Bankruptcy Blogs

Complex Consumer Protection Laws Keep Small Banks from Serving Unbanked

03/21/13

More needs to be done to reduce the compliance burden so these banks can fully serve their communities.

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Howrey Partners, Trustee Working on Settlements

03/21/13

A handful of Howrey’s former partners can breathe easily, at least for the next few months: they’ve struck a deal that gives them time to work on settling potential lawsuits related to their roles in winding down the 55-year-old law firm.

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Get Ready for the Refi Bubble to Burst

03/21/13

All mortgage lenders should prepare themselves for a minimum decline in refinance activity of 75% and make sure their capital plan, liquidity plan and budget all reflect this.

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The Daily Docket: Aurelius Sues Over Loan Deal

03/21/13

Hedge fund Aurelius Capital Master Ltd. is suing an Energy Future Holdings Corp. unit and some current and former directors over a loan deal tied to the $32 billion leveraged buyout that loaded the Texas power company with debt. Read the Daily Bankruptcy Review article via The Wall Street Journal.

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Bernanke on Fed Policy ... and TBTF; Executive Pay Potpourri; Cyprus Gets Deadline

03/21/13

Receiving Wide Coverage ...

Bernanke on Fed Policy … and TBTF: The Federal Reserve issued its latest policy statement yesterday and, as expected, plans generally remain the same. The central bank will keep short-term interest rates low and continue buying $85 billion a month in Treasuries and mortgage-backed securities indefinitely. But both the Journal and the Times posit the Fed is eyeing a wind-down. Per the Journal: "Fed Chairman Ben Bernanke … said the central bank...

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Fincen Spying Plan Invites Privacy Workarounds

03/21/13

Money was never meant to be a method of supranational identity tracking. Its use in that way could signal law enforcement desperation. When all other tactics fail, surveil the finances.

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Are Gambling Debts Dischargeable in Chapter 7 Bankruptcy?

03/20/13

A debtor who borrows money on credit cards in order to gamble the money may still discharge these credit card debts in Chapter 7 bankruptcy according to the court decision in In re Rembert.

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Reader’s Digest Omits ‘Insider’ Names From Pay List

03/20/13
European Pressphoto Agency

The publisher of Reader’s Digest doled out $28 million to insiders in the year before its most recent bankruptcy filing, its second Chapter 11 filing in less than four years.

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Holding Company Liquidity Concerns Will Trigger M&A

03/20/13

Holding companies facing looming debt maturities are exposed to the risk of a forced sale or possible forfeiture of the stock of their bank subsidiaries.

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