It’s been a busy month and we have been digesting a lot of news here at Fort Pitt. We have a number of articles to share in our month-end reading list. Enjoy!
Business Insider published an article titled, “The Less Obvious Dangers of the Robot Economy,” which discusses the potential for automation to make some of today’s jobs obsolete. Examining the human costs and responses to a robot economy, the article lists two major dangers, neither being a lack of work.
“Banks’ $10 Billion Sweet Spot Sets Off Buying Spree for Lenders,” a Bloomberg.com article, examines the effects of regulatory changes on Prosperity Bancshares, Inc. once it surpassed $10 billion in assets. Reaching this threshold prompted Prosperity to go on a buying spree, thereby helping it offset the costs of new regulations stemming from the Dodd/Frank act. This $10 billion “sweet spot” is proving a boon to regional-bank mergers and acquisitions as smaller institutions say they need to be bigger to comply with the new rules and still make a profit.
In another piece published by Bloomberg.com, “Buffett’s 9% Heinz Dividend Means 3G Cutting Jobs, Mini-Fridges,” authors Matthew Boyle and Noah Buhayar detail big changes at the Pittsburgh-based company after Warren Buffett purchased the business for $23.3 billion. Heinz has eliminated hundreds of jobs and is streamlining the company in hopes of reducing debt.
Finally, we wanted to share a third piece from Bloomberg.com. “At 77 He Prepares Burgers Earning in Week His Former Hourly Wage,” offers a frightening look at the perils of neglecting retirement savings. The article showcases a former corporate executive who failed to plan for retirement, and is now working two minimum wage jobs.