Financial Services : In The News

Think Progress reports on a study from The Reinvestment Fund that indicates a nearly 85 percent success rate for Philadelphia in stemming foreclosures.

Mediation programs have proven successful all across the country in keeping borrowers from losing their homes, and Philadelphia's is no exception. According to a report from Ira Goldstein of The Reinvestment Fund, nearly 70 percent of borrowers eligible for meeting with their banks participate and about 85 percent of those who strike a deal with their lender are still in their homes 18 months later:

In 2007, the year before the program began, 27 percent of homeowners in foreclosure lost their homes. That fell to 14.5 percent in the six months after the program began, then to 5.7 percent thereafter, Goldstein found. In the first year of the program, 5,000 homeowners took advantage of it, according to data released in June 2009. Of agreements reached through June 2009, 733, or 84.6 percent of 866 homeowners, remained in their homes 18 months later.

Original source: Think Progress

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Comcast Interactive Capital and DreamIt Ventures partner to provide business development to minority owned initiatives, according to TechCrunch.

Comcast Interactive Capital, the venture capital arm of the media giant, has partnered with Philadelphia based venture fund and startup accelerator Dreamit Ventures to provide seed funding, training, mentoring and other benefits to minority-led startups through DreamIt's accelerator program.

The new $350,000 fund will give five minority-led startups for its Fall Philadelphia 2011 program a extra infusion of capital on top of the funding DreamIt provides for its class of startups. For Comcast Interactive Capital, this is the first investment initiative from the $20 million fund that was created as part of the acquisition of NBC Universal. The $20 million fund will be used to invest in other minority led startups and initiatives (outside of DreamIt), mainly in the technology sector.

Source: TechCrunch
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Philadelphia based insurance giant Cigna Corp. exceeded first-quarter expectations due to lowered medical claims and increased international business, according to The Associated Press.

Cigna Corp.'s first-quarter net income jumped 52 percent as medical claims fell, the international business grew again, and it raised its 2011 profit forecast like other big health insurers that also beat expectations for the quarter.

The Philadelphia company said Thursday earnings in health care, its largest segment, climbed 47 percent, and premiums and fees from its international business rose 32 percent, fueled in part by the purchase of the Belgian company Vanbreda International last year.

Source: The Associated Press
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Fast Company writes about how First Round Capital has changed the way VC firms are run.

One example is that they introduced a program where their founders can pool together shares from their company and exchange them for a small portfolio of other First Round Capital companies. I'm a huge fan of this innovation.

What people don't know is how First Round got started and often people know less about the amazing background of one of its co-founders, Howard Morgan (everyone tends to know Josh Kopelman as one of the highest profile players in our industry overall).

Source: Fast Company
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Online auction giant eBay announced it will acquire GSI Commerce, a leading provider of eCommerce and interactive marketing services, according to GigaOm.

Auction giant eBay said today that it will buy GSI Commerce, a King of Prussia, Pa.-based provider of e-commerce and marketing services for a whopping $2.4 billion in cash and debt. The deal is part of eBay's continued makeover from an auctions-oriented company to an e-commerce platform.

Source: GigaOm

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 A Philadelphia man turns the tables and forecloses on his mortgage company, according to Time Magazine.

A feud between a homeowner and his mortgage company ends with an order to seize property � but it's not in the order you might expect.

Patrick Rodgers is taking his frustration all the way to the bank � literally. When he was fed up with Wells Fargo's lack of answers, he sued them. When they still paid him no heed, he foreclosed on the company's local office.

Source: Time Magazine
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In an attempt to raise money for extensive renovations of its 184 year-old home, the Philadelphia History Museum has sold 2,000 items, joining a growing (and somewhat controversial) list of museums who are using their collection to pay bills, reports The New York Times.

A galloping horse weather vane sold for about $20,000, and the cigar store Indians brought in more than $1 million. A Thomas Sully oil painting of Andrew Jackson netted $80,500, and a still life by Raphaelle Peale, part of the family that put portraiture in this city on the map, was auctioned at Christie's for $842,500.

These were just a few of more than 2,000 items quietly sold by the Philadelphia History Museum over the last several years, all part of an effort to cull its collection of 100,000 artifacts and raise money for a $5.8 million renovation of its 1826 building.

In doing so the museum stepped into the quicksand of murky rules, guidelines and ethical strictures meant to discourage museums everywhere from selling collections to pay bills. It is one of the hottest issues in the museum world today. With budgets shrinking in a bad economy, the pressure to generate revenue is growing along with fears that museums are squandering public trusts meant to preserve the artifacts of the past for future generations.

Original source: The New York Times
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Delaware Valley College received $30 million in property and cash from the Warwick Foundation of Bucks County, and the gift is as much a psychological asset as an opportunity to grow from its agricultural roots, reports The Washington Post.

The donation announced in September includes a 400-acre farm worth about $15 million; a $10 million endowment to care for the land; and $5 million to support the college's long-term academic vision.

Warwick Foundation President Betsy Gemmill was already a fan of Delaware Valley when negotiations for the gift began about two years ago. Her father had once been chairman of the board at the school, which is about 10 miles from the family's farm in Warwick Township.
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Gemmill said (DelVal president Joseph) Brosnan sealed the deal with an ambitious agenda to add graduate programs and attain university status while retaining the school's agricultural heritage. The donation essentially doubles the institution's $16 million endowment and its land holdings.

Original source: The Washington Post
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The Washington Post caught up with suburban Philadelphia philanthropist Gene Epstein, who is promoting his $250,000 effort to donate $1,000 to charity for each unemployed person hired.

Epstein, who amassed a personal fortune through car sales and real estate investments, has set aside his money for the first 250 hires - and thinks thousands more jobs could be created if others took on his idea, too.

"It's an encouragement to businesses to not wait," said Epstein, who thinks the incentive may be just enough to get small businesses over the hump to make a hire in tough economic times. "This becomes like an incredible stimulus program."

The idea came to Epstein at his sprawling home in suburban Bucks County last month. He said he hopes his program will encourage businesses in the region and beyond to make hundreds of thousands of new hires they wouldn't have otherwise made.

Original source: Washington Post
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The Philadelphia Inquirer reports on two online news publications that have launched recently, including yours truly.

As the market for news fragments, new models for journalism are emerging. Two of those experiments, Flying Kite and Patch, launched in Philadelphia last month.

"This is a fresh way to get fresh content about all the innovative things happening in our city," said Danielle Cohn, (Philadelphia Convention and Visitors) bureau spokeswoman.

Original source: The Philadelphia Inquirer
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