Fed: U.S. Household Net Worth Increased $0.2 Trillion in Q4 2024​​​

The Federal Reserve released the Q4 2024 Flow of Funds report today and it showed that the net worth of households and nonprofits rose to $169.4 trillion during the fourth quarter of 2024, CalculatedRiskBlog.com reported. The value of directly and indirectly held corporate equities increased $0.3 trillion, and the value of real estate decreased $0.4 trillion. Household debt increased 3.1 percent at an annual rate in the fourth quarter of 2024. Consumer credit grew at an annual rate of 2.6 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 2.2 percent. Read more.

U.S. Weekly Jobless Claims Fall Amid Labor Market Stability​​​

The number of Americans filing new applications for unemployment benefits fell last week, but sharp government spending cuts and an escalating trade war threaten labor market stability, Reuters reported. Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 220,000 for the week ended March 8, the Labor Department said on Thursday. The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased 27,000 to a seasonally adjusted 1.870 million during the week ending March 1, the claims report showed. Read more.

Subchapter V Experiences to Share? ABI Wants to Hear from You!

ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefited from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses are welcome. Submit your story at https://abi.org/subvstories.
 

Landmark Stablecoin Bill Advances in Senate Banking Committee​​​

The Senate Banking Committee advanced landmark stablecoin legislation Thursday in a major victory for the ascendant cryptocurrency industry, despite strong objections from top Sen. Elizabeth Warren (D-Mass.), Bloomberg News reported. The 18-6 vote puts a priority of President Donald Trump on a fast track in the full Senate. The bipartisan bill would govern privately issued, dollar-based stablecoins, which the industry claims will enable cheaper and faster transactions across the globe for anyone with a smartphone. But Warren argued that the bill failed to do enough to protect consumers, taxpayers or the broader economy if a stablecoin fails. “This bill begs for more bailouts,” she said. Backers including the bill’s lead author, Republican Bill Hagerty, said the bill already has protections and would make it harder for criminals by bringing the industry under US regulation instead of driving it overseas. They noted the law requires one-to-one reserve assets backing the stablecoins overseen by regulators. Sen. Kirsten Gillibrand (D-N.Y.) isn’t a member of the committee but is the lead Democrat supporting the bill, along with freshman Sen. Angela Alsobrooks (D-Md.). Read more.

Judge Orders Trump Officials to Offer Jobs Back to Fired Probationary Workers​​​

A federal judge on Thursday ordered the Trump administration to offer jobs back to all probationary employees who were fired last month from the departments of Agriculture, Defense, Energy, Interior, Treasury and Veterans Affairs under directions by the Office of Personnel Management, a ruling that could reinstate thousands of employees who were ousted as part of the president’s push to slash the federal workforce, the Washington Post reported. Judge William Alsup said at a hearing in U.S. District Court in San Francisco that OPM — which serves as the federal government’s human resources agency — had no legal authority to direct the mass firings in phone calls and written communications last month. He added that individual agencies could follow the steps laid out in a federal law called the Reduction in Force Act to pare back their staffs. The ruling marked the most significant challenge so far to President Donald Trump’s effort to shrink and reshape the sprawling, 2.3-million person federal workforce. Judge Alsup also extended a temporary restraining order he had granted last month to a group of labor unions and advocacy groups who sued over the terminations. Judge Alsup castigated a Justice Department attorney arguing on behalf of the Trump administration for submitting “sham” documents and “stonewalling” efforts to gather facts and testimony, incensed that the acting director of OPM, Charles Ezell, refused to testify in court Thursday as the judge had previously ordered. Read more.

Commentary: Trump Harms Consumers by Weakening the CFPB*​​​

The contrast couldn’t be greater — a contrast in values, in respect for democratic processes, and in obedience to the rule of law. On one side is the 2010 creation of the Consumer Financial Protection Bureau by Congress and the president, after an extensive, transparent process. This helped resolve a national crisis at the time and has since helped prevent another, while also offering consumers protection from previously unpoliced abusive financial practices. On the other side is the decision by the White House with no legal authority to order a disruptive halt to the work of this duly constituted regulatory agency, according to a commentary in the Wall Street Journal by former Senator Christopher Dodd and Representative Barney Frank [the authors of the Dodd-Frank Wall Street Reform and Consumer Protection Act that created the Consumer Financial Protection Bureau]. This has led to the firing of employees for no cause other than the wishes of administrative entities. Although Republicans have, at times, had majorities in both houses of Congress for more than half the time since the bureau was established, Republican leaders have declined to ask their members to vote either to abolish it or even substantially diminish its mandate. As to legality, the Supreme Court did overrule the original law’s restriction on the president’s removal power in Seila Law v. CFPB (2020). But in CFPB v. Community Financial Services Association (2024), it upheld the bureau’s funding structure, and therefore its powers — in an opinion written by Justice Clarence Thomas and joined by two of President Trump’s three appointees. Read more. (Subscription required.)

*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI. 

Virtual Access to Event in Memory of Prof. Juliet Moringiello to Be Held on March 20​​​

Widener University Commonwealth Law School will hold an event honoring Prof. Juliet Moringiello on March 20 at 1 p.m. ET. Prof. Moringiello passed away on February 27 after a courageous battle with cancer. An accomplished scholar and mentor to many, Prof. Moringiello was the Associate Dean for Academic Affairs at Widener Law and was seen as a leader in law reform on the state and national levels. Friends, colleagues and former students of Juliet are welcome and encouraged to join virtually on March 20 at 1 p.m.

ASM Panel Spotlight: Judicial Roundtable to Kick Off Sessions with a Discussion of Vesting and Why It Matters in Commercial and Consumer Reorganizations​​​

Join a powerhouse panel to kick off sessions at ABI's Annual Spring Meeting as a panel of five bankruptcy judges will discuss the true meaning of “vesting” and the implications and issues it brings to both consumer and commercial cases. The panel will debate the various interpretations of vesting and dive into a theoretical discussion of vesting across the Bankruptcy Code chapters. Through the use of hypotheticals, the moderators will guide the panel’s discussion through areas of vesting that you might never have considered important, but you should. You can’t afford to miss this discussion! Register today.

Listen to the Latest Episode of "Women in Restructuring" Featuring Kate Stephenson!​​​

This special International Women's Day episode features a discussion between host Sarah Foss of Debtwire and Kate Stephenson of Kirkland & Ellis International LLP. Based in London, Stephenson provides key insights on restructuring plan developments in the U.K. and a few lessons that she's learned in her international restructuring career. Click here to listen to this episode on Podbean or your preferred podcast service!

Access All Current ABI Titles Through ABI’s New Digital Book Subscription!​​​

One of the best collections of bankruptcy books is now available as an annual digital subscription! ABI’s bankruptcy library opens the door to a constantly evolving area of the law, and our books are continually being updated by top industry professionals. Auto-renewing annual subscriptions guarantee immediate access to this invaluable resource, which is comprised of fully searchable content that’s always available on any digital device. Convenient pricing plans for individual and institutional subscribers offer immediate and unlimited access to our entire digital library of books — nearly 100 treatises! Plus, you get advanced access to new and revised books as soon as they are published — all included in your annual subscription. Learn more!

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, which will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis.

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