ABI Blog Exchange

It's a good idea to raise the asset threshold at which financial institutions are automatically designated as systemically important financial institutions. But Sen. Richard Shelby's proposed legislation for regulatory relief does require one crucial change.

Read More from: BankThink

3 days 13 hours ago
MF Global Holdings Ltd. investors are seeking final approval of a $74 million settlement stemming from their lawsuit against several financial institutions. 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.”) The nation’s top court ruled Monday that people who fail to complete debt-repayment plans while under chapter 13 bankruptcy protection can keep whatever money is left over when the case is converted to liquidation, DBR (sub. req.) reports. According to DBR (sub. req.), the hedge fund buying the RadioShack brand, Standard General LP , has cleared a hurdle in its bid to tap into the retailer’s customer data.

Read More from: WSJ.com: Bankruptcy Beat

3 days 13 hours ago
A group of nine public pension fund fiduciaries has filed a rulemaking petition with the SEC to ask for new disclosure about the gender, race and ethnicity of director nominees in proxy statements, along with a discussion of those individuals' skills and experiences that the SEC rules already mandate.
3 days 13 hours ago
Authored by Edward L. Kelly and Karl R. Grussand Edward L. Kelly and Karl R. Gruss of Rogers TowersYour client, an individual, walks into Friendly Bank and presents for payment a check in the amount of $100.00, drawn on Friendly Bank and payable to the order of your client. The bank teller asks if your client has an account with Friendly Bank, to which the response is “no”. The teller then advises your client that Friendly Bank is happy to cash the check, but will impose a service fee of $7.50 to pay its own check, drawn by its own customer. Your incredulous client asks, “Can they do that?!”

Read More from: Florida Banking Law Blog

3 days 14 hours ago
Wall Street Journal Ocwen Financial has put things right with the New York Stock Exchange after filing its annual report for 2014 last week. The NYSE had previously threatened to kick the troubled mortgage-servicing firm off the exchange for failing to comply with its listing standards. Now there's a new bullet for Ocwen to dodge: the firm said Monday it is working with lenders to adjust its debt arrangements in order to avoid liquidity problems. ...

Read More from: BankThink

3 days 14 hours ago
Despite reducing what it owes Capital One Bank NA by $15 million since January, oilfield services provider Frac Specialists LLC has filed for bankruptcy (Lead Case No. 15-41961-RFN-11) with plans to restructure its prepetition debt. The Midland, Texas, company and affiliates Acid Specialists LLC and Cement Specialists LLC submitted a Chapter 11 petition in the U.S. Bankruptcy Court for the Northern District of Texas in Fort Worth on Sunday, May 17.  Judge D. Michael Lynn, who is presiding over the case, has yet to set any hearing dates.  First day motions are uneventful. First Day Declaration Source: Frac Specialists Cuts Debt but Still Has to Make Chapter 11 Filing – TheStreetThe post Frac Specialists Cuts Debt but Still Has to Make Chapter 11 Filing appeared first on Culhane Meadows PLLC - Chapter 11 Business Bankruptcy Attorneys.

Read More from: Richard G. Grant, P.C.

