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While it is true that more consumers complain to the Consumer Financial Protection Bureau about their mortgages, the data still reinforces the idea that overdraft fees are more high-cost credit than protection.

Read More from: BankThink

7 hours 32 min ago
Receiving Wide Coverage… The American Bankers Association has pressed the idea of taking Congress to court over its decision last year to cut yearly dividend payments from the Federal Reserve to its member banks. The measure is part of a broad highway spending bill that "violates several legal principles" like breach of contract and taking of property without just compensation, ABA president Rob Nichols noted in a letter he wrote to Congress Thursday. Banks are required...

Read More from: BankThink

7 hours 37 min ago
[wsj-responsive-image P="//si.wsj.net/public/resources/images/BN-NT906_ENERGY_P_20160428163322.jpg" J="//si.wsj.net/public/resources/images/BN-NT906_ENERGY_J_20160428163322.jpg" M="//si.wsj.net/public/resources/images/BN-NT906_ENERGY_M_20160428163322.jpg" caption="Charles Walker is silhouetted against an overcast sky Tuesday, Feb. 7, 2012, attaching wires to one of two replacement transformers on a power pole in Nacogdoches, Texas." credit="Daily Sentinel/Associated Press" placement="Inline" suppressEnlarge="false" ] Energy Future Holdings Corp. said investors won’t go through with a planned buyout of its Oncor business because of conditions put up by a Texas state agency. (But some investors are scrambling to try to save it.) The Wall Street Journal has 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.”)

Read More from: WSJ.com: Bankruptcy Beat

9 hours 22 min ago
What happens when the counterparties on both sides of a contract are debtors in separate bankruptcy cases and their estates have contrary views about whether to reject or assume a contract?  This was exactly the issue faced by the Bankruptcy Court for the Eastern District of Missouri in In re Noranda Aluminum, Inc.  There, the Bankruptcy Court heard debtor Noranda Bauxite Ltd.’s motion to reject a sales agreement under which it was required to provide bauxite, a raw material used to make aluminum, to the counterparty (the “Bauxite Agreement”).  The counterparty to the Bauxite Agreement was Sherwin Alumina Co., LLC, a debtor with its own chapter 11 case before the Bankruptcy Court for the Southern District of Texas.  Sherwin, in its own bankruptcy case, had moved to assume the Bauxite Agreement, and it objected to Noranda’s rejection motion in Noranda’s bankruptcy case, arguing that rejection could force it out of business and cause its 575 employees to lose their jobs.  What was the Missouri Bankruptcy Court to do?   Appropriate Standard for Rejection
22 hours 13 min ago
State Prosecutors Accuse Student Loan Giant Of Wrongdoing According to the Huffpost Business Navient Corp., the nation’s largest student loan company, violated state laws that ban unfair or abusive practices by paying call center workers based on how quickly they could get struggling borrowers off the phone, a group of more than two dozen state attorneys general alleged.  For more This practice smacks of the same problems that permeated the mortgage lending practices.  Lenders are rewarded for doing nothing that will really help the borrowers.  I am not asking you to ignore the horrible abuses that a few borrowers suffered on the student loan system.  Borrowing hundreds of thousands of dollars to obtain a degree that will never provide for the necessary funds to pay their student loans.  Money is not free.  Loans should not be entered into without understanding the long range consequences on the family budget. Having said that lenders (schools) need to be responsible for their actions.  They give loans to individuals that they know will not be able to repay the debt, unless they hit the lottery.  The schools raise tuition so as to make more loans, which makes it impossible for those students who do not have to take out student loans to get an education.
1 day 5 min ago
A ninth-grader challenges Bank of America's CEO; the San Francisco Fed has a lot of interest in fintech; FinCEN's Jennifer Shasky Calvery is leaving, possibly for a banking job; Wells Fargo's Secil Watson talks up a new biometrics option; and Sallie Krawcheck appreciates Carla Harris' career advice. Plus, Kelly Ripa and the 49ers.

Read More from: BankThink

1 day 1 hour ago
[wsj-responsive-sandbox id = "0" ] The company behind Los Angeles’s iconic Roscoe’s House of Chicken and Waffles restaurants has promised to come up with a plan by Oct. 1 that explains its path out of bankruptcy. The pledge, filed in court documents Wednesday, came from restaurant officials who put four Roscoe’s locations into bankruptcy on March 25 while they appeal a $3.2 million award to a former employee who said he was a target of racial discrimination and sexual harassment. The restaurant locations—three in Los Angeles, one in Pasadena—employ nearly 400 people. A successful appeal could lower the amount that the restaurant operator owes to ex-Roscoe’s worker Daniel Beasley, a black man who sued in 2013 saying he worked later shifts and got fewer schedule requests than his Hispanic coworkers. Mr. Beasley’s lawyer said one of his managers, a Hispanic woman, commented that black workers were lazier. Aside from challenging Mr. Beasley’s award, restaurant officials said that finances will improve in July once it starts getting $30,000 monthly payments for selling its trademark and intellectual property.

Read More from: WSJ.com: Bankruptcy Beat

1 day 2 hours ago
Success rates vary wildly for innovation labs, but some basic principles increase a bankÂ's chances of the incubation process leading to viable product expansion.

Read More from: BankThink

1 day 5 hours ago
Income Whether you are eligible to file under a particular chapter of the bankruptcy code is dependent upon a number of factors. One of the most critical factors is whether or not you qualify based on income. Income is calculated based upon all sources for one part of the bankruptcy petition, yet not necessarily included+ Read More The post Proof Of Income Is Critical To Filing Bankruptcy appeared first on David M. Siegel.
1 day 5 hours ago
Last week, my law partner Mary and I had the opportunity to attend the Montgomery Chamber of Commerce’s Women’s Roundtable which featured Martha Hawkins as the guest speaker.  If you are from the Montgomery area, you are probably familiar with Martha’s Place.  Ms. Hawkins owns Martha’s Place which is a restaurant featuring homemade Southern cuisine.  The story about how Ms. Hawkins made her restaurant a success is truly remarkable.  Ms. Hawkins spoke about her secret to her success at the luncheon.  Her faith in God and a strong belief in her ability was the key to making the restaurant happen.  She did not have a mentor, a business plan or any money!   She said surrounding herself with encouraging friends was a must. Mary’s Perseverance and Faith

Read More from: Bonds & Botes, P.C.

1 day 5 hours ago
Authored by Adam B. BrandonFlorida’s Third District Court of Appeal (DCA), sitting en banc, recently withdrew an unpopular decision applying the statute of limitations defense to mortgage foreclosures. As previously discussed on this blog, the Third DCA’s prior opinion in Deutsche Bank Trust Co. Am. v. Beauvais took the unique position that the dismissal of a foreclosure action without prejudice had no effect on the running of the five-year statute of limitations. This meant that a subsequent foreclosure action based on a new default could be time-barred if not commenced within five years of the original acceleration if the lender took no affirmative action to decelerate the loan following the original dismissal.

Read More from: Florida Banking Law Blog

1 day 6 hours ago
Innovation in financial services faces a hurdle in the narrow, short-term profit motives of predatory patent trolls. Here is what startups can do to ward off attacks.

Read More from: BankThink

1 day 7 hours ago
Your bankruptcy case is filed. What happens next? After you’ve assembled all the paper, after you’ve answered endless lawyer questions, and after you’ve filed all the bankruptcy schedules in your case with the court, what do you need to do now? Actually, relatively little happens after you’ve filed your bankruptcy.  The heavy lifting is done. But for a successful outcome to your case, you need to stay engaged.  Bankruptcy is not the kind of law you just hand to your lawyer and bow out. Here’s what you need to do to as a member of your bankruptcy team. 1.  Open your mail Read what the court and I send you.  I sent you a copy so you can see what is going on and what I have done on your behalf. Much of a bankruptcy case plays out in paper generated by my office and the court.  Stay up on the latest. Make arrangements to appear at the first meeting of creditors. 2.  Review what you have signed It takes a lot of paper to file a bankruptcy case and you undoubtedly signed lots of schedules. Go back and review what you signed.  Read the question and your answer.  Is your answer true and complete?
1 day 7 hours ago
“As a workplace mediator for over 25 years I look forward to you continuing your series. Interesting to find out if your thoughts apply to my area as well. Thanks, Don” Thornton Mason National Director — Workplace Mediation

Read More from: Mediatbankry

1 day 7 hours ago
Wall Street Journal Goldman Sachs is looking at adding banking services for its online deposit-taking platform, including checking accounts and electronic-bill payments. Whether it would issue debit cards or paper checks, though, remains to be seen (it could well stick to its savings accounts, though, and it's not interested in pushing into credit cards). "We are focused on integrating the platform, ensuring its smooth functioning and delivering high levels of customer service," a Goldman spokesman said....

Read More from: BankThink

1 day 7 hours ago
A bankruptcy court wrote that filing for bankruptcy is “powerful magic.”  By finding federal preemption of state law fraudulent transfer claims, the Second Circuit Court of Appeals’ decision in the long-running Tribune case showed just how powerful this magic can be. The Tribune saga began in 2007 when, during steep changes in the publishing industry, the struggling Tribune Company was taken private in a leveraged buyout (“LBO”) led by investor Sam Zell.  Under the terms of the LBO, Tribune added approximately $8 billion of debt to its balance sheet to fund a cash tender offer for all of its outstanding common stock, paying $34.00 per share for the 224 million common shares that were tendered.  Within a year of the LBO, however, Tribune was forced to file bankruptcy under Chapter 11.

Read More from: eSQUIRE Global Crossings

1 day 8 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37512680/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37512680/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37512680/smartcrop?height=853&width=1280" credit="Reuters" placement="Inline" suppressEnlarge="false" ] Spain’s Abengoa SA won a U.S. bankruptcy court’s protection despite some objections. The Wall Street Journal has 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.”) Core Entertainment Inc., the company behind the reality singing series “American Idol,” filed for bankruptcy, DBR reports in WSJ. Oil producer Pacific Exploration & Production Corp. filed for creditor proteciton in Canada, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 day 9 hours ago
By Donald L. Swanson By mid-November 2015, the Archdiocese of Milwaukee  has been battling its sex abuse claimants in Bankruptcy Court for nearly five years.  The fight has been tough: described as “scorched earth.” The Archdiocese has been fighting to limit payouts on sex abuse claims to the low single-digits of millions of dollars.  But the Archdiocese finally abandons this part of the fight and decides to pay much, much more. The result is a mediated Chapter 11 plan in the bankruptcy proceeding that is confirmed on November 13, 2015, (Doc. 3322). Following confirmation, the what-ifs and if-only-they-had questions and regrets are many and profound for everyone involved.  Hindsight provides 20/20 clarity. The following plan details and comparisons show why the Archdiocese of Milwaukee bankruptcy stands as an example of how-not-to handle a case like this and a don’t-let-this-happen-to-you symbol for other cases. CONFIRMED PLAN TERMS The Milwaukee Journal Sentinel explains the terms of the confirmed plan like this: PAYOUTS –The plan will pay about $21 million to abuse claimants — of which the claimants’ own lawyers will take a share.

Read More from: Mediatbankry

1 day 11 hours ago
Does the bankruptcy filing of a limited liability company without the approval of its “Special Member,” the secured lender serving as “blocking director,” render that filing infirm as unauthorized and subject to dismissal?  Not necessarily, held the United States Bankruptcy Court for the Northern District of Illinois in a decision concluding that the secured lender’s blocking director playbook in that case was missing an essential page — the debtor’s amended operating agreement allowed the blocking director to consider only its interests, without consideration to any interest affecting the debtor.  This absence of member fiduciary obligations was contrary to the law of the debtor’s state of formation (Michigan) and rendered the “blocking director” provision of the operating agreement void as a matter of both state and bankruptcy law.  In Part One of this two-part series, we delve into the bankruptcy court’s analysis of the allegedly unauthorized filing, and in Part Two, we tackle why the court disagreed with the secured lender’s argument that the debtor’s filing was in bad faith.
1 day 20 hours ago
On April 21, 2016, Paladin Energy Corporation (the “Debtor” or “Paladin”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. According to the Paladin’s Cash Collateral Motion  (the “Motion”) [Dkt. No. 13], Paladin is an oil and gas producer with interests in numerous wells in Texas and New Mexico. See Motion at 4. Paladin’s liabilities include over $22 million owed under a 2008 Credit Facility with MUFG Union Bank N.A. as administrative agent, and trade debt. See Motion at 5. The Debtor’s bankruptcy case is captioned In re Paladin Energy Corp., Case No. 16-10742. The bankruptcy case has been assigned to Judge Barbara J. Houser. A copy of the Motion can be accessed here: Download Paladin Energy Motion. For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.  For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.
2 days 1 hour ago

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