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The PCAOB is asking for public comment on whether to require audit firms to file a new form to make public the name of the engagement partner and information about other participants in the audit. 
1 day 15 hours ago
Receiving Wide Coverage ... Ch-Ch-Changes: Fintech will be shaking up the banking industry for years to come, according to a report from the World Economic Forum and Deloitte. The wide-ranging report instructs banks to prepare themselves for a state of near-constant disruption as tech firms alter consumers' expectations by making financial services faster and cheaper. The Wall Street Journal notes the reports' authors also arranged meetings between old-school behemoths like Visa and JPMorgan Chase and upstarts...

Read More from: BankThink

1 day 16 hours ago
JW Resources Inc. filed for chapter 11 bankruptcy Tuesday, the latest coal miner to seek court protection during troubles in the industry. 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.”) Puerto Rico’s electric power utility was close to a deal with creditors Tuesday that would allow it to avoid default, The Wall Street Journal reports. A bankruptcy judge Tuesday urged the federal government to agree to halt active collection efforts against a subset of former Corinthian Colleges Inc. students—but declined to broadly order a temporarily halt on the collection of billions of dollars in student loans, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 17 hours ago
JW Resources Inc. filed for chapter 11 bankruptcy Tuesday, the latest coal miner to seek court protection during troubles in the industry. 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.”) Puerto Rico’s electric power utility was close to a deal with creditors Tuesday that would allow it to avoid default, The Wall Street Journal reports. A bankruptcy judge Tuesday urged the federal government to agree to halt active collection efforts against a subset of former Corinthian Colleges Inc. students—but declined to broadly order a temporarily halt on the collection of billions of dollars in student loans, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 17 hours ago
BOKF, N.A. v. JPMorgan Chase Bank, N.A. (In re MPM Silicones, LLC), 518 B.R. 740 (Bankr. S.D.N.Y. 2014) – Senior lienholders sued lenders holding junior liens on common collateral, arguing that the junior lienholders violated an intercreditor agreement.  The bankruptcy court … Continue reading →
1 day 19 hours ago
The financial crisis and its aftermath elevated the stature of CROs. The true test of their new clout will come during the next market expansion.

Read More from: BankThink

2 days 3 hours ago
Posted by Kathy Bazoian Phelps    Below is a summary of the activity reported for June 2015. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 140 years of newly imposed sentences for people involved in Ponzi schemes; at least 7 new Ponzi schemes involving over $240 million; and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that I am just relaying what’s in the news, not writing or verifying it.    Thomas Abdallah, 51, and Mark George, 58, of Ohio, pleaded not guilty to charges that they ran a Ponzi scheme, along with Jeffrey Gainer, 51, through KGTA Petroleum Ltd. The three allegedly defrauded 70 investors out of $17 million. They promised investors returns of up to 5% per month, or 60% per year, for investments in oil and fuel.     William D. Allen, 36, and his business partner, Susan C. Daub, 55, were criminally charged in connection with an alleged $32 million Ponzi scheme. Allen played for three NFL teams over his 12 year career, including the Giants, Dolphins and Patriots. Allen and Daub are accused of running a Ponzi scheme through their company, Capital Financial Partners Enterprises LLC, which was making high-interest, short-term loans to professional athletes.

Read More from: The Ponzi Blog

2 days 5 hours ago
Since 2004, 12 Catholic dioceses have filed under Chapter 11. The latest case is that of the Archdiocese of St. Paul and Minneapolis, which filed in January 2015. The claims bar date is set for August 3. How should the Archdiocese go about notifying potential claimants -- clergy abuse survivors who have not yet come forward and who may feel ashamed and alone -- that they need to file a claim by the bar date? Yesterday the official unsecured creditors' committee (which is comprised of five clergy abuse survivors) filed a motion requesting that the bankruptcy court order all 187 parishes to play a 7 minute video in which three abuse claimants explain the necessity of filing a claim by the bar date and talk about, from their unique perspectives, why coming forward, however hard it may be, is important, both for survivors and for the church. (The motion also requests that parishes publish the video on their websites.)

