Securities

Michele and Russell Poland's credit was shot, but they managed to buy their suburban dream home anyway. After a business bankruptcy and a home foreclosure, they turned to a rare option in this era of tightfisted banking - a subprime loan. The Polands paid nearly $10,000 in upfront fees for the privilege of securing a mortgage at 10.9% interest. And they had to raid their retirement account for a 35% down payment. Most borrowers would balk at such stiff terms. But with prices rising, the Polands wanted to snag a four-bedroom home in Temecula near top-rated schools for their 5-year-old son. By later this year, they figure, they'll be able to refinance into a standard loan.

MEXICO CITY - Responding to mounting concern about disorder in the Mexican state of Michoacan, officials announced Thursday that an army general would take over as its public security chief, overseeing both state and federal security forces. The appointment of the general, Alberto Reyes Vaca, was announced by state officials but had been arranged in coordination with the federal government. For President Enrique Peña Nieto's administration, the move is part of a promised new focus on the southwestern state, long a hotbed of drug cartel violence.

Ever wanted to know what your dog was doing all day without having to set up a complicated video camera system? People Power, a Palo Alto software company, has released a mobile app that can easily turn an old iPhone, iPad or iPod Touch into a security camera. The company's free app, Presence, makes it possible for users who have Wi-Fi to set up one Apple device as a video camera and another as a monitor. For instance, a dog owner could take an old iPhone, turn it into a camera and then watch the pooch on an iPad at work.

KABUL, Afghanistan - Diplomats from the United States and Afghanistan met formally Saturday for just the second time since the two countries signed a Strategic Partnership Agreement a year ago as they sought to hammer out a pact defining Washington's 10-year commitment to the war-ravaged country. A senior diplomat from each nation spoke of progress afterward, but the talks come at a time of tension over Afghan President Hamid Karzai's criticism of U.S. actions in his country as the NATO combat mission winds down.

In these troubled economic times, it's not hard to understand why people might want to protect their life savings by purchasing a hard asset like gold or silver. At least, that's the pitch of Monex, the big Newport Beach investment firm, which bills itself as "America's trusted name in precious metals investments" and assures clients that it's "committed to customer service. " So let's take a look at the experiences of some customers who say their trust in Monex was misplaced.

Security researchers Nick DePetrillo and Don Bailey have discovered a seven-digit numerical code that can unlock all kinds of secrets about you. It's your phone number. Using relatively simple techniques, this duo can use your cellphone number to figure out your name, where you live and work, where you travel and when you sleep. They could even listen to your voice messages and personal phone calls — if they wanted to. "It's really interesting to watch a phone number turn into a person's life," DePetrillo said.

WASHINGTON - Sen. Elizabeth Warren, the newest member of the Senate Banking Committee, waited patiently for her first chance to question top financial regulators at a recent hearing on Capitol Hill. When her turn finally came after 90 minutes, Warren quickly showed she wouldn't be following the custom that a freshman senator be seen and not heard. After some pleasantries, the longtime consumer advocate and Wall Street critic lit into the heads of the Securities and Exchange Commission, the Federal Deposit Insurance Corp.

Question: In these tough financial times I think a lot of people (myself included) are considering renting out part of their home, if not already doing so. I haven't been successful in trying to look up what the law says about renting a room or part of your house. I read this is different from renting a duplex or regular rental property. Can you provide any guidance? Answer: Your question is timely because many homeowners facing mortgage or other economic stresses are looking at room rentals as an option to increase their income.

Philip Hsiang and his wife, Mary Ann, used to pay almost $1,000 a year for a pair of cellphones under a family plan contract. But as recession gripped the economy a few years back, the Davis couple opted for low-cost prepaid phone service and never looked back. They shaved $800 off their annual phone bill, even though Hsiang could easily afford the pricier plan on his salary as an electrical engineer. "As a Chinese immigrant to the U.S., it's a virtue to be frugal," Hsiang said.

There are frequent fliers, and then there are people like Steven Rothstein and Jacques Vroom. Both men bought tickets that gave them unlimited first-class travel for life on American Airlines. It was almost like owning a fleet of private jets. Passes in hand, Rothstein and Vroom flew for business. They flew for pleasure. They flew just because they liked being on planes. They bypassed long lines, booked backup itineraries in case the weather turned, and never worried about cancellation fees.

