Bankruptcy Blogs

DOJ Memo Leaves No Doubt About Choke Point's Motives

07/18/14

Internal documents reveal that the crackdown is targeting banks, not merchants and processors, because it requires less investigation into the facts. That should anger all Americans who care about due process and the rule of law, writes ex-FDIC Chairman Bill Isaac.

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Forward Motions: James River Set to Auction Its Assets

07/18/14

On Tuesday in Manhattan, James River Coal Co., is scheduled to auction itself off at the offices of its bankruptcy counsel, Davis Polk & Wardwell LLP.

Originally scheduled to hold the auction on July 8, James River has been wavering among reorganizing, selling its assets or liquidating.

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The Daily Docket: NextEra Pitches Bankruptcy Merger for Energy Future’s Oncor Division

07/18/14

NextEra Energy Inc. is pitching the board of an Energy Future Holdings Corp. division on a takeover plan that it claims would mean higher recoveries for creditors of the Dallas power company, which is tackling some $42 billion in debt in Chapter 11 bankruptcy. Read the Daily Bankruptcy Review article here.

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Morning Scan: Lawsky's BitLicense; UK Banking Inquiry; Morgan Stanley Stability

07/18/14

Receiving Wide Coverage ... Return to Stability: Gains in wealth management and investment banking helped Morgan Stanley nearly double its profit in the second quarter. The papers played up how the bank has focused on stable businesses while relying less on fixed income. The Wall Street Journal said Morgan Stanley has largely shrugged off" bond trading declines that have hurt other firms. The New York Times said the bank has proved skeptics wrong that it couldÂ...

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Operation Choke Point Hysteria: Are Choke Point's Critics Responsible for the Account Closings?

07/17/14

At today's House Judiciary Committee hearing on Operation Choke Point it seemed that Choke Point's critics are conflating a fairly narrow DOJ civil investigation with separate general guidance given by prudential regulators.  In particular, Rep. Issa attempted to tie them together by noting that the DOJ referenced such guidance in its Choke Point subpoenas, but that's quite different than actually bringing a civil action on such a basis (or on the basis of "reputational risk"), which the DOJ has not done.  

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Coming and Going Concerns

07/17/14

Thomas Duignan and Jeffrey Rosenthal have joined the Otterbourg law firm as members of the banking and finance group. The two will coordinate with the workout, distressed debt and insolvency group. Mr. Rosenthal focuses on advising clients on workouts of existing loans and debtor-in-possession, or DIP, financing. Mr. Duignan focuses on asset-based lending, commercial lending and on representing people buying or selling financial assets.

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New Frontiers in Foreclosing on Banks

07/17/14

Trust-preferred creditors have forced two indebted bank holding companies into involuntary bankruptcy this summer. Secured lenders may soon follow their lead and start foreclosing on bank stock collateral.

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Creditors’ Lawyers Press Archdiocese of Milwaukee to Pay Up

07/17/14

The Archdiocese of Milwaukee has been running a tab when it comes to professionals working on its Chapter 11 bankruptcy case, and lawyers for unsecured creditors—chiefly survivors of sexual abuse—say it’s time to pay the bills.

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