Read More from: Credit Slips

2 days 7 hours ago
The Third Circuit’s recent holding in In re Jevic Holding Corp., raised a number of intriguing topics for us bankruptcy nerds so we could not resist taking a closer look at one of the issues presented in the case – structured dismissals.  If you are not familiar with the concept, you are probably not alone, as the use of a structured dismissal as a means to exit bankruptcy is relatively uncommon.  Although the main issue in Jevic Holding Corp. involved whether a settlement, which required a structured dismissal of the case, should be approved notwithstanding that its terms violated the absolute priority rule, we did not want to dismiss (pun intended!) the issue of permissibility of structured dismissals in a bankruptcy case.  So we take this opportunity to provide an overview of structured dismissals and how they work in a bankruptcy case.  Stay tuned for Part II of our In re Jevic Holding Corp. case study where we’ll examine the Third Circuit’s ruling with respect to deviations from the Bankruptcy Code’s priority scheme.  For now, though, we’ll turn to structured dismissals.  Structured Dismissals Generally
2 days 9 hours ago
Before your bankruptcy attorney pulls the trigger on an actual filing, you should undergo a thorough final review of your petition. You may discover that your monthly plan payment can change based upon your current circumstances. You may have assets that have shifted or otherwise transferred in the ordinary course of business. You also may+ Read More The post Final Review Of Your Chapter 13 Bankruptcy Petition appeared first on David M. Siegel.
2 days 10 hours ago
Richard Drew/ASSOCIATED PRESS
As the Dewey & LeBoeuf LLP trial plods into its sixth week, e-mails continue to play a key role. From the day the indictment against Dewey’s three former leaders–former Dewey Chairman Steven Davis, ex-Chief Financial Officer Joel Sanders, and former Executive Director Stephen DiCarmine–came out more than a year ago, the prosecution has trotted out a series of e-mails sent by the defendants that they say show their intent to commit fraud. In response, attorneys for the defense have argued that their clients were using sarcasm when they said things like “fake income” and “clueless auditor.” This week, Andrew Frisch, an attorney for Mr. Sanders, used old e-mails sent by a government witness to try to show that everyone sends e-mails they don’t really mean. Former Dewey partner Richard Shutran testified this week on his role in helping Dewey refinance $250 million in debt back in 2010, two years before the firm filed for bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

2 days 12 hours ago
Richard Drew/ASSOCIATED PRESS
As the Dewey & LeBoeuf LLP trial plods into its sixth week, e-mails continue to play a key role. From the day the indictment against Dewey’s three former leaders–former Dewey Chairman Steven Davis, ex-Chief Financial Officer Joel Sanders, and former Executive Director Stephen DiCarmine–came out more than a year ago, the prosecution has trotted out a series of e-mails sent by the defendants that they say show their intent to commit fraud. In response, attorneys for the defense have argued that their clients were using sarcasm when they said things like “fake income” and “clueless auditor.” This week, Andrew Frisch, an attorney for Mr. Sanders, used old e-mails sent by a government witness to try to show that everyone sends e-mails they don’t really mean. Former Dewey partner Richard Shutran testified this week on his role in helping Dewey refinance $250 million in debt back in 2010, two years before the firm filed for bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

2 days 12 hours ago
Even if the U.S. government eases enforcement against banks processing wire transfers to developing countries, lawsuits brought by the plaintiffs' bar under the Anti-Terrorism Act may make banks continue to avoid providing remittance services to needy communities.

