Money Talk: Treasury Department hands out record $7 billion in new market tax credits

Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news.

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TREASURY DEPARTMENT HANDS OUT RECORD $7 BILLION IN NEW MARKET TAX CREDITS
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) on Thursday (Nov. 17) announced that 120 organizations nationwide will receive a total of $7 billion in New Markets Tax Credit awards. This is the largest single award round since the New Markets Tax Credit Program was created in 2001.

The 120 organizations awarded are headquartered in 36 states, the District of Columbia, and Puerto Rico. Heartland Renaissance Fund of Little Rock will receive a $65 million award, the organization’s second largest in its 15 years in operation.

The scope of this NMTC award round means that more communities across the nation will have access to investments for local jobs, community facilities, and safe and affordable housing. It is estimated that more than $1.4 billion in New Markets Tax Credit investments will be made in non-metropolitan counties. The number of minority-owned or controlled organizations receiving awards also nearly tripled from the previous award round.

OCC ORDERS WELLS FARGO TO GET FEDERAL OK ON ‘GOLDEN PARACHUTE’ DEALS, EXECUTIVE AND BOARD CHANGES
The Office of the Comptroller of the Currency on Friday (Nov. 18) informed Wells Fargo Bank that it has revoked certain provisions of its $35 million civil penalty in September that ordered the West Coast banking giant to make restitution to those harmed by the bank’s unsafe or unsound sales practices where employees created more than 2 million phony accounts without customers’ knowledge.

In a brief statement with little explanation, the banking regulator said Wells Fargo will now have to abide by specific requirements and provisions of the earlier edict ordering the bank to get OCC’s approval for any changes involving new directors and senior executive officers and any “golden parachute” payments.

Corrie Tolstedt, the Wells Fargo executive who oversaw the bank’s phony account unit, collected a $125 million parachute deal after announcing her resignation in July. Former Wells Fargo Chairman and CEO John Stumpf, who resigned over the scandal in October, will likely walk away with more than $130 million in compensation although he left another $41 million in stock awards on the table.

FTC UNVEILS MOBILE-FRIENDLY ‘FINANCIAL READINESS’ WEBSITE FOR MILITARY MEMBERS, FAMILY
The Federal Trade Commission has unveiled a financial readiness website designed to help members of the military community navigate personal financial decisions in light of the unique challenges they face, such as frequent relocations and deployment. The website is optimized for use on a mobile device.

For example, if service members are looking to buy a car, manage their money during deployment, or continue their education, they can find mobile-friendly tips quickly from their smart phone. Also, a new toolkit, “Tools for Personal Financial Managers”, provides personal financial managers, counselors, command, and others in the military community practical financial tips they can share with service members.

The toolkit resources are in the public domain so individuals and organizations can share them with friends, family, colleagues and customers. They also can use the information in newsletters or on social media sites. To learn more, click here.