JPMorgan Chase is cracking down on racism by its customers. The bank is revamping a policy for dealing with abusive clients to include racism toward call-center employees as behavior that could warrant cutting ties with the customers.
The Loan Source, the nonbank lender buying the Paycheck Protection Program loans, has similar deals in place with other lenders.
Ezequiel Szafir, CEO of Banco Santander's digital-only Openbank, sees banks of the future looking increasingly like Amazon.com — with online storefronts for financial products.
Now perhaps more than ever, banks and their proxies need to show tact when communicating with past-due borrowers.
HSBC is planning to shift services away from its branches in a push to make more of its customers migrate to its digital and mobile channels as it embarks on a massive cost and jobs cutting program.
The Fed stopped short of banning payouts entirely following bank stress tests; banks get greater freedom to invest in venture capital funds and reduced collateral on swap trades.
There's a new bankruptcy blog around: the Best Interest Blog. Welcome to the blogosphere!
I'm delighted that the blog features a great post by my former student and research assistant Mitchell Mengden about the "J. Screwed" maneuver of stripping out collateral from the restricted group and then pledging it to other creditors. While the maneuver has been going on for a while, as Mitchell explains, it's interesting how infrequently underwriter's counsel has insisted on J. Crew provisions in bond indentures, although the use seems to be picking up in junk indentures.
Read More from: Credit Slips
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