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Richard Cordray, the director of the Consumer Financial Protection Bureau, gave a short speech today at the Brookings Institution. In his speech, he outlined several steps the CFPB is taking to help fix the mortgage market. In his view, one of the chief problems with the mortgage market is that consumers do not shop around for mortgages the same way they shop for other products, including houses. According to a recent CFPB study, "almost half of all borrowers seriously consider only a single lender or broker before deciding where to apply." The CFPB's aims to solve this problem with some new tools. More after the break.

Read More from: Credit Slips

4 years 3 months ago
Duck Commander Family Foods and Chinook USA
A Kentucky company that’s brewing iced tea inspired by “Duck Dynasty’s” Uncle Si on the hit A&E reality TV show has filed for bankruptcy, accusing the show’s stars of breaking their promises to promote the beverage. The beverage maker’s federal lawsuit against Duck Commander Inc.—the Robertson clan’s duck-call business in Louisiana—portrays the “Duck Dynasty” brand as growing too big, too soon. In the glow of the spotlight, Duck Commander has made dozens of licensing agreements to grow its brand. That includes a deal with Chinook USA LLC to make and distribute a beverage named for Uncle Si, who drinks from a bottomless cup of iced tea on the show. At least one branding expert said the Duck Commander family has too many products and trinkets, telling officials at the beverage maker that it’s “sad to walk through their retail store in Monroe and see all the junk they’ve licensed,” according to the suit. The over-scheduled Duck Commander family allegedly broke its contract to promote Uncle Si’s Iced Tea in media interviews and special appearances, according to the lawsuit. Si Robertson also failed to promote the tea on nationally televised morning shows, the lawsuit said.

Read More from: WSJ.com: Bankruptcy Beat

4 years 3 months ago
Duck Commander Family Foods and Chinook USA
A Kentucky company that’s brewing iced tea inspired by “Duck Dynasty’s” Uncle Si on the hit A&E reality TV show has filed for bankruptcy, accusing the show’s stars of breaking their promises to promote the beverage. The beverage maker’s federal lawsuit against Duck Commander Inc.—the Robertson clan’s duck-call business in Louisiana—portrays the “Duck Dynasty” brand as growing too big, too soon. In the glow of the spotlight, Duck Commander has made dozens of licensing agreements to grow its brand. That includes a deal with Chinook USA LLC to make and distribute a beverage named for Uncle Si, who drinks from a bottomless cup of iced tea on the show. At least one branding expert said the Duck Commander family has too many products and trinkets, telling officials at the beverage maker that it’s “sad to walk through their retail store in Monroe and see all the junk they’ve licensed,” according to the suit. The over-scheduled Duck Commander family allegedly broke its contract to promote Uncle Si’s Iced Tea in media interviews and special appearances, according to the lawsuit. Si Robertson also failed to promote the tea on nationally televised morning shows, the lawsuit said.

Read More from: WSJ.com: Bankruptcy Beat

4 years 3 months ago
  Many readers likely are familiar with the basic tenants of contractual interpretation. The key is to give effect to the intent of the parties. Where contractual language has a plain meaning, that is the best indication of intent. Where language is ambiguous, a court can examine extrinsic evidence (i.e., evidence outside the four corners of the agreement, such as evidence of negotiations) to determine the parties’ intent. These are some of the more basic elements from the framework used by attorneys and judges in the pursuit of meaning. The recent Chesapeake Energy Corporation decision from the United States Circuit Court for the Second Circuit illustrates that, though the basic interpretive framework appears straightforward, in application it can be complex, difficult, and contentious. Depending on one’s perspective, this decision might serve as a cautionary tale – or a signpost for opportunity. A Latent Dispute: Two Readings, One Text
4 years 3 months ago
Timing is critical when filing a chapter 7 bankruptcy case. If you are wise, you can get out of debt and still be able to protect your much needed tax refund. The key is to file either several months before or several months after your tax refund is either expected or received. The problem is+ Read More The post Get Out Of Debt And Protect Your Tax Refund appeared first on David M. Siegel.
4 years 3 months ago
The CFPB should receive its funding from Congress rather than the Federal Reserve in order to increase its accountability. Lawmakers should also take steps to limit the power accorded to the agency's director.

