At The Motley Fool, we know our readers like to be informed. We have scouted out today's most relevant news items and brought them to you all on one page. We hope you find this midday edition informative and useful.
More low rates despite dissent
The Federal Reserve announced on Tuesday it would keep interest rates at all-time lows until at least mid-2013. But Fed Chairman Ben Bernanke encountered some opposition to his aggressive cheap-money policy. Historically, the Fed has been mostly unanimous on its decisions, so the dissent from three heads of banks was surprising. Bernanke said the Fed's main goal is to improve recovery but warned they may see weaker growth than estimated. The Fed has not ruled out more aggressive measures, hinting at the possibility of another bond-buying program. Other bank leaders worry the low rates may fuel inflation down the road. Read more at Reuters.
Capital One to buy HSBC's card unit
With the purchase, Capital One will become the third largest issuer of private label credit cards. The deal is expected to be paid out in cash unless markets continue to be choppy where Capital One would buy $750 million in HSBC stock.
Capital One bought ING's online banking business in June while HSBC sold 195 retail-banking branches to First Niagara Financial for $1 billion in cash. Read more at The Wall Street Journal.
Groupon drops yardstick but shows growth
After being criticized by the Securities and Exchange Commission, Groupon dropped its controversial accounting metric called "adjusted consolidated segment operating income." This measure subtracted marketing and acquisition costs from its operating performance. The metric was deemed misleading but as reported by Dealbook the company will still use it internally. With a new metric, which takes in to account marketing costs, the company lost $62.3 million for the second quarter.
Despite the amendment, the company showed it could still grow with a jump in both revenue and its subscriber base. Nonetheless, the online bargain hunter faces mounting competition not only from LivingSocial but new players such as Google and Amazon
Consumers are still spending
After an encouraging rally yesterday after the Fed announced it would keep interest rates down, financial stocks are on a downfall again, wiping out most of the previous day's gains. Losing the most are Bank of America
So there you have it, the top financial stories for this afternoon. Check Fool.com throughout the day for commentary on these and other stories. Also, follow us on Twitter, on Facebook, or through our email digests.
Michelle Zayed doesn't own any stocks mentioned. The Fool owns shares of and has opened a short position on Bank of America. Motley Fool newsletter serviceshave recommended buying shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.