A recap of the informed opinions (and the discussions they generated) on BankThink this week.

(posted 1 week 56 min ago)

In July 2014, Argentina defaulted on a $539m interest payment on its sovereign debt in the latest round of its ongoing legal dispute with bondholders.
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(posted 1 week 1 hour ago)

There are three major new regulations shaping the housing finance market:  QM (qualified mortgage), QRM (qualified residential mortgage) and Reg X.  QM is a safe harbor from the statutory ability-to-repay requirement that applies to all mortgages.  QRM is a safe harbor from the statutory risk retention requirement that applies to mortgage securitization.  And Reg X are the new mortgage servicing regulations.  It's important to understand how these three regulations interact and how they're going to affect the housing finance market.  (There's also new TILA/RESPA disclosure stuff, but I don't think that's particularly impactful, in part because I don't think disclosure regulation is especially effective in most real world circumstances.) 

Credit Slips
(posted 1 week 3 hours ago)
Fireworks burst over the Detroit city skyline during the annual Ford Fireworks show in downtown, Monday, June 23, 2014.
Associated Press

After a weekslong trial on the viability and fairness of Detroit’s restructuring plan, U.S. Bankruptcy Judge Steven Rhodes will hear closing arguments in the case on Monday.
A ruling could follow within several weeks, and city officials hope Detroit could be out of bankruptcy court as soon as Thanksgiving.
Most of the city’s creditors, including municipal employees and retired workers, have agreed to settle. Some individual objectors remain, arguing in part that the city’s emergency manager acted improperly to cut any benefits to pensioners.
The city’s largest holdout creditor unveiled a deal last week to stop fighting and instead take a major stake in the city’s revival.
Detroit filed for bankruptcy protection in July 2013 with an estimated $18 billion in long-term obligations.

WSJ.com: Bankruptcy Beat
(posted 1 week 4 hours ago)

Instead of trying to stop companies from offering payday loans and check cashing services to lower-income households, we should encourage more competitors Â-- including banks Â-- to enter this space.

(posted 1 week 4 hours ago)

Companies may want to mark their calendars now for the period beginning 9 a.m. EST on November 3 through 8 p.m. EST on November 14 for the data verification period related to ISS Governance Quickscore 3.0. The updated scores and data will be released on November 24

(posted 1 week 4 hours ago)
The new Apple Watch is pictured during an Apple event at the Flint Center for the Performing Arts in Cupertino, Calif., in this file picture taken Sept. 9.
Stephen Lam

GT Advanced Technologies Inc. and Apple Inc. announced Thursday they reached an agreement on terms for the wind-down of sapphire-materials production in GT’s Mesa, Ariz., and Salem, Mass., locations. The Wall Street Journal has 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 1 week 4 hours ago)

Receiving Wide Coverage ... Prepping for Stress Tests: The Financial Times and Wall Street Journal each serves up a curtain raiser on next year's Fed-conducted stress tests, playing off the instructions the Fed released on Thursday, as well as the European Central Bank's stress test results that are due to be released on Sunday. Among the stressful scenarios to which U.S. banks will be theoretically tested are oil prices rising to $110 per barrel, and increasedÂ...

(posted 1 week 5 hours ago)

Sperry Assoc. Fed. Credit Union v. US Bank Nat’l Ass’n (In re White), 514 B.R. 365 (Bankr. E.D.N.Y. 2014) – A junior mortgagee sought to subordinate the senior mortgage loan based on an argument that modification of the senior loan … Continue reading →

(posted 1 week 8 hours ago)

The evolution of start-up investing, especially in the last decade or so, shows the trend of opportunities and changing attitudes towards investment. In fact, down cycles breeds entrepreneurships and investors are still interested.
Read what some experts are saying about the longevity of the entrepreneurial “trend” and investor reactions, here.

(posted 1 week 23 hours ago)