Bankruptcy Blogs

Detroit pension holders approved the bankrupt city’s debt-cutting plan, which will dent their future benefits, The Wall Street Journal reports.

For-profit school company BioHealth College Inc., which operates four Bryman College campuses in California, has filed for Chapter 11 bankruptcy protection.

It wasn’t immediately clear Monday what would happen as a result of the Chapter 11 filing. However, a bankruptcy filing would usually result in the U.S. Department of Education revoking the schools’ status as an institution that can accept federal student financial aid dollars. Most colleges can’t survive without that funding.

Decisions about how to apply U.S. swaps trading rules abroad should be based less on fears of risk to the financial system and more on considerations of market integrity, according to attorney Timothy Karpoff.

Wall Street Journal

New York Attorney General Eric Schneiderman isn't alone in his concerns about Barclays' dark pool activities. Trading firms including RBC Capital Markets and T. Rowe Price Group worried in the months before Schneiderman sued Barclays that their orders were getting subpar treatment on the dark pool because of high-frequency traders. What's more, "a number of Barclays employees privately expressed concerns to top stock-trading executives that the firm was giving high-frequency traders too much...

In a long story in today's edition, the New York Times is reporting a bubble in often deceptive and abusive subprime auto lending on unaffordable terms, including very high rates of interest.  Although not quite the threat to the overall economy that the subprime mortgage bubble created eight or nine years ago, this apparent new bubble in lending for used vehicles has some similar features (targeting vulnerable consumers, lax underwriting, securit