."

Deepa Sridhar, a spokesperson for JWT, declined to say how many employees had been fired. The ads were not published or seen by senior executives at WPP or Ford.

The incident has drawn apologies from all of the involved parties, including Ford.

"We deeply regret this incident and agree with our agency partners that it should have never happened," the automaker said earlier this week in a prepared statement. "The posters are contrary to the standards of professionalism and decency within Ford and our agency partners."

Related story: Ford unveils Figo for India

WPP also released a statement saying that it "deeply regret[s]" the existence of the "distasteful" posters.

Ford unveiled the Figo, a subcompact, in 2009 to be produced in India and exported to other Asian countries and Africa.

First Published: March 27, 2013: 7:31 AM ET

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Honda unveils minivan with built-in vacuum cleaner

Honda debuted a minivan with a built-in vacuum cleaner at the New York auto show Wednesday.

NEW YORK (CNNMoney)

At the New York Auto Show on Tuesday, Honda unveiled its 2014 Odyssey minivan -- and the feature getting most of the attention was a vacuum cleaner from Shop-Vac in the rear of the van.

Honda said the hose and attachments on what it is calling the HondaVac, can reach anywhere in the minivan and includes a replaceable filter and canister bag. It can run continuously while the engine is running or run for eight minutes with the engine off.

It comes in the Touring Elite version of the minivan and will go on sale this summer.

The Odyssey was the No. 2 selling minivan in the U.S. market last year, with about 126,000 sold. That put it behind only the Dodge Caravan, but ahead of the Toyota (TM) Sienna and the Chrysler Town & Country. But the minivan segment has been shrinking for years.

Related: New wheels from the New York auto show

General Motors (GM, Fortune 500) and Ford Motor (F, Fortune 500) stopped making minivans years ago as families in need of the space for hauling children, pets and other items have turned to SUVs and crossover vehicles. There were only 540,000 minivans sold in the United States last year, according to sales tracker Autodata, which is just less than half the sales that the segment achieved 10 years earlier.

Related: Iconic Jeep Cherokee's controversial return

Honda (HMC) has been an innovator in the segment, introducing the first van with a fold-down rear seat more than 10 years ago. Its sales have held up better than most in the segment, falling only 4% since 2001.

First Published: March 27, 2013: 7:50 AM ET

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British banks need $38 billion to fill cash gap

Bank of England says UK banks need to be raise capital this year

LONDON (CNNMoney)

The Bank of England said it would ensure that all major British lenders take action to plug the gap by the end of 2013 after regulators found that the industry was underestimating medium-term risks.

Losses on commercial real estate and high-risk loans to eurozone borrowers could exceed existing provisions by about £30 billion, and the cost of future misconduct cases -- such as the recent Libor scandal -- was understated by about £10 billion.

Related: Stakes high as Cyprus sweats bank controls

A more prudent approach to the assessment of risk also revealed a £12 billion shortfall, the central bank said.

"Taken together, the effect of these three adjustments would be equivalent to around a £50 billion reduction in the regulatory capital of the major U.K. banks and building societies," the bank said in a statement.

Related: RBS plans Citizens IPO within two years

British banks such as HSBC (HBC), Barclays, RBS (RBS) and Lloyds (LLDTF)have been fined billions of pounds for the improper sale of payment protection insurance and interest rate swaps.

Barclays and RBS have also paid big penalties for their roles in attempting to rig the Libor benchmark interest rate, while HSBC paid $1.9 billion last year to settle money-laundering claims by U.S. authorities.

Related: Europe financial sector is fragile, says IMF

Some banks already have the capital they need to make higher provisions, but the total shortfall for those that do not was around £25 billion at the end of 2012. Others have begun to take measures to strengthen their balance sheets by issuing new bonds or reducing dividend payments to retain a greater proportion of earnings.

Those that haven't will need to achieve a core capital ratio of at least 7% of risk-weighted assets by the end of 2013 as a first step, to give them the capacity to absorb future losses without restricting lending to individuals and businesses.

The Bank of England, which has assumed responsibility for bank regulation from the Financial Services Authority, said capital ratios would need to rise further after 2013 to comply with a global set of rules known as Basel III and the government's plans to make the industry safer by separating retail and investment banking activities.

First Published: March 27, 2013: 7:34 AM ET

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Home prices: Biggest rise since housing bubble

Home prices posted their biggest gain since 2006 in January.

