This is about bad law in the bankruptcy courts, but let us instructively begin with Charlie Brown. Bear with me. Everyone knows the classic Peanuts comic strip, which features the running joke of Lucy and Charlie Brown playing football – Charlie Brown goes to kick the football, only to have Lucy pull it away at the last second, leaving Lucy laughing and Charlie Brown on his back. Every time, Lucy promises Charlie Brown that this time she will let him kick the ball. Charlie Brown, blithely ignoring the obvious, goes to kick the football. Lucy, of course, pulls the ball away again, every time.Continue Reading Fool Me Once…: When Lenders are the Losers in Bankruptcy Court
October 2012
The Regs that Bind
By Rick Jones on
In the world of magical realism which produced that paragon of legislative genius known as Dodd-Frank, I have had energy for only a bit of remote intellectual annoyance over the impact of the part of the Rule commonly known as “Volcker”.Continue Reading The Regs that Bind
Unintended Consequences Avoided? CFTC Provides Relief for Certain Securitization Vehicles
By Crunched Credit on
Last Thursday, the U.S. Commodity Futures Trading Commission (“CFTC”) responded to ASF’s and SIFMA’s requests for relief from the new CFTC rules which implemented certain Dodd-Frank amendments that brought swaps within the purview of the CFTC. The new rules, which took effect on October 12, 2012, threatened to regulate many securitization vehicles as commodity pools even though these vehicles typically only use swaps for hedging or risk management purposes. The crux of the issue, and possibly the unintended consequence of the new CFTC rules, is that, without relief, sponsors and advisors (such as depositors, trustees, collateral managers and servicers) would be subject to CFTC registration and regulation as commodity pool operators and/or commodity trading advisors. Continue Reading Unintended Consequences Avoided? CFTC Provides Relief for Certain Securitization Vehicles
Caught up in a Waive: Federal Judge Holds Guarantor Liable for Disputed Deficiency
By Crunched Credit on
Last month, Federal District Court Judge Milton I. Shadur (a long-time Federal Judge and something of a legal legend in Illinois) held a guarantor liable for a deficiency claim brought in connection with a Georgia foreclosure – notwithstanding the fact that the deficiency could not be pursued under Georgia law. The case – Inland Mortgage Capital Corporation v. Chivas Retail Partners, LLC, et. al., Case No. 1:11-CV-06482 (N.D. Ill. 2012) – arose in connection with a defaulted construction loan relating to a retail shopping center outside of Atlanta and is the latest in a series of decisions shaping the legal landscape for guarantors of real estate loans.Continue Reading Caught up in a Waive: Federal Judge Holds Guarantor Liable for Disputed Deficiency