Whether a contract is executory is an often-litigated issue in bankruptcy because of the treatment afforded to such contracts. Although the Bankruptcy Code does not define the term “executory contract,” most courts follow a variation of the definition provided by Professor Vern Countryman in a 1973 law review article.1 The well-established Countryman definition provides that an executory contract is a contract under which “the obligation of both the bankrupt and the other party to the contract are so far underperformed that the failure of either to complete performance would constitute a material breach and excuse the performance of the other.” While straightforward in theory, in practice, this definition is not always easy to apply, especially when the parties dispute the nature of their obligations under a contract.
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Whether JPMorgan tipped its hand on a succession plan; U.S. Bank hires its first chief digital officer; all eyes on CFPB as it modernizes its debt collection rules; and more from this week’s most-read stories.
Professor Peter Conti-Brown of the Wharton School has written a short article for Brookings decrying the Second Circuit’s 2015 Madden v. Midland Funding decision. Professor Conti-Brown doesn’t like the Madden decision for two reasons. First, he thinks its wrong on the law. Specifically, he thinks it is contrary to the National Bank Act because it "significantly interferes" with a power of national banks—the power to discount (that is sell) loans. Second, he's worried about Madden from a policy standpoint both because he fears that it is unduly cutting of access to credit for low-income households and because he thinks it is reinforcing the large bank’s dominance in the financial system and impairing the rise of non-bank “fintechs”. I disagree with Professor Conti-Brown on the law and think that attacking Madden is entirely the wrong way to address the serious policy question of what sort of limitations there ought to be on the provision of consumer credit. As for fintechs, well, I just don't see any particular reason to favor them over banks, and certainly not at the expense of consumers.
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Readers debate the Federal Reserve's potential entry into real-time payments, consider the Consumer Financial Protection Bureau's guidance for assessing fines, discuss the efficacy of financial education programs and more.
The special counsel’s long-awaited report describes three separate occasions in which Foresman, vice chairman of the Swiss company’s investment bank, had Trump-related contacts with Russians.
The American Bankruptcy Institute’s Commission on Consumer Bankruptcy issued its final report last week. This is the first in a series of articles about those recommendations. To see more information about the Commission, follow this link.
As a commissioner, I can tell you that the subject of student loans in bankruptcy was probably the single most popular topic of suggestions to and discussions within the Commission. And the Commission took that to heart.
Most critically, we recommended bankruptcy law be re-written to allow for more student loans to be discharged — or paid — in bankruptcy cases. The very first formal recommendation called for restoring the fresh start intended by bankruptcy law. It proposed:
That a student loan would be discharged in bankruptcy unless the debt was (1) made, insured or guaranteed by a government agency; (2) that it was incurred for your own education; and (3) the loan first became payable less than 7 years before the bankruptcy was filed (unless you can show an undue hardship).
Read More from: Bankruptcy Law Network
The Rhode Island bank’s deposit costs nearly doubled in the first quarter, but CEO Bruce Van Saun says it has to go on the offensive to sustain loan growth.
Alternative providers like courting new banks. De novos like the modern features many alternative providers offer upfront.
Measures of loan performance were generally better than expected at Ally, American Express, Synchrony and Sallie Mae. Their 1Q reports suggest that consumers remain able to meet their obligations despite a long run-up in debt.
The cold, hard truth of bank mergers is that rivals often steal top producers and convince customers the bigger bank won’t care about them anymore. The CEOs of the merging banks explain their retention efforts.
A big decrease in noninterest income outweighed cost controls during the first quarter.
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Good intentions can go wrong in a hurry when there’s a joint bank account and a bankruptcy.
The bankruptcy trustee sees a pile of money in the bank to which the debtor has access, even though the account also bears the name of someone not in bankruptcy.
If the debtor can get the money, the trustee contends, so can a bankruptcy trustee for the benefit of creditors.
Well and good, if the money belongs to the debtor. But what if it’s really someone else’s money?
Who doesn’t have a joint bank account with someone they care about?
Most often, it’s the adult child’s name on an elder’s bank account. It’s simple, convenient, and reassuring that if the elder loses capacity, a trusted party has access to pay the elder’s bills.
Read More from: The Soap Box
If American Express is going to soar in the future, it plans to do so firmly attached to the new 11-year contract it has signed with Delta Airlines.
Corporations now have more access to consumer financial information than ever before. The question is whether banks will be the ones to help firms harness this data.
The Providence, R.I., bank reported increases in most fee-based lines and loan categories, and it continued to add deposits through its new digital franchise, Citizens Access.
The Alabama company recorded a $91 million loan-loss provision and raised deposit rates during the first quarter.
Tens of millions of dollars of M&A costs and a decline in mortgage activity offset higher loan income in the first quarter at the two banks, which also offered a timeline for their rebranding and shareholder votes.
Price hit "a grim reminder" about impact of soft interest rates; despite bitcoin's plunge, blockchain could be prominent in Wall Street's future.
The move is an extension of a pilot project begun in the fall. T-Mobile says it sought to give customers a better deal on digital banking and stand out from its rivals.