NEW YORK (CNNMoney)

The S&P Case-Shiller index, which tracks prices across the 20 largest markets in the nation, posted the biggest year-over-year gain in prices since June 2006.

"This marks the highest increase since the housing bubble burst," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

Related: Home shopping - should you buy new?

The report shows the recovery in home prices is widespread. All 20 markets posted a year-over-year gain in home values, and the pace of increase picked up in every market except Detroit.

Some of the markets hurt the most by the bursting of the housing bubble have enjoyed the biggest gains in the last year, led by a 23% rise in Phoenix. Prices were also up more than 10% in San Francisco, Las Vegas, Detroit, Atlanta, Minneapolis, Los Angeles and Miami, all markets hit hard by foreclosures due to the skid in prices after the bubble popped or economic problems associated with the recession.

New York posted the smallest rise, up only 0.7%, but that was a reversal from a slight decline in the December reading.

But even with the recent rise in prices, the overall index is down 28.4% from the 2006 peak in prices.

Related: Big money betting big on housing

Home prices have been helped in recent months by a number of factors, including tight inventory of homes available for sale, near record-low mortgage rates and a drop in homes in foreclosure. All those factors have driven up home sales. A decline in unemployment is also helping the housing recovery.

A separate report on new-home sales due later Tuesday is expected to show February sales well ahead of year-earlier levels but down from the pace of sales in January.

The housing recovery itself is helping support overall economic growth, as builders scramble to hire workers to meet the renewed demand.

First Published: March 26, 2013: 9:08 AM ET

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Marriage ruling could save same-sex couples thousands

NEW YORK (CNNMoney)

This week, the court will hear a case challenging the Defense of Marriage Act, a 1996 law that prevents same-sex couples from receiving more than 1,000 federal benefits that opposite-sex married couples receive.

This includes the right to file federal taxes jointly -- which, depending on income, gives some married filers a "bonus" of thousands of dollars, while penalizing others.

A same-sex couple with combined income of $100,000, in which one person earns $70,000 and the other makes $30,000, currently pays an extra $1,625 per year by filing separately rather than jointly, according to an analysis H&R Block conducted for CNNMoney. The calculations assume a standard deduction, no children and no tax credits.

Related: 'What legalizing gay marriage means for our money'

The extra tax liability jumps to nearly $8,000 when one spouse earns all $100,000 and the other reports no income. In this case, couples filing jointly owe tax of $11,858, while a same-sex couple filing separately owes $19,585 -- a 65% difference.

"[There's] a myth that any time married people file jointly they are worse off than filing singly, and that's just not correct at all -- sometimes they get a marriage bonus," said Jackie Perlman, a principal analyst at H&R Block.

That's because filing jointly merges the two incomes, shifting some of the higher-earning spouse's income into a lower tax bracket. In some scenarios, couples would even cut their tax bills in half by filing jointly -- typically when incomes are low, Perlman said.

As the gap between incomes shrinks, however, the difference in tax liability is less pronounced. In H&R Block's scenario, no extra tax is owed when each spouse earns an income of $50,000 and they file jointly instead of individually.

Other couples would end up owing more by filing jointly, especially if they miss out on deductions or credits like the Earned Income Tax Credit and the Child Tax Credit because, when combined, their income is no longer low enough to qualify or receive the full benefit.

Related: Gay marriage case: Financial benefits at stake

Another tax issue at stake in the DOMA case is the estate tax. Currently, surviving spouses in federally-recognized marriages don't have to pay taxes on their deceased spouse's estate, while same-sex widows pay a 35% estate tax on anything in excess of a $5 million exemption.

The case challenging DOMA was filed by New Yorker Edith Windsor, who sued to get back the $363,000 in estate taxes she paid when her partner of more than 40 years died.

Her arguments are being presented on Wednesday. Meanwhile, opposition to the law is growing -- with the Obama Administration, a coalition of big businesses and even a group of prominent Republicans all signing legal briefs in support of gay marriage.

If the court decides to overturn DOMA, it could significantly impact the financial lives of same-sex couples married at the state level. But it's up in the air whether federal benefits would be extended to domestic partnerships and civil unions. Currently, same-sex marriage is legal in nine states and Washington, D.C.

In addition to not being able to file jointly and owing extra estate tax in certain cases, many same-sex couples owe tax on medical benefits received through a partner's employer-sponsored health insurance plan, are denied thousands of dollars in spousal Social Security benefits or don't qualify for survivors benefits if a spouse or partner passes away.

