Help Center

ABI Blog Exchange

The Consumer Financial Protection Bureau (CFPB) released its monthly consumer complaints snapshot. The report spotlights credit reporting complaints. According to the report, the majority of the credit reporting complaints were about problems with incorrect information on the reports. As of August 1, 2015 the Bureau has handled over 677,000 complaints across all products. “Whether a consumer is trying to get a mortgage, apply for a student loan, or buy a car, credit reports are fundamentally important in allowing people to access their financial goals,” said CFPB Director Richard Cordray. “As we see a rise in the number of consumers complaining about this issue, the Bureau will continue to work to ensure that credit reports are fair, accurate, and readily available to all consumers.”
1 day 2 hours ago
  Sounds kinky, doesn’t it? Three players in a marriage. Sharing. Everything. Only this is something you can talk about openly, without blushing: community property. Community property is the default arrangement in California for a married couple. Yet it is poorly understood by those practicing it and it isn’t inevitable. How community property works The community property system provides that everything acquired during marriage is equally owned by the spouses, regardless of which spouse acquired it. The law provides that property owned before marriage or acquired by gift or inheritance is the separate property of the spouse who acquired it. The most vivid way to imagine the community property system is to see marriage as comprised (for financial issues) of three players:
  • husband,
  • wife, and
  • the community property.
Each of the three may have different exposure to debts. [ I speak here of the traditional composition of a marital couple, but remember that both same sex couples and registered domestic partners fall under the California community property system. ] The central concept is that only the person who contracts for a debt is personally liable.
1 day 13 hours ago
Next week in bankruptcy, Patriot Coal Corp. will kick off a series of hearings on Monday, including a request to sell off its remaining mines and a trial over its bid to reject the labor agreements governing its union members. Patriot has asked Judge Keith Phillips of the U.S. Bankruptcy Court in Richmond, Va., for permission to terminate a union contract that includes pension contributions and health benefits for its union miner retirees. The company has blamed the continued strain of pension and other obligations owed to its miners as well as troubles in the coal industry for its bankruptcy. Patriot sought chapter 11 protection in May, less than two years after emerging from its prior court restructuring. The union, United Mine Workers of America, is negotiating with the company as well as with the proposed buyers, but union lawyers say Patriot is intent on walking away from its environmental cleanup costs and its obligations to workers after handing over valuable assets to top-ranking creditors. The looming battle prompted hundreds of union miners and retirees to protest outside Patriot’s headquarters last week.

Read More from: WSJ.com: Bankruptcy Beat

2 days 11 hours ago
Bloomberg
Cash-starved oil-and-gas companies are getting a lot of mileage out of their assets these days. A severe slump in commodity prices has sent energy explorers and producers scrambling to shore up their balance sheets, leading to a flurry of debt sales this year by the industry’s most financially strained firms. The new bonds typically promise creditors ownership of the company’s assets, should it default. But in many cases, that claim sits behind the liens of one or even two higher-priority slices of debt. Halcon Resources Corp. highlighted the trend late Thursday, exchanging $1.57 billion in unsecured bonds for $1.02 billion in new “third-lien” debt, backed by a claim on the company’s assets that sits behind those of its credit line and $700 million in bonds the company sold in May. Halcon followed Midstates Petroleum Co., a Tusla oil-and-gas company that in May issued $504 million in bonds with a third-priority claim on the company. Midstates sold the bonds as part of a broader financing that also swapped unsecured bonds for second-lien debt.

Read More from: WSJ.com: Bankruptcy Beat

2 days 11 hours ago
Banks need more clarity about the circumstances under which attorney-client privilege applies. Otherwise they may decline to ask questions about the legality of their actions, leading to even more compliance problems.