Read More from: BankThink

2 days 13 hours ago
Credit Slips blogger, Anna Gelpern, was on the Diane Rehm Show this morning discussing the financial problems in Puerto Rico and Greece. Gelpern of Georgetown University was joined by Greg Ip of the Wall Street Journal and Matthias Matthjis of Johns Hopkins. A link to the full audio program can be found here

Read More from: Credit Slips

2 days 13 hours ago
On June 1, 2015, the United States Supreme Court decided Bank of America v. Caulkett, No. 13-1421, together with Bank of America v. Toledo-Cardona, No. 14-163, holding unanimously that a Chapter 7 bankruptcy debtor cannot “strip off” a junior lien. Lien stripping takes place when there are two or more liens on a property, and the senior lien is “underwater” in that the amount owed on the senior lien is greater than the value of the property. In a Chapter 13 case a property owner can strip off the junior lien, resulting in it being treated as unsecured debt in the bankruptcy. In these cases, the Court held that a Chapter 7 debtor may not void a junior lien under 11 U.S.C. § 506(d) when the debt owed on a senior lien exceeds the current value of the collateral if the junior creditor’s claim is both secured by a lien and allowed under § 502 of the Bankruptcy Code. Read More › Tags: Chapter 13, Chapter 7, U.S. Supreme Court

Read More from: Michigan Bankruptcy Blog

2 days 14 hours ago
Equal-opportunity small business lending can go a long way toward helping minority groups rebuild the wealth lost during the Great Recession. The CFPB has delayed implementing reporting requirements that could close the credit gap for far too long.

Read More from: BankThink

2 days 15 hours ago
When the topic of bankruptcy comes up, it’s not unusual to think of fiscal irresponsibility. In reality, the No. 1 reason for having to filing bankruptcy is medical debt. The truth is that the real picture of someone who has to file for bankruptcy doesn’t fit the stereotype of an overspending, n’er-do-well. It’s true that bankruptcy primarily affects lower-income Americans (those who earn $30,000 or less per year), you may be shocked to learn which professions have some of the highest rates. Doctors Having Trouble Keeping Their Finances Straight According to an increasing number of physicians, changes brought on by the Affordable Care Act, decreasing insurance reimbursements and rising malpractice costs are among the main reasons they’re struggling to maintain their practices. More and more doctors are being forced to file Chapter 11, shattering the notion that personal financial collapse only happens to lazy and uneducated people. This trend has affected all areas of the medical field from orthopedic surgeons to general care practitioners. While most physicians are able to bounce back, many find bankruptcy to be the end of their career. Investment Professionals
2 days 15 hours ago
We previously discussed two elements of Chair White's keynote speech on proxy matters at the National Conference of the Society of Corporate Secretaries and Governance Professionals here. In its reporting, the Wall Street Journal has characterized her talk as an admonition to companies to “act like grown-ups,” and instead of seeking regulatory solutions, to “figure it out yourselves.” 
2 days 15 hours ago
Receiving Wide Coverage ... All Eyes on Greece: Now that Greece has closed its banks for at least a week in order to avoid a run as bailout negotiations with the European Union have stalled, speculation is rampant about how the emergency measure will play out. The Wall Street Journal warns Greek banks may not have enough cash on hand to get through the week if all of the country's residents withdraw the maximum amount permitted...

Read More from: BankThink

2 days 16 hours ago
Authored by J. Ellsworth Summers, Jr. and Michael S. Waskiewiczand J. Ellsworth Summers, Jr. and Michael S. Waskiewicz of Rogers TowersThe Supreme Court has unanimously decided that debtors are prohibited from stripping off junior mortgage liens in Chapter 7 bankruptcy cases. Lien stripping is where a bankruptcy court relieves a debtor of his second mortgage because the value of the property is less than the balance of the first mortgage. The Court’s decision in Bank of America, N.A. v. Caulkett is a boost for creditors as it now prohibits this practice across the board. The facts in Caulkett were straightforward; each debtor owned a home encumbered by a senior mortgage as well as a junior mortgage. However, the junior lien was wholly underwater—that is the value of the home was less than the outstanding first mortgage, thus rendering the junior mortgage completely valueless. In finding that the junior mortgages were completely valid under state law, the Court held that debtors cannot strip off junior mortgages regardless of whether they are partially or wholly underwater.

Read More from: Florida Banking Law Blog

2 days 16 hours ago

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