The Financial Stability Oversight Council plans to regulate the asset management industry by targeting activities that pose systemic risk rather than the companies themselves. Regulators should take the same approach with life insurers, according to former U.S. Sen. Dirk Kempthorne.

BankThink
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INTRODUCTION
Today we bring you the sequel to last year’s four-part series on United States v. Bond — the tale of three related telecommunications corporations (which we will refer to as the “PT-1 debtors”) whose chapter 11 cases spawned a series of tax-related disputes. Now, the Second Circuit has weighed in, and its decision serves as an important reminder to drafters of chapter 11 plans that a plan cannot bestow powers on parties that the Bankruptcy Code does not.
BACKGROUND

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Pedestrians pass by a closed Crumbs Bake Shop Inc. store in New York on July 8.
Bloomberg News

Crumbs Bake Shop next Tuesday will seek bankruptcy-court approval to sell its assets to television personality Marcus Lemonis and Dippin’ Dots owner Fischer Enterprises, who together plan to relaunch the shuttered cupcake chain.
Crumbs abruptly closed its doors in July and soon sought Chapter 11 protection. But within days Mr. Lemonis expressed interest in investing and reopening some stores. Although the company planned an auction, the offer from Mr. Lemonis and Fischer Enterprises—$6.5 million in debt-forgiveness—remained the only qualified bid.
Although the investors plan to relaunch the chain, the no-cash offer provides little in the way of recovery for unsecured creditors. But Crumbs lawyers said they’re trying to negotiate another form of recovery for this group.

WSJ.com: Bankruptcy Beat
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bible
“At the end of every seventh year you are to cancel the debts of those who owe you money. This is how it is to be done. Everyone who has lent money is to cancel the debt; he must not try to collect the money: the Lord himself has declared the debt canceled.”
-Deuteronomy 15:1-3

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Financial institutions and industries targeted by Operation Choke Point should expect to see a dramatic increase in the issuance of administrative subpoenas or civil investigative demands.

BankThink
(posted 1 week 4 days ago)

Receiving Wide Coverage ... BofA's 'Mortgage Sins': Documents released as part of Bank of America's $17 billion settlement with the U.S. government "read like a highlight reel of the mortgage sins that fed the 2008 financial crisis," the New York Times reports. The Times and the Wall Street Journal focus on a few particularly striking passages. Former Countrywide Financial chief Angelo Mozilo warned in a 2005 email that a possible condo-market crash would be a "financialÂ...

BankThink
(posted 1 week 4 days ago)

The Federal Deposit Insurance Corp. and Bank of America Corp. have settled their long-running battle over who is ultimately responsible for losses tied to the sale of mortgage securities to more than two dozen failed banks. Read the Daily Bankruptcy Review story in The Wall Street Journal.
(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.”)
An attempt by television personality Marcus Lemonis and Dippin’ Dots owner Fischer Enterprises LLC to reopen Crumbs Bake Shop Inc. stores moved closer to reality after a deadline to trump the pair’s $6.5 million offer for the chain passed with no other bidders emerging. Read Sara Randazzo’s story in WSJ.

WSJ.com: Bankruptcy Beat
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What is a judgment, and how do you know if […]
The post 5 Minute Legal Master Series: Judgment and Judgment Liens appeared first on Bernstein-Burkley, P.C..

Bernstein-Burkley, P.C.
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Prudential Ins. Co. of Am. v. SW Boston Hotel Venture, LLC (In re SW Boston Hotel Venture, LLC), 748 F.3d. 393 (1st Cir. 2014) – A senior mortgagee battled the debtor and a junior mortgagee over its entitlement to post-petition … Continue reading →

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The majority of clients we work with in our bankruptcy practice would be considered “consumer” debtors. Credit card debt, home equity loans, car loans, and medical bills often make up the majority of what they owe to creditors. Bankruptcy laws are written to allow consumer debtors to exempt much of the property they have acquired. The ability to retain property is often a major factor in deciding to file bankruptcy. How much property is exempt under the bankruptcy law is also one of the determining factors in deciding whether to file chapter 7 or chapter 13 bankruptcy.The post Property Exemptions in Bankruptcy appeared first on Tucson Bankruptcy Attorney.

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