States that were quick to reopen are seeing spikes in infections and hospitalizations, raising the specter of another lockdown. Here’s what that could mean for banks.
In the most sweeping capital distribution order since the financial crisis, the Federal Reserve says it will prohibit big banks from buying back their stock in the third quarter and limit dividend payments to second-quarter levels.
The Corporate Insolvency and Governance Bill (the “Bill”) was published on 20 May 2020 and introduced a new debtor-in-possession moratorium to give companies breathing space in order to try to rescue the company as a going concern. The Bill went through the House of Commons on 3 June and passed through the House of Lords on 23 June. The Bill was back before the House of Commons today and is likely to receive Royal Assent next week (at which point the Bill will become law).
Deferral periods on scores of commercial loans will soon be ending, and many banks’ profits this year could turn on whether borrowers can resume making payments or will seek extensions.
The U.S. civil court system was designed to handle a wide range of non-criminal cases, ranging from family disputes to substantive contract breaches, property disputes and more. However, over the past several years, the civil courts in most states have been overrun by debt collection cases against consumers.
The increase in lawsuits filed against consumers for unpaid medical debt, credit card bills, automobile loans and other collection issues comes as no surprise to attorneys and others working in the industry. A recent analysis conducted by Pew Charitable Trusts revealed a dramatic rise nationwide, even as other civil matters are declining in number. Some key findings from the Pew research include:
Read More from: Bonds & Botes, P.C.
The Bankruptcy Court for the Southern District of New York had the opportunity to rule on the availability of sanctions for a discharge violation regarding collection of discharged taxes against both the IRS and a contractor for the IRS in In re Starling, 2020 Bankr. LEXIS 1627, Case No 13-36564 (CGM), (Bankr. S.D.N.Y., 19 June 2020). The case involved taxes discharged in a chapter 13 case where the discharge was entered on 21 May 2016. On 6 November 2017 the debtor received a notice that the tax debt was assigned to ConServe, a private collection agency. Debtor promptly sent a letter to the IRS dated 8 November 2017 warning of the violation of the automatic stay (sic). ConServe, undeterred by such warning, sent additional 'Annual Tax Delinquency' notices on 7 November 2018 and 7 November 2019. The IRS ceased collection activity on 22 November 2019 pursuant to 26 U.S.C. §6502 which limits the time the IRS may collect on an assessment.
The Debtor filed a motion for contempt seeking to hold the IRS and Conserve in contempt for violation of the discharge injunction under 11 U.S.C. 524. Debtor sought compensatory damages, attorneys fees, and $10,000 of punitive damages. The IRS denied subject matter jurisdiction due to the failure of the debtor to exhaust his administrative remedies, and denied that the debt was in fact discharged.
Read More from: Tampa Bankruptcy
Five financial regulatory agencies clarified the meaning of "covered funds" under the Volcker Rule. Meanwhile, the FDIC gave certain banks more flexibility in interaffiliate exchanges of swaps and adopted a workaround of a court decision governing interest rates on loans sold across state lines.
Attorney Ben Crump is one of the preeminent civil rights attorneys in the United States. He has received many awards and honors to include the Freedom Award in 2016 from the National Civil Rights Museum. It is not a stretch to say that, if there is a case that has national civil rights implications in our country, Ben is probably involved in representing the victims and their families. Based primarily in Florida,
Read More from: Bonds & Botes, P.C.
On Friday, 19 June 2020, the UK government announced that it would be extending existing measures to protect tenants from eviction over summer. In summary, the new measures include:
As previewed in our prior post, Poland’s simplified restructuring proceeding (uproszczone postępowanie restrukturyzacyjne) is now in effect.
Titi Cole was recruited away from Wells Fargo to join Citi as head of global operations and fraud prevention. She’ll report to Jane Fraser, the CEO of global consumer banking.
The U.S. Department of Labor issued a proposed rule on June 23, 2020 to clarify how and when ERISA fiduciaries can select and monitor plan investments based on environmental, social or corporate governance (“ESG”) and similar objectives.
The proposed rule would apply to fiduciaries of private-sector retirement plans, such as company-sponsored defined benefit pension plans and 401(k) plans. Fiduciaries of public pension plans are not subject.
The Labor Department believes that the proposed rule will help plan fiduciaries navigate ESG investing and separate the consideration of risk-return factors from investments that may sacrifice investment return, increase costs or assume additional investment risk to promote “non-pecuniary” objectives.
Read More from: Davis Polk Briefing: Governance
With just 13 decisions remaining on the docket this session, the high court's highly anticipated ruling in a case challenging the agency's leadership structure could come as early as next Monday.
Brick-and-mortar merchants that have shifted to online have changed their risk profile, causing conflicts with the fintechs like Square that handle their payments. And that could be an opportunity for banks.
The Paycheck Protection Program had more than $100 billion in funding left as of last Saturday, with only days remaining until the Small Business Administration stops taking new applications on June 30.
Borrower relief is necessary in a national emergency, but if the exclusion of the deferred loans from troubled-debt restructurings is extended past the end of the year, safety and soundness could be compromised.
The federal government has finally offered some clarity on how mom-and-pop businesses can avoid repaying their bailout loan—a major sticking point in the Paycheck Protection Program.
In the past month officials in the Small Business Administration and the Treasury Department have worked with Congress to make much-demanded changes to the law, which culminated in the PPP Flexibility Act signed by President Donald Trump on June 5.
With all remaining PPP loan applications expiring next week—June 30 is the last day to apply—here are the changes small-business owners need to know to receive forgiveness on current or future loans.
Read this week’s issue of Crain’s New York Business online
FAQ: A guide to SBA's disaster loans
Here's why the $349 billion PPP ran out of money
The amount one is required to spend on payroll has shifted
The first iteration of the PPP loan required small-business owners to spend 75% of the loan money they received on employee payroll before it could be considered for forgiveness. After an outcry from small-business owners, who considered the stipulation restrictive in light of a host of other operating costs, the revised PPP loan shifts that requirement to 60%.
Read More from: Shenwick & Associates
Arbor Bancorp and FNBH Bancorp said the pandemic had created uncertainty about the regulatory process for securing approval for the deal.
Read More from: Mediatbankry