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It's not enough for banks to avoid deceptive practices. As the CFPB's latest enforcement action against JPMorgan Chase makes clear, banks are obligated to ensure their systems protect consumers from easily preventable mistakes.

Read More from: BankThink

4 hours 23 min ago
“Dream the impossible dream; eat the impossible sundae…”  So the song goes – or rather, went – at The Show Place Ice Cream Parlour in Beach Haven, New Jersey.  Sadly, The Show Place and the adjoining Surflight Theatre have closed their doors and will be liquidating their assets in chapter 7.  The authors have fond memories of shows at the Surflight and family outings to The Show Place, and we are now in the unenviable position of wishing the institution a melancholy happy trails.  So for this installment of Bankruptcy Beach Reading, we take you to Long Beach Island, New Jersey, to bid farewell to the Surflight Theatre and The Show Place.  The Surflight Theatre was founded in 1950, with its first shows taking place in a tent by the beach.  As Long Beach Island grew, so too did the Surflight, eventually constructing a 450-seat theater, which has stood in the same location in Beach Haven for the past thirty years.  The Surflight put on high-quality shows in its short summer seasons and was a hub of arts and culture in the burgeoning beach communities on Long Beach Island.  News sources report that in that time, it gave rise to a number of stage and screen personalities, including Jim Brochu, James Brennan, Charlotte D’Amboise, Ed Dixon, David Hartman, Richard Kind, David Loud, and Seth Rudetsky.
4 hours 32 min ago
Wall Street Journal The U.S. may be second fiddle to Europe in the Ryder Cup golf competition, but that's not the case when it comes to investment banking. As Europe's large banks with big investment bank operations talk about doom and gloom, and as their shares plummet, their U.S. counterparts are moving in the opposite direction. ...

Read More from: BankThink

5 hours 19 min ago
Ryan Kavanaugh, Relativity Media CEO, takes part in a panel titled “Can Hollywood Speak Chinese?” during the Milken Institute Global Conference in Beverly Hills, Calif., in April. The company filed for bankruptcy Thursday.
Reuters
Independent film studio Relativity Media LLC, behind releases like “The Lazarus Effect” and MTV’s “Catfish,” flied far bankruptcy with plans to sell itself at auction. Read the Daily Bankruptcy Review article via The Wall Street Journal. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Coal maker Alpha Natural Resources Inc. may file for bankruptcy as soon as Monday, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

6 hours 40 min ago
I enjoy listening to a variety of podcasts while walking the dog or driving to the office. Podcasts are really amazing thing for those who crave learning, although there seems to be some rule that requires 50 bad shows to appear before you find a really great one. (Have you loaded the Stitcher radio app on your smartphone yet?  You really should.)  The EntreLeadership podcast is one of the better shows being streamed these days, and I had the pleasure of listing to Dale Partridge talk about his new book, People Over Profits. As you might guess, the message of the book is that a business will not succeed in the long-run if it places profits over people, despite some evidence to the contrary.  Perhaps it is better to say that businesses will be more successful in the long-run if they keep their customer’s best interest at heart.  I think it really comes down to establishing trust.  We trust that Apple computers are top notch and that Starbuck’s coffee is always great–they have earned that reputation.
6 hours 46 min ago
On July 29, 2015, Deb Shops SDFMC LLC, in its capacity as debtor in possession, filed 92 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d). By way of background, Deb Shops SDFMC LLC (“Deb Shops” or the “Debtors”) filed voluntary petitions for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on December 4, 2014 under Chapter 11 of the Bankruptcy Code.  By order dated December 5, 2014, the Debtors’ Chapter 11 cases were consolidated for procedural purposes only and therefore are being jointly administered pursuant to Bankruptcy Rule 1015(b). The Rosner Law Group and ASK LLP represent the Debtors in these various preference cases.  The pretrial conference has not been scheduled.  These adversary actions, as well as the Debtors’ bankruptcy proceeding, are before the Honorable Kevin Gross. For preference defendants looking for an analysis of defenses that can be asserted in response to a preference complaint, below are several articles on this topic: Preference Payments: Brief Analysis of Preference Actions and Common Defenses
17 hours 11 min ago
Several of Relativity Media LLC’s largest creditors have joined together in a stalking horse bid for the Hollywood studio that would see the exit of its founder and chief executive, said people familiar with the matter. Anchorage Capital Group LLC, Luxor Capital Group LP and Falcon Investment Advisors LLC are all part of an offer that will set the minimum floor as bidding for the studio, which on Thursday filed for chapter 11 bankruptcy, begins soon. However, Ryan Kavanaugh, Relativity’s CEO who has been a lightning rod for controversy as the company behind the Bradley Cooper thriller “Limitless” and reality show “Catfish” has faced financial and legal troubles recently, is not affiliated with the bid, one of the knowledgeable people said. He is not expected to continue as CEO if their bid is successful. Mr. Kavanaugh is attempting to put together his own bid for Relativity, a person close to the CEO said. Mr. Kavanaugh started Relativity in 2004 and guided its evolution from an arranger of financing for movies released by studios like Sony Pictures Entertainment and Comcast Corp.’s Universal Pictures into a producer and distributor of movies and television that with interests in such disparate businesses as a for-profit university and a sports agency.

