275  7TH Ave  7th floor New York , NY 10001                                                                                                                dcullinanecpa@yahoo.com

​                                                                                                                                                                                                     Chelsea / Lower Manhattan​​

​Daniel Cullinane CPA                                   p 848-250-9587                                                                                                                                     

​FINANCIAL REGS

​JOBS

New protection for users of prepaid cards and some digital wallets is coming. Rules form the Consumer Protection Bureau, a watchdog agency, will start to phase in next year. They will require clearer explanations of fees and limit fraud losses to consumers if reloadable prepaid cards are lost or stolen. card issuers will also be reined in on fees they charge folks who are over extended. Stricter rules, too, for digital wallet providers such as PayPal, Dwolla, Square cash and others. They will have to assume more liability for fraud losses and account errors. However, Apple Pay and others that simply provide storage of payment data, such as consumer bank accounts and credit card info, are excluded form the rues. Also likely next year: A rule calling for shorter settlement cycles for equities as well as corporate and municipal bonds.  The Securities and Exchange Comm is proposing to shorten the cycle , known as "trade date plus three days" by one day, bringing the US in line with Europe, where two day settlement is the norm.  The goal is to trim risks in the financial system by shortening the time in which can go wrong. The change would reduce the exposure between the buyer and the seller and for the transaction clearing house itself

​TANKERS FALLING APART

A U.S. Air Force KC-10 refueling tanker from the 60th Air Mobility Wing stationed at Travis Air Force Base in California lost its refueling boom on Tuesday and had to make an emergency landing at Mountain Home AFB in Idaho. The incident occurred during a training exercise as the tanker was preparing to refuel F-15s. There were no injuries as a result of the incident.

In August the Air Force awarded a $2.8 billion contract to Boeing Co. (NYSE: BA) for production of the first 19 new KC-46A tankers to be delivered by August 2018. The new tankers will be produced in two lots: Lot 1 consists of seven planes and lot 2 will have the remaining 12.The total number of new tankers is set at 179 to replace less than half the exiting fleet of 59 KC-10 and nearly 400 KC-135 tankers. The KC-135s  average 55 years old and the newer KC-10s average 30 years old, according to an article last year in Air Force Times.According to a report in Aviation Week, the boom was found on private property near Hammett, Idaho, and subsequently recovered.

The new Boeing tankers were supposed to begin deliveries to the Air Force next year, but a series of problems have pushed the schedule out until 2018. The KC-46A is based on Boeing’s 767 jet. Boeing built two 767-2Cs and two KC-46As as part of its engineering and manufacturing development contract with the Air Force. The fixed price for those planes was $4.9 billion. Boeing has had to swallow about $2 billion in costs above that figure, but it may be worth it. The total value of the contract could exceed $100 billion, including spare parts and other services.

The Federal Reserve is concerned about banks that invest in commodities. Proposed regs from the the Fed would require those banks to hold more capital to back their investments in sectors such as oil and precious metals. Existing rules already require financial institutions to hold reserves against possible trading losses from buying and selling commodities, but the Fed wants to ratchet up that protection. Owners of commodity infrastructure would have to hold ever larger reserves. Investing in natural resources will get more expensive for financial firms as a result of the Fed's crackdown . Aside from Goldman Sachs, most large banks are already exiting the sector. The prospect of having to raise billions of dollars in additional capital will make commodities even less attractive to bankers.

New York City Mayor Bill de Blasio's administration has increased spending on homeless services by about 60% since he took office nearly three years ago, reaching a historic $1.6 billion this year. At the same time, the populationg in city shelters is up by nearly 20%, raising questions about whether the spending has been effective in combating homelessness. Last week, more than 60,650 people, including about 23,800 children, slept in a city shelter. Heading into a re-election year, the administration is banking on the extra funds to reverse a decades long rise in homelessness and is asking his toughest critics to be patient Some long time leaders in the social services sector worry that the money will not curb the up tick. They keep creating new programs because they still believe that they will find a magid bullet , said Liliam Paoli a former deputy mayhor who oversaw homelessness until she resigned last year. When Mr de Blasio took office in 2014, the city shelter system had a budget of about $ 1billion and a population of 50,700 The administration is spending about $350 million a year on rent for those who they believe could become homeless or are leaving shelters. The city is now spending $79 million annually on street outreach $62 million on legal services up ten fold from Mr de Blasio's predecessor and $190 million on shelter security. Last week the city added $52 million to its budget for homeless.

Look for retailers to temper their temporary hiring this holiday season. All told, they will bring on about 700,000 folks versus last year's 738,000. With more sales taking place online, stores do not need quite as much on site help, though warehouses and shipping firms will use more temps than they did last year. Workers who do land jobs in stores this fall can expect some new duties beyond simply manning cash registers or helping shoppers locate  items. This year, many temps will be busy processing online orders and fetching parcels for customers who order on line and pick up in a store, common roles at big retailers such as Target.

NOVEMBER LETTER

HOMELESS SPENDING SURGES

​FINANCE