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Networking is a skill, and banks would be wise to offer their employees a little guidance on how to do it effectively. Otherwise, there will be more failed efforts, like this one from a new banker in town who surely thinks he "networked" at a recent golf tournament. Here are a few tips to maximize the time and money you invest in such events.

Read More from: BankThink

4 days 1 hour ago
Funds passing through a correspondent bank account in New York can create personal jurisdiction over the funds’ recipient, ruled the United States District Court for the Southern District of New York.  In Official Committee of Unsecured Creditors of Arcapita Bank B.S.C. v. Bahrain Islamic Bank, the court found personal jurisdiction over foreign banks because of those banks’ selection and use of correspondent bank accounts in New York.   Background The decision arises out of an appeal involving Arcapita Bank BSC, a bank headquartered in Bahrain.  Arcapita commenced a chapter 11 case in the Bankruptcy Court for the Southern District of New York in March 2012 and confirmed a reorganization plan in June 2013.  The bankruptcy court subsequently granted the creditors’ committee appointed in Arcapita’s case standing and the authority to pursue causes of action belonging to the estate.
4 days 2 hours ago
The courts would not be getting involved in defining the reach of the Consumer Financial Protection Bureau if the architects of the agency had instituted a commission to oversee it.

Read More from: BankThink

4 days 4 hours ago
In my last blog post, I discussed how a claimant can qualify for Social Security Administration (SSA) Disability Insurance Benefits (DIB); the key issue being how much he or she has paid into the system over the last 10 years. To reiterate, essentially an applicant for DIB has had to have paid in enough per yearly “quarter” for five of the past ten years, or 20 of the past 40 “quarters,” to qualify.  Please refer to that blog post for additional details on this subject. An Exception to the Quarter Rule Fortunately, an exception to this rule does exist for individuals under the age of 31 that the SSA calls a “special insured status.” Not to get too technical, but if these individuals have paid in enough to be credited with a “quarter” in one half of the “quarters” possible after they have turned 21 through the date they became disabled, or if younger than 24, then one half of the quarters in the three years prior to the date they became disabled, then they earn that “special insured status” stamp and can qualify for DIB. Whew! But wait, there’s more.  The SSA actually has a decent web page that goes into greater detail on this particular aspect of the disability program — if you are a glutton for punishment.

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

4 days 4 hours ago
Receiving Wide Coverage ... Goldman's Goings On: Goldman Sachs has opened an online bank offering high-yield savings accounts (1.05%, 100 time more than at any Big Four bank) and certificates of deposit (1% on one-year CDs; 2% on five-years) for the average Joe, begging the question from industry observers: why is Goldman so hungry for retail deposits? First, financial regulation. Consumer deposits are a steadier and lower-cost source of funding than short-term loans from other financial...

Read More from: BankThink

4 days 4 hours ago
This model is great! But a different model is needed for today’s roads. [This car is at the Museum of Speed in Lincoln, NE]By Donald L. Swanson Bankruptcy needs a larger mediation process than the one-and-done-session model that’s common in non-bankruptcy cases An iteration of the title above [“Bankruptcy mediation is a process, not a one-and-done session”] is often greeted by bankruptcy professionals with blank stares.   They can’t imagine why they’d want to mediate bankruptcy disputes any differently from how they mediate disputes in other courts. And reactions that go beyond blank stares tend to be something like this: –“We need a different model of mediation for bankruptcy?   Right.   Sure thing.”  [Cue high voltage sarcasm here.] –“You want a larger role for mediators?  . . .  So we have to pay them more?   That’s a winner.  Good luck with that one.”  [Again, cue high voltage sarcasm.] But a different model, a more-intensive and more-extensive mediation process, and a larger role for mediators, are precisely what I mean—and precisely what is needed in contested matters and many adversary proceedings.

