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The Daily


Maya Lindsay
Published Date:
Feb 22, 2016

NYSSCPA Members in the News

Tom Walpole (Rochester)

Filing status

WROC Rochester First

CPA Tom Walpole discussed filing status on your income tax return Monday on News 8 at Sunrise. Walpole said there are five filing statuses - married filing jointly, married filing separate, single, head of household and qualifying widower.  He said each status has its own tax table, so depending upon your status you can be in a different tax bracket. For married couples, Walpole said filing jointly will place both spouses income on the same form, place them in a single tax bracket and share altered deductions.  Sometimes that's advantageous, and sometimes it isn't. When it comes to filing status forms there are three options - the 1040EZ, 1040A and the regular 1040.  Walpole said the 1040EZ is the simplest form and is basically for those with just wages for income.

Other Accounting and Finance News

Use of Fed’s Foreign Repo Program Grows

Wall Street Journal

Foreign central banks have sharply increased their overnight deposits in a Federal Reserve program that pays more than some prevailing money-market rates, the latest shift to reverberate through short-term global lending markets. Use of the Fed program, known as the foreign repo pool, has doubled over the past year to $250.8 billion as of the week ended Feb. 17, central bank figures show, reflecting growing balances held by overseas government-related institutions. Analysts and traders said that a recent increase in one-month Treasury-bill rates was likely driven in part by increasing use of the program. As foreign institutions that use it move some of their dollars out of Treasurys and into the facility, the price of Treasurys falls and the yield rises.

New York state pensions profitable in 4th quarter

New York Daily News

The New York pension fund for state and local government workers reported an investment return of nearly 3% for the quarter that ended Dec. 31, with an estimated value of $178.3 billion. That follows the previous quarter when the fund lost 4%, which Controller Thomas DiNapoli attributed to late summer volatility in financial markets. DiNapoli, sole trustee of the fund, said there was some recovery while markets remain challenging across all asset classes. As of Dec. 31, it had about 37 of its investments in domestic stocks, 15.3% in international stocks, and 21% in bonds and mortgages. The rest was divided among cash, Treasury Inflation Protected Securities, private equity, real estate and other investments.

China to Wall Street’s Deal Makers: We Don’t Need You

Wall Street Journal

China doesn’t need Wall Street after all. China Citic Bank Corp. and China International Capital Corp. are snagging key mergers-and-acquisitions assignments from Chinese companies, which are snapping up Western assets at the fastest clip ever. The banks are supplanting the Wall Street firms that spent more than a decade preparing for just such a surge. In a year that has already produced $81.5 billion of foreign acquisitions by Chinese companies—blowing away the pace in any prior year—not a single big Wall Street bank is among the top three buy-side advisers, according to Dealogic. Leading the charge instead are HSBC Holdings PLC, China Citic Bank and CICC. HSBC and China Citic mainly owe their position to roles advising China National Chemical Corp. on its $43 billion agreement to buy Swiss pesticide maker Syngenta AG.

Goldman Plans ETF to Mimic Hedge Funds… With a Delay

Wall Street Journal

You can make an ETF out of anything. Even hedge fund positions that are at least 45 days old. Goldman Sachs Group Inc.GS +1.62% earlier this month filed a prospectus for a new exchange-traded fund it plans to launch. The product it’s proposing, dubbed the Goldman Sachs Hedge Fund VIP ETF, will track an index of some of the most popular positions held by U.S. hedgies. It’s plan: To track an index of 50 stocks that appear the most in the top 10 holdings of U.S. hedge funds that rely on “fundamental” stock analysis. But that data comes at a bit of a delay. Hedge fund holdings are made public roughly 45 days after the end of each quarter, so the ETF’s index will shift on a quarterly basis after each new report. Because of the lag time, the prospectus for the new ETF warns in its “Risks of the Fund” section that “a given investor may have already exited positions disclosed on a form by the time the filing is available to the Fund.”

Mr Robot, your new financial adviser

Financial Times

The future of financial advice could be part-human, part-robot with hybrid advisers potentially managing up to 10 per cent of global investable wealth by 2025, a new report has suggested. Robo advice — where consumers input information online to generate suggested investment routes — has proved a huge growth area in the financial advisory market, as companies seek to provide inexpensive and rapidly scalable forms of reaching customers. High quality global journalism requires investment. Funds advised by hybrid robo-human services — where automated recommendations are supplemented by more personal advice — could grow to $16.3tn worldwide over the next nine years, according to Myprivatebanking.com, a Swiss financial research company.