ABI Blog Exchange

Some industry observers argue that bank consolidation is driven by economies of scale rather than by the regulatory burdens imposed under Dodd-Frank. But the two factors actually go hand in hand.

Read More from: BankThink

1 week 3 days ago
In a 134-page ruling, a federal judge handed General Motors Co. a legal victory on Wednesday, ruling the Detroit auto maker can retain a bankruptcy shield that protects it from as much as $10 billion in claims brought by customers seeking damages tied to faulty ignition switches, The Wall Street Journal reported.  (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 our homepage, scroll to the bottom and click “try for free.”) Troubled gun maker Colt Defense LLC launched an exchange offer Wednesday that would cut its bond debt by 70% to $75 million from $250 million, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
In a 134-page ruling, a federal judge handed General Motors Co. a legal victory on Wednesday, ruling the Detroit auto maker can retain a bankruptcy shield that protects it from as much as $10 billion in claims brought by customers seeking damages tied to faulty ignition switches, The Wall Street Journal reported.  (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 our homepage, scroll to the bottom and click “try for free.”) Troubled gun maker Colt Defense LLC launched an exchange offer Wednesday that would cut its bond debt by 70% to $75 million from $250 million, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Clearly, the biggest surprise in consumer borrowing since the crash has been the explosive expansion of student loan debt. It has surpassed both auto lending and credit card lending. And, since it ties with Payday Lending and pre-crash sub-prime mortgage lending for the thinnest underwriting there are defaults aplenty.  Consumer advocates are rightly urging the Department of Education to provide simpler and clearer paths forward for consumers with student loans in default but many people still need a helper.  As defaults in mortgage loans and on credit card loans have fallen, providers who live on the profits of counseling people who default on those loans have turned their attention and their advertising and marketing to consumers who are in trouble on their student Since bankruptcy offers very little to this crowd, and sometimes their social security payments might be offset, and collectors can be very aggressive, people in trouble on their student loans can be desperate for help. Hopefully, a greater percentage will be able to fix their problems themselves with clearer Department of Education guidelines and procedures; still, the National Consumer Law Center issued a well-advised Caution a few years ago about the folks who were purporting to help. Similar to mortgage loans, the world of government student loan defaults is many times more complex than the world of credit card defaults. 

Read More from: Credit Slips

1 week 3 days ago
Breaking News This Morning ... Earnings: Citigroup, Key Corp, Goldman Sachs New York Times Former Fed chairman Ben Bernanke is set to take a job as an adviser to hedge fund Citadel. Banks had recruited Bernanke, he told the paper (without naming his suitors), but he declined their offers. It's a well-worn path between the Federal Reserve and the private sector, particularly hedge funds. Former Fed chair Alan Greenspan worked as a consultant to hedge fundÂ...

Read More from: BankThink

1 week 3 days ago
It’s the time of year for tax refunds. We take questions from folks as to whether they can file Chapter 7 bankruptcy before filing taxes and still keep their tax refunds coming to them after they file bankruptcy or whether they can keep a tax refund received right before filing bankruptcy. The answer is they generally can keep their refunds, depending, of course, on how large the refund is. The general bankruptcy exemptions available under the federal bankruptcy exemptions (which we can use in Kentucky) are usually large enough to protect most tax refunds from being lost to the trustee. You can also use your tax refund to pay the fees and costs for the bankruptcy. Also, if you are thinking about filing bankruptcy, and are going to use your tax refund to pay off a debt to a family member or creditor prior to filing bankruptcy, you should consult with a bankruptcy attorney before doing that. There are provisions in the bankruptcy law which may allow the trustee to take that money back from the family member or creditor should you then file bankruptcy after paying them. Alternatively, if you just keep the refund and don’t pay any of it to anyone, then the refund may be able to be protected with the exemptions as outlined above.
1 week 4 days ago
Good riddance to several debt collectors that seemed hellbent on sending all Oregon student loan debtors into bankruptcy. Pioneer Credit Recovery, Enterprise Recovery Systems, National Recoveries, and Coast Professional had all sued earlier this year once the Education Department said it would no longer send them any more accounts under their current contracts. A federal judge on Tuesday has now dismissed all their claims. The Department of Education had previously stated that these collectors had mislead  distressed borrowers “at unacceptably high rates.” With roughly  7 million Americans  in default on more than a $100 billion on their student loans, having the Department of Education actively paying unscrupulous debt collectors to collect on them was a recipe for disaster. It is probably fair for Oregon and Washington consumers with defaulted student loans to question why the Department of Education did not take this action years ago before thousands of them were sent reeling into bankruptcy.   The original post is titled Student Loan Debt Collectors Denied , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .

