Albertsons to buy Safeway

Albertsons and Safeway, two grocery store chains, will merge.

NEW YORK (CNNMoney)

The move will create a network of 2,400 stores, 27 distribution facilities and 20 manufacturing plants with more than 250,000 employees.

No stores will close because of the merger, which is expected to be finalized later this year.

Still, the combined company will be be slightly smaller than Kroger, the largest grocery retailer in the U.S., which has 2,600 stores.

"Working together will enable us to create cost savings that translate into price reductions for our customers," said Albertsons CEO Bob Miller in the release.

Those cost savings could come if the two companies are combined and run efficiently, said Ken Perkins, an analyst at Morningstar.

"If they're buying more, they may have pull to get more favorable terms when negotiating with suppliers," Perkins said.

Albertsons, which is privately owned by Cerberus Capital Management, Kimco Realty Corporation, Klaff Realty, Lubert-Adler Partners, and Schottenstein Stores Corporation, will acquire all Safeway shares.

Safeway (SWY, Fortune 500) shareholders are expected to receive $40 per share. That values the deal at more than $9 billion. Shares of Safeway fell more than 3% in after-hours trading.

Bob Miller will become the executive chairman, while Robert Edwards, Safeway's current president and CEO, will become president and CEO of the combined company.

The merger comes at a time when traditional supermarkets have been struggling to compete with the larger chains like Costco (COST, Fortune 500) and Wal-Mart (WMT, Fortune 500). Those rivals are willing to take lower profit margins because they know food drives people into their stores, Perkins said.

First Published: March 6, 2014: 6:13 PM ET

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Alleged Bitcoin creator pursued in L.A. car chase

NEW YORK (CNNMoney)

On Thursday, news reporters in cars sped after 64-year-old retired engineer Dorian Satoshi Nakamoto. The reason: a story in Newsweek fingered him as the probable genius behind the digital currency.

Nakamoto had agreed to hop into a Prius and give an Associated Press reporter an interview over sushi. But when he left his suburban home in Temple City, Calif., he was met with a throng of reporters who proceeded to chase him across town.

On Twitter, Los Angeles Times deputy business editor Joe Bel Bruno, who was also part of the chase, described how reporters barged into the restaurant.

"This is the OJ Simpson-esque chase of #Nakamoto! YOU CANNOT MAKE THIS UP," Bel Bruno posted.

Various reporters' tweets detailed the chase: They pulled over. They took off again. They hopped on Interstate 10 and sped west. It ended 14 miles away from Nakamoto's home at the Associated Press' local bureau.

Related: What is Bitcoin?

Bel Bruno followed up with this: "Do you people realize there will now be a REVERSE #bitcoinchase with #nakamoto when he heads back home?? Hilarious."

Nakamoto said he is not the founder of Bitcoin, telling the AP he hadn't heard of Bitcoin until reporters started reaching out to him three weeks ago.

Calls to Nakamoto were not immediately returned.

First Published: March 6, 2014: 7:24 PM ET

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Few uninsured gaining Obamacare coverage

Americans only have until March 31 to sign up for Obamacare coverage or they'll remain uninsured in 2014.

NEW YORK (CNNMoney)

Some 27% of respondents who picked new individual plans were previously uninsured, according to a survey conducted in February by McKinsey & Co. This compares to 11% in the consulting firm's January study.

The February survey, released Thursday, provides a glimpse into how successful Obamacare has been in meeting one of its prime directives: reducing the number of uninsured Americans. The Obama administration has been unable to say how many of the 4 million people who have signed up on the state and federal exchanges previously lacked insurance, in part because few exchanges ask about coverage status in 2013.

But McKinsey experts cautioned against drawing larger conclusions about exchanges' effectiveness since the survey looks at people signing up for Obamacare-compliant plans both through exchanges and directly from insurers.

Also, it does not include people eligible for Medicaid.

Share your story: Have you begun using your Obamacare benefits?

