Financial News Friday – July 12, 2013

Bloomberg Businessweek scorns hedge funds with its cover “The Hedge Fund Myth” and this article’s headline…”Hedge Funds Are For Suckers.” An interesting article that delves into the decline of the hedge fund industry as a whole from alpha generators to “glorified mutual funds for the wealthy.” (Businessweek)

After stress testing many institutions, the federal government has declared  two institutions too-big-to-fail. The companies: GE Capital, the financing arm of General Electric, and American International Group, typically known as AIG.(Business Insider)

The SEC has allowed hedge funds to start advertising to consumers and the financial Twitter community was quick to develop some interesting slogans. (CNBC)

The Affordable Healthcare Act has seen another delay before the full system is in place. The verification system for income based tax subsidies will not be in place until 2015, therefore consumers that apply for subsidies will be on an honor system. Additionally, employers with 50 or more employees will not be required to offer health insurance until 2015. (AdvisorOne)

Senators McCain, Warren, Cantwell, and King introduce a bill that would restore the restrictions on commercial banks that were formerly instituted under the Glass-Steagall Act. This would prevent commercial banks from participating in investment bank activities. (Financial Planning)

The Center For Financial Literacy at Champlain College has conducted a survey centering on financial literacy in each of the 50 states.  Each state receives a grade, A through F. To see how your state stacks up, check out the article.(CNN Money)

Photo Source: Bloomberg Businessweek