Bankruptcy Blogs

Morning Scan: Online Lenders Set to Report; Trump's Team

08/08/16

Receiving Wide Coverage ...

Trump taps bankers: GOP presidential nominee Donald Trump announced his economic team ahead of a major economic speech in Detroit Monday. The 13-member group is heavily weighted with developers, hedge fund managers and investment bankers, including hedge-fund billionaire John Paulson and Thomas Barrack, founder of Colony Capital. Many have done business with Trump previously. Notably absent are people from Silicon Valley, academia or economics. But there is at least one community banker...

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Arizona District Court Applies Section 1129(a)(10) on a Per Plan Basis

08/07/16
One challenge in confirming a chapter 11 plan is finding an impaired accepting class without counting votes of insiders as required by 11 U.S.C. Sec. 1129(a)(10).   A new opinion from the District Court of Arizona makes that job easier in cases with jointly administered debtors.   In re Transwest Properties, Inc., 2016 U.S. Dist. LEXIS 102575 (D. Ariz. 6/22/16).  
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Yes. It is Possible to Avoid Tax Penalty Claims in Bankruptcy

08/05/16

On August 2, 2016, Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued an opinion (the “Opinion”) in the Refco Public Commodity Pool, L.P. bankruptcy, Case No. 14-11216.  A copy of the Opinion is available here.  The Opinion holds that this Debtor’s failure to file its taxes was due to reasonable cause, and the associated tax penalties are, therefor, claims that can be excused and disallowed.

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Fishing for Customers Starts Before the Ad

08/05/16

Banks must use analytics Â-- rather than customer surveys Â-- to determine what does and what does not inspire prospects to become customers.

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Forcing Creditors to Take Losses Is How We'll End TBTF

08/05/16

The solution to "too big to fail" is requiring all creditors, other than insured depositors, to face the risk of loss so that neither the FDIC nor taxpayers lose any money.

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Women in Banking: Maternity Leave, Likability, Role Models on Wall Street

08/04/16

The 30% Club's Brenda Trenowden talks about the need for more female role models in banking; Barbara Byrne and Sallie Krawcheck talk about successful women "rubbing people the wrong way"; and backers and advisers of the new movie Equity talk about being pregnant on Wall Street. Also Digital Asset Holdings staffs up with RBS and JPMorgan executives.

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How to Explain the Sudden Boom in Bank Lending

08/04/16

The impressive loan growth in the second quarter is surprising in an economy that grew by 1.2% in the second quarter and by only 0.8% in the first quarter.

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The Time Has Come to Turn the GSEs into Utilities

08/04/16

Returning Fannie Mae and Freddie Mac to their status as privately owned public utilities is consistent with their mandate and makes the most policy sense.

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Regulatory Déjà vu All Over Again

08/04/16

A new CMBS issuance is set to test whether regulators will treat the 5% retained credit risk under Dodd-Frank as loans or bonds.  The difference matters because there are different capital charges for loans and bonds.  If regulators treat the retained credit risk as bonds (which matches the technical form of the retained interest), then the risk retention requirement will be much more onerous.

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Latest Bitcoin Hack Proves 'Buyer Beware' Is Flawed Defense

08/04/16

In the wake of the Bitfinex heist, protecting consumers must again be at the forefront of the digital currency community.

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