Still, the numbers are telling. Despite months of marketing campaigns, few of the uninsured have secured coverage. And there's not much time left, since open enrollment ends on March 31.

McKinsey surveyed 2,100 people, about half of whom were previously uninsured. Of that group, only 10% said they have selected a plan, up from 3% in January. However, 56% of the uninsured have not even shopped for coverage yet.

Many respondents believe they can't afford health insurance. Of those shopping for plans, half said they didn't enroll because they didn't think they could afford the premium. But most also were not aware of whether they qualify for federal subsidies or how much assistance they might receive.

The subsidies can greatly lower the amount people have to pay for premiums and out-of-pocket costs. And the administration and Obamacare advocates still have a small window to reach the uninsured, said Erica Hutchins Coe, associate principal at the McKinsey Center for U.S. Health System Reform.

"There's still an opportunity to educate the previously uninsured who are subsidy eligible and get them to enroll," she said.

The Obama administration said it is targeting the uninsured in the final weeks of open enrollment.

"Outreach is occurring in every state with a particular emphasis on areas with the highest population of the uninsured using a mix of grassroots activities and advertising," said a spokesperson for the Centers for Medicare & Medicaid Services.

First Published: March 6, 2014: 8:24 PM ET

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Ukraine crisis: Why it matters to the world economy

NEW YORK (CNNMoney)

The political turmoil is rooted in the country's strategic economic position. It is an important conduit between Russia and major European markets, as well as a significant exporter of grain.

But in the post-Soviet era, it's a weakened economy. Now, the government is in need of an economic rescue -- and torn between whether Russia or the Western economies (including the European Union) is the savior it needs.

Here are five reasons the world's largest economies are watching what happens in Ukraine.

1. Ukraine is an important tie between Russia and the rest of Europe: Ukraine doesn't hold the economic power it once did, but it does retain its geography. Russia supplies about 25% of Europe's gas needs, and half of that is pumped via pipelines running through Ukraine. Moscow has cut off that flow in past disputes with Kiev and a disruption could push up energy prices for businesses and households.

The critical Crimean peninsula juts into the Black Sea, and the Russians base their Black Sea navy there.

Related: G20 pledges to add $2 trillion to economy

2. Sanctions on Russia: One prospect on the table would be the unusual circumstance of a top-10 global economy placing sanctions on another. But Secretary of State John Kerry said Sunday the U.S. is "absolutely" willing to consider sanctions against Russia. President Obama, he added, "is currently considering all options."

That possibility must be on the mind of Russia's government, which is certainly "looking very seriously at the economic component of" its military and diplomatic moves, said John Beyrle, a former U.S. ambassador to Russia.

"The reality is that Russia is dependent on the international economy in a way that wasn't true 10 years ago," Beyrle said Sunday on CNN's "State of the Union." "Fully one -half of Russia's foreign trade now ... is with European Union countries. Russia depends on European imports to keep its stores filled, to keep the standard of living that Russians have gotten accustomed to."

Even if sanctions aren't leveled, the political relationship between Russia and the West will likely chill. Although President Obama spent an hour and a half on the phone with Russian President Vladimir Putin on Saturday, the U.S. is expected to skip an upcoming G8 preparatory meeting in Sochi, Russia. On Sunday, U.S. officials also canceled upcoming energy and trade talks with their Russian counterparts.

3. European and world trade could be impacted: The impact could be felt beyond Europe if the world's supply of grain is impacted. Ukraine is one of the world's top exporters of corn and wheat, and prices could rise even on concern those exports could halt.

And the current political uprising was fueled by the government's handling of a trade agreement that would have brought Ukraine closer to the European Union. The government cut off negotiations in November amid pressure from Russia, which offered discounts on natural gas if Ukraine signed a pact with Moscow's Customs Union.