Related: Same-sex couples could see tax windfalls

Mikey Rox and Earl Morrow, from New York City, would boost their refund by nearly $2,000 per year by filing jointly.

And the $2,500 in tax they currently pay on the health insurance benefits Mikey receives from Earl's plan would vanish.

Some couples could even get refunded for the extra tax they paid in the past three years as well, if they file protective refund claims with the IRS and amend their returns to file jointly. Adele and Jennifer Hoppe-House, from Los Angeles, expect to get more than $13,000 back by doing this if DOMA is struck down.

Even for those who would owe more tax if they were allowed to file jointly, the extra money is often a small price to pay to see DOMA overturned.

"I'm sure more people are going to get financial wins than losses, whether it's taxes or Social Security," said Nanette Miller, head of the LGBT practice at accounting firm Marcum LLP. "But it's not just an economic issue -- it's that they want that equality."

First Published: March 26, 2013: 6:05 AM ET

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Stocks edge up on strong economic data

NEW YORK (CNNMoney)

The Dow Jones industrial average, S&P 500 and Nasdaq all rose 0.5%.

Cyprus' banks will remain shut until Thursday to give regulators time to guard against a run on deposits. Some form of capital controls will be applied when the banks eventually reopen.

The island nation agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and shrink its banking sector, in return for a €10 billion European Union bailout.

U.S. stocks closed lower Monday as investors fretted over Cyprus, but Mediobanca analyst Christopher Wheeler said that those jitters, which "sent the banks into a tailspin" on Monday, seems to be wearing off. Shares of Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500) and JPMorgan Chase (JPM, Fortune 500) nudged higher in early trading Tuesday.

"I think today there's a bit more settling down, a feeling that the concerns yesterday were a bit overdone," said Wheeler.

Related: Fear & Greed Index: Getting greedy

On the U.S. economic front, The S&P Case-Shiller index showed that home prices rose 8.1% in January from a year ago, marking the biggest year-over-year gain in prices since June 2006.

The U. S. Census Bureau reported that durable goods orders rose 5.7% in February, more than expected. But excluding transportation, new orders decreased 0.5%, a bigger drop than expected.

Reports on consumer confidence and new home sales are up at 10 a.m.

Related: Check out CNNMoney's new portfolio tool!

Children's Place (PLCE) reported that sales and profit jumped in 2012. But the company also issued a weak forecast for the first quarter of 2013, citing "the unfavorable weather and weak macro-economic environment." The stock dropped almost 2% in early trading.

In other corporate news, Boeing (BA, Fortune 500) completed the first test flight for its troubled 787 Dreamliner since redesigning the aircraft's battery system.

European markets were slightly higher in morning trading, recovering some ground lost Monday when bank stocks were hit by concern that the Cyprus bailout could serve as a model for future eurozone rescues. Shares of Banco Santander (SAN) and Deutsche Bank (DB) continued to trend lower.

Asian markets ended mixed. The Shanghai Composite lost 1.3%, the Nikkei declined 0.6% and the Hang Seng added 0.3%.

The dollar declined against the euro, but rose versus the British pound and Japanese yen.

Oil prices edged higher, while gold prices fell slightly.

The price on the 10-year Treasury fell, pushing the yield up to 1.94% from 1.91% late Monday.

First Published: March 26, 2013: 9:48 AM ET

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Boeing completes first 787 Dreamliner test flight

Boeing conducted a test flight of its troubled 787 Dreamliner on Monday.

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The brief flight, which departed from Everett, Wash., took the plane along the Pacific coast into Oregon before returning to land at Paine Field. According to Boeing, the flight went "according to plan."

Boeing has not been able to deliver 787 Dreamliners to customers since the Federal Aviation Administration ordered the plane grounded on Jan. 16 as safety investigators probed two fires in its lithium batteries.

The aircraft used Monday is an undelivered Boeing-owned model built for LOT Polish Airlines.

Earlier this month, the FAA approved a Boeing proposal for fixing the plane's battery system problems.

The plan includes a redesign of internal battery components to minimize chances of a short circuit. It also involves better insulation of battery cells and a new containment and venting system that is supposed to prevent overheating from affecting the plane or being noticed by passengers.

Boeing (BA, Fortune 500) will do at least one more test flight.

"The plan is to conduct one certification demonstration flight," Boeing spokesman Marc Birtel said. "That flight ... will demonstrate that the new battery system performs as intended during flight conditions."

