Credit Cards Become Less Rewarding

According to today's Washington Post, credit card rewards programs are being scaled down, just months before a new law restricting the industry takes effect. For many cardholders, frequent-flier miles and cash rebates are becoming harder to redeem or earn. For example, Citi customers who before could redeem a domestic round-trip airline ticket valued at up to $400 for every 20,000 points earned now need 40,000 points for the same ticket. Scaling back on this type of program is one way to recoup some of the losses that issuers expect to incur in the next year thanks to imminent regulations. A new law, slated to take effect in February, will restrict their ability to set interest rates and fees.

Brothers Harvey and Bob Weinstein are scrambling "to regain their golden touch in Hollywood," according to the New York Times. The paper says that they've hired financial advisers to help with restructuring the company, and an unnamed source told the Times that they received a $75 million bridge loan a few months ago. The Weinstein Company—known for films such as Good Will Hunting and Pulp Fiction—is  hurting from the downturn in the DVD market as well as unsuccessful ventures into fashion and social networking, which sidetracked them. "What happened was, I got more fascinated by these other businesses and I figured, ‘Making movies, I can do that in my sleep,' " Harvey said in an interview. "I kind of delegated the process of production and acquisitions. Yes, I had a say in it, but was I 100 percent concentrating? Absolutely not. I thought I could build the company and delegate authority, and that's where it went wrong."

Reuters reports that Britain may restrict bankers' pay if companies continue high-risk-taking behavior. Chancellor Alistair Darling was quoted in the Sunday Times as saying, "If we need to change the law and toughen things up, we can do that." The Financial Services Authority released new guidelines about bank compensation earlier this week, which prohibit guaranteed bonuses of more than one year and suggest that pay be structured to discourage short-term risk taking.

According to the Financial Times, the U.S. oil industry is split on how to handle rallies protesting imminent climate legislation. The American Petroleum Institute, which represents the U.S. oil industry, has asked its member companies  to "move aggressively" to stage protests against measures such as tax increases on the industry. According to the API memo, "In the 11 states with an industry core, our member company local leadership is essential to achieving the participation level that Senators cannot ignore." The API has the support of Exxon (XOM), which has warned that the legislation will have a negative effect on American workers, but other members—like General Electric (GE) and ConocoPhillips (COP)—are much less likely to jump onboard. They're also members of the U.S. Climate Action Partnership, which has supported many of the administration's environmental policies. A spokesman for Greenpeace told the Washington Post that its group is appalled by the idea of staged rallies: "It's the most powerful among us, masquerading as grass-roots outrage to stifle debate on global warming," he says.

And finally, good news for entrepreneurs: Venture capital is floating around, reports the New York Times. According to a survey by the Graziadio School of Business and Management at Pepperdine University, "of 185 venture firms surveyed last spring, 46 percent said they planned to make at least two investments over the next 12 months within their current fund; 54 percent said they planned to make three or more investments." Still, scoring funding is not easy. Among the most competitive segments to win over investors are financial services, consumer products, and media and entertainment.