4. Ukraine's government is in debt and needs assistance: The situation arguably would not be so volatile if Ukranian government coffers were more stable or the economy stronger. The country owes $13 billion in debt this year and $16 billion comes due before the end of 2015. Without help, the country appears to be headed for default.

"In order to avoid a complete collapse in the coming weeks, Ukraine needs money now," Lubomir Mitov, emerging Europe chief economist at the Institute of International Finance, said. "Ukraine cannot survive without reforms in the next few months."

It's not clear who would supply the needed economic assistance, especially after the ouster of key Russian-aligned officials prompted Moscow to freeze a $15 billion bailout and there is no comparable alternative in sight. The most likely source of support would be the International Monetary Fund. Managing Director Christine Lagarde said the IMF is consulting with other bodies that could help raise the $35 billion Ukraine says it needs. But for negotiations to move forward, a stable Ukranian government would need to be in place.

Treasury Secretary Jack Lew said Sunday the U.S. is "prepared to work (with) partners to provide as much support as Ukraine needs" for economic growth and stability.

5. Ukraine isn't the only fragile emerging market: Ukraine's instability comes at a difficult time for emerging markets worldwide, which are seeing growth slow as the Federal Reserve eases its economic stimulus. The situation in Ukraine could lead investors to reassess the risks of other emerging markets slowing economic growth. Troubles in Ukraine will also hurt Russian banks, which have leant heavily to Ukraine. The Russian ruble is down about 10% since the start of 2014.

--CNNMoney's Alanna Petroff contributed to this report

First Published: March 2, 2014: 4:57 PM ET

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Ukraine unrest sends Asian stocks lower

HONG KONG (CNNMoney)

The slump in the markets was led by Japan's benchmark Nikkei, tumbling 1.8%. Korea's Kospi index dropped 0.9%, while Hong Kong's Hang Seng fell 0.7%, and Australia's ASX All Ordinaries shed 0.6%.

Until now, building political tensions in Ukraine have mostly had a muted impact on global markets, except for a tumble last Thursday as investors sought refuge in traditional "safe haven" assets.

But investors are growing more concerned over the region's political and economic stability. The Ukrainian government owes $13 billion in debt this year, and another $16 billion is due before the end of 2015. Without help, the country appears to be headed for default.

Related story: Ukraine crisis: Why it matters to the world economy

"The threat of war, the central government in Kiev losing control over eastern regions, fear of imminent default -- these are all unnerving messages for markets," said IHS Global Insight's Lilit Gevorgyan. "Many investors do not have much faith that the country is going to quickly turn around from the double political and economic crisis."

Gevorgyan said stocks of Ukrainian companies and foreign firms with exposure to the country have already taken a hit.

Energy markets are also on tenterhooks as the political crisis fuels fears of a gas disruption. And global grain prices could rise if corn and wheat exports were halted from Ukraine -- one of the world's top grain producers.

Related story: What's next for Ukraine's economy?

The political catastrophe comes at a time when investors are already wary of emerging markets worldwide, which are seeing growth slow as the U.S. Federal Reserve eases its economic stimulus.

Ukraine has been in chaos since the country's president, Viktor Yanukovych, was ousted in February, following months of anti-government protests. Political unrest was originally sparked after Yanukovych spurned a deal with the EU, instead favoring closer ties with neighboring Russia. Russia has now moved forward with military intervention, even after threats of serious sanctions from the U.S. and Europe.

Ukraine's interim prime minister Arseniy Yatsenyuk said on Sunday the country is "on the brink of disaster."

--Alanna Petroff contributed reporting

First Published: March 3, 2014: 12:14 AM ET

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Free checking disappearing at the big banks

The majority of credit unions still offer free checking, but it's much harder to find at a bank.

NEW YORK (CNNMoney)

About 72% of credit unions offer free checking accounts with no strings attached, like required minimum account balances or direct deposits, according to a Bankrate.com survey of the 50 largest credit unions.

That's unchanged from last year and down only slightly from 78% in 2010. Another 24% of these institutions have accounts that are free if customers meet certain requirements like making direct deposits.

"Free checking remains well within reach of most Americans, and often means looking no further than their credit union," said Greg McBride, Bankrate.com's chief financial analyst.

Related: Savings account lotteries - win up to $25,000

It's a very different story at the big banks, though. Only 38% of banks now offer free checking accounts, which is down slightly from 39% last year and a big drop from 65% in 2010, based on responses from 10 major banks.

Even if you have a free checking account, you can still incur other fees for overdrawing your account or using an ATM. But fees at credit unions are a lot lower than those at banks. The average credit union overdraft fee is $26.96 versus $32.20 at banks.

The most common fee that credit unions charge customers for is using an out-of-network ATM. Credit unions typically charge $1 or $1.50, versus $2 at banks.

First Published: March 3, 2014: 12:50 AM ET

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Ex-employee says Madoff "told me what to do"

Accused fraudster Annette Bongiorno said in federal court that she was merely a well-paid typist for Bernard Madoff, and that she didn't know he was running a Ponzi scheme.

NEW YORK (CNNMoney)

She also testified that she would go back and alter trading records at Madoff's request when market conditions changed.

Bongiorno and four other ex-employees of Madoff's firm are currently on trial for fraud in federal court in Manhattan.

Under cross examination on Thursday, Bongiorno insisted that she didn't know that she was doing anything wrong.

"We did it all the time, these changes," she said. "I didn't think of it."

Bongiorno also claimed that she didn't know what the S&P 500 Index was, even though she admittedly spent years staring at a Bloomberg terminal as she backdated months or years worth of fictional trades.

She testified that after Lehman Brothers went bankrupt in September of 2008, she rewrote Madoff's records to make it look like he shrewdly sold 5,600 shares of the firm two months before its collapse. But she insisted that she didn't understand the significance of what she was doing, because she didn't read The Wall Street Journal.

"Everything was backdated," said Bongiorno. "It didn't raise a red flag."

Related: Five things you didn't know about Madoff's scam

She said that she spent so much of her career backdating trades that she did it without thinking, like "brushing my teeth," she told the court.

Bongiorno insisted that she was only entering data on orders from Madoff, whom she said was like a big brother to her.

"He told me what to do," she said. "I typed."

She said that she was paid a "good salary" for her typing. She also acknowledged that she owned a Bentley and two Mercedes, along with a house on Long Island, NY, and another home in Florida. She said that she had been looking forward to retirement and planned to sell her two homes and buy a $6.5 million condominium in Boca Raton.

But then in 2008 Madoff's scheme fell apart and the feds "seized everything," she said.

Bongiorno is on trial along with colleagues Dan Bonventre, Joann Crupi, Jerome O'Hara and George Perez. All are accused of helping Madoff orchestrate his $20 billion pyramid-style scam, and all have pleaded not guilty.

Related: JPMorgan's $2.6 billion Madoff reckoning

Madoff, who pleaded guilty in 2009 and is serving a 150-year sentence in a federal prison in North Carolina, hired underlings with limited experience and education. Bongiorno started working at the firm when she was 19 and fresh out of high school. She introduced Madoff to Frank DiPascali, Jr., who was driving a delivery truck for a dry cleaning service when Madoff hired him 1975. He eventually became a portfolio manager and is now acting as a witness for the government.

DiPascali admitted to cooking the books for his former boss by recording fake trades that actually didn't exist in testimony earlier this year. "We were lying," he said at the time.

Bonventre was an accountant when he went to work for Madoff, and was therefore one of the most experienced new hires on Madoff's staff. He also got an Associate's degree over the course of six years while working at the firm.

Related: SAC Capital's Martoma found guilty

Despite his college education and accounting experience, Bonventre said that the bulk of his Wall Street knowledge came from his former boss.