Related story: Boeing apologizes for Dreamliner fiasco

The Dreamliner has sold well in Asia and the Middle East, where airlines depend on long-range flights for much of their business and can benefit most from the improvements in fuel economy the lighter-weight plane promises.

The problems with the new battery technology have already prompted Boeing's European rival Airbus to revert to standard nickel-cadmium batteries in its A350 plane, designed to compete with the Dreamliner and due to make its first test flight in the middle of this year.

-- CNN's Aaron Cooper contributed to this report.

First Published: March 26, 2013: 5:52 AM ET

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Marriage ruling could save same-sex couples thousands

NEW YORK (CNNMoney)

This week, the court will hear a case challenging the Defense of Marriage Act, a 1996 law that prevents same-sex couples from receiving more than 1,000 federal benefits that opposite-sex married couples receive.

This includes the right to file federal taxes jointly -- which, depending on income, gives some married filers a "bonus" of thousands of dollars, while penalizing others.

A same-sex couple with combined income of $100,000, in which one person earns $70,000 and the other makes $30,000, currently pays an extra $1,625 per year by filing separately rather than jointly, according to an analysis H&R Block conducted for CNNMoney. The calculations assume a standard deduction, no children and no tax credits.

Related: 'What legalizing gay marriage means for our money'

The extra tax liability jumps to nearly $8,000 when one spouse earns all $100,000 and the other reports no income. In this case, couples filing jointly owe tax of $11,858, while a same-sex couple filing separately owes $19,585 -- a 65% difference.

"[There's] a myth that any time married people file jointly they are worse off than filing singly, and that's just not correct at all -- sometimes they get a marriage bonus," said Jackie Perlman, a principal analyst at H&R Block.

That's because filing jointly merges the two incomes, shifting some of the higher-earning spouse's income into a lower tax bracket. In some scenarios, couples would even cut their tax bills in half by filing jointly -- typically when incomes are low, Perlman said.

As the gap between incomes shrinks, however, the difference in tax liability is less pronounced. In H&R Block's scenario, no extra tax is owed when each spouse earns an income of $50,000 and they file jointly instead of individually.

Other couples would end up owing more by filing jointly, especially if they miss out on deductions or credits like the Earned Income Tax Credit and the Child Tax Credit because, when combined, their income is no longer low enough to qualify or receive the full benefit.

Related: Gay marriage case: Financial benefits at stake

Another major tax issue at stake in the DOMA case is the estate tax. Currently, surviving spouses in federally-recognized marriages don't have to pay taxes on their deceased spouse's estate, while same-sex widows pay a 35% estate tax on anything in excess of a $5 million exemption.

The case challenging DOMA was filed by New Yorker Edith Windsor, who sued to get back the $363,000 in estate taxes she paid when her partner of more than 40 years died.

Her arguments are being presented on Wednesday. Meanwhile, opposition to the law is growing -- with the Obama Administration, a coalition of big businesses and even a group of prominent Republicans all signing legal briefs in support of gay marriage.

If the court decides to overturn DOMA, it could significantly impact the financial lives of same-sex couples married at the state level. But it's up in the air whether federal benefits would be extended to domestic partnerships and civil unions. Currently, same-sex marriage is legal in nine states and Washington, D.C.

In addition to not being able to file jointly and owing extra estate tax in certain cases, many same-sex couples owe tax on medical benefits received through a partner's employer-sponsored health insurance plan, are denied thousands of dollars in spousal Social Security benefits or don't qualify for survivors benefits if a spouse or partner passes away.

Related: Same-sex couples could see tax windfalls

Mikey Rox and Earl Morrow, from New York City, would boost their refund by nearly $2,000 per year by filing jointly.

And the $2,500 in tax they currently pay on the health insurance benefits Mikey receives from Earl's plan would vanish.

Some couples could even get refunded for the extra tax they paid in the past three years as well, if they file protective refund claims with the IRS and amend their returns to file jointly. Adele and Jennifer Hoppe-House, from Los Angeles, expect to get more than $13,000 back by doing this if DOMA is struck down.

Even for those who would owe more tax if they were allowed to file jointly, the extra money is often a small price to pay to see DOMA overturned.

"I'm sure more people are going to get financial wins than losses, whether it's taxes or Social Security," said Nanette Miller, head of the LGBT practice at accounting firm Marcum LLP. "But it's not just an economic issue -- it's that they want that equality."

First Published: March 26, 2013: 6:05 AM ET

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