Thursday, September 30, 2010
Each week check out the MarketWatch feature on myBiz. We will report on facets of the economy to keep you informed and prepared for the internship and full-time job markets.
No price increase for first-class stamps
Regulators denied a request that would have raised the price of a first-class stamp by 2 cents, to 46 cents. The Postal Service argued that it needed the hike in order to cover lost revenue from a decrease in mail volume, stemming from the economic recession. The Postal Regulatory Commission denied the request, saying that the rate hike was an attempt to address long-term structural problems not caused by the recent recession. Postal rate hikes are usually capped at the rate of inflation. This is the first time USPS has requested a demand for a price increase, an action that is allowed under the 2006 Postal law.
AIG will repay government
AIG said it reached a deal to repay billions of dollars it received during the credit crisis. The plan announced Thursday could return a profit to taxpayers who footed the bill for AIG's near collapse in September 2008. As part of AIG's exit plan, the U.S. Treasury Department will swap preferred shares it currently holds in AIG for common stock and then sell those shares over time. AIG will also repay loans it received from the Federal Reserve Bank of New York as part of the deal. The government will receive about 1.66 billion shares of AIG common stock in exchange for the $49.1 billion in preferred shares it holds in AIG.
HP gives donation for Twitter-centric new media wing in DC musuem
HP announced a gift of $5 million dollars to be spent on developing the HP New Media Gallery, an interactive wing of the D.C.-based archive covering the history and development of journalism. Scheduled to open in 2012, this is the first new gallery addition since the Newseum’s opening in 2008. Although no plans have been finalized for the actual content to be displayed in the new wing, Sparrow confirmed the inclusion of interactive media to be included. “Absolutely Twitter will be a big player, and we’re certainly looking at tablets, and the ways in which mobile technology associates a new revenue stream for journalism,” said Paul Sparrow, the Newseum’s Senior Vice President of Broadcasting.
Sources: cnn.com, forbes.com