Read More from: BankThink

2 days 14 hours ago
As we close out the week, we have our final summary of everything you need to know from the last two months.  Enjoy the weekend and keep preparing for back to school bankruptcy! Breathing New Relevance Into the Trust Indenture Act
2 days 14 hours ago
Receiving Wide Coverage ... Mixed Signals: The backlash to the backlash has begun. After the China-infused market meltdown, hopes were dashed for a September rate hike, with voices ranging from Larry Summers to William Dudley calling the timing into question. Now we hear voices calling out, according to reports in the Wall Street Journal, New York Times and CNBC, to quit dragging your feet and get on with it. ...

Read More from: BankThink

2 days 14 hours ago
A judge’s ruling Thursday paves the way for a trial in a lawsuit over Caesars Entertainment Corp.’s debt guarantees of its operating unit in bankruptcy, Caesars Entertainment Operating Co., Daily Bankruptcy Review reports via The Wall Street Journal. (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.”) Baha Mar Resort Ltd. filed a restructuring plan in a U.S. court ahead of a hearing on whether to dismiss its bankruptcy, DBR reports via WSJ. Dewey & LeBoeuf LLP’s former chairman wants fraud charges against him dismissed, WSJ reports. A casino workers’ union can’t beam words of protest against Carl Icahn from a projector onto casino walls owned by Mr. Icahn, the Associated Press reports.

Read More from: WSJ.com: Bankruptcy Beat

2 days 15 hours ago
Our end of summer bankruptcy cram course continues today with Part 3 of our Lookback Period. Where Should the Court Draw the Line on Legal Advice? In Blurred Lines:  Seventh Circuit Keeps Alive Claims Based Upon Law Firm’s Alleged Failure to Advise on Degrees of Business Risk, Matthew Goren discussed the potential effect on restructuring advisors of a decision refusing to dismiss a malpractice action against a law firm.  In that case, a chapter 7 trustee commenced a malpractice action against a law firm that had advised now-insolvent hedge funds that had invested in what turned out to be a Ponzi scheme, arguing that the firm had failed to recognize certain “serious red flags” that should have led the firm to advise the hedge funds to seek additional protections in their negotiations with the fraudulent investment scheme.  In keeping the action alive, the Seventh Circuit noted that “within the scope of the engagement a lawyer must tell the client which different legal forms are available to carry out the client’s business, and how (if at all) the risks of that business differ with the different legal forms.”  SDNY Bankruptcy Court Recognizes the OAS Foreign Main Proceedings in Brazil
3 days 7 hours ago
UBS' Kathryn Shih attributes part of her success in wealth management to understanding that money is an emotional topic; #TheNew10: still not thrilled about Jackson > Hamilton; banking power couples; and more.

Read More from: BankThink

3 days 9 hours ago
Companies miss the mark when they try to woo top talent with tantalizing perks rather than a meaningful workplace culture.

Read More from: BankThink

3 days 11 hours ago
The top executive at Ultimate Nutrition Inc., which makes protein powder for bodybuilders, says he destroyed millions of dollars of the shake supplement ingredients and other raw materials before putting the company into bankruptcy last year. Executives at TD Bank N.A., which has been fighting the Connecticut company over a $13 million loan, don’t believe it. As a battle between the company and the bank escalated last fall, Chief Executive Brian Rubino says he went to Ultimate Nutrition’s warehouse and got rid of roughly 40% of company’s bank-monitored inventory because of its “unsaleability,” according to documents filed in U.S. Bankruptcy Court in Hartford. That move cost the company $3.8 million. Bank officials are calling for an investigation into what happened to the ingredients, speculating in recent court papers that they might have been “moved off site.” Perhaps the ingredients never existed in the first place but were used to “pump up” the company’s financial statements—a move that would have enabled Ultimate Nutrition to get access to a bigger loan, bank officials said. As part of the borrowing agreement between Ultimate Nutrition and the bank, Ultimate Nutrition officials were required to report—under oath—the value of its inventory each month. That value helped determine how much borrowed money it could spend.

