House approves Sandy relief bill
Subway damage caused by Sandy
After fierce lobbying by politicians, the U.S. House of Representatives last month approved a $50.7 billion emergency aid bill for Hurricane Sandy victims. The Senate is expected to pass the measure, and President Barack Obama has voiced support for it, the New York Times reported. The $50.7 billion — along with nearly $10 billion in aid that Congress approved earlier in January — would help home and business owners whose property was damaged. The measure would also reinforce shorelines, repair subway and commuter rail systems, fix bridges and tunnels and reimburse local governments for emergency costs. Though the package does not cover the entire $82 billion in damage identified by the governors of New York, New Jersey and Connecticut, leaders from the region expressed relief over the action.
Bank of America settles with Fannie Mae
Bank of America CEO Brian Moynihan
Bank of America agreed to pay more than $10 billion to Fannie Mae last month to settle a dispute over mortgages that soured during the financial crisis, the New York Times reported. The bank said it will pay the federally backed housing giant $3.6 billion, and will spend an additional $6.75 billion to buy back mortgages from Fannie Mae at a discount from their original value. Most of the loans at issue were originated by Countrywide Financial, which Bank of American acquired in 2008. “These agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time,” Bank of America CEO Brian Moynihan said in a statement. The bank also disclosed that the settlement hurt its performance in the fourth quarter; the bank made $367 million in the last three months of 2012, down from $1.6 billion in the same period a year ago, CBS News reported. In a separate arrangement also made last month, Bank of America, JPMorgan Chase and Citibank agreed to pay a combined $8.5 billion to settle government allegations that they had wrongfully foreclosed on struggling homeowners.
Catsimatidis launches mayoral bid with check
Supermarket mogul and real estate developer John Catsimatidis last month announced his New York City mayoral campaign, kicking it off with a $1 million investment of his own money, the New York Post reported. Catsimatidis, the president, chairman and CEO of both the Red Apple Group and the Gristedes supermarket chain, is eying the Republican nomination. He had planned to run for mayor in 2009, but withdrew.
Cuomo switches sides on casino
Governor Andrew Cuomo delivering his State of the State address
In his 2013 State of the State address last month, Governor Andrew Cuomo withdrew his support for the New York City casino he had previously championed and is now eying locations north of the city, Crain’s reported. In last year’s speech, Cuomo discussed plans to build a $4 billion convention center in Queens, next to the Aqueduct racino. This year, however, he said city casinos would thwart the state’s goal of luring tourists upstate. Instead, he is backing plans to build three casinos in economically depressed regions upstate. Cuomo also proposed flood-proofing New York City’s subway system and a buyout program for Hurricane Sandy–affected homeowners, the New York Daily News reported.