Bankruptcy Blogs

I applaud the government's efforts to weed out bad actors but I'm deeply concerned about the unintended consequences this could have on much needed financial services for underbanked people.

Receiving Wide Coverage ...

Probe of Banks' Commodities Role: It is apparently not enough that banks are winding down some of their commodities operations to evade scrutiny over alleged price manipulation. It was widely reported Monday that the Commodity Futures Trading Commission issued subpoenas to institutions with subsidiaries that store and deliver aluminum, seeking documents as part of an investigation. "The subpoenas come," according to the Wall Street Journal, "amid heightened scrutiny of Wall Street's involvement...

Faced with a litany of legal and regulatory woes, JPMorgan Chase has vowed to minimize wrongdoing and tighten internal controls. But with financial incentives unchanged and regulators on the warpath, virtuous talk may not be enough to prevent more troubles.

By Eugene Kim

In re Majestic Star Casino, LLC, F.3d 736 (3rd Cir. 2013), the U.S. Court of Appeals for the Third Circuit broke from other courts by holding that S corporation status (or "qualified subchapter S subsidiary" or "QSub" status) is not property of the estate of the S corporation's bankruptcy estate. Other Circuits have routinely held that entity tax status is property of the estate.