Bankruptcy Blogs

Banks Overreact to Risk, and Pawnbrokers Pay the Price

04/21/15

If banks consider licensed and regularly supervised pawnbrokers with many compliance responsibilities to be too risky to bank, then what Main Street businesses are safe?

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Banks Don't Need Protection from Startups — But Consumers Sure Do

04/21/15

Consumers should receive the same level of protection whether they choose to do business with a bank or with marketplace lenders and other challengers.

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Tim Blixseth Jailed for Contempt

04/21/15
Tim Blixseth was ordered to jail for contempt until he accounts for million he owes creditors.
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Morning Scan: Wells Fargo Eyes GE Business Loans; Chip-and-Pin Mayhem

04/21/15

Breaking News This Morning ...

Earnings: Fifth Third, Synovus Receiving Wide Coverage ...

Bank Tax Backfire? British banks HSBC and Standard Chartered are considering fleeing the land of tea and crumpets for Asia in order to avoid the U.K.'s steep bank taxes. The discussion comes at the behest of shareholders rattled by Britain's decision last month to increase the bank tax by a third. (The tax has been hiked eight times since it was implemented in 2010, according...

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Frederick’s of Hollywood Files Chapter 11 Bankruptcy in Delaware

04/21/15

On April 19, 2015, Frederick’s of Hollywood, Inc., and its affiliated companies (the “Debtors” or “Frederick’s”) filed chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware.  At the time of the bankruptcy filing, the Debtors held assets in the amount of $36.5 million, and debts in the amount of $106 million.

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Secured Credit, Churches, and Reorganization

04/20/15

Chapter 11's ability to empower true reorganization has received much criticism of late in light of an increasingly held assumption that most Chapter 11 cases end in a 363 sale of the debtor's assets. Around this time last year, the American Bankruptcy Institute and the University of Illinois College of Law co-hosted a symposium dedicated to discussing secured creditors’ rights and role in modern Chapter 11.

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If Banks Can't Solve the Derisking Dilemma, Maybe the Government Will

04/20/15

More and more legal businesses are finding themselves shut out of the banking system. But there are a number of possible solutions-including passing a law that would require banks to maintain accounts for businesses able to meet some standard of due diligence.

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Judge Protects GM Against Most, But Not All, Ignition Switch Claims

04/20/15

Judge Robert Gerber ruled last week that General Motors LLC (“New GM”), the entity formed in 2009 to acquire the assets of General Motors Corporation (“Old GM”), is shielded from a substantial portion of the lawsuits based on ignition switch defects in cars manufactured prior to New GM’s acquisition of the assets of Old GM in 2009.

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Get Ready for the Rise of the Blockchain

04/20/15

In the same way that Napster and peer-to-peer file sharing changed the face of the recording industry, blockchain technology will force banks to reconsider their traditional roles.

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