Read More from: WSJ.com: Bankruptcy Beat

19 hours 55 min ago
The Cathedral of St. Paul in St. Paul, Minn.
Associated Press
A Minneapolis bankruptcy judge criticized legal fees and other expenses that have accrued over the course of the Archdiocese of St. Paul and Minneapolis’s bankruptcy case. Though he ultimately approved the bill, Judge Robert Kressel of the U.S. Bankruptcy Court in Minneapolis said Thursday he was “stunned” and “frankly a little angry” over the legal fees and other expenses, which court papers show were approaching $1.8 million as of May 31. That includes the archdiocese’s professionals and those hired by a victims group, whose fees the archdiocese is obligated to cover. “Airlines were reorganized for a fraction of this,” he said. The Archdiocese of St. Paul and Minneapolis filed for chapter 11 bankruptcy protection in January and has since been working to reach a settlement with alleged clergy sexual abuse victims, its parishes and its insurance carriers. Lawyers working on the case have to share the same limited pool of funds that the archdiocese’s creditors—primarily, the abuse victims—are counting on for compensation.

Read More from: WSJ.com: Bankruptcy Beat

22 hours 31 min ago
Ryan Kavanaugh, Relativity Media’s chief executive, in California on April 27. Relativity filed for chapter 11 bankruptcy Thursday.
Mario Anzuoni/Reuters
Relativity Media LLC’s chapter 11 filing Thursday capped off weeks of intense speculation as to when the troubled film and television studio would turn to the bankruptcy court for relief from a heavy debt load, box-office flops and a bitter legal battle. Here’s a look back at the company’s path to chapter 11. May 20: An advertising agency sues Relativity over an unpaid $401,000 bill, which Relativity paid later that day. Late May: Relativity reportedly misses a deadline to pay the holders of more than $300 million in debt, but its lenders agree to a grace period.

Read More from: WSJ.com: Bankruptcy Beat

23 hours 4 min ago
As Jason Kilborn has graciously described, Credit Slips is the blogging base of the authors of the Law of Debtors and Creditors, 7th edition, (Aspen/Wolters Kluwer 2015). We have revised the Teacher's Manual this summer and encourage all adopters or potential adopters to download the new version, available at the book's Companion Website. If we you need the professor password, email your Aspen rep or one of us.  The unfun change was discovering a few typos (blush!) in the textbook itself. We created an errata. Distributing that to your students on the first day of class will help everyone. The fun work was updating the Teacher's Manual to reflect our own experiences in the classroom and your feedback. We hope that we've given improved guidance for certain problems and we updated the discussion to reflect several changes in law.

Read More from: Credit Slips

23 hours 35 min ago
Bank of America puts an HR exec in charge of stress testing, a look at how Yellen compares to Bernanke at the 18-month mark as Fed chair, Sen. Collins tries to help small banks and Cullen/Frost shuffles some key executives.

Read More from: BankThink

1 day 23 min ago
One of the most difficult hurdles Elkhorn bankruptcy clients face is paying bankruptcy attorney fees when they are already broke. However, the last thing an Elkhorn bankruptcy client should do is hire the cheapest bankruptcy attorney they can find. There are many low cost bankruptcy attorneys who advertise their cheap prices to unsuspecting clients, just like you. You must use extreme caution. The old saying, “You get what you pay for” holds true for bankruptcy attorney fees, too.   Hiring a Cheap Elkhorn Bankruptcy Attorney Can Be a Huge Mistake When you research bankruptcy attorney fees, you may find a huge spread in the price ranges. This is due to the quality of work that will be dedicated to your case. This could be disastrous for you. Hiring an Elkhorn bankruptcy attorney who is not skilled, experienced, or knowledgeable in bankruptcy law, could potentially end with your bankruptcy case being thrown out. Once that happens, it is over. You get one shot. You don’t want to blow it. While not all inexpensive bankruptcy attorneys are ignorant of bankruptcy laws and not all expensive bankruptcy attorneys are outstanding, you will need to proceed with caution. Research is the key to finding the best bankruptcy attorney for your needs. There are many more factors to consider, besides price, when looking for a competent Elkhorn bankruptcy attorney. You should also consider the following:

Read More from: Wynn at Law, LLC

1 day 29 min ago
Recharacterization: an overview The Bankruptcy Code provides numerous mechanisms to ensure the equitable and efficient administration of claims against a debtor’s estate.  Certain courts, however, have gone beyond the express provisions of the Bankruptcy Code and fashioned the remedy of recharacterization as a means of enforcing the Bankruptcy Code’s priority scheme.  Recharacterization involves the reclassification of a purported debt claim to equity based on the economic substance of the transaction.  In so doing, courts endeavor to prevent parties from disguising equity investments or capital contributions as debt transactions as a means to receive treatment on par with a debtor’s creditors in the event the investment fails (i.e., the debtor files for bankruptcy).   Are you my code section?  Recharacterization and the Bankruptcy Code Courts are divided as to which provision of the Bankruptcy Code grants courts authority to recharacterize debt claims as equity.  The Third, Fourth, Sixth, and Tenth Circuits have held that a court’s power to grant such a remedy is within the scope of the court’s equitable powers granted by section 105(a) of the Bankruptcy Code.  In contrast, the Fifth and Ninth Circuits have rejected reliance on section 105(a), and held that, pursuant to section 502(b) of the Bankruptcy Code, courts may only recharacterize debt as equity where applicable state law would treat the asserted interest as equity.
1 day 1 hour ago
Financial institutions take information security concerns very seriously, but few make it a priority to keep accountholders updated on their safeguarding efforts.