Read More from: BankThink

4 years 3 months ago
Law firm Dewey and Leboeuf’s ex-Chairman Steven Davis (second right), ex-CFO Joel Sanders (third right), former executive director Stephen DiCarmine and former client relations manager Zachary Warren arrive in handcuffs at Manhattan Criminal Court in New York March 6, 2014.
Reuters
The Dewey & LeBoeuf criminal trial finally has a start date. The defunct law firm’s three former leaders—Steven Davis, Stephen DiCarmine and Joel Sanders—will head to court April 27 to kick off a trial expected to last four to six months, a judge said Monday. The three stand accused of accounting fraud as part of an alleged scheme to hide the true nature of Dewey’s financial condition in the run-up to the firm’s dramatic 2012 collapse. All three have maintained their innocence and are free on bail awaiting the trial. In court Monday, the trio sat silently by as New York state Supreme Court Justice Robert Stolz pressed counsel for the Manhattan district attorney and for the defendants to set a date. Justice Stolz initially suggested a late-February start, but both sides requested delays.

Read More from: WSJ.com: Bankruptcy Beat

4 years 3 months ago
Law firm Dewey and Leboeuf’s ex-Chairman Steven Davis (second right), ex-CFO Joel Sanders (third right), former executive director Stephen DiCarmine and former client relations manager Zachary Warren arrive in handcuffs at Manhattan Criminal Court in New York March 6, 2014.
Reuters
The Dewey & LeBoeuf criminal trial finally has a start date. The defunct law firm’s three former leaders—Steven Davis, Stephen DiCarmine and Joel Sanders—will head to court April 27 to kick off a trial expected to last four to six months, a judge said Monday. The three stand accused of accounting fraud as part of an alleged scheme to hide the true nature of Dewey’s financial condition in the run-up to the firm’s dramatic 2012 collapse. All three have maintained their innocence and are free on bail awaiting the trial. In court Monday, the trio sat silently by as New York state Supreme Court Justice Robert Stolz pressed counsel for the Manhattan district attorney and for the defendants to set a date. Justice Stolz initially suggested a late-February start, but both sides requested delays.

Read More from: WSJ.com: Bankruptcy Beat

4 years 3 months ago
This is a true story that happened last week for one of my chapter 13 bankruptcy clients. The client received a notice from the Illinois Secretary of State that his driver’s license was going to be suspended for failure to pay parking tickets by a specific date. He sought my advice on chapter 13 bankruptcy+ Read More The post I filed Bankruptcy: My Driver’s License Is Still Suspended appeared first on David M. Siegel.
4 years 3 months ago
Deloitte recently published a 127-page report on SEC comment letter trends that companies may find useful as they prepare their annual 10-K disclosures. 
4 years 3 months ago
This photo shows transformers that are ready to ship at Oncor’s staging area in Lancaster, Texas, on Thursday, Dec. 5, 2013.
Associated Press
Energy Future Holdings Corp. moved Tuesday to restart the bidding on its stake in Oncor, the transmissions business whose prospects shook up the Texas company’s $42 billion bankruptcy. 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 our homepage, scroll to the bottom and click “try for free.”) Salus Capital Partners offered a $500 million bankruptcy loan to RadioShack Corp., WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

4 years 3 months ago
This photo shows transformers that are ready to ship at Oncor’s staging area in Lancaster, Texas, on Thursday, Dec. 5, 2013.
Associated Press
Energy Future Holdings Corp. moved Tuesday to restart the bidding on its stake in Oncor, the transmissions business whose prospects shook up the Texas company’s $42 billion bankruptcy. 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 our homepage, scroll to the bottom and click “try for free.”) Salus Capital Partners offered a $500 million bankruptcy loan to RadioShack Corp., WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

