abiLIVE Webinar Tomorrow to Take an In-Depth Look at the Final Report of ABIs Chapter 11 Reform Commission

December 9, 2014

NEWS AND ANALYSIS

ABILIVE WEBINAR TOMORROW TO TAKE AN IN-DEPTH LOOK AT THE FINANCIAL REPORT OF ABI'S CHAPTER 11 REFORM COMMISSION

As members examine the recommendations of the final report of the Chapter 11 Reform Commission, tomorrow's abiLIVE 90-minute webinar features several members of the Commission and the official reporter discussing the key findings submitted to Congress. Speakers on tomorrow's webinar include:

- Commission co-chairs Robert J. Keach of Bernstein Shur (Portland, Maine) and Albert J. Togut of Togut, Segal & Segal LLP (New York)

- Commission reporter Prof. Michelle M. Harner of the University of Maryland School of Law (Baltimore)

- Commissioners William A. Brandt of Development Specialists, Inc. (New York), Babette A. Ceccotti of Cohen, Weiss & Simon LLP (New York), Prof. Kenneth N. Klee of the University of California at Los Angeles School of Law (Los Angeles), Richard B. Levin of Cravath, Swaine & Moore LLP(New York) and Deborah D. Williamson of Cox Smith Matthews Incorporated (San Antonio)

The webinar features 1.50 hours of general CLE credit. The event begins at 2 p.m. ET. To register, please click here.

To download a copy of the Commission's final report, please click here.

To view Commission's press conference yesterday at the National Press Club, please click here.

LARGE U.S. BANKS FACE TOUGHER-THAN-GLOBAL CAPITAL RULE

Fed Governor Daniel Tarullo has said the U.S. requirement should be more stringent than the international standard and take into account how banks borrow money to determine how much more capital they need, Bloomberg News reported today. The Fed proposal announced today may lower returns for shareholders of U.S. banks compared with firms in other parts of the world, according to analysts. The extra capital requirement could be heavier for firms such as Goldman Sachs Group Inc. and Morgan Stanley that rely more on markets for short-term funding, instead of looking to depositors. In the wave of rules meant to prevent a repeat of the 2008 financial crisis, the Fed has made global agreements tougher when applying them to U.S. lenders. This rule will see the same treatment, according to Tarullo, the Fed governor in charge of bank supervision. Banks should consider whether it makes sense to reduce their "systemic footprint" to minimize the extra capital requirement, Tarullo said in September. He said that the Fed was putting emphasis on banks that rely the most on short-term funding because they are vulnerable to runs in a crisis. Read more.

CFPB ISSUES LATEST SEMI-ANNUAL REPORT TO CONGRESS

As required by the Dodd-Frank Act, the Consumer Financial Protection Bureau has released its sixth semi-annual report to Congress and the president, focusing on its actions from April through the end of September this year, ACAInternational.org reported yesterday. In the report, CFPB Director Richard Cordray reviewed consumer complaints, enforcement actions and the issuance of proposed or final rules in the industries regulated by the bureau, including debt collection. "As we continue to emerge from the continuing effects of the devastating financial crisis of 2008, we find that debt collection is central and cuts across virtually all credit products: credit cards, mortgages, student loans, payday loans, and other consumer loans," Cordray said. "Currently, about 30 million consumers — nearly one out of every 10 Americans — are subject to debt collection, for amounts that average about $1,500 each." In fall 2014, the bureau received 86,900 debt collection complaints. According to the report, a majority of those complaints were about a debt not owed (36 percent.) Read the CFPB's report.

COMMENTARY: A STRATEGY FOR PENSIONS AT RISK OF EXTINCTION

Forty years ago, President Gerald Ford signed the Employee Retirement Income Security Act, which enshrined the concept that companies could change, or even eliminate, pension plans, but workers were entitled to the benefits they had already earned, according to a commentary Friday in the New York Times. The Pension Benefit Guaranty Corp. (PBGC), the agency set up 40 years ago to guarantee those pensions, made clear in its annual report released last month that one group of pension funds would most likely run out of money within a few years. The PBGC says that its multiemployer plan might run out of money in 2018 and is virtually certain to fail by 2025. In Falling Short, the Coming Retirement Crisis and What to Do About It, a book to be published next week, researchers Alicia Munnell, Charles D. Ellis and Andrew D. Eschtruth propose to raise payroll taxes to shore up Social Security and to make it automatic for workers to join 401(k) plans. Employees could still opt out, but research shows inertia leads people to stay in if they are in and to stay out if they are out. Read the full commentary.