Read More from: BankThink

1 day 1 hour ago
Bankruptcy and restructuring firm Chilmark Partners has started a joint venture with global finance firm Burford Capital, DBR reported via WSJ. The venture, Bankruptcy Litigation Funding LLC, will focus on advisory and financing services for bankruptcy-related claims. Burford said it has committed more than $500 million to litigation financing in the past five years; Chilmark said it has invested more than $1 billion in distressed private equity and that it has advised on nearly $100 billion in restructurings and financings. Neil Cummings has joined law firm Jenner & Block in Los Angeles as a partner with the corporate finance practice. Mr. Cummings has experience with financing transactions including debtor-in-possession, or DIP, financing, as well as mezzanine financing and subordinated debt financing. Most recently, he worked with law firm Proskauer Rose.

Read More from: WSJ.com: Bankruptcy Beat

1 day 2 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Retailers come and go. Some are iconic brands, while others defined consumer shopping habits and American culture. Failures occur because of increased competition, upheaval in regional and national economies, new technology, poor management and even brand obsolescence. Some brands have disappeared, like Blockbuster, Borders, Builders’ Square, Circuit City, K.B. Toys, Musicland, Montgomery Ward and Woolworth. Others retrench, like RadioShack ’s transformation into a smaller chain of co-branded Sprint retail and electronics stores and Target’s departure from Canada. Still others have shed their bricks and mortar to become exclusive online retailers: Delia’s, Linens ‘n Things, Service Merchandise and Sharper Image. Alco , Anna’s Linens, Body Central, Cache, Coldwater Creek, Deb Shops, and Dots/Simply Fashion, among others, have all departed the bricks and mortar retail landscape over the last 18 months.

Read More from: WSJ.com: Bankruptcy Beat

1 day 2 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? As the saying goes, “buyer beware.” But is it reasonable to expect the average customer to consider the creditworthiness of a retailer when buying an item or purchasing a gift card? In most cases, the customer can return the item or use the gift card, but in the case of a bankruptcy—particularly a liquidation—all bets are off. In a bankruptcy, the relationship between a retailer and its customers can fundamentally change. If a retailer is going to be restructured and continue in business, the debtor often asks the bankruptcy court to protect its customers by allowing the retailer to honor its previous obligations with them. To preserve the value of the business, it’s in the retailer’s best interest to maintain customer loyalty and thus future sales.

Read More from: WSJ.com: Bankruptcy Beat

1 day 3 hours ago
A recent FCC ruling lumps legitimate businesses in with the telemarketing abusers and will hold banks to unrealistic standards.

Read More from: BankThink

1 day 4 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? As a general rule, shoppers do better than other unsecured creditors in bankruptcy because companies want to take care of their loyal customers. Warranty programs, return policies, gift cards and other similar customer loyalty programs are usually assumed and honored in a restructuring. The one area where shoppers have a realistic concern is in the area of data collection. Many companies today collect and hold significant data on their customers that, in the event of a sale in bankruptcy to a third party, can increase recoveries to creditors and other stakeholders. Not surprisingly, shoppers often do not want that data sold. Coming to the right answer requires a balancing of the legitimate privacy expectations of a shopper against the goal of maximizing the value of the estate for all stakeholders. On balance, I believe the sale of this information along with the rest of the business to a third-party buyer should be permitted so long as the sale in bankruptcy ensures that there are certain necessary checks in place. While not an exhaustive list, the following protections may help:

Read More from: WSJ.com: Bankruptcy Beat

1 day 4 hours ago
Authored by Robert E. Pinder of Rogers TowersIt’s official – TRID will take effect on October 3, 2015. As we have previously discussed, ever since the Dodd-Frank Act mandated new, regime-changing, mortgage disclosures, the banking industry has been diligently preparing for the day that the Consumer Financial Protection Bureau (CFPB) implements a Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage Disclosures Rule – and now we know that that day will be October 3, 2015. TRID was originally slated to go into effect on August 1, 2015 but, on June 17, 2015, CFPB Director Richard Cordray issued a statement proposing a delay of TRID’s effective date until October 1, 2015. Then, on June 24, 2015, the CFPB followed up on the Director’s statement by issuing a proposed rule that would extend TRID’s effective date until October 3, 2015 (the additional 2 day delay allowed for a Saturday implementation, a schedule preferred by industry stakeholders).

Read More from: Florida Banking Law Blog

1 day 4 hours ago

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