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Along with some thoughts about FSOC's designation of SIFIs in general, over at Dealb%k.

Read More from: Credit Slips

4 years 9 months ago
In  a recent edition of the invaluable Daily Bankruptcy News, a link appeared to an article by one Professor Charles Jordan Tabb entitled "The Bankruptcy Clause, the Fifth Amendment and the Limited Rights of Secured Creditors in Bankruptcy" which dealt with subjects I find interesting and have written about, so I read it.  It turns out to be essentially the same as a paper he gave at an ABI panel earlier this year, and as that paper is more accessible, I link to it rather than the cumbersome SSRN site that DBN linked to.The article is a good example of two things:  One, the traditional law-professor-approach of taking some appellate opinions, identifying alleged inconsistencies in them, and then concluding that they really don't mean what people think they mean, they mean what the professor wants them to mean.   The second thing the article exemplifies is the current vogue of making conclusory claims about deficiencies in corporate reorganization due to purported domination of those cases by secured creditors in some "unfair" way, leading to a cry to "reform" the process to restore a Edenic "balance" that actually never existed at all.I think the article is wrong on both counts.  First, as I assume the reader has not read it, I must explain what it says in some detail.  But to save the busier readers among you some time, here is the punch line of my argument:  All claims, secured

Read More from: Necessary and Proper

4 years 9 months ago
Last week, the FDIC released its 2013 National Survey of Unbanked and Underbanked Households. Some of the Survey's results were similar to the FDIC's 2009 and 2011 surveys. 7.7% of households were unbanked. Another 20% of households were underbanked. I took note of the Survey because its maps of unbanked and underbanked rates by state have been receiving some attention online. But what I think is more intriguing are the Survey's questions about prepaid cards.

Read More from: Credit Slips

4 years 9 months ago
One month ago, Judge Christopher Klein ruled in the city of Stockton, CA bankruptcy case that public employee pension obligations can be impaired in municipal bankruptcy cases under Chapter 9 of the Bankruptcy Code.  Last week, however, Judge Klein approved the plan of adjustment for Stockton that left public pension obligations intact over the vociferous objection of Franklin Investments, a major city bondholder whose claim was substantially reduced.  The confirmation of the Stockton plan underscores that even as there now appears to be a sound legal foundation for distressed municipalities to utilize Chapter 9 to reduce public pension claims, achieving such a result will remain an arduous process

Read More from: Bankruptcy Law Insights

4 years 9 months ago
One month ago, Judge Christopher Klein ruled in the city of Stockton, CA bankruptcy case that public employee pension obligations can be impaired in municipal bankruptcy cases under Chapter 9 of the Bankruptcy Code.  Last week, however, Judge Klein approved the plan of adjustment for Stockton that left public pension obligations intact over the vociferous objection of Franklin Investments, a major city bondholder whose claim was substantially reduced.  The confirmation of the Stockton plan underscores that even as there now appears to be a sound legal foundation for distressed municipalities to utilize Chapter 9 to reduce public pension claims, achieving such a result will remain an arduous process

Read More from: Bankruptcy Law Insights

4 years 9 months ago
If you are thinking about making an angel investment into a start-up, one (of many) datapoints you should want to know is this: how hard does the founder work? Read more here.
4 years 9 months ago
A recent decision from the United States Bankruptcy Court for the Western District of Texas touched on two popular bankruptcy topics: notice requirements and the effect of a bankruptcy discharge on claims. As we have previously discussed here, here, and here these issues play an important role in the reorganization process. 
4 years 9 months ago
As bitcoins become more popular, banks should consider the credit risks associated with borrowers who own digital currencies and take steps to mitigate potential pitfalls.

Read More from: BankThink

4 years 9 months ago
Both ISS and Glass Lewis have released their policy updates for the 2015 proxy season, with new guidelines for board adoption of bylaws, IPO companies, independent chair shareholder proposals, and equity plans seeking shareholder approval, among others.   We will be providing a client memo with more information shortly.
4 years 9 months ago
Most customers who go into bank branches aren't in the mood to entertain a forceful sales pitch. But if they're pleased with the service they receive, they'll be a lot more willing to learn more about a bank's additional offerings.

Read More from: BankThink

4 years 9 months ago
Receiving Wide Coverage ... Not So Fast My Friend: Both the Wall Street Journal's "Heard on the Street" column and the Financial Times's "Lex" column caution bank investors to not get their hopes up after the boffo Republican showing in this year's elections. The costs of reeling in some of the bank-reform laws deemed most egregious by GOP leaders are likely too high. The FT notes any gifts to the financial industry will likely go toÂ...

