CreditSlips

Archdiocese's Potential Fraudulent Transfer Not Protected by RFRA, First Amendment

03/09/15

The Archdiocese of Milwaukee’s Chapter 11 case remains the longest running Chapter 11 case filed by an Archdiocese or other Catholic entity. It filed in January 2011, and because of religious-based objections to the application of the Code's fraudulent and preferential transfer provisions, Bankruptcy Judge Susan Kelley has declined to rule on any reorganization plan until the objections are settled.

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Pearls

03/06/15
A comic strip for the Credit Slips crowd from Stephan Pastis:


Pearls Before Swine Comic Strip, March 06, 2015 on GoComics.com.

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Credit Slips Bloggers' Amicus Briefs in Caulkett

03/05/15

With my attention drawn to other matters, my personal blogging has been light for the past month. One of the things that had my attention was the Caulkett case currently pending before the Supreme Court. The issue in Caulkett is whether a wholly underwater second mortgage can be avoided in a chapter 7 bankruptcy. Without any value to reach, a wholly underwater second would not seem to be an allowed secured claim within the meaning of section 506.

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Servicing Matters

03/03/15

I am so pleased to offer the following post by Carolina Reid, a premier housing researcher at UC Berkeley, about her excellent study of how mortgage servicers matter in creating home-saving opportunities. Welcome Carolina to Credit Slips.

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SPOE: Backdoor Bailouts and Funding Fantasies?

02/25/15

I'm thrilled that Jay Westbrook has finally come into blogosphere with his posts on Single-Point-of-Entry.  I've blogged a little on SPOE already, but I want to highlight what I still think are two critical problems with SPOE.

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Translating the Warren-Yellen Exchange

02/25/15

Senator Elizabeth Warren surprised a lot of people by laying into Federal Reserve Board Chair Janet Yellen as hard as she ever laid into Timothy Geithner. I think this was a really important exchange. But its easy to miss exactly what's being communicated in it. Senator Warren's comments can basically be translated as follows:  

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TBTF and The Single Point of Entry (SPOE): Part Two

02/25/15

In an earlier post I described the FDIC’s proposed SPOE approach to resolution of SIFI banks and other financial institutions under Title II of Dodd-Frank. That post discussed two of the three components of SPOE: control of the process by the regulator and no bailout for management or owners. This post lays out the role of the third component, the “forlorn hope” debt.

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