US prepares for possible shutdown tomorrow October 1, 2013

Ad Majorem.....Wealth Builders

Repost from BBC news September 27, 2013

The US braces for a possible shutdown tomorrow, October 1, should the US Congress fail to agree;  the House of Representatives (Congress) is controlled by Republicans while the Senate is by Democrats.  Should the stalemate continue, a third of Fed employees will be sent on furlough with no backpay, the Treasury bills interest will not be paid with big repurcussions on US debt, its rating and bondholders.  The US Congress is not approving a budget without defunding the Obamacare law.

The authority to borrow more money expires on October 17, 2013.  This is not the first time that US govt shuts down.  In 2011, the US govt nearly went into shutdown because of wrangling on US debt limit.

A law however was passed enabling the payment of the salaries of the military

From CNN - 10 ways the government shutdown would affect your life

From USA Today 66 FAQ on govt shutdown

Dollar drops broadly because of possible Fed shutdwon

A bad case of politics rearing its ugly head to the detriment of the economy?

Pertinent laws on Lending Investors

Ad Majorem.....Wealth Builders

The Lending investors are governed by Republic Act 9474 of 2007.  The law prescribes the capitalization, supervision, reports of  lending investors.  Lending Investors are governed by Securities and Excchange Commission.   Lending Investors that are owned by banks are to be supervised by BSP

The minimum capitalization of LI is P1,000,000.  They are to submit periodic reports to SEC. 

The operations of Lending Investors are also governed by Truth in Lending Act or  RA 3765 and Consumer Protection Act or RA 7394

Truth in Lending act (pdf)

Truth in Lending Act explained

BSP tightens compliance with TLA