Bankruptcy Blogs

Many Foreclosures Get a Virus Hold

03/23/20

The Federal Government is Pausing Foreclosures on Mortgages They Control. Last week the Federal Housing Finance Agency announced a 60 day pause on foreclosures on mortgage loans the government controls. Those are mortgage loans controlled by Fannie Mae or Freddie Mac.  (Fannie and Freddie were government backed, private businesses. The government bailed them out during […]

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Mortgage bond sales flood market, sparking pleas for U.S. help

03/23/20

The rush to unload mortgage-backed securities signals that a credit meltdown that began with corporate bonds is spreading to other corners of the market.

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Bankers need to come at this crisis from a different perspective

03/23/20

The coronavirus is changing how consumers interact in branches and banking online. Bank leaders should be prepared.

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Fiduciary Duties And Financial Distress In The Time Of COVID-19

03/23/20

The COVID-19 pandemic has caused unprecedented economic disruption, creating sudden financial distress across industries. Companies are now facing impacts ranging from a dramatic decline in revenue of uncertain duration, to potential setbacks to M&A transactions, to delayed or canceled financing rounds.

With even some previously well-performing companies potentially entering the so-called zone of insolvency, it’s important to review the fiduciary duties owed by directors and officers and how discharging those duties may change in the face of financial distress.

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New York banks delay merger closing due to coronavirus outbreak

03/23/20

Flushing Financial, which had planned to complete its purchase of Empire Bancorp in early April, has moved its target date back by about two months.

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Rakuten withdraws ILC application, plans to refile

03/23/20

The company's plan had drawn strong criticism from bankers about Rakuten's potentially controlling an industrial loan company while engaging in its non-financial businesses.

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Fed announces aggressive actions to boost liquidity amid virus turmoil

03/23/20

The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.

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Banks reward front-line employees; Wells asks Fed for asset cap relief

03/23/20

BofA, JPMorgan said they are paying bonuses to branch and call center employees; the bank says removing the $1.9 trillion limit on growth will help it lend to more customers in need.

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Summary of the McConnell Bailout Bill

03/23/20

The McConnell Bailout Bill (a/k/a HR 748 or the CARES Act), weighs in at just shy of 600 pages. I've taken the liberty of summarizing it in a powerpoint deck for teaching (syllabus be damned) and thought it might be helpful to make generally available. Here it is.

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Banks are well positioned to help customers weather this crisis

03/22/20

With the government’s backing and thanks to the unprecedented capital levels they built up since the 2008 financial crisis, banks could provide relief in a way that they never have before.

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