Help Center

ABI Blog Exchange

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

1 week 6 hours ago
As children, many of us dreamed about having collections of comic books, baseball cards, jewelry or art. For many those dreams have not yet come true, but it is never too late to start collecting.  With the right portfolio these collections can become valuable tangible assets for investors. Read more here.
1 week 6 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

1 week 7 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

1 week 7 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

1 week 8 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

1 week 9 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
1 week 9 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.” 
1 week 9 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

1 week 10 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

1 week 10 hours ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, July 2014. BAHAMAR Published Credit: Baha Mar Published Credit: Baha Mar
Baha Mar
Baha Mar Ltd., the development company behind the massive $3.5 billion resort complex in the Bahamas, filed for bankruptcy protection Monday, blaming a Chinese contractor for repeated construction delays that left it owing millions of dollars a month to employees with no customers to serve. 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.”) A judge on Monday approved a settlement in the long-running legal fight between Lehman Brothers Inc. and Barclays PLC, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 11 hours ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, July 2014. BAHAMAR Published Credit: Baha Mar Published Credit: Baha Mar
Baha Mar
Baha Mar Ltd., the development company behind the massive $3.5 billion resort complex in the Bahamas, filed for bankruptcy protection Monday, blaming a Chinese contractor for repeated construction delays that left it owing millions of dollars a month to employees with no customers to serve. 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.”) A judge on Monday approved a settlement in the long-running legal fight between Lehman Brothers Inc. and Barclays PLC, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 11 hours ago
The Bankruptcy Code allows bankruptcy trustees, debtors in possession, and official committees to hire attorneys, accountants, and other professionals to assist them in carrying out their statutory duties, with their fees to be paid by the bankruptcy estate. However, to get paid, these professionals must obtain approval from the bankruptcy court. But what happens when someone objects to their fees? Can the professionals recover the fees they incur in defending their fee applications? The Supreme Court says no.

Read More from: Insolvency Insights

1 week 12 hours ago
Susanne Soederberg, a professor of political studies and global development studies at Queen’s University in Canada, is calling for the student loan industry to be, “revealed, attacked, and uprooted.” In her article on Dollars & Sense, Soederberg says the educational finance is not part of the natural order of things. Rather, it’s part of the poverty industry, which
includes educational lending, but extends to other forms of consumer credit—such as payday loans, credit cards, sub-prime housing loans—all of which feed off of and reproduce marginalization and insecurity. The increasing reliance on expensive personal loans to replace or augment wages—as well as obtain an education—is not a natural phenomenon. Rather, it is a social construction that needs be revealed, attacked, and uprooted, not negotiated within the territory of consumer protection, which is sponsored by the debtfare state and the capitalist interests it represents.
The debtfare state, a term apparently coined by Soederberg, is what she calls a new feature of governance that exists alongside the welfare state. The system uses a set of institutional and ideological practices aimed at
1 week 1 day ago
“Butler-style” representation, under which the sequaciously servile lawyer does whatever the client wants and then cites that client’s command as a shield to the improper actions has no place in bankruptcy court or in any court.” The above quote is taken from a recent bankruptcy court case in Nevada, In Re Blue Pine Group, Inc., and it points out the responsibility that a bankruptcy attorney has not only to his or her client, but to the court. In rare cases, if the attorney and client can not agree on a course of action, and the attorney knows that course of action to be ethically improper or legally wrong, then it may be necessary for the attorney to withdraw from representation of the client.  Most judges understand that these situations do occur, and when explained properly, will allow the attorney to withdraw. If you are the client of a bankruptcy lawyer, follow their advice … they are there to help guide you through the process and quickly and smoothly as possible.
1 week 1 day ago
This is the fifth post in our Bitcoin Bankruptcy series on the Weil Bankruptcy Blog.  We have concluded that a hypothetical U.S.-based bitcoin exchange likely would not constitute a stockbroker or a commodity broker under the Bankruptcy Code.  Therefore, unless the bitcoin exchange is a certain type of bank, it is probably eligible for chapter 11 relief.  This entry explores the question of whether a bitcoin exchange might be considered a bank. 
1 week 1 day ago
JEFF KOWALSKY/BLOOMBERG NEWS
Chicago class-action lawyer Clinton Krislov is better known for defending Illinois workers’s pension plans than for standing up for consumer rights in bankruptcy cases. But for three and a half years, Mr. Krislov has been fighting on behalf of three jilted gift-card holders to recover money from the bankruptcy estate of shuttered book chain Borders. As The Wall Street Journal explored today, Mr. Krislov is asking the U.S. Supreme Court to take up a case that will determine if Borders’s gift-card holders waited too long to try to turn their credits into cash. Several lower courts have ruled against the customers, including the Second U.S. Circuit Court of Appeals. The bankruptcy battle spotlights an issue most consumers don’t think about until it is too late: Retailers in bankruptcy can stop accepting gift cards at any time and don’t always have to pay out unredeemed cards.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
JEFF KOWALSKY/BLOOMBERG NEWS
Chicago class-action lawyer Clinton Krislov is better known for defending Illinois workers’s pension plans than for standing up for consumer rights in bankruptcy cases. But for three and a half years, Mr. Krislov has been fighting on behalf of three jilted gift-card holders to recover money from the bankruptcy estate of shuttered book chain Borders. As The Wall Street Journal explored today, Mr. Krislov is asking the U.S. Supreme Court to take up a case that will determine if Borders’s gift-card holders waited too long to try to turn their credits into cash. Several lower courts have ruled against the customers, including the Second U.S. Circuit Court of Appeals. The bankruptcy battle spotlights an issue most consumers don’t think about until it is too late: Retailers in bankruptcy can stop accepting gift cards at any time and don’t always have to pay out unredeemed cards.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
Culture is measured in the good banks do for communities and customers, employees and shareholders. That kind of culture must be built over generations.

Read More from: BankThink

1 week 1 day ago
Per a Court notice to the bar dated June 10, 2015:Effective Monday, June 15, 2015, attorneys admitted to the bar of this court, who are registered ECF Filing Users may reset their password via a link on the SDNY ECF login page at ecf.nysd.uscourts.gov. A new password will be sent by email to the address registered to the user’s ECF account. For more, see: http://www.nysd.uscourts.gov/cases/show.php?db=notice_bar&id=381

Read More from: The COMI

1 week 1 day ago

Pages