Lending by U.S. banks continued to fall in February after dropping the previous two months despite Trump euphoria; American banks are shifting jobs to Asian countries.
Melanie Dressel was one of the most highly respected bank CEOs in the business. She was also an all-around exceptional person.
As banking leaders gain a more substantial policymaking role, they will have a greater impact if they stake out a clear position in favor of regulations that protect investors and depositors.
The SEC is investigating the bank for selling clients mutual funds that charge marketing fees when other, cheaper funds were available. SunTrust expects an enforcement action.
Read More from: eSQUIRE Global Crossings
Lily Robotics, Inc. filed a petition for relief under Chapter 11 (including a list of its top 29 creditors) in the Bankruptcy Court for the District of Delaware earlier this morning (Case No. 17-10426-KJC). Lily Robotics, based in San Francisco, CA, is a startup that has been developing a waterproof, autonomous, self-navigating flying drone capable of taking pictures and video (the “Lily Camera”). According to the First Day Declaration, Lily has suffered repeated setbacks as it has attempted to develop the Lily Camera and can no longer raise additional funding. Lily’s setbacks came to a head on January 11, 2017, when the District Attorney of San Francisco brought an action against Lily, asserting claims for Lily’s failure to deliver Lily Cameras to preorder customers. Lily will seek to liquidate its operations, refund customer deposits and attempt to sell its intellectual property assets through the Chapter 11 process. Prime Clerk, LLC is the proposed claims and noticing agent. The case has been assigned to the Honorable Kevin J. Carey.
Read More from: Cole Schotz P.C. Bankruptcy & Restructuring Law Blog
The Southern District of New York Bankruptcy Court recently limited certain bankruptcy discovery requests pursuant to Federal Rule of Bankruptcy Procedure 2004 by applying the concept of proportionality contained in the 2015 amendments to Federal Rule of Civil Procedure 26 . In re SunEdison, Inc., Case No. 16-10992 (SMB), ECF No. 2280 (Jan. 18, 2017). The court’s decision curtails the ability of non-debtors to conduct so-called “fishing expeditions,” which have become increasingly costly with the spread of requests for electronically stored information (often referred to as “ESI”). The court’s decision will be of particular interest to debtors’ counsel and assist in their efforts to stave off disruptive, costly and distracting Rule 2004 requests.
Read More from: Hughes Hubbard & Reed
This feature originally appeared in the February 24th edition of the Pittsburgh Business Times. Q: I am considering forming a limited liability company but do not understand how the entity is governed. What are my options? Advice: There is remarkable flexibility associated with the governance alternatives for limited liability companies. The decision as to which alternative you select primarily depends upon who you want to have in control of the company. A limited liability company can be “member-managed” or “manager-managed”. The governance mechanisms of a limited liability company can be structured to provide a certain level of authority to a majority interest, but also require the unanimous consent of all members for more significant decisions. Similar limitations of authority can be imposed upon a manager. In forming the entity and deciding what governance structure will be followed, it is just as important to determine how an impasse will be resolved in the event of a deadlock (if the governance structure you select allows for the possibility of an impasse). Lastly, do not overlook what is required to change the governance structure at a later date. If you have any questions related to limited liability company governance, do not hesitate to contact Bernstein-Burkley.
Read More from: Bernstein-Burkley, P.C.
Family Christian Stores has announced that it will be closing all 240 stores. This company has been in business for 85 years. The company claims that the reasons for closing all stores are due to “changing consumer behavior and declining sales”. Family Christian Stores is a non-profit and one of the largest local providers of Christian products. The company has not announced when the stores will be closed.
With the growing trend of digital products, the physical demand for books have rapidly declined. Students in schools are even using iPads instead of physical books to cover various school subjects. Personally, I do not like this change, and as a parent, I love the fact that my 2 year old loves to read her books and look at the graphics within them. Although, she cannot quite read yet, she believes that she can and I love to hear her “read” to me as she flips through the pages of her favorite books. The fact that Family Christian Stores are closing all locations in 36 states is not surprising to me but it is devastating to hear a business that has operated for 85 years and currently employees over 3,000 employees will be closing its doors.
Read More from: Bonds & Botes, P.C.
Bankruptcy can shrink your debts dramatically, but filing is not a cost-free process. In order to declare bankruptcy in California, you will need to pay several court fees, regardless of whether you intend to file under Chapter 7 or Chapter 13. In this article, our California bankruptcy lawyers discuss how much it costs to file for bankruptcy in California by listing the current bankruptcy filing fees in Sacramento County and Placer County, including information about typical fees for debtor education and credit counseling courses.
Read More from: St. Petersburg Bankruptcy Law Blog
This is a joint post by Mark Weidemaier and Mitu Gulati.
About a decade and a half ago, exit consents were a big deal in sovereign debt restructuring. At the time, sovereign bonds governed by New York law required unanimous bondholder approval before any modification to the payment terms of the bonds. The result was that creditors could easily hold out from a restructuring. Needing to mitigate the holdout problem in Ecuador in 2000, sovereign debt guru Lee Buchheit borrowed a technique from corporate bond restructuring practice in the United States. There, the Trust Indenture Act forbids out-of-court bond exchanges that modify "the right of any holder ... to receive payment ... or to institute suit" without the consent of each affected bondholder. To oversimplify, Buchheit leveraged the fact that other terms of the bonds could be amended with a lesser vote, often a simple majority or 66.67% of the bonds. This meant that potential holdouts risked having key protections stripped from their bonds in a restructuring that won the approval of a majority of bondholders.
Read More from: Credit Slips
Some advisers are urging acquirers to strike while they have strong currencies, while others are warning about the risk of overpaying. Sellers, meanwhile, must be wary of a correction after months of surging prices.
President Trump signed an executive order Friday requiring every agency to establish a task force focused on eliminating unnecessary regulations.
The Denver bank had spent the last two-plus years addressing concerns about capital and underwriting procedures.
Banks are partnering with tech companies to win back some of the small-business customers that the industry lost to fintechs.
CIBC’s CEO vows to stay “disciplined” in his bid to buy PrivateBancorp, even as some of the Chicago bank’s investors say the deal is insufficient. The head of RBC, meanwhile, said it will pursue organic growth instead of acquisitions, at least for a while.
Congressional Republicans are weighing potentially broad changes to the stress test program, including alterations to the way the tests are performed and the consequences of failing them.
Without fanfare, on February 8 the Fraud Section of the Department of Justice (DOJ) published new corporate compliance guidance on its public website. The guidance is presented as a set of topics and questions, entitled “Evaluation of Corporate Compliance Programs”. It is the first formal guidance to be issued from the fraud section of the … Continue reading
Read More from: The Robins Kaplan Bankruptcy Blog
The following is taken from a lecture given by the author on February 22, 2017 to the Maryland Bankruptcy Bar Association.
On February 1, 2017, the President nominated Neil McGill Gorsuch to be an associate justice on the Supreme Court. Tonight, I’m going to review his biography, discuss some of his major bankruptcy opinions, and talk about what his presence on the Supreme Court might mean for our bankruptcy practices.
Neil Gorsuch is a bit young for appointment—age 49, although the average age of appointment for justices is 53 (which includes John Jay, who was 32 when he was appointed in 1812). His mom was Anne Gorsuch Buford, who was the Administrator of EPA, and resigned after 22 months, having been held in contempt of Congress.
Read More from: Bankruptcy Law Network
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