ABI MEMBERS INVITED TO TRY BLOOMBERG BNA'S RECENTLY LAUNCHED BLOOMBERG LAW: BANKRUPTCY TREATISE

Bloomberg BNA welcomes ABI members to try the Bloomberg Law: Bankruptcy Treatise, an online-only resource recently launched to help attorneys consume information and conduct legal research in the fast-moving, procedurally complex area of bankruptcy. The Bankruptcy Treatise integrates the news content of Bloomberg BNA's bankruptcy news coverage with over 600 chapters and more than 13,000 pages of content and expert analysis from over 60 renowned judges, law professors and practitioners. The Bloomberg BNA editorial team, with input from outside contributors, will update the material as bankruptcy rules change and courts apply and react to them, ensuring that all aspects of federal bankruptcy law and local rules are current. Practitioners will be pleased to discover that Bloomberg Law: Bankruptcy Treatise includes expert commentary and analysis for all 92 different local rule sets throughout the country, providing unique insights across jurisdictions. For more information on Bloomberg Law: Bankruptcy Treatise and to request a free trial of Bloomberg Law, please click here.

USTP NOTICE OF PROPOSED RULEMAKING ON CHAPTER 11 MONTHLY OPERATING REPORTS

Section 602 of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) authorizes the U.S. Trustee Program (USTP) to issue rules requiring uniform periodic reports by debtors in possession or trustees in non-small business cases under chapter 11. The USTP just published in the Federal Register a notice of proposed rulemaking seeking public comment on the proposed rule and periodic report forms. The proposed rule is published in the Federal Register at 79 FR 66659 (Nov. 10, 2014) (to be codified at 28 C.F.R. pt. 58). The proposed rule, along with the proposed periodic report forms and instructions, may be viewed on the USTP's website. The proposed rule may also be accessed at www.regulations.gov. All public comments must be submitted on or before January 9, 2015, via www.regulations.gov. Please note that the proposed rule and forms only apply in chapter 11 cases filed by debtors that are not small businesses. Small business debtors are already required to use Official Form 25C, "Small Business Monthly Operating Report."

ABI MEMBERS WELCOME TO ATTEND TRIBUTE DINNER ON THURSDAY TO HONOR BANKRUPTCY JUDGE STEVEN W. RHODES

ABI members are invited to attend a tribute dinner honoring the 29 years of service of Bankruptcy Judge Steven W. Rhodes of the United States Bankruptcy Court for the Eastern District of Michigan for his commitment to the bench, bar and community. The Tribute Dinner will be held at the Roostertail on the Detroit River and is being hosted by the Bankruptcy Community to honor and celebrate Judge Rhodes' service and career. Please contact David Lerner at (248) 901-4010 for more information. To attend, please go to http://www.cbadetroit.com/events/Judge-Rhodes-USBC-Invite-and-Form.pdf

NEW CASE SUMMARY ON VOLO: MANO-Y&M LTD. V. FIELD (IN RE THE MORTGAGE STORE INC.; 9TH CIR.)

Summarized by David Hercher of Miller Nash LLP

The Ninth Circuit ruled that an initial transferee under Sect. 550(a)(1) is one who has "dominion" over the transferred property by both holding legal title to the property and having the ability to use it as the transferee sees fit, and that control alone does not suffice.

There are more than 1,500 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI's Volo website.

NEW ON ABI'S BANKRUPTCY BLOG EXCHANGE: BLOG SERIES TO REVIEW THE FINAL REPORT AND RECOMMENDATIONS OF ABI’S COMMISSION TO STUDY THE REFORM OF CHAPTER 11

The Weil Bankruptcy Blog over the next several weeks will provide summaries of the most interesting and important issues addressed in the final report of the ABI Commission to Study the Reform of Chapter 11.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

"Executoriness" should be dropped as a threshold requirement in Sect. 365.

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

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