Bankruptcy Blogs

Shelby's Bill Is the Right Way Forward on Financial Reform

05/19/15

It's a good idea to raise the asset threshold at which financial institutions are automatically designated as systemically important financial institutions. But Sen. Richard Shelby's proposed legislation for regulatory relief does require one crucial change.

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MF Global Investors Want Settlement Approval

05/19/15

MF Global Holdings Ltd. investors are seeking final approval of a $74 million settlement stemming from their lawsuit against several financial institutions. The Wall Street Journal has the Daily Bankruptcy Review article here.

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Morning Scan: What Shelby's Bill Means for QM; Wall Street Same as It Ever Was?

05/19/15

Wall Street Journal

Ocwen Financial has put things right with the New York Stock Exchange after filing its annual report for 2014 last week. The NYSE had previously threatened to kick the troubled mortgage-servicing firm off the exchange for failing to comply with its listing standards. Now there's a new bullet for Ocwen to dodge: the firm said Monday it is working with lenders to adjust its debt arrangements in order to avoid liquidity problems. ...

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Postpetition Wages Held by Chapter 13 Trustee Belong to Debtor Upon Conversion

05/18/15

In case you haven't seen it, the SCOTUS issued its unanimous opinion in Harris today, holding that postpetition wages held by the Chapter 13 trustee at the time a case is converted to Chapter 7 must be returned to the debtor.

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What Does Good Customer Service Look Like? Most Banks Haven't a Clue

05/18/15

All banks truly believe they provide spectacular, top-notch service. But the vast majority hover close to mediocre and lack the metrics to identify areas for improvement.

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The Examiners on Student Loan Debt: What Our Readers Thought

05/18/15

Last week, our Examiners took on the controversial issue of student loan debt and bankruptcy. And the group came down on both sides as to whether student loan debt should be dischargeable in bankruptcy, with arguments for a change to the bankruptcy code, for preserving the status quo and for a more nuanced approach.

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Sorry, Jamie Dimon: Bigger Always Means Riskier

05/18/15

JPMorgan Chase CEO Jamie Dimon defended his institution by arguing that size isn't necessarily an indicator of risk. But the truth is that the larger an organization gets, the more complex it becomes-and the more difficult it is for leaders to keep everything from customer service to fraud prevention working the way it should.

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San Bernardino’s Bankruptcy Plan Seeks Bondholders Cuts

05/18/15

The bankrupt southern California city of San Bernardino is looking to exit court protection with a plan that pays some bondholders a penny on the dollar but maintains pension benefits for retired city workers. Read the Daily Bankruptcy Review article here.

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Morning Scan: Big Banks Step Up Small-Business Loans; Why 'Say on Pay' Fizzles

05/18/15

Wall Street Journal

It's hard to let go of a juicy bonus Â-- even if your former employer famously went down in the largest bankruptcy in U.S. history. The paper reports former hotshot Lehman Brothers trader Jonathan Hoffman is demanding $83 million in unpaid bonuses from the Lehman bankruptcy trustee. The estate, on the other hand, says Hoffman already got his cash courtesy of Barclays, which bought some Lehman assets and hired him after the company's...

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