Big banks have successfully reversed a Dodd-Frank provision that would have required them to move swaps from their FDIC-insured depository institutions into uninsured subsidiaries. But in so doing, they have inadvertently thrust the issue of implicit subsidies back into the spotlight.

BankThink
(posted 2 days 6 hours ago)

Receiving Wide Coverage ... Fed Stays Patient: As expected, the Fed said on Wednesday that it would remain patient when it comes to raising interest rates, and the Journal, New York Times, Financial Times and Washington Post all produced reports on the Fed's meeting. Fed Chair Janet Yellen said the Fed will likely raise interest rates next year, but no sooner than late April, as the central bank exercises patience in waiting for the precise momentÂ...

BankThink
(posted 2 days 7 hours ago)

I was thrilled to hear the news today that President Obama has set the nation on a path toward normalization of diplomatic relations with Cuba.  I think that is clearly in the best interests of the United States in the long-term.  Since I visited Havana back in October,  one thing that stuck in my head was the statement of the #2 guy at the U.S. Interests section (the "don't call it an embassy" that is nevertheless the largest diplomatic delegation in Cuba) that "you won't find a more pro-American population on the face of this planet than the Cuban people."  That made huge sense to me.  I think the best way to create people deeply committed to traditional American values is to expose them to decades of socialist repression.   Watching CNN en español this afternoon, they were reporting widespread celebration and jubilation among the people in Havana.  Obviously many people have relatives in the US and this will facilitate family connections, but I would bet that even among those who don't see it through a family prism, they see this as a step toward a better economy and polity.

Necessary and Proper
(posted 2 days 20 hours ago)

“Always look out for Number One, but don’t step in Number Two” – Rodney Dangerfield
“What-eva – I’ll do what I want [as long as my company is solvent]” – Eric Cartman, South Park
It is widely known that under Delaware law, officers and directors of a solvent corporation owe fiduciary duties not to the corporation’s creditors, but to the corporation’s shareholders, who bear the risks and rewards of any rise or fall in the company’s value. In Lightsway Litig. Servs., LLC v. Yung (In re Tropicana Entmt., LLC), the United States Bankruptcy Court for the District of Delaware teaches us that the logical consequence of this regime of fiduciary duties is that officers and directors of a solvent corporation who are also the sole owners of that corporation are charged with maximizing value for themselves, even where those actions may negatively impact the corporation itself. 

(posted 3 days 2 hours ago)

When it comes down to consumer bankruptcy, the official forms do a pretty good job of setting forth the facts of the case, the assets involved in the case, the liabilities in the case, and the debtor’s statement of financial affairs. However, there is a very important document that is missing from the official forms,+ Read More
The post Chapter 13 Bankruptcy Forms: Do You Know What Is Missing? appeared first on David M. Siegel.

(posted 3 days 4 hours ago)

Rigid state licensing laws have compelled some payments startups to partner with licensed money transmitters in order to get their programs off the ground. That's a good thing.

BankThink
(posted 3 days 4 hours ago)

This time bankruptcy worked better than I hoped John and Val filed a Chapter 7 bankruptcy with me in 2004.  A lot of their problem then was medical bills. John’s health continued to decline.   When they came to see me in 2012, he was disabled.  He was confined to a wheel chair.  And they […]The post Loan Mod–Even At the Last Minute, Bankruptcy Worked by Robert Weed appeared first on Robert Weed.

Robert Weed
(posted 3 days 5 hours ago)

A fifth DBSI Inc. official will do time for his role in the fraud-driven collapse of the Idaho real-estate firm.
Gary W. Bringhurst, 47 years old, this week was sentenced to five years of probation—including 60 days of intermittent imprisonment—according to federal prosecutors. Last year, he pleaded guilty to conspiracy to commit securities fraud.
Mr. Bringhurst joins former DBSI President Douglas L. Swenson and three other former officials in receiving sentences for their roles in the fraud that brought DBSI several years ago.
Prosecutors say Mr. Swenson and others publicly held the unprofitable DBSI out as profitable to try to lure investors, essentially operating the company like a Ponzi scheme by relying on funds from new investors to pay old investors. DBSI entered bankruptcy proceedings in November 2008.
In August, Mr. Swenson was sentenced to 20 years in prison after being convicted of 44 counts of securities fraud and 34 counts of wire fraud. Mark Ellison, DBSI’s former general counsel, received a five-year sentence. Mr. Swenson’s sons—David Swenson and Jeremy Swenson, both assistant secretaries—received three-year sentences. Mr. Ellison and the Swenson brothers were also convicted of 44 counts of securities fraud, but all four men have appealed their convictions.

WSJ.com: Bankruptcy Beat
(posted 3 days 5 hours ago)

Professor Joseph Grundfest of Stanford Law School and SEC Commissioner Daniel Gallagher have co-authored an academic paper with the provocative title “Did Harvard Violate Federal Securities Law?  The Campaign Against Classified Boards of Directors.”  The paper pointedly criticizes the work of the Harvard Shareholder Rights Project, which assists several pension funds and other investors in submitting shareholder proposals to declassify boards of directors.  

(posted 3 days 5 hours ago)
In this Jan. 21 file photo, Freedom Industries President Gary Southern leaves the company’s bankruptcy hearing in Charleston, W.Va.
Daily Mail/Associated Press

The former leader of Freedom Industries Inc., the company behind a massive chemical spill, wants to disqualify the federal lawyers prosecuting him for fraud on the grounds that they also suffered from the spill. Read the Daily Bankruptcy Review article here.
(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.”)

WSJ.com: Bankruptcy Beat
(posted 3 days 6 hours ago)