Brown-Vitter Capital Standard Trumps Risk-Based System

The bill would replace the misleading risk-based capital system with a straightforward way to determine the true health of an institution, in addition to providing incentives for the largest banks to downsize.

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BankThink
(posted 6 days 9 hours ago)

“Auditing” an EDNY Decision with a Plethora of Tax Issues (Part Three)
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Business Finance & Restructuring News - Weil
(posted 6 days 11 hours ago)

The Daily Docket: Revel Cleared to Leave Bankruptcy
Wayne Parry/Associated Press

Revel AC Inc., which saw its high-end Atlantic City, N.J., resort and casino falter nearly as soon as it opened its doors, won approval to exit bankruptcy with a fraction of the debt that weighed it down when it entered Chapter 11. Read the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters 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 independent examiner’s report that could sway settlement negotiations in the bankruptcy of mortgage lender Residential Capital LLC may remain under seal until July 3, according to a judge’s order on Monday. Read the DBR article via Fox Business.

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WSJ.com: Bankruptcy Beat
(posted 6 days 11 hours ago)

When Insurance Can Be The Death Of You

low flying planeRemember survey courses from college?
Kinda like flying low over new territory without ever landing and getting on the ground?
That’s what I propose to do with the topic of insurance.  Insurance, as we see it in bankruptcy.
It isn’t frequently a hot topic, but when it is, the numbers are large and the possibility for egg on your face is equally large.
Policies owned by the debtor
Insurance, a contract with a provider to pay on the occurance of a specified event, is an asset.  It needs to be scheduled.
Our local practice about scheduling term insurance (pure insurance with no accumulated value) has gone back and forth.
For purposes of symmetry with schedules I and J, I like to schedule it.  If the debtor is paying for insurance, it makes sense to list it. Otherwise, it’s like budgeting for pet care for a pet not visible on the schedules.
If it has a value that the debtor can borrow against or otherwise tap, that value needs to be scheduled.
From an asset perspective, it doesn’t matter whose live is insured.

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Bankruptcy Mastery
(posted 6 days 11 hours ago)

'Bruno from London' New Nickname for Blue Whale at American Museum of Natural History

Receiving Wide Coverage ... More JPMeeting Previews: JPMorgan's annual meeting is a week from today, and the curtain-raisers keep coming. "Shareholders are taking a close look at financial relationships between some J.P. Morgan Chase board members and the company they oversee," according to the Journal. For example, the bank underwrote a bond issue, provided a line of credit and made charitable contributions to the American Museum of Natural History, run by Ellen Futter, a JPMorgan director.…

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BankThink
(posted 6 days 11 hours ago)

The Risks of Oversimplifying Stress Test Models

It’s important that models for stress-testing be capable of representing the nuances of the questions they are asked to answer. Insights would be lost if models are kept too simple.

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BankThink
(posted 6 days 11 hours ago)

U.S. Supreme Court Rules On Meaning Of "Defalcation" In Section 523(a)(4) in Bullock v. BankChampaign.

In a case appealed from the Eleventh Circuit Court of Appeals, the United States Supreme Court ruled on a case involving the definition of "defalcation" in 11 U.S.C. § 523(a)(4).  The case, decided yesterday, May 13, 2013, is Randy Bullock v. BankChampaign NA, 2013 U.S. LEXIS 3521 (U.S. May 13, 2013) (click here for .pdf of opinion). The issue before the Court was the definition and meaning of the term "defalcation," which is not defined in the Code.  The Court held that  “defalcation” in the Bankruptcy Code includes a culpable state of mind requirement involving knowledge of, or gross recklessness in respect to, the improper nature of the fiduciary behavior.
 Section 523(a)(4) provides that:
(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt— (4) for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.

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Georgia Bankruptcy Blog
(posted 6 days 12 hours ago)

Detroit: At Least as Bad as Expected

 

In his first report as Detroit’s Emergency Manager, Kevyn Orr outlined the city’s problems. To those familiar with the situation, there were no surprises about the top level interrelated problems facing  Detroit: urban sprawl/blight, soaring and unsustainable union contracts and pension liabilities, a history of municipal “borrowing from Peter to pay Paul,” archaic infrastructure, and systemic municipal inefficiencies. The result is a current negative cash position of $162 million and the blunt assertion that debt payment on current obligations will not be made in order to prevent the city from running out of cash. Moreover, Detroit has in all likelihood lost its access to capital in the marketplace given its current credit ratings, the amount of outstanding debt, and its stated inability to repay the obligations. As a result, the solution must be a comprehensive overhaul of the current municipal system. 

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MuniBK
(posted 6 days 12 hours ago)

Discharge Injunction Violation: Can a Lender Refuse to Foreclose, Release Its Lien, or Accept Surrender of a Property?

Canning v. Beneficial Maine, Inc. (In re Canning), 706 F.3d 64 (1st Cir. 2013) – After filing a chapter 7 bankruptcy, the debtors tried to surrender their residence to the mortgage lender.  After the bankruptcy the lender refused to accept a surrender, refused to foreclose and refused to release its lien.  The debtors brought an adversary proceeding […]

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Bankruptcy-RealEstate-Insights
(posted 6 days 14 hours ago)

How To Get Over Uncertainty And Solve Your Debt Problems

bankruptcy and student loan solution ceraintyWhen facing debt problems, dispel uncertainty to get a better solution.
We love certainty in our lives. That’s why we drive the same route to work each morning, set our alarm clocks for the same time, and eat a narrow range of familiar foods.
Certainty is comfortable, after all. It allows us to make decisions and know the outcome. That, in turn, allows us to focus our efforts accordingly.
When we’re uncertain, we get scared. What’s going to happen if I venture into the unknown, take an unfamiliar road or let the alarm clock go tomorrow?
The unknown makes us scared of not being in control.
So we take to the Internet, asking “what if” questions for hours on end. We ask friends, co-workers, and even total strangers for their opinions.
By the end of the question-and-answer session we end up more befuddled than ever before. So here’s how to solve the problem.

Get The Big Picture
Some of my work involves helping people through bankruptcy so they can get out of debt. If a client’s got student loan debt, I use other laws.

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New York Bankruptcy and Consumer Law Blog
(posted 6 days 16 hours ago)