4 years 3 months ago
Beginning in 2012, a distinguished group of bankruptcy attorneys, academics and judges known as the American Bankruptcy Institute (ABI) Commission to Study the Reform of Chapter 11 (the Commission) held periodic meetings throughout the U.S. to analyze and discuss comprehensive reforms to chapter 11 of the Bankruptcy Code. The results of their analyses and recommendations were published on Dec. 8, 2014, in a written format, Final Report and Recommendations (the Report).[1] Not counting appendices, the Report is 331 pages long and covers just about every aspect of chapter 11 practice. For each topic, the Commission made specific recommendations to amend the Bankruptcy Code in an attempt to make chapter 11 more efficient and useful and generally to bring chapter 11 practice in alignment with the current realities of a 21st Century financial world. These recommendations included addressing intellectual property licenses.

Read More from: Insolvency Insights

4 years 3 months ago
By: Daniel R. Schimizzi, Esq. Section 363 of the Bankruptcy […] The post 11 U.S.C. § 363(m): Special Protection for a Good Faith Purchaser appeared first on Bernstein-Burkley, P.C..

Read More from: Bernstein-Burkley, P.C.

4 years 3 months ago
Banks can be compliant with cybersecurity guidelines and still remain vulnerable to massive liabilities. One case in point: many financial institutions carry mandatory insurance policies that could leave them on the hook for six-figure losses from corporate account takeovers.

Read More from: BankThink

4 years 3 months ago
Receiving Wide Coverage ... Game On: MetLife is suing the U.S. government for designating it as a systemically important financial institution. The life insurer plans to file a lawsuit in the United States District Court for the District of Columbia Tuesday. MetLife is the first firm to try to shake off the systemically important label by going to court, the New York Times reports. An article in the Wall Street Journal sheds light on why company...

Read More from: BankThink

4 years 3 months ago
Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.), 519 B.R. 586 (Bankr. W.D.N.Y. 2014) – A chapter 7 trustee sought to recover as preferences payments made by the debtor to a lender and proceeds of collateral liquidation received by … Continue reading →
4 years 3 months ago
Payday loans are exceedingly expensive, often trapping borrowers into a cycle of rolling their loan over for many months while interest compounds. Postal banking has been suggested as a way to provide people with better access to less-expensive loans. And the CFPB has indicated that it intends to regulate payday and similar high-cost loans (maybe that will happen soon?). In the meantime, some churches apparently have taken matters into their own hands. A recent Washington Post article describes how churches in Virginia have helped some of their members secure manageable loans from the Jubilee Assistance Fund (very apt name) and the Virginia United Methodist Credit Union. ("Faith-based" credit unions exist across the country and also offer loans to churches. A few of these credit unions end up as creditors in churches' Chapter 11 cases). The article reports that similar church-run lending programs are sprinkled across the country, with churches in some states seemingly having more coordinated efforts.

Read More from: Credit Slips

4 years 3 months ago
The venue reform movement has focused on cases filed in Delaware and the Southern District of New York which are either not transferred (Enron and Energy Futures) or transferred at considerable time and expense (Patriot Coal).   However, a decision out of Texas denied a request to transfer an adversary proceeding to Delaware.    Think3 Litigation Trust v. Zuccarello (In re Think3, Inc.), No. 13-1081 (Bankr. W.D. Tex. 1/4/15), which can be found here.What Happened The Think3, Inc. case was unusual in more ways than one.    Think3 was incorporated in Delaware and had a large branch office in Italy.   An involuntary bankruptcy proceeding was filed against the company in Italy.   The Debtor filed a voluntary chapter 11 petition in Texas on May 18, 2011.   The Italian Trustee filed a Chapter 15 petition in Texas later the same year; however, recognition was denied and the petition was dismissed.   The voluntary chapter 11 case resulted in a confirmed plan with a Litigation Trust.    The Litigation Trust sued certain former officers and directors, four of whom were residents of other countries, primarily Italy.   The intrepid Litigation Trustee was able to serve the foreign defendants through the Hague Convention.
4 years 3 months ago
To get ready for the January 14, 2014 Supreme Court oral argument on Wellness International Ltd. v. Sharif, read this National Bankruptcy Conference report.

Read More from: Credit Slips

4 years 3 months ago

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