CFPB Caps Bank Overdraft Fees over Industry Objection​​​

The Consumer Financial Protection Bureau CFPB today adopted new regulations capping the amount banks can charge for overdrafts, saying the rule would save depositors $5 billion annually, