Hot off the presses: Citigroup and Wells Fargo reported Friday morning that they saw second-quarter profits fall from a year earlier, though both either met or exceeded analyst expectations. Citigroup reported $4 billion in profit on $17.55 billion of revenue. Wall Street Journal, New York Times, American Banker, Financial Times Â...
The Second Circuit handed down its much-anticipated decision on the GM successor liability claims. Bottom line is that most, if not all, of the various claims against New GM are not barred by the Sale Order because of lack of procedural Due Process. That said, there's a lot more in the ruling. My thoughts below the break:
Four groups of plaintiffs made various arguments (not all making the same ones) appealing the bankruptcy court's decision to enforce the Sale Order as barring their claims against New GM:
Read More from: Credit Slips
A former Wall Street trader contends that "bro talk" is keeping women down, and it often comes from bosses; B of A says there is no "bro's club" at the company; Mary Mack is succeeding a retiring Carrie Tolstedt at Wells Fargo; and Barclays' Barbara Byrne tries a new recruiting tactic. Also, with Theresa May as U.K. prime minister, could we soon see mostly women running the western world?
Credit Slips blogger Katie Porter has produced a new textbook in consumer law that anyone teaching the subject should consider adopting. Indeed, law professors not teaching consumer law should to take a look at it and consider whether they should add the class to their teaching portfolio. A 2013 poll on Brian Leiter's Law School Reports named consumer law as the number one "area of law which deserves more attention in the legal academy." Next academic year I will be picking up a new course, and the emergence of Porter's new text made the decision easy for me as to which course it will be.
Read More from: Credit Slips
A decision from the United States Supreme Court penned by Justice Sonia Sotomayor adopted a broad reading of “actual fraud” in section 523(a)(2)(A) of the Bankruptcy Code, which excepts from discharge debts “obtained by . . . false pretenses, a false representation, or actual fraud.” 11 U.S.C. § 523(a)(2)(A). The decision, Husky International Electronics v. Ritz, resolved a split in the Circuits regarding whether the phrase “actual fraud” required a false representation or whether the phrase could be more broadly construed as encompassing other forms of fraud such as a fraudulent conveyance.
Read More from: Business Finance & Restructuring News - Weil
Last week, the Second Circuit Court of Appeals reversed a bankruptcy court order barring tort claims for product defects against the purchaser of General Motors’ (“Old GM”) assets. The purchaser (“New GM”) had purchased Old GM’s assets “free and clear” in Old GM’s 2009 bankruptcy case under section 363 of the Bankruptcy Code. The Second Circuit’s ruling is certainly a victory for the plaintiffs who are seeking damages for personal injuries arising out of product defects and redress for lost economic value for defective vehicles. However, the court’s ruling also underscores the broad scope of “free and clear” sales under normal circumstances.
Read More from: eSQUIRE Global Crossings
Lobbyists for the credit union industry are decrying a proposal to limit forced arbitration clauses despite ample evidence that credit unions donÂ't use such clauses in the first place.
I get it.
It shouldn’t surprise me that debt collectors don’t understand community property.
Or maybe, they find it inconvenient to understand. Or deliberately distort the law.
A client reported that her ex husband had been told by a debt collector that the former marriage made him personally liable for his exwife’s debts.
There must be an emphatic, yet polite, word for b***s****.
Wish I knew the word… “Balderdash” seems so weak.
In my most generous view, this could be debt collectors from outside of California who are clueless about community property law. Or, more realistically, they’ll say whatever they think will scare a payment out of someone.
Read More from: Northern California Bankruptcy Lawyer
That was the point Adam Savage of the TV show Mythbusters made as the speaker at my son’s graduation Saturday as a mechanical engineer.
He was talking about using engineering skills after college.
But, it struck me as equally applicable to to my audience of the indebted as t as it was to his audience of newly fledged engineers.
For engineers, Savage hoped that they would look beyond the technical challenges of any task at hand to see where they, and the gadget they were making, fit in the larger world.
Your technical skills don’t exist in a vacuum, he said. Or shouldn’t.
Read More from: Northern California Bankruptcy Lawyer
Congress should abandon the idea of repealing a section of the Dodd-Frank Act that has helped make pricing for payment processing more competitive.
