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Regulators need to be able to impose tough requirements on foreign banks with U.S. units in order to safeguard the domestic financial system from turbulence abroad. Sen. Richard Shelby's proposal to raise the asset threshold for systemically important banks would put that ability in jeopardy.

Read More from: BankThink

2 weeks 6 days ago
In re Trump Entm’t Resorts, Inc., No. 14-12103 (KG) (Bankr. D. Del. July 21, 2015) Aligning itself with Sixth and Second Circuit law, the Delaware Bankruptcy Court ruled that activities described in, and protected by, the Norris-La Guardia Act (“NLA”) do not constitute violations of the automatic stay under Bankruptcy Code section 362.  Although wrestling to reconcile the two statutes, an anti-injunction labor law on the one hand and a broad bankruptcy-based injunction statute on the other, the Bankruptcy Court relied on the uncontroverted congressional intent that the automatic stay cannot enjoin certain NLA protected activities, and instructed the Debtors to “lodge their complaint” with Congress.  Op. at 23. Read More › Tags: Automatic Stay, Collective Bargaining Agreements

Read More from: Delaware Bankruptcy Insider

2 weeks 6 days ago
Authored by Scott J. Kennelly and Janet C. Owensand Scott J. Kennelly and Janet C. Owens of Rogers TowersFDUTPA is the primary consumer protection statute in Florida, prohibiting unfair, unconscionable, or deceptive methods of competition, practices, or acts in the conduct of commerce. According to the express terms of the statute, the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”) does not apply to banks or savings and loan associations regulated by federal agencies. However, are bank subsidiaries afforded the same exemption as their parent companies? Although the statute is silent, Florida appellate courts have answered this question in the negative. While Fla. Stat. § 401.212(4)(c) clearly excludes banking institutions, Florida appellate courts have held that the statute does not go so far as to exempt subsidiary companies from FDUTPA’s purview.  Florida’s Third District Court of Appeal has held that “[n]othing in FDUTPA suggests that bank subsidiaries, affiliates or agents are necessarily exempt from FDUTPA.” Florida’s First District Court of Appeal explained that the reasoning appears in the plain meaning of the statute:

Read More from: Florida Banking Law Blog

2 weeks 6 days ago
Because the size and structure of current private balance sheets depend upon low interest rates, it will be tough for the Federal Reserve to raise rates without upsetting the economic expansion.

Read More from: BankThink

2 weeks 6 days ago
Ready for life after bankruptcy? You can start preparing for your life after bankruptcy now, even before your case is filed. Take these four steps now, and the bankruptcy case itself will probably be smoother, too. Change banks Your money on deposit in “your” bank may not be solely yours. If you have a loan or other debt to your bank, the bank can help itself to funds in your deposit account to apply to what you owe it. That’s called set off:  the amount the bank owes you is set off against what you owe it.  Trust me, you’ll lose if that happens. Since you usually stop making payments on dischargeable debts once you’ve made the decision to file bankruptcy, don’t leave your cash sitting in the bank, waiting to to be snatched by the bank who didn’t get paid this month. Open a banking relationship elsewhere with an institution you don’t owe money.  Move your money, and any automatic deposits, to the new bank or credit union. You don’t need to close the existing account.  Just keep no more money there than you’re willing to lose if the bank does a set off. Review automatic bill payments
2 weeks 6 days ago
Receiving Wide Coverage ... The Old College Try: Hillary Clinton unveiled her plan to deal with the problem of skyrocketing student debt. Clinton's plan would provide about $175 billion in grants and loans to states that guarantee students wouldn't have to take out loans to cover tuition. Although her plan's goal is to help families pay for college without taking out loans, it would require families to make a "realistic" contribution to tuition and students would also...

Read More from: BankThink

2 weeks 6 days ago
Maryland attorney Jeff Scholnick has recently joined the Maryland Hispanic Chamber of Commerce. As one of the few Spanish-speaking attorneys in the Baltimore Area, Mr. Scholnick is proud to be a member of the Hispanic Chamber. “America is the land of opportunity. People from all over the world come to this great land to improve themselves and their families. My great grand parents came here from Russia. Now, it is with great pride, I can try to help others who have come to this country. The Latino market place is the fastest growing portion of the U.S. economy.  We must embrace these changes and recognize the success of this new market.” Mr. Scholnick has been practicing law since 1983 and opened his office in 1996. Mr. Scholnick handles a wide-range of cases, including Criminal Defense, Traffic Defense, DUI, Plaintiff’s Personal Injury, Serious Auto Accidents, Workers’ Compensation, Social Security Disability, Bankruptcy and Business Litigation. Mr. Scholnick also works with small Latino businesses to help them with their legal needs. The mission of the Maryland Hispanic Chamber of Commerce is to promote the establishment, growth, prosperity and retention of Hispanic businesses, and those entities, and persons that support them in the State of Maryland.