3 days 15 hours ago
The TransUnion Industry Insights Report, released on Monday, May 18, 2015, reveals that the rate of borrowers 60 days or more delinquent on their mortgages declined to 2.95% in the first three months of 2015 – the first time the variable has been below 3% since prior to the recession in 2007. This also marks the 13th consecutive quarterly drop in the mortgage delinquency rate. The quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry, isn’t all wine and roses. The delinquency rate for subprime consumers remains at 27.23%. This is down from the peak of 40.48% in 2010, but is still shows that we’ve got a long way to go on the lower end of the spectrum. Los Angeles has one of the lowest delinquency rates in the nation at a paltry 2.07% – tied with Phoenix and just slightly higher than San Francisco. On the high end New York stands at 5.71%, beaten by only Miami at 6.15%. A few other notable points of the report:
Average mortgage balances per consumer also continued to increase on both a quarterly and yearly basis to $187,175 in Q1 2015. Mortgage balances were at $186,836 at this same time last year, and at $187,139 in Q4 2014.
4 days 5 hours ago
On Friday, May 15, 2015, Golden County Foods, Inc. (“GCF”), a business that manufactures prepared foods, filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.  It was joined by two affiliates, GCF Franchisee, Inc. (“GCFF”)and GCF Holdings II, Inc. (“Holdings”).  The cases are docketed as case no. 15-11062 and have been assigned to The Honorable Kevin Gross. As described in the Declaration of James J. Bradford filed in support of the petitions, Holdings is a privately held, non-operating holding entity with no other assets than its holdings in GCF.  Holdings has guaranteed all of GCF’s secured indebtedness.  GCFF is a co-borrower on GCF’s indebtedness.  Though GCFF was once an operating entity, it now has no operations, no employees and no assets. As reasons for the filing, Mr. Bradford’s declaration notes that it faced severe liquidity issues as a result of certain unrealized business opportunities.  In addition, the debtor also experienced certain production inefficiencies when it was unable to secure all the packaging needed for its products.  Finally, the Debtor ran into issues with one of its major customers that exacerbated the Debtors’ liquidity crisis.
4 days 6 hours ago
As we previously reported, on April 1, 2015, the Supreme Court heard oral argument in Bullard v. Blue Hills Bank, which addressed whether an order denying confirmation of a debtor’s proposed plan of reorganization is a final order that the debtor can immediately appeal.  On May 4, 2015, in a unanimous opinion, the Court roundly rejected the arguments from, among others, the debtor and the Solicitor General, and held orders denying plan confirmation are not final orders from which an appeal may be immediately taken as a matter of right.  The Court’s decision in Bullard resolves a significant circuit split in the area of bankruptcy appeals: while the Third, Fourth, and Fifth Circuits had ruled orders denying plan confirmation were final, the First, Second, Sixth, Eighth, Ninth, and Tenth Circuits ruled such orders were not final.  The Court’s Opinion
4 days 8 hours ago
In case you haven't seen it, the SCOTUS issued its unanimous opinion in Harris today, holding that postpetition wages held by the Chapter 13 trustee at the time a case is converted to Chapter 7 must be returned to the debtor. When the Fifth Circuit issued its decision that created the split with the Third Circuit, I blogged some thoughts, primarily focusing on statutory analysis. Now that the SCOTUS has weighed in, the practical question is: how can creditors protect themselves from the risk that the trustee will accumulate a large sum of postpetition wages? Today's opinion ends with that question and notes that the amount of postpetition wages a particular Chapter 13 trustee will be holding at the time of conversion will depend upon the practices of that trustee. In addition, as in the case before the Third Circuit, sometimes Chapter 13 trustees accumulate funds because creditors refuse to receive plan payments for whatever reason.

Read More from: Credit Slips

4 days 9 hours ago
On May 18, 2015 the U.S. Supreme Court unanimously held that a debtor who converts to Chapter 7 is entitled to return of any postpetition wages not yet distributed by the Chapter 13 trustee. The Court, in Harris v. Viegelahn, involved the case of Charles Harris III who filed for Chapter 13 bankruptcy after he fell behind on his mortgage payments. Though his Chapter 13 Plan provided that he would repay his mortgage arrears over time while making new payments to the mortgage company, he fell behind on those new payments within a few months. Just nine months after filing his Chapter 13 Plan, the mortgage company got court approval to move ahead with foreclosure. The house went back to the mortgage company, but the Chapter 13 trustee kept receiving the Plan payments. Without mortgage arrears, the Chapter 13 trustee held onto the funds. And when Mr. Harris finally decided to convert his bankruptcy case to one under Chapter 7 he wanted his money back. Rather than giving Mr. Harris back his money, the Chapter 13 trustee got rid of the money by sending $1,200 to Harris’ lawyer for unpaid legal fees, paying herself a $267.79 fee, and distributing the rest of the money to Harris’ creditors.
4 days 10 hours ago
Many individuals and families are filing bankruptcy due to medical bills. If you are overwhelmed by medical bills, you are not alone. The Center for Disease Control released a report in 2012 that 1 in 4 American households are struggling with medical debt. Even households with public or private insurance are having trouble paying off medical debt. The research data demonstrates a growing number of households facing financial hardship due to medical bills. See the CDC report data below.   “Data from the National Health Interview Survey, 2012 • In 2012, more than one in four families experienced financial burdens of medical care. • Families with incomes at or below 250% of the federal poverty level (FPL) were more likely to experience financial burdens of medical care than families with incomes above 250% of the FPL. • Families with children aged 0–17 years were more likely than families without children to experience financial burdens of medical care. • The presence of a family member who was uninsured increased the likelihood that a family would experience a financial burden of medical care.”  