Read More from: Oregon Bankruptcy Lawyer

1 week 4 days ago
The facts in this case just leave a person stunned.  This was a case where a consumer applied for a 30 year residential loan.  Without the debtors knowledge, the bank approved an 18 month commercial loan knowing full well the consumer couldn’t pay it back in 18 months.  The disclosure described a 30 year loan.  The bank provided three different loan applications for her to sign, but everything she relied on indicated she was getting a 30 year loan. The first she heard about an 18 month loan was when the bank told her she had a balloon payment coming up.  They wouldn’t deal with her-and started to foreclose. The jury awarded $1,000,000 in compensatory damages and $5,000,000 in punatives.  In upholding the damage award, the Montana Supreme Court recognized:
1 week 4 days ago
Plethico Pharmaceuticals Ltd., which has twice been accused of fraud in connection with a natural products company it sold in bankruptcy, may have once again negotiated its way out of legal trouble. The latest accusations come from India’s Aurobindo Pharma . It told stock exchange regulators it’s agreed to accept $23.3 million from Plethico to settle the fraud action Aurobindo initiated last week in the bankruptcy court that is overseeing the process of paying off the debts of Natrol, a company Plethico sold to Aurobindo at a chapter 11 sale. Plethico’s lawyers have not responded to inquiries about the allegations from Aurobindo, which surfaced in the Wilmington, Del., bankruptcy court. Aurobindo paid $132.5 million for Natrol, a thriving supplier of vitamins and supplements to major retailers. According to Aurobindo, $25 million worth of construction that was supposed to be going on at Natrol was allegedly a ruse to move money into Plethico’s pocket.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Plethico Pharmaceuticals Ltd., which has twice been accused of fraud in connection with a natural products company it sold in bankruptcy, may have once again negotiated its way out of legal trouble. The latest accusations come from India’s Aurobindo Pharma . It told stock exchange regulators it’s agreed to accept $23.3 million from Plethico to settle the fraud action Aurobindo initiated last week in the bankruptcy court that is overseeing the process of paying off the debts of Natrol, a company Plethico sold to Aurobindo at a chapter 11 sale. Plethico’s lawyers have not responded to inquiries about the allegations from Aurobindo, which surfaced in the Wilmington, Del., bankruptcy court. Aurobindo paid $132.5 million for Natrol, a thriving supplier of vitamins and supplements to major retailers. According to Aurobindo, $25 million worth of construction that was supposed to be going on at Natrol was allegedly a ruse to move money into Plethico’s pocket.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Honoree and former President Bill Clinton speaks on stage after receiving the inaugural Tina’s Wish Global Women’s Health Award during the 2015 Tina’s Wish Global Women’s Health Award Gala in New York.
Neilson Barnard/Getty Images
An ovarian-cancer-research charity backed by New York’s bankruptcy community got some high-profile support this week from former President Bill Clinton. President Clinton accepted the inaugural Global Women’s Health Award Tuesday night from Tina’s Wish, an organization named in honor of Tina Brozman, a former bankruptcy judge who died in 2007 at age 54 from ovarian cancer. Her husband, Clifford Chance finance and restructuring partner Andrew Brozman, started the nonprofit to help fund research focused on detecting ovarian cancer at an early stage—something that has so far eluded doctors. Each year, 240,000 women globally are diagnosed with ovarian cancer, and 150,000 die from the disease, according to Tina’s Wish. In a Waldorf Astoria ballroom Tuesday, chatter around the room about the latest in the chapter 11 world quickly turned to silence as President Clinton took the stage.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Honoree and former President Bill Clinton speaks on stage after receiving the inaugural Tina’s Wish Global Women’s Health Award during the 2015 Tina’s Wish Global Women’s Health Award Gala in New York.
Neilson Barnard/Getty Images
An ovarian-cancer-research charity backed by New York’s bankruptcy community got some high-profile support this week from former President Bill Clinton. President Clinton accepted the inaugural Global Women’s Health Award Tuesday night from Tina’s Wish, an organization named in honor of Tina Brozman, a former bankruptcy judge who died in 2007 at age 54 from ovarian cancer. Her husband, Clifford Chance finance and restructuring partner Andrew Brozman, started the nonprofit to help fund research focused on detecting ovarian cancer at an early stage—something that has so far eluded doctors. Each year, 240,000 women globally are diagnosed with ovarian cancer, and 150,000 die from the disease, according to Tina’s Wish. In a Waldorf Astoria ballroom Tuesday, chatter around the room about the latest in the chapter 11 world quickly turned to silence as President Clinton took the stage.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
In a recent decision, the United States Court of Appeals for the Eleventh Circuit confirmed its previous adoption of the “majority view” that non-consensual, third-party releases are permissible under certain circumstances.   Background
1 week 4 days ago
The Consumer Financial Protection Bureau (CFPB) (4/15/15) issued a final interpretive rule on how to provide mortgage applicants with a list of local homeownership counseling organizations. The interpretive rule restates guidance the CFPB issued in 2013, and provides further guidance for lenders who are building their own lists of housing counselors. The rule also includes guidance on the qualifications for providing high-cost mortgage counseling and for lender participation in such counseling. “Buying a home is often the largest financial decision in a consumer’s lifetime, and we want to ensure that consumers can access the independent and informed advice they deserve before making that decision,” said CFPB Director Richard Cordray. “Housing counselors are a crucial source of that helpful advice. We will continue to work to improve the home-buying experience for consumers, and today’s interpretive rule will help industry comply with these important protections.”
1 week 4 days ago
In re Filene’s Basement, LLC, et al., No. 11-13511 (KJC) (Bankr. D. Del. Apr. 16, 2015) In this Opinion, Delaware Bankruptcy Court Judge Kevin Carey ruled on a question that has evenly divided courts nationwide and remained unanswered by the Third Circuit Court Appeals – namely, whether the “15 percent” referenced in section 502(b)(6)(A) of the Bankruptcy Code refers to the remaining term of a lease or the remaining rent due under a lease.  Read More › Tags: Claims, Lease Termination Claims, Rejection

