In meetings with senior executives and their in-house counsel, I hear this consistent cry: due to ever-increasing regulations, costs associated with compliance are soaring at commercial banks and at financial institutions that own banks (such as life insurance companies).  As a result, “regulatory cost collaboration” is becoming a key strategy for financial institutions with their key vendors.  It is a strategy that overlooks a very familiar and expense vendor: lawyers.
 
Puzzle missing legal
This omission will not last for long.
The impact of compliance costs is well documented (look at this report by Thomson Reuters; and this survey of small banks by Hester Peirce, Ian Robinson and Thomas Stratmann at the Mercatus Center [George Mason University]).
It is a story that I hear 100% of the time from senior executives.  Here are two examples:

Tough Times for Lenders
(posted 4 days 4 hours ago)

By Tara Siegel Bernard

Tracy S., 59, a technical writer for a large bank, divorced her husband just as the
housing market spiraled downward. They were forced to sell their home, just
outside Phoenix, for less than they owed, and the bank agreed to absorb the
difference, about $25,000.

“Our ability to pay and our credit was perfectly fine, but neither of us could
keep the house individually,” she said. Ultimately the house sold for about
$175,000, or 21 percent less than they originally paid.

Three years after the short sale, Tracy is a homeowner once again. She bought
a three-bedroom house for $190,000 in another Phoenix suburb this year, and
qualified for a traditional mortgage with a 20 percent down payment.

“I believed and was told that I was not going to get a mortgage for the first two
years after the short sale,” she said, asking that her last name not be used to
protect her privacy. “But after that, I hadn’t really planned and didn’t think I
would be able to get a mortgage.”

So far, she has been in the minority. Through the end of last year, only a tiny
sliver of borrowers tarnished by foreclosures and short sales during the economic
downturn had bought homes again, according to a study by Experian, one of the
Big Three credit reporting bureaus. These borrowers are generally locked out of
the mortgage market for two to seven years, depending on their circumstances.

Shenwick & Associates
(posted 4 days 4 hours ago)
Marussia’s British driver Max Chilton takes part in the first practice session of the inaugural Russian Grand Prix at the F1 Autodrome in Sochi on Oct. 10, 2014
Agence France-Presse/Getty Images

The U.K.-based Formula One team Marussia filed for the equivalent of Chapter 11 bankruptcy Monday, joining Caterham as the circuit’s second team to seek protection from creditors in less than a week.
Administrators from London-based restructuring firm FRP Advisory said the Marussia Formula One team was placed in administration, a process similar to Chapter 11 in the U.S., on Monday. In a statement, FRP Advisory partner Geoff Rowley said the team would skip the United States Grand Prix, scheduled for this weekend in Austin, Texas.

WSJ.com: Bankruptcy Beat
(posted 4 days 4 hours ago)

Some Tips on How to Prepare for a Successful Mediation By James P. S. Leshaw If your mediation goes well, it will be the last day of your litigation. It therefore makes sense to make the same effort preparing for the mediation as you would for trial. Here are a few tips to increase your [...]

Leshaw Law
(posted 4 days 5 hours ago)

The Consumer Financial Protection Bureau's report on private student loans should prompt lenders, regulators and universities to take action to help troubled borrowers and prevent future defaults.

BankThink
(posted 4 days 5 hours ago)

NORTH OF THE BORDER UPDATE
This article has been contributed to the blog by Andrea Lockhart, an associate in the insolvency and restructuring group of Osler, Hoskin & Harcourt LLP
Introduction
A recent decision of the British Columbia Supreme Court in Re Bul River Mineral Corp. highlights the discretionary nature of claims-bar orders under the Companies’ Creditors Arrangement Act (the “CCAA”). We have previously commented on this topic in our article discussing Re Timminco, where the Ontario Court permitted a lifting of the stay of proceedings to permit the pursuit of a class-action proceeding that had not been filed by the claims bar date. In this case, among other things, the Court reviewed a preferred shareholder claim that had been deemed to be accepted as a debt claim in accordance with a “negative option” claims procedure. Notwithstanding the claims resolution mechanics set out in the claims procedure order and the debtors’ acceptance of the claim in accordance with such order, the Court exercised its discretionary authority to review the claim in light of the objectives of the CCAA and recharacterized the claim as an equity claim.
Facts

(posted 4 days 6 hours ago)

A lien gives your creditor to repossess and sell your property if you don’t pay.  A mortgage creates […]
The post I want to file for bankruptcy. Can I sell my tools, jewelry, or car with a lien on it beforehand? appeared first on LakeLaw.

Lake Law Blog
(posted 4 days 6 hours ago)

The SEC has approved Auditing Standard No. 18, adopted by the PCAOB in June. The standards become effective for audits of financial statements for fiscal years beginning on or after December 15, 2014, including for emerging growth companies (ECGs).  

(posted 4 days 7 hours ago)
An attendee demonstrates the Apple Watch after a product announcement at Flint Center in Cupertino, Calif., on Sept. 9.
Bloomberg

Some of the army of bankruptcy advisers guiding GT Advanced Technologies Inc. through bankruptcy by way of a fast settlement with Apple Inc. have counted Apple as a client, or still do, and those connections call for a close look, legal experts say. 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 4 days 8 hours ago)

Receiving Wide Coverage ...

The Results Are In: Most of the eurozone's big banks have enough capital to survive an economic upset, according to the results of regulators' long-awaited stress tests. Of the 130 banks under review, 13 were identified as needing to shore up $12 billion in additional capital. Italy had the largest share of financial flunkies, with Greece and Cyprus next in line. The Wall Street Journal applauds the European Central Bank for including...

BankThink
(posted 4 days 8 hours ago)