Bankruptcy Blogs

How Banks Can Avoid the De-Risking Trap

07/19/16

As banks pull out of developing countries, we must seek a healthier balance between preventing money-laundering and maintaining banking systems of entire regions.

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Will Madden v Midland Disrupt Loan Sales and Platform Lending?

07/19/16

Where do marketplace lenders and secondary loan market participants find themselves on the issue of preemption of state usury laws after the June 27 denial of the petition for a writ of certiorari in Madden v. Midland by the U.S. Supreme Court?

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Attempt to 'Simplify' Basel May Add More Complexity

07/19/16

Over the past two years, regulators have issued several proposals as part of efforts to make capital rules simpler, but the initiative should be more streamlined and allow more public input.

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Morning Scan: New Support for Glass-Steagall; Brexit Maneuvers

07/19/16

Receiving Wide Coverage ...

Strange bedfellows: Somehow, this year's presidential race just got even more baffling. Republicans have included a provision to bring back the Glass-Steagall Act in their platform, putting the party in line with those on the left, including Sens. Elizabeth Warren and Bernie Sanders. Donald Trump campaign aide Paul Manafort highlighted the issue during a press conference on Monday, noting that Hillary Clinton's husband, former President Bill Clinton, oversaw the repeal of the...

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Executive’s Unpaid Stock-Based Compensation Considered an Equity Security by the Court

07/18/16

On July 18, 2016, Judge Walrath issued a concise written opinion ruling upon whether an executive’s claim for unpaid stock-based compensation was an equity security or rather a general unsecured claim against the Debtors’ estate.  The opinion is styled as GSE Environmental, Inc., et al. v. Sorrentino (In re GSE Environmental, Inc., et al.), Adv. Pro. No. 16-50377 (MFW) (Bankr. D. Del. July 18, 2016).

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GSE Environmental – Equity is Equity, Even when Owed.

07/18/16

In a 5 page decision signed July 18, 2016, Judge Walrath of the Delaware Bankruptcy Court ruled on a Motion for Judgment on the pleadings that undelivered stock options, are not debt, but are instead equity. Judge Walrath’s opinion is available here (the “Opinion”).  This decision was made in the GSE Environmental case, Adversary No. 16-50377 (MFW).

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Time to End Dodd-Frank's Stranglehold on Economy

07/18/16

The financial reform alternative proposed by Rep. Jeb Hensarling would allow bankers to be bankers rather than be so focused on regulatory compliance.

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Fintech Firms Hurt by Lack of Regulatory Clarity

07/18/16

The fragmentation of the U.S. regulatory system and uncertainty around what agencies will regulate fintech firms could slow down innovation.

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Morning Scan: More Bank Earnings; Trouble Brews Abroad

07/18/16

Receiving Wide Coverage ...

Mixed bag: Bank of America's second-quarter results are better than analysts predicted, but still spell a big drop from last year. The bank's profit fell to $4.23 billion from $5.13 billion a year earlier, while adjusted revenue slid to $20.6 billion from $21.96 billion, B of A reported on Monday morning. Wall Street Journal, New York Times, Financial Times>, American banker ...

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