Bankruptcy Blogs

Morning Scan: Judge Fines B of A in 'Hustle' Case; Fed Sees Good Signs

07/31/14

Receiving Wide Coverage ...

B of A to Pay for 'Hustle': Federal Judge Jed Rakoff ordered Bank of America to pay $1.3 billion for selling toxic mortgages to Fannie Mae and Freddie Mac, as part of its so-called "Hustle" program. The $1.3 billion penalty was less than the $2.1 billion the government sought, but "greatly in excess of what the bank hoped to pay," the Financial Times reported. Rakoff, who called the scheme "brazen fraud," also...

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It Depends, Argentina Edition

07/30/14

The phrase "it depends" was invented 130 year ago by a small group of drunk lawyers from London and New York for the sole purpose of annoying first-year law students, nonlawyers, and people from civil law jurisdictions. Like all things annoying, "it depends" is enjoying a surge in popularity as tensions spike in the Argentine debt saga."It depends" is a magically useful phrase because it can cover up ignorance, describe uncertainty, or assign probabilities in a risky situation.

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Crumbs Suitor Lemonis a Cupcake Critic—And Cupcake Baker, Too

07/30/14
Marcus Lemonis (right), the CEO of an RV and camping company, during a scene from The Profit, his CNBC business-makeover show.
Heidi Gutman/CNBC
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How Community Banks Can Overcome Seller's Reluctance

07/30/14

Bank owners can make more objective decisions about whether it's the right time to sell by comparing the value of holding onto the bank to its private market price and instating an external review process, writes consultant J.V. Rizzi.

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Small-Dollar Loans to Servicemembers, the Electronics Version (or an Easy Way to Get Around the Military Lending Act)

07/30/14

Yesterday the Consumer Financial Protection Bureau, along with 13 state attorneys general (including from my new home state of Indiana), announced a $92 million settlement and issued an enforcement action against Colfax Capital Corporation and Cul

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A Diminished Banking System Is Bad for Americans

07/30/14

Community banks are disappearing and big banks' global power is on the wane. Regulators should take steps to reverse these trends so that all Americans have access to the financial services they need, according to the American Bankers Association's Wayne Abernathy.

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Morning Scan: DOJ Extends Barclays Probe; Lawsky Wants Internal Monitors

07/30/14

Receiving Wide Coverage ...

Forex Probe Update: U.S. prosecutors have stepped up their probe into Barclays' alleged foreign exchange manipulation, the Wall Street Journal, New York Times and Financial Times all report. The London bank said the U.S. extended a pact known as a "nonprosecution agreement" in the investigation. The new pact gives the Justice Department more time to decide if Barclays breached the 2012 nonprosecution agreement it had previously signed not to commit crimes in...

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The Daily Docket: Argentina Just Hours From Debt Default

07/30/14

A group Argentina banks are working on a last-minute plan to help the country avoid default, The Wall Street Journal reports.

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Forget Argentina: How Do You Collect from Russia?

07/30/14

Never let it be said that the wheels of international justice spin quickly, but, with the pace of a Siberian jail sentence, the Permanent Court of Arbitration finally handed down its merits award in the Yukos litigation.

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Section 503(b)(9) Claims: Timing of Payments

07/29/14

When will your company’s Section 503(b)(9) claim be paid?  Under normal circumstances, Section 503(b)(9) claims are paid when the debtor makes a final distribution to creditors.  However, a Section 503(b)(9) creditor can file a motion to demand immediate payment of its claim.  This article will address the standard employed by the Bankruptcy Court in determining whether to grant immediate payment of a Section 503(b)(9) claim.

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