Dear Liz: When I was 62, I started Social Security and I'm currently saving half of my monthly benefit after taxes (about $750). My decision to take my benefits early was influenced by a financial columnist who suggested that if I started at 62 and invested half or more of it until I reached full retirement age, the lower early benefits would be matched by the investment returns by the time I'm 85. Is this advice still reasonable? Answer: In today's investing environment, it's hard to match the guaranteed annual return you get from delaying Social Security benefits.

Los Angeles airport commissioners took additional steps Tuesday to halt a dramatic decline in passengers at LA/Ontario International Airport, including potential cost reductions for airlines and incentives that might encourage them to add service. Inland Empire officials, who are trying to wrest control of Ontario from Los Angeles, immediately criticized the measures, saying that they were too little and too late to lure flights back to what used to be one of the fastest-growing regional airports in the nation.

WASHINGTON - As a sweeping immigration bill moves forward in the Senate, Republicans are demanding stronger border security measures than those agreed upon during four months of bipartisan negotiation. The process of toughening the bill could win additional votes from the GOP, but there is also a risk of losing Democratic support if the amendments go too far. "If, in fact, the American people can't trust that the border is controlled, you're never going to be able to pass this bill," Sen. Tom Coburn of Oklahoma, the top Republican on the Senate Committee on Homeland Security and Governmental Affairs, told four officials from the Department of Homeland Security during a hearing Tuesday.

When the Supreme Court - in our view wrongly - ruled that corporations had a constitutional right to spend their money to influence elections, it also said that disclosure of such expenditures "permits citizens and shareholders to react to the speech of corporate entities in a proper way. " In that spirit, the Securities and Exchange Commission should heed a petition drive to require publicly traded companies to disclose their political spending to...

President Obama recently groused that no U.S. airport ranked among the world's top 25 airports. If you're a regular traveler to Los Angeles, you may be even more disappointed to learn that Los Angeles International Airport didn't even make the top 100. Obama was referring to a ranking released in April - the Skytrax World Airport Awards - that is based on a survey of 12.1 million travelers around the world. Out of 395 airports worldwide, LAX ranked 109th overall and 24th among 50 airports in North America.

RIO DE JANEIRO - After 2 1/2 years of renovations, Rio's legendary Maracana soccer stadium reopened to much fanfare in late April. Brazilian legends including Ronaldo played in a test match before an audience composed mostly of the workers who rebuilt the 78,000-capacity temple to futebol that will be the flagship venue for next year's World Cup. The launch was deemed a success - and allowed officials to breathe a sigh of relief before they...

Manville Corp. has agreed to make additional payments of as much as $520 million over seven years to the trust set up to benefit asbestos victims. A comprehensive settlement disclosed Monday also will revamp the way claims are paid, giving priority to the most gravely ill. The plan is meant to settle about 150,000 pending claims by people injured by Manville-produced asbestos.

Sears Seeks Debt-Issuing Approval: Sears, Roebuck & Co. is seeking Securities and Exchange Commission clearance to sell $2 billion in debt securities, partly to reduce short-term borrowings. The retailing-financial services giant wants to sell what amounts to corporate IOUs from time to time through shelf offerings. With a shelf offering, a company can register its securities in advance and keep them "on the shelf" for up to two years before actually selling.

President Obama met in Mexico on Thursday with President Enrique Peña Nieto. Publicly, the two leaders focused on trade. That makes sense given the strong economic ties between the two nations and Peña Nieto's efforts to introduce more competition to Mexico's energy and telecommunications sectors in the hopes of boosting his country's economy. But privately the two presidents will also discuss bilateral security, including Peña Nieto's decision this week to require all U.S. law enforcement contact with federal police to be routed through Mexico's Interior Ministry.

The federal government will tighten oversight to help ensure that foreign students seeking to enter the United States have valid student visas - the latest step to increase security after the Boston Marathon bombings. The heightened scrutiny by U.S. Customs and Border Protection is effective immediately, sources with knowledge of the issue said Friday. Officials would not discuss what they called operational details. But the move is designed to give border agents better and faster access to computerized databases that track the status of student visas.