Read More from: Wynn at Law, LLC

4 days 11 hours ago
All banks truly believe they provide spectacular, top-notch service. But the vast majority hover close to mediocre and lack the metrics to identify areas for improvement.

Read More from: BankThink

4 days 11 hours ago
Last week, our Examiners took on the controversial issue of student loan debt and bankruptcy. And the group came down on both sides as to whether student loan debt should be dischargeable in bankruptcy, with arguments for a change to the bankruptcy code, for preserving the status quo and for a more nuanced approach. It should be no surprise that the commentary spurred equally thoughtful and passionate responses from readers on Twitter and in the comments section. Some of those Twitter responses advocated strongly and simply for a change in the bankruptcy code.  

Read More from: WSJ.com: Bankruptcy Beat

4 days 11 hours ago
  A mining company that is partly owned by West Chester-based AK Steel has filed for Chapter 11 bankruptcy protection. AK Steel (NYSE: AKS) holds 49.9 percent of Minnesota mining company MagnetationLLC, which made the filing after reaching a restructuring deal with senior bondholders that are owed $425 million, the Wall Street Journal reports. The privately held joint venture between AK Steel affiliate AK Iron Resources LLC and Magnetation Inc. was founded in 2006 and has fallen victim to the declining demand for steel along with a growing global oversupply. The company uses magnetic separators to recover iron ore concentrate from waste stockpiles from mining operations. The iron ore is then processed into pellets and sold to steelmakers. Source: USA – AK Steel joint venture files Chapter 11 bankruptcy | foundry-planet.com – B2B Portal for technical and commercial foundry managementThe post USA – AK Steel joint venture files Chapter 11 bankruptcy  appeared first on Culhane Meadows PLLC - Chapter 11 Business Bankruptcy Attorneys.

Read More from: Richard G. Grant, P.C.

4 days 12 hours ago
JPMorgan Chase CEO Jamie Dimon defended his institution by arguing that size isn't necessarily an indicator of risk. But the truth is that the larger an organization gets, the more complex it becomes-and the more difficult it is for leaders to keep everything from customer service to fraud prevention working the way it should.

Read More from: BankThink

4 days 13 hours ago
When it comes to debt most people can agree on two things: spending the money was easy, paying it back is a whole different story. Between credit card debt (at varying interest rates on multiple cards), medical debt (doctors, hospitals, rehab, etc.), and past due utility bills and, perhaps, late mortgage payments, someone in debt is juggling many creditors. No one is patient; they want their money now. As a person in debt, you know this all too well – thanks to non-stop harassing phone calls, letters and even possibly wage garnishments. However, bankruptcy is a big step for most people. If you don’t qualify for bankruptcy, or are hoping to find another option, it’s time to look into loan consolidation. Just as it sounds, if you take out one loan and pay down all your other debt you will be left with one bill to pay each month. This allows you to stop missing payments and gives your credit score a chance to start healing; your numbers will rise once you stop making late or no payments on debt. It’s important to know that a consolidation loan isn’t just available for the asking. You have to apply for the loan and get approved. This may seem impossible; how can you get another loan with bad credit? It’s a good question. You may not be able to obtain a consolidation loan. Further, a consolidation loan is not a magic pill for curing debt. The upside is smaller, more manageable monthly payments. The downside is that you will be paying more interest over a longer period of time.
4 days 13 hours ago
The bankrupt southern California city of San Bernardino is looking to exit court protection with a plan that pays some bondholders a penny on the dollar but maintains pension benefits for retired city workers. 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.”) The Wall Street Journal reports on the collapse of the Plantation, Fla.-based Fashion Mall, which was partially owned by a Chinese fugitive. According to Bloomberg, Puerto Rico is running toward the fiscal brink. Stpehen J. Lubben writes via DealBook about shareholders in corporate bankruptcy cases.

Read More from: WSJ.com: Bankruptcy Beat

4 days 13 hours ago
Now up on Dealb%k.

Read More from: Credit Slips

4 days 14 hours ago
Wall Street Journal It's hard to let go of a juicy bonus Â-- even if your former employer famously went down in the largest bankruptcy in U.S. history. The paper reports former hotshot Lehman Brothers trader Jonathan Hoffman is demanding $83 million in unpaid bonuses from the Lehman bankruptcy trustee. The estate, on the other hand, says Hoffman already got his cash courtesy of Barclays, which bought some Lehman assets and hired him after the company's...

Read More from: BankThink

4 days 14 hours ago

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