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Hensarling Crafting Bill to Repeal “Huge Swaths” of Dodd-Frank

House Financial Service Committee Chairman Jeb Hensarling (R-Texas) is crafting legislation that would repeal huge swaths of the Dodd-Frank financial reform law, The Hill reported today. Hensarling said that the biggest piece of the sweeping legislation would focus on “too big to fail” and the designation of non-bank financial institutions as “systemically important financial institutions” (SIFIs). “There’s no secret here that we do not believe in the entire SIFI regime,” Hensarling said. He balked at nailing down a timeline for the bill when asked whether it could be ready by the spring.

Fed Report Says U.S. Household Net Worth Declined by $1.2 Trillion

A Federal Reserve report released yesterday said that Americans lost nearly $1.2 trillion in wealth in the third quarter as a shaky stock market contributed to one of the largest declines in household net worth since the economic recovery began, the Wall Street Journal reported today. The decline was driven mostly by a decline in corporate equities, which shed over $2.3 trillion over the quarter. Major stock indexes in the U.S. plunged sharply in late August. So far in the fourth quarter, stocks have regained most of their lost ground, so the decline in net worth may prove fleeting. Despite the decline, the aggregate wealth in the U.S. is near the highest levels ever recorded. The $85.2 trillion in net worth is down from the record $86.4 trillion recorded in the second quarter. By contrast, households had $66.5 trillion in net worth in 2007 before the recession started. At the low point of the recession, the wealth had dropped to $55 trillion.

Student Debt Relief Case Hits Snags in First Circuit

An effort to open a new path for graduates with student debt to get relief appeared to hit a snag yesterday in the U.S. Court of Appeals for the First Circuit, Bloomberg News reported today. During about an hour of oral arguments, the panel judges in the case of Robert Murphy vs. U.S. Department of Education questioned the wisdom of revising the tough standards used to decide whether a borrower can wipe out their loan after declaring bankruptcy. Murphy, a bankrupt 65-year-old with hundreds of thousands of dollars in student loans, has been fighting for three years to get his loans erased. A ruling in Murphy’s favor could make it slightly easier for the most destitute student borrowers in America to get a reprieve on their college loans, by setting more lenient criteria for getting wiping out the debt in bankruptcy. Sandra Lynch, one of three judges on the panel, seemed skeptical of Murphy’s argument — that he had been held to an unfair standard for discharging his debt by lower courts — and began peppering his lawyer with questions within the first 30 seconds of his five-minute testimony. The other two judges seemed more sympathetic to Murphy, and a disagreement among the judges could potentially lead to a split decision.

Congress Unlikely to Agree on Puerto Rico Rescue by Year's End

Less than 10 days before they plan to adjourn for the Christmas holiday, lawmakers in Congress remain divided over how to help Puerto Rico as the island rapidly runs out cash and inches closer toward the first major default on its bonds, Bloomberg News reported yesterday. Top Senate Republicans are moving to extend as much as $3 billion in aid to the territory as long as it cedes some financial powers to a federal board, while declining to give Puerto Rico the ability to file for bankruptcy to cuts its debt. Democrats, who are in the minority, may try to attach a bankruptcy measure to the spending bill that Congress needs to pass to keep the U.S. government running, seeing it as the best chance to push through one of Puerto Rico’s key priorities. “We don’t see how there is a resolution in the week or so that remains before this Congress leaves for the holidays, and once it returns this fight could drag on for many months,” Guggenheim Securities said in a note to investors. Read more.

Rep. Pedro Pierluisi recently spoke for an exclusive ABI video outlining why congressional action is needed to help reverse Puerto Rico's debt crisis, including his legislation to permit the territory's public companies to file under chapter 9. Watch the video here. 

A free BloombergLaw “Eye on Bankruptcy” webinar on Dec. 17 will feature Rep. Pedro Pierluisi and Judge Steven Rhodes discussing‎ Puerto Rico debt crisis from ABI’s Winter Leadership Conference! To register, please click here.

Also, make sure to register for ABI’s Caribbean Insolvency Symposium on Feb. 4-6 in San Juan to join experts discussing Puerto Rico’s debt crisis! 

For further analysis and developments on Puerto Rico’s debt crisis, be sure to visit ABI’s “Puerto Rico in Distress” webpage. 

Morgan Stanley in $225 Million Deal with U.S. Regulator over Mortgage Bonds

The National Credit Union Administration said that Morgan Stanley has agreed to pay $225 million to settle claims that it sold toxic mortgage-backed securities to credit unions that later failed, Reuters reported. The deal boosts to nearly $2.43 billion the amount the NCUA has recovered from banks through lawsuits it began filing in 2011, the U.S. regulator said. These lawsuits sought to recoup investment losses that led to the 2009 and 2010 failures of the U.S. Central, Western Corporate, Constitution Corporate, Members United Corporate and Southwest Corporate credit unions. Some lawsuits targeted banks that allegedly sold securities backed by defective residential mortgages. Others targeted trustees that allegedly failed to monitor loan servicers or require banks to buy back defective loans.
 

A Night of Networking and Hockey

Philadelphia Flyers vs. Toronto Maple Leafs

to Benefit the ABI Anthony H.N. Schnelling Endowment Fund

Please join the ABI Anthony H.N. Schnelling Endowment Fund at the Wells Fargo Center in Philadelphia on January 19, 2016, for a night of great hockey and fun networking in a luxury suite generously donated by Gavin/Solmonese, complete with food and open bar. Tickets are $200 and benefit the ABI Endowment Fund. This event is sure to be a sell-out!

To defray the cost of the food and beverage service, ABI is seeking sponsorships. Firms donating $1,000 will receive a ticket to the suite, signage at the event, and recognition in the ABI Journal and online. A portion of your sponsorship is tax-deductible!

To sponsor this event, please email Sharisa Sloan at ssloan@abiworld.org.

You can download the event flyer here.

Sponsors

 

 

 

 

Conference Address
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Join ABI in sunny Phoenix for the 27th Annual Winter Leadership Conference! This year, the Conference is in downtown Phoenix at the historic Arizona Biltmore Resort and Spa and the program features topics designed for consumer and business practitioners, as well as financial advisors. As always, the Conference also provides numerous social and fun events to network and renew friendships with your colleagues from around the nation. We look forward to seeing you in December!

 

 

 

 

Conference Address
Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

Now in its 24th year, ABI’s Bankruptcy Battleground West continues its tradition of bringing seasoned insolvency professionals together to discuss the leading issues of bankruptcy law, with a focus on the Southern California region. This year’s program once again offers concurrent sessions on a variety of insolvency topics, making this a conference you will not want to miss!

 

 

 

 

Conference Address
Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

The 40th Annual Alexander L. Paskay Memorial Bankruptcy Seminar, a memorial CLE program honoring the lifetime achievements of the late Judge Alexander L. Paskay, continues its legacy of insightful and timely programming. The Seminar features prominent regional and national speakers joined by bankruptcy judges to discuss both commercial and consumer bankruptcy issues. Several networking events and ethics CLE are also provided.

 

 

 

 

Conference Address
Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

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