Read More from: BankThink

4 years 9 months ago
Yesterday, many citizens all over the country voted for local and state leaders and proposed ballot measures in their districts. Social media was abuzz with uploaded photos of individuals donning “I voted” stickers, and timelines were flooded with status messages urging people to exercise their civic rights and vote. Nevertheless, there were also those that opted not to vote, and their respective reasons varied. Some people claimed they could not get to the polls on time, others didn’t like the set of candidates running in their districts, and a great many pondered, “If I don’t vote, will my non-vote really matter?” A person’s decision not to vote for any particular candidate does not then result in the default selection of one of the candidates. Similarly, in determining whether a particular ballot measure has passed, election officials cannot use the non-votes of possible voters to conclude that their failure to vote was an implicit acceptance of the proposed measure. A general election is not the only forum in which voting and the effect of not casting a ballot is discussed. In bankruptcy, the votes of a plan’s creditors and equity interest holders may make the crucial difference as to whether a plan can be confirmed. So it is not surprising that, in the bankruptcy context, the same types of questions that confront potential voters in general elections are faced by creditors deciding whether to vote on a plan.
4 years 9 months ago
As a bankruptcy attorney in Chicago, I meet with countless people every year who are often more concerned about their credit scores then actually getting out of debt. There is a fear that filing bankruptcy will take the credit score to the point where the person will not be able to obtain credit in the+ Read More The post You Should Be Concerned About Your Credit Score appeared first on David M. Siegel.
4 years 9 months ago
Until Congress gets around to GSE reform, the FHFA could at least make Fannie and Freddie less expensive to run. Combining the companies would reduce the threat that they will need more support from the Treasury and perhaps lower the cost of obtaining a mortgage.

Read More from: BankThink

4 years 9 months ago
In re Energy Future Holdings Corp., No. 14-10979 (CSS) (Bankr. D. Del. Nov. 3, 2014) [Transcript Ruling] Upon commencement of this mega-chapter 11 case, the Debtors filed and pursued assumption of a restructuring support agreement (“RSA”), which contemplated, among other things, the tax-free spinoff of the Debtor entities that control the economic interest in their non-debtor affiliate, Oncor, a company that provides residential and commercial electricity in Texas and has been estimated by the Debtors to be worth as much as $18 billion.  Over the summer, however, the Debtors were forced to abandon the RSA when certain bidders offered more value than was to be provided under the RSA transactions.  Read More › Tags: 363 Sales, Bidding Procedures, Insider's Scoop

Read More from: Delaware Bankruptcy Insider

4 years 9 months ago
Introduction On October 28, 2014, The Official Committee of Unsecured Creditors of Q v. AB Foods LLC (the “Committee”), the committee in the Quantum Foods, LLC bankruptcy, began filing complaints to recover what it contends are avoidable preferences.  The Committee filed the preference actions in the Delaware Bankruptcy Court and argue that the transfers, or payments, received by various defendants are avoidable and subject to recovery under 11 U.S.C. § 547 and 548 of the United States Bankruptcy Code. This post will look at the Quantum Foods, LLC bankruptcy proceeding, why the company filed for bankruptcy as well as key developments during the course of the bankruptcy proceeding. Background
4 years 9 months ago
A study by the CFA Institute has been quoted in shareholder proposals seeking proxy access for a particularly notable statement: that proxy access has the potential to raise U.S. market capitalization by between $3.5 billion and $140.3 billion. 
4 years 9 months ago
Research suggests that women in leadership positions are most successful when they develop flexible management styles and pay attention to some uncomfortable truths in today's workplace-even if they reject them.

Read More from: BankThink

4 years 9 months ago
Sometimes you can beat the door down with efforts to get Federal and State officials to tackle problems, but at the end of the day, locals can best get the job done, quietly and quickly. A story in Monday’s New York Times bears this out.  For example, San Francisco City Treasure Jose Cisneros noticed that families who finally took advantage the of the earned income credit, the country’s largest public benefit program, often had no bank accounts in which to deposit their refunds. This meant losing a portion of this important public benefit to check cashers and others.

Read More from: Credit Slips

4 years 9 months ago
Receiving Wide Coverage ... 'Watch Out': The results of Tuesday's elections are scrutinized as an attempt is made to extrapolate what it all means to business, with one likely outcome being an improved policy climate for banks. (For a look at how the Senate Banking Committee is likely to proceed under probable chairman Richard Shelby, read American Banker's coverage.) Sen. Mitch McConnell of Kentucky is in the spotlight, as he'll have a long list of items...

Read More from: BankThink

4 years 9 months ago