Read More from: Mediatbankry

4 days 6 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/30935767/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/30935767/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/30935767/smartcrop?height=853&width=1280" caption="In this Jan. 16, 2015, photo, Patriarch Partners' Lynn Tilton attends an awards ceremony in Los Angeles. The funds she managed for years are turning up the heat on Patriarch." credit="Associated Press" placement="Inline" suppressEnlarge="false" ] Zohar fund managers are demanding answers from Lynn Tilton’s Patriarch Partners about the health of the funds she managed for years. 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.”) WSJ reports on Gannet Co.’s proposal to buy Tribune Publishing in a deal valued at a total of $815 million.

Read More from: WSJ.com: Bankruptcy Beat

4 days 6 hours ago
The latest iteration of the Sun Capital litigation has confirmed once again what many restructuring professionals have known for a long time – that pension liabilities have a nasty habit of kicking investors where it hurts, often when least expected. Our recent blog explains the decision and provides some insights on the case. One of those insights is that the case provides a “road map” for joint investors that want to isolate withdrawal liability in a portfolio company. But it’s one thing to be able to switch on a force field to protect against exposure to pension liabilities; quite another to deal with pension liabilities once you’ve got them. However, the US Supreme Court’s decision in Jones v Municipal Employees’ Annuity and Benefit Fund of Chicago affirms that pension liabilities can be legitimately bargained away or waived through a collective bargaining process, “creating a wormhole through the black hole”. There is no underestimating how challenging a negotiation that would be, especially for a city like Chicago, but the possibilities are there – a wormhole has been created in the black hole. The decision is analysed and considered in this recent blog.

Read More from: eSQUIRE Global Crossings

4 days 7 hours ago
What does a chief culture officer do? Though this is an uncommon title in banking, it is starting to pop up in more executive suites. HereÂ's why one bank sees the role as an important factor in its effort to excel.

Read More from: BankThink

4 days 15 hours ago
– But they weren’t as oppressive as my subject line may imply. In a 13 page decision, released April 22, 2016, Judge Gross of the Delaware Bankruptcy Court granted a motion to dismiss an adversary proceeding and sanctioned the Plaintiff – disallowing any further litigation against the defendants in the Bankruptcy Court.  Judge Gross’ opinion is available here (the “Opinion”). This is a relatively benign holding, despite the knee-jerk reaction I had when I saw Judge Gross (about the nicest person you could ever hope to meet) grant a request for sanctions.  In summary, the plaintiff, Michael T. Kennedy, filed a complaint against Skadden Arps and several other parties associated with the Radnor bankruptcy, alleging, in essence, that the defendants conspired together to take the assets away from equity holders.
4 days 18 hours ago
It is spring and the stands will soon ring with the oft-heard refrain, the clarion call of players and fans alike, “Hey ump, read the rules!”  In Rosenberg v. DVI Receivables XIV, LLC, the Eleventh Circuit Court of Appeals recently issued a similar admonition, holding that the district court was required to apply the filing deadline found in the Bankruptcy Rules, not the deadline found in the Federal Rules of Civil Procedure, to the defendants’ FRCP 50(b) motion for judgment as a matter of law after a jury trial. 
4 days 23 hours ago
The core problem with the living wills, as with other tools in the Dodd-Frank Act to end Â"too big to fail,Â" is that they are by definition an attempt at predicting future events.

Read More from: BankThink

5 days 58 min ago
In  a recent opinion dated March 29, 2016, the Delaware Bankruptcy Court on remand from, and following the direction of, the Delaware District Court, ruled that only prepetition unpaid invoices may be counted for purposes of the new value defense under 11 U.S.C. § 547(c)(4).  The Bankruptcy Court also ruled that the plaintiff Chapter 7 trustee was entitled to prejudgment interest from the date of the filing of the preference avoidance complaint.  Further, the District Court, in affirming the Bankruptcy Court on this point, addressed the ordinary course defense under 11 U.S.C. § 547(c)(2), adding to the discussion on when payments may be avoidable if they are made during the preference period sooner than when they were made in the pre-preference period.
5 days 1 hour ago
David Flannery has joined GSO Capital Partners, Blackstone’s global credit investment platform, as a senior managing director. Mr. Flannery, who will be based in New York, most recently worked with Anchorage Capital Group. He has experience in illiquid credit opportunities and collateralized loan obligations, or CLOs. Christian Kleeberg has joined the mergers and acquisitions and private equity group at Fried, Frank, Harris, Shriver & Jacobson, where he will be a partner in the firm’s Frankfurt office. Dr. Kleeberg focuses on private mergers and acquisitions and has advised clients on buying and restructuring big companies in Germany. Most recently, Dr. Kleeberg was a partner with Taylor Wessing.

