Bankruptcy Blogs

The Daily Docket: Standard General to Lead RadioShack Bidding

02/26/15
A RadioShack sign is viewed at a location in the Eastern Market neighborhood of Washington, D.C.
[more]

An Open Letter to Elizabeth Warren on the Future of Community Banks

02/26/15

The Massachusetts senator recently argued that community banks have little need for regulatory relief. But a closer look at recent FDIC data shows that the health of small banks has taken a turn for the worse in the aftermath of Dodd-Frank.

[more]

Morning Scan: Yellen Confronts Partisan Charges; Is Lending Club Overrated?

02/26/15

Receiving Wide Coverage ...

Morgan Stanley Strikes Deal with DOJ: Morgan Stanley has agreed to pay $2.6 billion to settle charges that it misled investors about the quality of mortgage-backed securities during the run-up to the financial crisis. The deal will make a significant dent in the bank's 2014 earnings, lowering net income by $2.7 billion, or more than a third. The amount of the penalty was higher than analysts expected, according to the Wall Street...

[more]

SPOE: Backdoor Bailouts and Funding Fantasies?

02/25/15

I'm thrilled that Jay Westbrook has finally come into blogosphere with his posts on Single-Point-of-Entry.  I've blogged a little on SPOE already, but I want to highlight what I still think are two critical problems with SPOE.

[more]

Translating the Warren-Yellen Exchange

02/25/15

Senator Elizabeth Warren surprised a lot of people by laying into Federal Reserve Board Chair Janet Yellen as hard as she ever laid into Timothy Geithner. I think this was a really important exchange. But its easy to miss exactly what's being communicated in it. Senator Warren's comments can basically be translated as follows:  

[more]

Wall Street Bankers Shouldn't Be Too Big to Prosecute

02/25/15

By prosecuting executives responsible for banks' misdeeds, the DOJ can curtail illegal activity and restore public trust in big banks Â-- and in the law itself.

[more]

The Daily Docket: Revel Strikes New Deal With Glenn Straub

02/25/15
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J. The casino section of the Revel closed at 6:30 a.m. Tuesday.
[more]

TBTF and The Single Point of Entry (SPOE): Part Two

02/25/15

In an earlier post I described the FDIC’s proposed SPOE approach to resolution of SIFI banks and other financial institutions under Title II of Dodd-Frank. That post discussed two of the three components of SPOE: control of the process by the regulator and no bailout for management or owners. This post lays out the role of the third component, the “forlorn hope” debt.

[more]

Puerto Rico Bankruptcy Bill Would Change Rules on Creditors Midstream

02/25/15

Congress should end Puerto Rico's exclusion from federal bankruptcy protection Â-- but it's unfair to leave the territory's existing creditors in the lurch.

[more]