Read More from: Delaware Bankruptcy Insider

1 week 4 days ago
April 15 is not only tax day, but it’s a great day to look at your financial situation to see if you need to make any adjustments. This is the time when you can analyze how you did financially in the past year. This is the time when you’re required to have your income tax+ Read More The post With Tax Day Upon Us, Is Your Financial House In Order? appeared first on David M. Siegel.
1 week 4 days ago
The banking industry as a whole will survive startups. But many individual banks will fail to make the changes necessary to stay relevant in a rapidly changing market.

Read More from: BankThink

1 week 4 days ago
Prior to the crash, only a very few macro-economists were studying consumer borrowing and fewer still were investigating inequality of income or of wealth as an important macro-economic factor. Work in macro-economics is done at academic institutions, the Fed, think tanks and government and private enterprises. Historically, very few PhD dissertations in macro-economics dealt with consumer finance or consumer spending or inequality issues. Prior to the crash there was a divide between the small minority (which included some high prestige folks such as Joseph Stiglitz) and the dominate majority. Both sides make extensive use of mathematical formulae but the majority looks more like physics and the minority may include a dose of sociology.  This is important stuff because government fiscal policy and even monetary policy and private business decisions are often based on the work of these folks. The majority tended to believe that humans act rationally while the minority helped develop the field of behavioral economics. 

Read More from: Credit Slips

1 week 4 days ago
Wayne Parry/Associated Press
Florida developer Glenn Straub, who recently bought Atlantic City, N.J.’s Revel Casino Hotel for pennies on the dollar, is demanding that the resort’s custom-built, $160 million power plant “immediately vacate the property” after it shut off all utility services last week. Read the Daily Bankruptcy Review article here. (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.”) RadioShack Corp. won approval to sell its Defends Mobile Corp. handsets and its Latin American intellectual property, DBR reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Wayne Parry/Associated Press
Florida developer Glenn Straub, who recently bought Atlantic City, N.J.’s Revel Casino Hotel for pennies on the dollar, is demanding that the resort’s custom-built, $160 million power plant “immediately vacate the property” after it shut off all utility services last week. Read the Daily Bankruptcy Review article here. (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.”) RadioShack Corp. won approval to sell its Defends Mobile Corp. handsets and its Latin American intellectual property, DBR reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago

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