Read More from: WSJ.com: Bankruptcy Beat

5 days 2 hours ago
The Fair Debt Collection Practices Act (FDCPA) is a federal law which protects consumers from unscrupulous collection agencies.  Collection Agencies are prohibited from using unfair, deceptive or misleading means to collect a consumer debt.   In crafting the FDCPA, Congress drafted the law using the “least sophisticated consumer”.  The “least sophisticated consumer” is designed to protect both the shrewd and the gullible.   In Tennessee, the time limit for suing someone on a debt is six years from the last voluntary payment; this is called the statute of limitations. In other words, if a creditor sued a consumer on a debt in which it had been more than six years since a voluntary payment was made by the consumer, the consumer would have an affirmative defense that the debt was time-barred and therefore the case against the consumer could be dismissed. Collection Agencies Offering “Settlements”

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

5 days 4 hours ago
Recent prosecutions against lenders accused of usury violations will test the government's use of a law more commonly known in organized crime cases.

Read More from: BankThink

5 days 4 hours ago
Wall Street Journal So what if banks are too big to fail? Deposits at the big four commercial banks grew 2.1% to $.2 trillion in the first quarter – welcome news for banks despite a year-over-year decrease. Though their gains in deposits aren't quite enough to counter some of the more grim details of their first-quarter earnings, they show that the very least, depositors aren't fed up with the too-big-to-fail institutions. ...

Read More from: BankThink

5 days 4 hours ago
Seven or Thirteen? 13 or 7? When you have a choice, how do you decide which chapter of bankruptcy works best? Usually, the choice is driven by the scope of the discharge and the kind of debts you have. More kinds of  debts are dischargeable in Chapter 13 and the automatic stay protects you for the 60 month duration of the case. So why did the client this week choose to walk out of Chapter 7 with fewer debts discharged than if he’d chosen 13? It’s all about his  future.  And who will get to share in his growing earning capacity. Chapter 7 over Chapter 13 On the surface, this client seemed a great candidate for Chapter 13, which is my favorite  bankruptcy chapter. Some of his debts were only dischargeable in Chapter 13;  in Chapter 7, he’d emerge still owing some debts from a divorce. So why choose the smaller discharge? Because his earnings were likely to double or triple over the life of a Chapter 13 case.
5 days 4 hours ago
Until 2016, Kentucky was one of just a few states that had not adopted a model statute relating to fraudulent transfers.  As mentioned in a prior post on Kentucky’s statutory quirkiness, its statute descended neither from the Uniform Fraudulent Transfer Act (“UFTA”) nor the Uniform Fraudulent Conveyance Act (“UFCA”).  Effective this year, however, Kentucky is at the leading edge of uniform creditor avoidance statutes (KRS 378A), having become among the first 9 states (as of this writing) to adopt the new Uniform Voidable Transactions Act (“UVTA”).  I have written on UVTA generally, and will try to stay focused on how UVTA will likely change avoidance action practice for Kentucky practitioners.  Here are some highlights:

Read More from: Creditors' Sidebar

5 days 4 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37700638/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37700638/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37700638/smartcrop?height=853&width=1280" caption="The headquarters of SunEdison is shown in Belmont, Calif." credit="Reuters" placement="Inline" suppressEnlarge="false" ] A bankruptcy judge delayed solar-power company SunEdison Inc.’s request for an independent investigation into its collapse. 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.”) DBR reports in WSJ on SunEdison’s “yieldcos” looking to assert their separate status, noting to a bankruptcy just that they are solvent and separate from SunEdison.

Read More from: WSJ.com: Bankruptcy Beat

5 days 6 hours ago

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