A common question that arises from clients is whether they can get their driver’s license back if it has been revoked after a car accident. The topic of whether you can discharge debts related to a car accident bankruptcy has been previously discussed by Grant McNutt in his blog post from December 18, 2014. He discussed that normally you can discharge debts arising from a car accident. Some common reasons a driver may lose their driver’s license after a car accident would be because they did not have insurance and/or were unable to pay to repair the other person’s car. Also, many times those involved have been hurt in the accident and there are medical bills and personal injury claims.
Read More from: Bonds & Botes, P.C.
Breaking News This Morning ...
Earnings kickoff: JPMorgan Chase surprised investors with fairly strong second-quarter results Thursday morning. The company posted a profit of $6.2 billion and managed revenue of $25.21 billion, beating analyst projections. Trading revenue surged 23% to $5.56 billion. The Financial Times published a rundown of issues to watch – including any executive comments about the Brexit – as banks roll out their earnings this month. Meanwhile, the Journal will be live-blogging details...
Many people believe that they should not delay when it comes to paying off their debts and getting back on the road to being in a good financial position. However, you could be in for a big – and not so nice – surprise if you send a check to a debt collector seeking payment on an old debt.
Of course, your debts can accumulate over time, particularly as the interest on the unpaid principal balance mounts, and leave you in a very difficult spot. Even if you can only make a small dent in your overall debt balance, you may think, every little bit helps. But the truth is that paying off old debts could actually hurt you.
Harassment by Debt Collectors over Zombie Debt
If you have significant debts, you’ve probably been contacted by a debt collector. Many debt collectors are aggressive and skirt the law when it comes to pressuring a debtor to make good on the balance. Although debtors do have protections against creditors who are overly insistent on phone calls or in letters seeking payment, the problem is that some debtors get so frustrated by the debt collectors’ tactics that they actually end up encouraging the borderline-illegal behavior by giving in to the demands and paying off the debts.
Read More from: The Law Office of Joel R. Spivack
A tragedy of recent Chapter 11 times is this:
–it looks like Congress tried to remove the absolute priority rule from individual Chapter 11 cases (see the “individual” exception in § 1129(b)(2)(B)(ii) photo above); but Congress didn’t quite get the removal words right, according to subsequent court rulings.
We now have an excellent example in the Nebraska Bankruptcy Court of benefits arising from a removal of the absolute priority rule in individual cases.
Read More from: Mediatbankry
Like most of my Student Loan updates, more of the same.
More student loan horror stories.
More inadequate government responses.
It works for millennials.
Hey, who does not want a free lunch, let alone free college?
Not all student loan borrowers were created equal.
Some of those with the most student loan debt, say, doctors, are best able to repay.
Those with five figures of student loan debt, and no degree, not so much able to repay.
Tyler O’Neil in Pajamas Media has some student loan tales.
Nursing? Good career. Plenty of demand. Good money.
Worth incurring the student loan debt, right?
I keep harping on how students are not told how much they need to earn to repay the student loan deb they incur.
Read More from: Discharge Student Loan
Read More from: CLLA Bankruptcy Blog
Read More from: Bankruptcy Law Watch
Social media may be the soup de jour of bank marketing, but its value as a business acquisition tool may be greatly exaggerated unless banks fine-tune their strategies.
In re Metrogate, LLC, No. 15-12593 (KJC), 2016 WL 3150177 (Bankr. D. Del. May 26, 2016), (with note regarding In re Diamondhead Casino Corp., No. 15-11647 (LSS), 2016 WL 3284674 (Bankr. D. Del. June 7, 2016))
In this Opinion, the Delaware Bankruptcy Court dismissed an involuntary chapter 11 case against Metrogate, LLC f/k/a Advance Realty Group, LLC (“Metrogate”) on findings that it failed to meet the standards under section 303 of the Bankruptcy Code and was filed in bad faith. Judge Kevin J. Carey’s ruling clarified statutory requirements under section 303 and confirmed bad faith as an independent ground for dismissal of involuntary cases under the Third Circuit’s holding in In re Forever Green Ath. Fields, Inc., 804 F.3d 328 (3d Cir. 2015). Read More ›
Read More from: Delaware Bankruptcy Insider