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Bitcoin: Everyone is Talking Blockchain and its Not too Late to Get on the Band Wagon

Posted in Technology Innovation, Uncategorized

Bitcoin first came into public existence in 2008 with the first coins “mined” by a person/group named Satoshi Nakamoto.  As you are probably aware, Bitcoin is a method of transferring value electronically and without the need for any money issued by a sovereign entity. The first thing to know about Bitcoin is that it is… Continue Reading

A Loophole Big Enough to be a Wormhole

Posted in Uncategorized

Like most bank defendants, Key Bank was looking for the quickest way out of a $5 million fraudulent transfer lawsuit brought by a chapter 7 Trustee.  Rather than wait to win in the standard path of arguing facts, the bank relied on the broad and powerful “safe harbor” provision of the bankruptcy code which protects… Continue Reading

The Trust Indenture Act Provides Minority Bond Holders Avenue to Disrupt Out of Court Restructuring

Posted in Uncategorized

The Trust Indenture Act of 1939, 15 U.S.C. §§ 77aaa-77bbbb (the “Act”) basically provides that holders of notes subject to the Act shall not have their right to receive payment of principal, premium and interest impaired without the holders consent.  In the recent opinion in Marblegate Asset Management v. Education Management Corp., civil case in… Continue Reading

Bankrupt Individuals Can’t Strip Down Senior Lenders in Ch. 7, but the SCOTUS will decide if they Can Strip Off – Leaving Junior Mortgage Lenders Unsecured

Posted in Tough Times for Lenders, Uncategorized, Workout Issues

The SCOTUS has recently decided to hear an appeal to consider whether junior mortgage liens, which are out of the money, on chapter 7 debtor’s homes may be voided simply because there is no equity in the home to attach to the junior lien at the time of the bankruptcy filing.  The effect of a… Continue Reading

Money for Nothing and Overdraft Fees

Posted in Uncategorized

Between 2005 and 2007, a major bank is California  made a paltry $1.4 billion in overdraft fees.  However, a California Federal Court found that those fees were a result of misleading practices and ordered that major bank  pay $203 million in restitution.  The award was recently affirmed by the Federal Appeals Court in the Ninth… Continue Reading

Sticks and Stones May Break Your Bones, but Reliance Waivers Can Still Hurt You

Posted in Lender Liability, Reps & Warranties, Tough Times for Lenders, Uncategorized

Last week Regions Bank sued Comerica Bank seeking a declaration that Regions is not liable to Comerica in connection with their $53MM syndicate loan to a plant nursery that went very wrong.  Regions Bank v. Comerica Bank, civil action 3:14-cv-3607, pending in the United States District Court for the Northern District of Texas. In short:… Continue Reading