Bankruptcy Blogs

The Broke and the Beautiful: Music Edition

06/14/13

This week on The Broke and the Beautiful, Lou Pearlman’s bankruptcy trustee has filed a plan to repay investors, and Dionne Warwick is taking on the IRS. Also, the fight between Sly Stone and his ex-manager continues in bankruptcy court.

[more]

Government v. Gearheads; With Chief Ousted, Morale Expected to Deteriorate at RBS

06/14/13

Receiving Wide Coverage ...

Fallout from RBS's Hester Ousting: The Royal Bank of Scotland's firing of its chief executive, Stephen Hester, will send bank staff morale "to rock bottom," the Financial Times reports, and more defections are expected. In a related note, RBS announced Thursday it would wind down its remaining equities sales and trading businesses and will cease to offer structured retail investor products and equity derivatives; this is expected to lead to 2,000 job...

[more]

Regulators Need Schooling on Measuring Lending Bias

06/14/13

Federal regulators must not rely on standard measures of differences between outcome rates without considering the way those measures change simply because the frequency of an outcome changes.

[more]

The Daily Docket: Court Gives Bankruptcy Trustees a Win

06/14/13

A federal appeals court on Wednesday ruled that the federal government went too far when seizing assets to repay Scott Rothstein’s Ponzi scheme victims, handing a victory to bankruptcy trustees. Read the Daily Bankruptcy Review article here.

[more]

Louis Pearlman Trustee Files Plan to Pay Jilted Investors

06/13/13
China Stringer Network/Reuters
The Backstreet Boys, a band put together by mogul Louis Pearlman, hold giant panda cubs as they pose for photographs at the Chengdu Research Ba
[more]

Why Some Banks Thrived and Others Failed After the Crisis

06/13/13

Bankers and regulators may need to study the barriers of entry into banking just as seriously as the NFL and Major League Baseball consider new franchises for football and baseball.

[more]

A 'Boundless Informant' for Financial System Could End TBTF

06/13/13

Regulators can use the power of Big Data mining and pattern-matching algorithms to seek out triggers of contagion across an interconnected financial system.

[more]

RBS CEO Exits; Goldman CEO Stays

06/13/13

Receiving Wide Coverage ... Royal Goodbye: Royal Bank of Scotland is pushing out its chief executive, Stephen Hester, and cutting about 2,000 jobs as the bank's board tries to get ready to wean itself off the British government's 81% ownership stake. Hester has recently "clashed with [RBS Chairman Philip] Hampton and senior government officials over the bank's strategy," anonymous sources tell the Wall Street Journal. Hester is the sixth British big-bank CEO to get the ax…

[more]

The Daily Docket: Patriot Coal Trades Barbs With Union

06/13/13

Patriot Coal Corp.’s chief executive and the head of its mine workers’ union traded barbs Wednesday after the union accused the company of walking out of negotiations to reach new labor terms. Read the Daily Bankruptcy Review article via The Wall Street Journal.

[more]