Read More from: WSJ.com: Bankruptcy Beat

3 days 11 hours ago
By Judith K. FitzgeraldTucker Arensberg, P.C.Pittsburgh, PA Frank Arenas is licensed in Colorado to grow and dispense medical marijuana.  He and his wife own a building, half of which is used for the cultivation and the other half of which is leased to a marijuana dispensary.  These activities are legal in Colorado, but, despite then Attorney General Eric Holder’s expressed willingness to work with Congress[i] to reschedule marijuana and remove it from the Schedule I (high potential for abuse) drug list[ii], 21 U.S.C.  §856(a) has not been amended.  Thus, knowingly opening, renting, using or maintaining any place, even temporarily, for the purpose of manufacturing, distributing or using any controlled substance is a federal crime.  Similarly, 21 U.S.C. §841(a)(1) makes it unlawful for any person knowingly or intentionally to manufacture, distribute, or dispense or possess with intent to do so, a controlled substance.When Mr.

Read More from: CLLA Bankruptcy Blog

3 days 12 hours ago
U.S. gross domestic product – the strongest measure of economic growth – expanded at a seasonally adjusted annual rate of 3.7 percent in the second quarter, more than the 2.3 percent originally estimated, the Commerce Department said Thursday. Read more here.
3 days 13 hours ago
The contradictory nature of data privacy and anti-money-laundering rules in the U.S. and E.U. pose a big challenge for multinational banks. But the financial sector can help fix the problem by establishing industry standards that balance national security with individual rights.

Read More from: BankThink

3 days 13 hours ago
The SEC Office of Economic and Risk Analysis has made available on its website a lengthy working paper on proxy access, specifically on the trade-offs between universal proxy access through federal regulation and the “private ordering” of proxy access through shareholder proposals.
3 days 14 hours ago
Wall Street Journal The Federal Reserve wants big banks to monitor payments in real-time and they want it done now. JPMorgan Chase will meet with Fed officials this week to discuss the bank's response to the Fed's demands; CEO Jamie Dimon has said JPMorgan has assigned 400 people to the project, known in banker parlance as "intraday liquidity." Bank of New York Mellon is also at the top of the Fed's to-do list. ...

Read More from: BankThink

3 days 14 hours ago
Authored by Adam B. Brandon of Rogers TowersOn July 22, 2015, the Department of Defense (DOD) issued its final rule implementing the Military Lending Act (MLA).  Enacted in 2006, the MLA seeks to protect active-duty military members and their dependents from predatory lending in high-cost consumer credit transactions.  The DOD exercises rule-making authority to delineate which types of transactions are covered by the law. Important provisions for lenders to note include: 36% cap on interest and fees.  The MLA limits the annual interest rate on covered loans to 36 percent.  Known as the Military Annual Percentage Rate (MAPR), this cap includes all interest and fees associated with a loan, including credit default insurance and debt suspension plans.  This definition of MAPR is broader than the APR calculation required by the Truth in Lending Act (TILA) or Regulation Z.

Read More from: Florida Banking Law Blog

3 days 15 hours ago
Defunct for-profit educator Corinthian Colleges Inc. won approval of a liquidation plan that will set aside some money for former students looking to discharge of loans, Daily Bankruptcy Review reports via The Wall Street Journal. (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.”) The former RadioShack Corp. plans to refund some gift cards in full, DBR reports in WSJ. Sabine Oil & Gas Corp.’s unsecured creditors want to look into the company’s 2012 merger with Forest Oil Corp, DBR reports via WSJ. Bloomberg reports that Peabody Energy Corp. hired Lazard Ltd. to restructure its $6.3 billion in debt.

Read More from: WSJ.com: Bankruptcy Beat

3 days 16 hours ago
Series: Newbie Litigator School This webinar will highlight tips and tools of the trade when taking and defending a deposition. New litigators will gain insight from litigation experts how to effectively participate in a deposition. Read more here.
3 days 20 hours ago

Pages