Read More from: Scholnick Law

2 weeks 6 days ago
          The word grubstake never appears in the Bankruptcy Code or the California Code of Civil Procedure where the exemptions available in bankruptcy cases filed in California are found. Yet every bankruptcy lawyer uses the phrase; and seemingly, every bankruptcy debtor struggles to understand it. Here’s the standard English definition of grubstake.
grub·stake
1.provisions, gear, etc., furnished to a prospector on condition of participating in the profits of any discoveries. 2.money or other assistance furnished at a time of need or of starting an enterprise.
The miner’s grubstake allowed him to buy food and feed his burro while prospecting.  The bankruptcy grubstake does the same:  it furnishes the wherewithal for a fresh start. The grubstake exemption, sometimes also called the wildcard exemption, is expressed as a dollar amount.  In a California case, that amount is currently $25,340.  That’s the total of the amounts provided in sections  703.140(b)(1) and (b)(5).
2 weeks 6 days ago
What's in a name? A lot of heartache, potentially, as Johnny Cash explained in A Boy Named Sue. The consumer finance industry is awash in labels for lending. Despite the lack of data, and clear analysis, that left certain people (apparently nearly all of Wall Street) surprised about the housing crisis, the lending industry is still defining success for itself. Kevin Wack at American Banker examines the "slippery" definition of subprime, giving examples of Equifax recalibrating the "subprime" and "deep subprime" labels to different places on the credit score range. The result: instantly, the percentage of subprime auto loan originations falls from 36% to 28%.

Read More from: Credit Slips

2 weeks 6 days ago
The owner of former mail-order music giant Columbia House filed for bankruptcy to sell off the remains of its business. Read the Daily Bankruptcy Review article 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.”) Creditors of Miller Energy Resources Inc.’s Alaska unit are trying to push it into chapter 11 bankruptcy, alleging fraud, DBR reports in WSJ. Bloomberg reports that energy company Samson Resources Inc. is close to entering a deal with lenders that will put it in bankruptcy as soon as this weekend.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 6 days ago
The owner of former mail-order music giant Columbia House filed for bankruptcy to sell off the remains of its business. Read the Daily Bankruptcy Review article 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.”) Creditors of Miller Energy Resources Inc.’s Alaska unit are trying to push it into chapter 11 bankruptcy, alleging fraud, DBR reports in WSJ. Bloomberg reports that energy company Samson Resources Inc. is close to entering a deal with lenders that will put it in bankruptcy as soon as this weekend.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 6 days ago
On 1 October 2015 the Insolvency (Protection of Essential Supplies) Order 2015 (“PESO”) will come into force. PESO aims to strengthen the statutory protection provided to insolvent companies and insolvency practitioners who need to utilise ‘essential supplies’ to continue to trade. Essential Supplies When a business enters an insolvency process they often need continuity of supply of key services in order to preserve value in the business and maintain output to its customers. Some suppliers use their position to hold the insolvent company to ransom by insisting that pre appointment unsecured debts are paid to facilitate on going post appointment supply. Section 233, Insolvency Act 1986 (the “Act”) currently provides an element protection for ‘essential supplies’ by preventing certain categories of suppliers insisting on payment for pre-appointment debts. However, until now the Act limits those categories of protected supplies to “essential supplies” only – namely gas, electricity, water and ‘public electronic communications services’ (i.e. telephone communications).

