Bankruptcy Blogs

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The Long and Winding Road: Four years after the government bailout of Fannie and Freddie, the Treasury is restructuring the terms of its investment in the beleaguered behemoths of housing. Instead of a mandatory 10% quarterly dividend, an arrangement which at times has forced the GSEs to borrow more from the government to pay the government, the Treasury will now capture any and all profits they generate. When Fannie and Freddie...

A judge on Thursday granted broad subpoena power to the independent examiner investigating Residential Capital LLC’s relationship with parent Ally Financial Inc., though he agreed with private equity firm Cerberus Capital Management LP to limit the number of parties with access to the examiner’s data. Read the Daily Bankruptcy Review article here.

In re Armistead Local Bankruptcy Court Mortgage Form Must Be Used An opinion by U.S. Bankruptcy Judge Marvin Isgur from the Southern District of Texas, Houston Division bankruptcy court, indicates that mortgage companies and banks must follow our local bankruptcy court’s rules, including a requirement that they attach a detailed mortgage account history to their Proofs of Claim.

Restoring Glass-Steagall would be a palliative just like the Volcker rule: simple to say, hard to do. Even under the 1933 law, financial innovators blurred the lines between commercial and investment banking - almost from the very start.

A U.S. bankruptcy judge said the parent of American Airlines couldn’t scrap its pilots’ contract and impose more draconian terms, further delaying AMR Corp.’s efforts to emerge from bankruptcy. Read The Wall Street Journal story here.