Bankruptcy Blogs

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Citi, DOJ Said Close to $7B Deal: Citigroup and the Justice Department are reportedly nearing a deal in which the bank would pay roughly $7 billion to end a probe of the mortgage-backed securities it sold in the years preceding the financial crisis. The expected price tag appears to be a victory for the U.S. government. The DOJ, which was seeking up to a $10 billion settlement earlier this summer, had threatened...

Well-known Washington, D.C., restaurateur Xavier Cervera, whose restaurants helped fuel Capitol Hill’s dining boom, has a drug conviction in his past.

Mr. Cervera, who sold the restaurants in 2012, pleaded guilty in 1988 for his role in a cocaine ring that operated in Virginia Beach and distributed the drug at local bars and restaurants, according to court records.

Unless we return the Farm Credit System to its original mission, taxpayers could be on the hook for a bailout in the near future and farmersÂ' access to credit could be reduced, writes Rep. Marlin Stutzman.

The CFPB should prohibit financial institutions from reordering transactions to maximize overdraft fees, require that fees be proportional to a bankÂ's costs to provide the loan and ban providers of prepaid cards from offering overdraft loans altogether, according to Susan Weinstock of The Pew Charitable Trusts.

Receiving Wide Coverage ...

U.S. Trains Sights on Commerzbank: U.S. regulators are accusing another European bank of violating U.S. economic sanctions after striking an $8.9 billion deal with French lender BNP Paribas over the same charge last week. Germany's Commerzbank is on the hot seat for allegedly doing business with companies in Iran and Sudan, according to the New York Times. Because Germany owns 17% of Commerzbank, the Times wonders whether "settlement talks could inflame diplomatic...