ABI Blog Exchange

A “Settlement Payment” Is a Settlement Payment, Don’t Settle for Less!

Enron seems like ancient history but the Second Circuit has just issued an important decision in an Enron appeal confirming that the redemption of commercial paper made through DTC is entitled to the Bankruptcy Code § 546(e) exemption for “settlement

Decision in Tweeter Opco Once Again Reminds Trustees of the Specificity Requirement in Pleading Preference Actions

Summary In an 11 page opinion published June 14, 2011, Judge Walrath ruled that a Chapter 7 Trustee’s lack of specificity in pleading a preference action was grounds for dismissal under FRCP 12(b)(6). Judge Walrath’s opinion is available here (the

Owens Corning: To Sub Con or Not to Sub Con?

As soon as the Third Circuit issued its decision in In re Owens Corning, 419 F.3d 195 (3d Cir. 2005), the decision was heralded as the death knell for substantive consolidation, especially “deemed” substantive consolidation. In this installment of

Decision in American Remanufacturers, Inc. Holds That an Agreement Creating Mutual Obligations Can Provide a Defense to a Preference Action

Summary In a 56 page opinion published June 9, 2011, Judge Walsh ruled that a method of operating in which all of the credits and debits between two companies were netted out allows this same method to be used in calculating a set-off defense in

Commercial Leases & Rents: Practical Comments on Rents for the Loan Originator, Loan Admin and Special Servicer

It is all about the rent. This is a reminder for everyone in the commercial lending platform – from the loan originator, the analyst, the loan closer, the loan administrator and (finally) to the special asset or special servicing group. The problem

Bankers Should Call Every New Charge a 'Durbin Fee'

The cap on debit interchange may be final, but the political fight isn't over. Make sure cardholders (voters!) understand and are repeatedly reminded they are paying for Congress's price controls.

New York’s Highest Court Reinstates $5 Billion Lawsuit By Big Banks Against MBIA

New York’s highest court yesterday reinstated a $5 billion lawsuit brought by a group of banks, including Bank of America and Wells Fargo, against insurance giant MBIA. ABN AMRO Bank, et al. v. MBIA Inc., et al., — N.E. 2d –, 2011 WL 2534059, slip op

The PR Mastermind Who Coined the Term 'Swipe Fees'

Taylor West saw that the Martian-sounding word "interchange" went over the heads of small business owners who could be rallied to a cause. If only bankers grasped the power of language so well.

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Thoughts About the Impact of Stern v. Marshall

Since the Supreme Court dropped its constitutional bombshell on the bankruptcy system last week in Stern v. Marshall, 2011 U.S. LEXIS 4791 (2011) (aka Anna Nicole Smith II), [ enhanced version available to lexis.comsubscribers/ unenhanced