"[Madoff] often boasted that he wrote the rules," Bonventre said in testimony earlier this month. "He always told me 'this is how things work' and 'this is how we do it,' and I always believed him."

The trial, which has dragged on for five months, could go to the jury next week.

First Published: February 28, 2014: 1:01 PM ET

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The dysfunctional debate on debt

When it comes to long-term U.S. debt, Washington lawmakers and the White House aren't debating how to handle it, but rather who is ignoring the issue more.

NEW YORK (CNNMoney)

And both are projected to resume a northward trek in a few years.

But lawmakers are not talking seriously about how to put the federal budget on sounder footing for the long run.

In some ways, that's not surprising. Lawmakers and President Obama have been at war over the budget and debt ceiling since the 2008 financial crisis.

Those fights yielded the Budget Control Act of 2011 and the fiscal cliff deal of 2013, among other measures, which together have reduced projected deficits by a few trillion bucks over the next decade.

That's not nothing. But those measures don't do much to address the long-term debt problem that will come as the bulk of Baby Boomers retire, health care costs per person rise and interest on the growing debt builds.

What lawmakers have done is buy themselves a little time to plan for that future budget crunch.

The Congressional Budget Office projects that federal spending in coming decades will continually outpace revenue, and that the country's accumulated debt will keep growing faster than the economy.

End result: The vast majority of federal dollars will go to paying entitlement benefits and interest on the debt, leaving less money to pay for everything else Americans expect their government to do.

Related: Deficits continue to drop sharply - CBO

What lawmakers have now is a "quiet" period -- an improved economy and stabilized deficits. If they don't take advantage of it to start talking about these issues in earnest, it will be harder in the future to align spending pressures with incoming revenue. The longer lawmakers wait, the more abrupt the changes they may need to make.

"This is the time," said Douglas Holtz-Eakin, former CBO director and now president of the American Action Forum, a center-right think tank. "Fixing it in the middle of [the crunch] is not the time."

So what is Washington doing? Pointing fingers at who is ignoring the issue more and worrying about the next election.

Take the recent news that President Obama won't include a controversial Social Security proposal in his 2015 budget proposal due out on Tuesday.

The proposal, known as chained CPI, was included in his budget last year and would help reduce deficits by changing how federal benefits are adjusted for cost of living.

Those annual COLA increases, including growth in Social Security benefits, would be smaller under chained CPI than they are under more widely used inflation measures. Hence, why it's so controversial.

Related: 2013 deficit drops to $680 billion

The White House said the proposal is still good if Republicans are willing to close some tax loopholes to raise revenue for deficit reduction.

"That offer has been on the table for more than a year, and we've not seen any constructive engagement from the other side," White House spokesman Josh Earnest told reporters.

Republicans characterized the White House decision to drop the proposal from the budget as a clear sign Obama is done dealing with debt reduction.

"With three years left in office, it seems the president is already throwing in the towel," said Brendan Buck, the spokesman for House Speaker John Boehner.

So there we are. "You won't deal," Democrats say. "No, you won't deal," Republicans say.

Regardless of who you think is right, the fact remains no one's dealing.

First Published: February 28, 2014: 3:45 PM ET

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Online poker players get $76 million back

NEW YORK (CNNMoney)

A court-appointed administrator announced the distribution Friday of $76 million to roughly 27,500 U.S. customers of the defunct poker site. Their accounts have been frozen since 2011 due to a criminal case.

The Poker Players Alliance, a nonprofit advocacy group, applauded the action, but said there are still "several thousand" ex-Full Tilt players in the U.S. who have yet to receive their money. John Pappas, executive director of the PPA, estimated that there are between $50 million and $60 million in unclaimed or disputed funds that have yet to be distributed.

Prosecutors accused Full Tilt and two other sites -- PokerStars and Absolute Poker -- of circumventing federal laws against Internet gambling by deceiving banks and credit card issuers into processing payments for U.S. players.