Read More from: eSQUIRE Global Crossings

2 weeks 6 days ago
The Bankruptcy Code makes it illegal for government agencies to refuse student loans to those who have filed bankruptcy. 11 USC 525(c). So if you have filed bankruptcy, you are still eligible to receive student loans that are backed by the government (Title IV loans) such as the Stafford Loan. If you get a student loan from a private lender, that’s a different matter entirely. The Bankruptcy Code prohibits discrimination only from government agencies, not private lenders. Private lenders, such as banks, are under NO obligation to give you a student loan if you have filed bankruptcy or have other credit problems, but may still consider it. This doesn’t mean that you won’t be able to obtain a student loan from a private lender or bank if you have filed bankruptcy. It just means that private lenders are allowed to consider your credit history including bankruptcy filings in evaluating your student loan application.
3 weeks 2 min ago
Fannie Mae changed its longstanding policy of not granting mortgages to people who have filed bankruptcy for a certain number of years by significantly reducing the mandatory waiting period for anyone seeking a mortgage loan after a derogatory credit event, such as Chapter 7 bankruptcy, Chapter 13 bankruptcy or foreclosure. Importantly, it was the Federal Housing Administration (FHA) that initially changed course and made it easier for individuals to secure loans in the aftermath of a financial hardship. Fannie Mae eventually followed suit. FHA Sets the Standard with the Back to Work Program It used to be incredibly difficult for anyone with a troubled financial history to secure a home loan. In 2013, the Federal Housing Administration (FHA), which is part of HUD and provides mortgage insurance on loans offered by approved lenders throughout the United States, recognized the inherent unfairness of continuing to punish individuals simply for declaring bankruptcy and trying to get their lives back on track. So the FHA instituted the Back to Work program, waiving the lengthy waiting period for applying for a home loan after a derogatory financial event. The FHA’s Back to Work program allows individuals to seek mortgage loans just one year after declaring bankruptcy. Previously, loan applicants had to wait two years before attempting to secure home financing through an FHA-approved lender.
3 weeks 1 hour ago
Here, at the Bankruptcy Blog, we are committed to keeping you up to speed on the current state of bankruptcy law. Today’s post provides readers with an update to a decision by the United States Bankruptcy Court for the District of Delaware, which considered whether the debtors were required to assume a bundle of related agreements as one executory contract, or whether the debtors could assume only those agreements that contained provisions most favorable to their ongoing operations. We discussed the Bankruptcy Court’s decision here and, today, we are following up with a discussion of the District Court’s recent decision to reverse and remand.
3 weeks 2 hours ago
Series: IP 101 2015 A licensing agreement comes in many shapes and sizes and carries countless nuances that lawyers should be aware of. This webinar will cover the various aspects of an agreement and achieving the right to sell or … Continue reading →
3 weeks 4 hours ago
Rejiggering the credit-scoring system wonÂ't do much to expand credit access. Instead, banks and financial services companies should start thinking about new ways to evaluate the situational factors that influence borrowersÂ' reliability.

Read More from: BankThink

3 weeks 4 hours ago
   The bankruptcy court in In re Denzin, No. 15-10277-RGM, 2015 WL 4666023 (Bankr. E.D. Va. Aug. 6, 2015) again examined the whether the means test in chapter 7 permits allowance of payments on secured claims as a deduction when the property securing such claims is being surrendered.  The US Trustee in that case argued that Morris v. Quigley (In re Quigley), 673 F.3d 269 (4th Cir.2012), Hamilton v. Lanning, 560 U.S. 505, 130 S.Ct. 2464 (2010), and Ransom v. FIA Card Services, N.A., 562 U.S. 61, 131 S.Ct. 716 (2011) warranted reversal of the Court's prior decisions that deductions for such expenses were allowed.  First examining the Lanning decision's analysis of disposable monthly income.  In that case, the debtor received a one time buyout during the six months prior to filing, overstating the computed current monthly income figure.  The Supreme Court focused on the adjective modifying “disposable income,” the word “projected.” It held that, “While a projection takes past events into account, adjustments are often made based on other factors that may affect the final outcome.” Lanning, 560 U.S. at 514; 130 S.Ct. at 2472. If there are known or virtually certain changes in the debtor's income from the six-month average, the changes are to be taken into account in determining the debtor's chapter 13 plan payment.  Id. 560 U.S. at 519; 130 S.Ct. at 2475. The Ransom decision looked in turn at the expenses side of the current monthly income computation.

Read More from: Tampa Bankruptcy

3 weeks 5 hours ago
I previously commented on a controversial fraudulent transfer opinion issued by the Fifth Circuit Court of Appeals. In Janvey v. The Golf Channel, 780 F.3d 641 (5th Cir. 2015) (the “First Janvey Opinion”), the Fifth Circuit concluded that $5.9 million of payments made by the “Stanford Financial” Ponzi scheme were voidable pursuant to the Texas Uniform Fraudulent Transfer Act (“TUFTA”). The key issue was whether the Golf Channel (“GC”) provided Stanford something of “reasonably equivalent value.” The Fifth Circuit rejected GC’s argument that its advertising services were of “value” and specifically rejected the argument that the advertising services had been fairly priced in the advertising marketplace. The Fifth Circuit instead held “we measure value from the standpoint of the creditors, not from that of a buyer in the market place”. The Court concluded that because Stanford was an illegal Ponzi-scheme, its creditors received nothing of value as a result of GC’s advertising services.

Read More from: eSQUIRE Global Crossings

3 weeks 5 hours ago
Wall Street Journal Activist investors have been getting a little help from their new friends at mutual funds. There was once a time when mutual funds wouldn't even pick up the phone when activists called; they worried that even associating with activists would jeopardize their access to management at their portfolio companies. ...

Read More from: BankThink

3 weeks 6 hours ago

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