Bankruptcy Blogs

HSBC Hit with Foreclosure Suit; FHA's $115 Billion Loss Scenario; Return of the Synthetic CDO?

06/05/13

Receiving Wide Coverage ...

HSBC Hit with Foreclosure Suit: Eric Schneiderman has struck again. This time it's at HSBC, which, on Tuesday, became the latest bank on the receiving end of a lawsuit from the New York Attorney General. This lawsuit accuses HSBC of ignoring a state law by failing to file forms that would have entitled homeowners facing foreclosure to loan modification negotiations. The Journal reports Schneiderman "may bring actions against other banks over the...

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Don't Blame Camels for Human Failures

06/04/13

Let's be cautious about scrapping the Camels rating system without fully understanding why it supposedly failed. Any human endeavor is prone to failure, as any system is subject to improvement.

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JPMorgan Shareholders Chose Wrong Side of History

06/04/13

The trend is decidedly away from shared roles and to a separation of the board from management.

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Better than Brown-Vitter - Make Banks Issue Long-term Debt

06/04/13

Brown-Vitter is a welcome display of bipartisanship. But its proposed solution to too big to fail, equity capital, is only marginally effective in imposing discipline on management.

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ABI Commission To Study The Reform Of Chapter 11

06/04/13

The American Bankruptcy Institute has established a Commission to Study the Reform of Chapter 11.

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The Daily Docket: Silver Point Offers to Sponsor K-V Plan

06/04/13

Senior bondholder Silver Point Finance LLC has submitted a proposal letter for K-V Pharmaceutical Co. that matches an offer from a group of investors holding subordinate bonds. Read the Daily Bankruptcy Review article here.

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Banks Have the FDIC's Back in Times of Need

06/04/13

The FDIC's decision to fund its emergency needs by calling upon banks to prepay future premiums back in 2009 suggests that the line to the Treasury may never be used.

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FSOC Picks Some Nonbanks to Oversee; White House Targets Patent Trolls; More 'Student Debt Is the New Subprime'

06/04/13

Receiving Wide Coverage ...

Systemically Important: The Financial Stability Oversight Council took an important step toward implementing a key provision of Dodd-Frank when it voted on a proposal to designate a group of nonbank financial firms as systemically important on Monday. FSOC isn't saying what companies made the list just yet, but AIG, Prudential and GE Capital have disclosed that they received the designations. These firms now have 30 days to fight the proposal. Per reports,...

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Meaningful Disclosure Under Rule 2014

06/04/13

One of the frustrations experienced by all business bankruptcy attorneys seeking engagement in chapter 11 cases can be traced to the vague language of Rule 2014. The rule requires the disclosure of information necessary to determine whether the professional’s employment is in the best interest of the estate.

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