In July 2012, the Justice Department announced a $731 million settlement with PokerStars and Full Tilt to resolve the allegations. Full Tilt also settled allegations that it had operated a Ponzi scheme, failing to maintain sufficient funds on deposit for players to withdraw.

Under the settlement, Full Tilt agreed to forfeit virtually of all its assets to the government, with PokerStars acquiring them.

Former Full Tilt CEO Raymond Bitar pleaded guilty last year to multiple gambling and fraud charges. He faced a substantial prison sentence but was released because of health problems.

First Published: February 28, 2014: 5:57 PM ET

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Credit Suisse helped clients hide billions from IRS - Senate report

A Senate panel led by Carl Levin (left) and John McCain released a report alleging Credit Suisse helped clients hide assets from IRS and blasting officials for not acting aggressively.

WASHINGTON (CNNMoney)

The Swiss banking giant, which is under investigation by the U.S. Justice Department for allegedly aiding tax evasion by its rich clients, opened a special Zurich airport branch so customers could fly in, meet their private bankers and quickly hit the slopes, Senate investigators said.

VIPs would use a secret elevator operated by remote control to be whisked to private banking suites. And bankers used sparse meeting rooms, avoided sending account statements and leaving paper trails, the Senate report said.

Last week, CNN reported unusual ways some Credit Suisse customers moved their money. For example, one wealthy customer traveled on flights while hiding $250,000 in pantyhose wrapped around her body, according to federal court documents.

According to the new Senate report, Credit Suisse held more than 22,000 accounts for U.S. customers, with assets valued at between $10 billion and $12 billion. Up to 95% of the accounts weren't reported for tax purposes to the IRS.

The Senate report will be the subject of a hearing Wednesday; executives from Credit Suisse and Justice Department officials are set to testify.

A person familiar with Credit Suisse's position said bank officials will acknowledge that there was wrongdoing, though it was limited to a few bad bankers. "This wasn't a systemic issue at Credit Suisse," the person said, and instead "involved a small number of private bankers in Switzerland who violated bank policy and also U.S. law."

The bank has since terminated the business that provided offshore banking to U.S. residents and was involved in the violations and has cooperated with the investigations, the person said.

The Senate probe takes aim not only at the bankers, but also at the Justice Department.

Senators claim prosecutors have moved slowly and not acted aggressively enough to get the names of account holders and the taxes they owe.

The bank is the latest to come under scrutiny for business practices that U.S. authorities say illegally helped customers avoid paying billions in taxes. The government has cracked down on the practice -- in 2009 Swiss bank UBS paid $780 million to settle similar allegations.

All told, 14 banks are under criminal investigation.

Sen. Carl Levin, a Democrat who heads the Senate investigations panel that produced the 175-page report, criticized Justice, the bank and Swiss authorities.

"After years of investigating, negotiating and jaw boning the U.S. has names for just 238 of those 22,000 Credit Suisse customers," Levin said. UBS, as part of its 2009 settlement, turned over the names of 4,700 account holders.

Sen. John McCain, the top Republican on the investigations subcommittee, blasted Justice for not holding top bankers "from both ends of the Atlantic" responsible for "practices that went on for years."

Credit Suisse has recently discussed paying about $800 million to settle the Justice Department probe, a figure that some officials and lawmakers think isn't nearly enough.

Levin described it as "too modest" adding: "It doesn't fit the malpractice."

A Justice spokeswoman said the department overall has charged 73 account holders and 35 bankers and advisers with tax evasion and related crimes, and that prosecutors "won't hesitate to indict if and when circumstances merit."

She said prosecutors' work so far "has been forceful enough to cause 43,000 taxpayers to self-report and pay nearly $6 billion in taxes and penalties. Additionally, more than 100 Swiss financial institutions have applied for a program where they fully disclose their illegal conduct, cooperate and pay steep penalties."

First Published: February 25, 2014: 5:09 PM ET

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