Business Finance Today

Optimism is in short supply as sequestration deadline arrives

Reuters

Hopes of averting $85 billion in automatic, across-the-board spending cuts that take effect today have disappeared as Congress left the Capitol for the weekend. Congressional leaders are scheduled to meet with President Barack Obama today to talk about the matter, but the White House has expressed little optimism that the effort will provide any quick solution. In the House, Republicans are focused on a March 27 deadline for preventing a government shutdown. The Washington Post (2/28), CNN (3/1), The New York Times (tiered subscription model) (2/28)

Sequester could end economic recovery
Sequestration might be enough to shut down America's fledgling economic recovery, according to The Economist. "If you wanted to cut the deficit in the most damaging way, you'd choose the sequester," the magazine notes. The Economist (tiered subscription model) (3/2)

SEC updates FSOC on money-fund rules
The Securities and Exchange Commission has updated the Financial Stability Oversight Council on possible changes to rules for money market mutual funds. Jack Lew, sworn in as U.S. Treasury secretary Thursday, leads the FSOC. The risk council also discussed the designation of nonbank financial companies as systemically important. Meanwhile, Sheila Bair, former head of the Federal Deposit Insurance Corp., has criticized regulators' process of determining whether a company is systemically important. Bloomberg (2/28), Bloomberg (3/1)

Your Bottom Line

What small businesses need to know about lending trends
Small businesses must be aware of lending trends as they seek out financing, SCORE Association CEO Ken Yancey writes. The larger the bank, the less likely it is to lend to small businesses; well-capitalized, newer and less-profitable banks are more likely to lend to small companies, Yancey notes. He also says Small Business Administration loans should be considered. By contrast, alternative sources of capital such as crowdfunding should be approached with caution, Yancey writes. SCORE Small Business Success Blog (2/28)

Chartered Accountants Worldwide launches
Six bodies worldwide for chartered accountancy, including the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants of Scotland, have created an entity, Chartered Accountants Worldwide. CAW differs from other bodies in that it focuses on promotion, an ICAEW spokesman says. Institutes in Australia, Ireland, New Zealand and South Africa also are members. Accountancy Age (London) (tiered subscription model) (2/27)

In the C-Suite

Awards are a crude measure of creativity
Two German advertising agencies have withdrawn from the awards ceremonies traditionally used to recognize the most successful creative work. That's because more precise metrics are available, making such ceremonies redundant, Werner Reinartz and Peter Saffert write. "Once the business world starts to realize this ... we'll find out a lot more about what types of creativity work best in what context. And then we can consign all those plaques and statuettes to the boxroom," they argue. Harvard Business Review online/HBR Blog Network (2/27)

Becoming the boss can be like being swept overboard
Abruptly being promoted into a leadership position is like being swept into "turbulent seas ... without a visible lifeboat," writes Art Petty. To stay afloat, it's important to be realistic about your new role, to work hard and humbly, and to support subordinates and superiors. "[I]t's up to you to sink or swim," Petty writes. ArtPetty.com (2/24)

Off the Charts

Millennials pick cells over cars
Millennials would sooner part with their cars than their cellphones or computers, according to a Zipcar survey. In other age groups, however, cars are the most valuable technology to consumers. The Atlantic Cities (2/28)

SmartQuote

Most managers have less than a clear idea how to support their first-time leaders." -- Art Petty, writing for Management Excellence Share: