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The alleged practices at the heart of Well Fargo's settlement were fueled by a short-term incentive system that is detached from broader goals.

Read More from: BankThink

2 weeks 1 day ago

While troubling factors such as higher risk profiles may be behind the recent lending boom, the industry could also just be returning to the historical average for loan growth following the "Great Panic" of 2008-2010.

Read More from: BankThink

2 weeks 1 day ago

The government of the United Arab Emirates has announced that it is working on a personal insolvency law (to accompany an imminently forthcoming business restructuring law). That's the good news. The bad news is that the personal insolvency law is to be designed exclusively for the benefit of small business people and others (shareholders, directors, employees?) with debt distress related to business. As a news report incisively observes: "So while an owner of a small business whose company cheque bounces because of lost business will receive protection under the new law, an individual whose rent cheque bounced because of short-term cash flow problems, will not."

Read More from: Credit Slips

2 weeks 1 day ago

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I have joined a new law firm and am making a little more money (let’s be clear: I am still not making “lawyer money”), and it has occasioned some thoughts on how I should spend it.  There are, of course, the necessities.  We needed a bigger house, and we need to save more for retirement and college.  I grit my teeth about these things, but I also have to recognize that these expenses are really investments, and that I am so fortunate that they are possibilities for me.  The thing I really, really want is a new car (I am from Jersey, after all), but my 11-year-old car has very low mileage and gets me from point A to point B just fine.

Read More from: Spiritually Bankrupt

2 weeks 1 day ago

Receiving Wide Coverage ...

It ain't over...: Wells Fargo's settlement last week didn't end its woes. While the bank was making apologies, officials were assessing the situation. Sen. Jeff Merkley, D-Ore., a member of the Senate Banking Committee, called on the panel to hold hearings to find out exactly what happened. A member of the Federal Reserve Board also weighed in. "What I have seen is that too many banks, instead of putting in place a...

Read More from: BankThink

2 weeks 1 day ago

Mary, Gail, and Ms ReeseAs small business owners, we are always trying to find ways that we can assist the communities in which we work.  This year was no exception!  As parents, we are saddened by the many issues the Montgomery Public School system currently faces.  Many schools in Montgomery are very outdated and some do not even have central air conditioning.  In the news, we are constantly seeing stories about the Montgomery Public School Board members fighting over different issues and leadership changes.  After praying about what would be the best way to help one of our local public schools, we decided to purchase all the school supplies for students in one elementary classroom to ease the stress of parents having to purchase school supplies at the beginning of the year.  The school we selected was Highland Avenue Elementary.

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

2 weeks 1 day ago

Compressing pensionThe Pension Protection Fund (PPF) is reviewing its insolvency risk model with Experian. The proposals being considered are particularly relevant to the financial services and charity sectors.

Read More from: eSQUIRE Global Crossings

2 weeks 2 days ago

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Chicago    (photo by Grant Swanson)

By Donald L. Swanson

Back in February, 2016, we learn that the Bankruptcy Court in Chicago has revoked its local rules on mediation, while still encouraging parties to mediate their disputes.

This development seems a bit . . . well . . . bizarre. After all, for example, such an approach appears to violate Federal statutes and raises concerns over mediation confidentiality.

Read More from: Mediatbankry

2 weeks 2 days ago
  The 11th Circuit upheld sanctions against the Florida Department of Revenue for garnishing a chapter 13 debtor's travel reimbursement check post-confirmation to collect child support. In re Gonzalez, No. 15-14804, 2016 WL 4245422, at *1 (11th Cir. Aug. 11, 2016). The amended plan as confirmed provided for the $2,400 claim filed by the Florida Dept. of Revenue for past due child support, and direct payment of on-going child support.  Subsequent to confirmation, the Florida Dept. of Revenue intercepted a $4,700 check for reimbursement of Debtor's travel expenses, thereby preventing Debtor from paying his government issued credit card and putting him at risk for suspension from work.  Debtor's counsel filed a motion to hold the Dept. of Revenue in contempt.  At the hearing the Department agreed to release the funds, and cease further collection efforts, but did not concede that the actions constituted a violation of the automatic stay or violation of the confirmed plan.
  The Bankruptcy Court for the Southern District of Florida found that the Dept. of Revenue actions violated the confirmed plan and awarded fees to Debtor's counsel.  The Department appealed, and the ruling was affirmed by the District Court.  A subsequent appeal was taken to the 11th Circuit.

Read More from: Tampa Bankruptcy

2 weeks 2 days ago

couple_sitting_side by sideScoping out dates and mates by their credit scores at first seems far fetched and overblown.

Not to mention it pretty much kills romance.

CNN reported on credit scores and dating.  My colleague Frank Pipitone took off on the idea.

But there is a kernel of wisdom there that couples in California need to heed.

A couple’s community property is liable not only for the debts that either spouse incurs during the marriage, it is liable for the debts that either spouse incurred before the marriage.

Zap!

Your accumulations during marriage could be levied by a creditor with a judgment to satisfy your spouse’s debts that arose before the two of you even met.

2 weeks 3 days ago

Here is a photo of the resignation letter from the mediator in the Caesars Entertainment bankruptcy proceeding.

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Mediator’s Resignation Letter in Caesars Bankruptcy [with highlighting]
Wow!!  That’s an interesting take.

And kudos to the mediator.  It’s always refreshing to see a principled stance.

This Caesars case is pending in the Bankruptcy Court for the Northern District of Illinois, located in Chicago.

Read More from: Mediatbankry

2 weeks 4 days ago

  Nature Of The Debtor This is the chapter 7 bankruptcy case study for Mrs. C., who resides in Wheeling, Illinois. She has come to the office with the simple thought in mind to eliminate her outstanding credit card debt and medical debt. She has been struggling for approximately three years. Although she has been+ Read More

The post Case Study For Mrs. C. From Wheeling, Illinois appeared first on David M. Siegel.

2 weeks 4 days ago

There is a compelling case for business parties to use smart contract technology in the future to complete binding legal contracts.

Read More from: BankThink

2 weeks 4 days ago

One hard and fast rule in Bankruptcy is that debts and claims are “set in stone” as of the petition date, or perhaps post-petition if added to the Chapter 13 plan.  Bankruptcy Courts and Trustees do not normally police potential debts that may come up later.  There are some exceptions to the general rule, and a Texas Bankruptcy Court addressed one of them recently.

In In re Sinclair, Ch. 13 Case No. 11-34564 (Bankr. S.D. Tex. September 7, 2016)(click here for opinion), the Debtors filed their Chapter 13 case in May 2011, proposed a confirmed plan, made all payments and completed their financial management course.  Thus, they were eligible for a discharge.  “But, there is a rub,” said  Judge Jeff Bohm.  There existed a criminal case against Mr. Sinclair arising from an alleged sexual relationship with a minor.  The alleged relationship started after the Chapter 13 petition was filed, and is discussed in a little more detail in the Court’s Order.  It resulted in a felony indictment against the Debtor in July 2014, which was still pending as of September 2016.

Read More from: Georgia Bankruptcy Blog

2 weeks 4 days ago

The Financial Accounting Standards Board's accounting rules for credit risk have good intentions, but a likely amplification of the ups and downs of the credit market was probably not one of them.

Read More from: BankThink

2 weeks 4 days ago

Attorney Ron SykstusIn what can only be described as stunning news, federal regulators said Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts — without their customers knowing it — since 2011. The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

Employees Opened Unauthorized Accounts

As reported by Money CNN, the scope of the scandal is shocking. An analysis conducted by a consulting firm hired by Wells Fargo concluded that bank employees opened up over 1.5 million deposit accounts that may not have been authorized, according to the CFPB.

The way it worked was that employees moved funds from customers’ existing accounts into newly-created accounts without their knowledge or consent, regulators say. The CFPB described this practice as “widespread” and led to customers being charged for insufficient funds or overdraft fees — because the money was not in their original accounts.

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

2 weeks 4 days ago

Receiving Wide Coverage ...

Incentive to cheat?: Wells Fargo was hit with the largest penalty in the history of the Consumer Financial Protection Bureau to settle charges that thousands of employees created unauthorized bank and credit card accounts for customers in order to collect bonuses for themselves. The company fired 5,300 employees as a result. The bank agreed to pay a $185 million regulatory enforcement action plus another $5 million in customer remediation. Wells' own analysis...

Read More from: BankThink

2 weeks 4 days ago

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9/11 Memorial

By Donald L. Swanson

The American Bankruptcy Institute and St. John’s University School of Law do an annual forty-hour [yes, that’s 40-hour] “Bankruptcy Mediation Training” course.  The next course is coming soon — it’s scheduled for December 11 – 15, 2016.

I took this course two years ago – and loved it!  Here are some reasons why.

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Course Site

First of all, this is not a vacation.  These are long, hard days of study and work and thought, complete with working-lunches, no less!  But being from Omaha, I get up early and walk around lower Manhattan to see the City each morning before showing up – on time – for the course.

Read More from: Mediatbankry

2 weeks 4 days ago

Within five years, a dramatic transformation of the mortgage market will force firms to expand product menus beyond mortgages to develop stronger relationships with their customers.

Read More from: BankThink

2 weeks 5 days ago

A likely sale of CIT Group's aircraft unit (and a whole lot of other stuff) is keeping Ellen Alemany busy, a former Wall Street banker talks about big data as a financial weapon of mass discrimination targeting women and the poor, and First Busey shows how investing in employees pays off. Also, TIAA's Kathie Andrade, Deloitte's Cathy Engelbert and (to spice things up) Victoria Beckham.

Read More from: BankThink

2 weeks 5 days ago

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