Must-Read Money Stories for Friday, Feb. 24

by February 24, 2017
With just two cities in the running for the 2024 summer games, Bloomberg reported on the International Olympic Committee's latest crisis. (Track photo courtesy of Pexels)

With just two cities in the running for the 2024 summer games, Bloomberg reported on the International Olympic Committee’s latest crisis. (“Track” photo courtesy of Pexels)

Former I.M.F. director convicted of embezzlement

The New York Times reported Rodrigo Rato, an ex-managing director of the International Monetary Fund, was convicted of embezzlement on Thursday. The sentencing marked a dramatic fall from grace for a man once thought to be in the running to be the Spanish prime minister. The New York Times reported Rato was sentenced to four and half years for his role in misusing funds from the Spanish lender, Bankia. He had previously led the effort to form Bankia from seven smaller lenders. But rather than strengthening the bank, the move proved nearly fatal. Bankia was saved from near-collapse in 2012. Rato was sentenced alongside 64 other Bankia directors and executives, who were accused of making unlawful credit card purchases that totaled 12.5 million euros, or $13.2 million, over a decade.

Hewlett Packard lowers 2017 forecast

Hewlett Packard Enterprise Co. lowered its profit forecast for the current quarter and fiscal year amid rising component costs and competition from cloud-based competitors, according to Bloomberg. Profit, excluding some items, will be 41 cents to 45 cents a share in the current quarter, the Palo Alto, California-based company said in a statement. Bloomberg reported cloud-based competitors Amazon.com Inc. and Microsoft Corp., which let customers access computers without having to buy their own servers and storage gear, are giving Hewlett Packard a run for its money.

Just two cities vie for summer Olympics

The hefty taxpayer price tag for hosting the Olympics has left just two cities—Los Angeles and Paris—vying for the 2024 summer games. Bloomberg reported on Budapest’s decision to withdraw its bid for the games after thousands signed a petition urging local officials to drop the bid because of the projected multibillion-dollar cost of building stadiums and arenas and providing security for the event. Not even a year after Rio de Janeiro’s $20 billion games ended, many of the venues already are struggling to find new occupants and uses, according to Bloomberg.  With just two cities in the running for both the 2024 Olympics and the soccer World Cup, the challenges are mounting for the International Olympic Committee.

Norwegian Air rolls out $65 transatlantic fares

Flying across the Atlantic could get a heck of a lot cheaper for budget-minded travelers willing to forgo some of the traditional comforts associated with long flights. USA Today reported on Norwegian Air’s $65 one-way fares from three U.S. airports to Europe. The introductory fares are just a fraction of what it normally costs to fly to Europe, but there are some caveats. The fares don’t include advance seat assignments, checked luggage and meals. Already, the foreign-airlines entry into the U.S. market have created opposition from American-based airlines, pilots and flight attendants who have said the carrier is using an Irish-based subsidiary to avoid Scandinavian labor and safety rules.

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