Bankruptcy Blogs

Debt limits ... and poison pills

02/17/20

The Russian Duma last week adopted on first reading a bill that attempts to solve the biggest problem with the new Russian personal insolvency law, but the bill contains a poison pill provision that will all but kill its effectiveness if the bill makes it past the second and third readings and becomes law.  The problem lawmakers are trying to solve is that

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Venezuela, Lebanon, and Tools to De-Fang “Rush-In” Creditors

02/17/20

A follow-up on my exchange with Mitu (parts 1, 2, 3, and

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Is partisanship seeping into bank regulators’ discourse?

02/16/20

Compared with incendiary fights elsewhere in the capital, deliberations among the banking agencies tend to be more banal. But on issues from the Volcker Rule to CRA reform, disagreements lately between officials have grown sharper.

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Former Mall Owner Sentenced for Fraudulently Concealing Rents in Chapter 11 Case

02/16/20

The managing member of a company that operated the Middleton Mall in Fairmont, West Virginia was sentenced to 18 months imprisonment for bankruptcy and tax fraud.  Deitrich S.

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The Big Lie Lives On

02/15/20

The Big Lie just won’t die. The Big Lie, of course, is The Government Made Me Do It theory of the financial crisis, that the housing bubble whose collapse set off the crisis was the product of government policies encouraging affordable home mortgage credit.

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Americore CEO Invokes 5th Amendment Privilege in Deposition Amid Accusations of Mismanagement

02/15/20

Grant White, CEO of Americore Holdings LLC, invoked his Fifth Amendment right to avoid self-incrimination during a deposition Thursday before the Official Committee of Unsecured Creditors in his Chapter 11 bankruptcy case.  Americore and its affiliated hospitals filed for chapter 11 protection in the Eastern District of Kentucky in December, 2019.  The United States Trustee earlier filed a motion for the appointment of a chapter 11 trustee or an examiner.  The motion alleged that White was mismanaging the company, had lied to the bankruptcy court, w

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Pre-1949 Chinese Bonds: How Much of a Litigation Threat Do They Pose?

02/15/20

As part of the international debt class that I'm teaching this term with Steve and Lee, we spent a couple of sessions discussing the various lawsuits that have been brought in US courts over China's defaulted pre-1949 debt.

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Nebraska bank is first failure of 2020

02/14/20

Ericson State Bank, which had been in regulators’ sights for a decade, was closed by state and federal authorities Friday. Another bank acquired all of its deposits and a fraction of its assets.

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The API race, CFPB vs. Citizens, Varo's bank charter: Top stories of the week

02/14/20

Wells Fargo appears to be outpacing its rivals in the API race; CFPB's unexpected showdown with Citizens; Varo gets vital FDIC OK for bank charter; and more from this week's most-read stories.

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Retirement wave could leave FDIC short-staffed in crisis, watchdog warns

02/14/20

The inspector general also said high turnover at the chief information officer position has limited the agency's ability to modernize its technology.

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