7986 South Datura Circle West
Littleton, CO 80120
(303) 683-3338
Categories Menu

Posted by on Jun 1, 2007 in PROTECTING YOUR MONEY | 0 comments

Opting out can help you avoid danger of identity theft

On the Money From the June 1, 2007 print edition Identity theft is a widespread and well-known problem. Eight years ago, Congress enacted the Identity Theft and Assumption Deterrence Act, which created the federal crime of identity theft. The law was targeted toward any “means of identification” of another person, not distinctively identifiable information. When it comes to financial information, there are even more protections available in the form of the Gramm-Leach-Bliley Act. The key to combating identity theft is to protect your privacy. However, some information must be exchanged in order to do business. The Gramm-Leach-Bliley Act applies to many types of financial institutions, banks, savings and loans, credit unions, insurance companies and securities firms. It even includes some retailers and automobile dealers that collect and share personal information about consumers to whom they extend or arrange credit. The act contains three major components. Financial institutions are required to disclose the kind of information they collect and the types of businesses to which they may provide that information. This is...

Read More

Posted by on Oct 13, 2006 in PROTECTING YOUR MONEY | 0 comments

Crime of embezzlement comes in many forms

On the Money From the October 13, 2006 print edition Financial crimes have become so commonplace these days that The Wall Street Journal now has a dedicated section titled, “Executives on Trial.” Bernie Ebbers, behind the wheel of a Mercedes he had driven from Mississippi, drove into the Oakdale Correctional Complex in Louisiana on Sept. 27. Andrew Fastow, Enron Corp.’s former chief financial officer, was sentenced to six years in prison followed by two years of community service. Both are examples of crimes arising from very complex and sophisticated legal and financial structures. They involve multiple business entities, simultaneous market trading, and interpretation of accounting rules so that true operating results were obscured and hidden. However, the core of any financial crime is theft — taking what rightfully belongs to someone else. In the case where the thief has the right to use or hold the property of someone else, it’s called embezzlement — the seed from which springs all other forms of financial transgressions. In other words, embezzlement...

Read More

Posted by on Jul 7, 2006 in PROTECTING YOUR MONEY | 0 comments

Truth in Lending Act was designed to protect borrowers

On the Money From the July 7, 2006 print edition As a nation, we just celebrated our 230th birthday. That’s approximately 9.2 generations of families in the United States since 1776. Our political great-great-great-great (well, you get the picture) grandfather George Washington is famous for saying “I cannot tell a lie.” He was referring to a cherry tree and a hatchet. Our legislators have tried to carve out and cut down the amount of prevarication in our lending systems for many years. The foundation of the modern, fiscal “I cannot tell a lie,” was created just 38 years ago in the form of the Truth in Lending Act. Congress enacted it in 1968 as part of the Consumer Protection Act. The law is designed to protect consumers in credit transactions by requiring clear disclosure of key terms in lending arrangements and every cost. The law was simplified and reformed as a part the Depository Institutions Deregulations and Monetary Control Act of 1980. The Federal Reserve Board has implemented the...

Read More

Posted by on Oct 7, 2005 in PROTECTING YOUR MONEY | 0 comments

How to protect revenues from weather’s ill effects

On the Money From the October 7, 2011 print edition Mark Twain, said “Everybody talks about the weather, but nobody does anything about it.” We’ve certainly heard more talk than usual about weather in the last month because of the tragic appearances of hurricanes Katrina and Rita. While technology hasn’t conquered weather yet, our financial systems do allow participation in weather conditions in the form of “Weather Derivatives.” Weather derivatives are similar to other traditional financial derivatives such as commodity futures contracts, forwards and options, except in terms of the underlying asset. While other derivatives derive their value from underlying financial assets such as gold or market indices, weather derivatives draw their value from certain measures of weather such as temperature, precipitation, wind speed, rainfall, etc. For example, European breweries make more money when their customers can sit outside in the sunshine and leisurely drink a few pints. By buying a weather derivative, they can now hedge their losses against inclement weather. Last year, the two-week Munich Oktoberfest was hedged...

Read More

Posted by on Apr 4, 2004 in PROTECTING YOUR MONEY | 0 comments

Numbered Swiss bank account another way to hide money

On the Money From the April 2, 2004 print edition Last month, we listed ways to keep your money secure, avoid becoming a victim of fraud and identity theft, and ways to promptly spot problem activities. Continuing with the idea of protecting your money (we hesitate to use the word hide), no instrument has received as much recognition as the secret Numbered Swiss Bank Account. Here are some history and facts about this mystifying symbol of wealth and prestige. One of the earliest pieces of legislation regulating bank secrecy dates back to the 18th Century. In 1713, the Great Council of Geneva (cantonal council) adopted banking regulations which stipulated the bankers’ obligation to “keep a register of their clientele and their transactions. They are, however, prohibited from divulging this information to anyone other than the client concerned, except with the expressed agreement of the City Council”. Until 1934, bank secrecy was regulated solely by civil law. There were no criminal provisions; that is any threat of imprisonment for the banker...

Read More

Posted by on Mar 5, 2004 in PROTECTING YOUR MONEY | 0 comments

What’s behind identity theft-and how you can prevent it

On the Money From the March 5, 2004 print edition Computer technology advances daily, maybe even every hour. Those advances make it possible for financial information to be shared more easily and cheaply than ever. There are benefits to this increased speed. Law enforcement agencies can apprehend criminals more quickly, banks may prevent fraud, and consumers will make improved purchasing decisions. On the other hand, as financial data becomes more accessible, precautions to protect against the misuse of information becomes especially essential. One effort to do that was The Financial Modernization Act of 1999. Also known as the “Gramm-Leach-Bliley Act” or GLB Act, the legislation includes provisions to protect consumers’ personal financial information held by financial institutions. The Act contains these principal parts: privacy requirements, financial privacy rule, and a safeguards rule including “pre-texting” provisions. The enforcement of the GLB Act is primarily carried out by the Federal Trade Commission, (www.ftc.gov.) For individuals, the most valuable part is the pre-texting provisions, as listed in the Gramm-Leach-Bliley Act -it’s illegal for anyone...

Read More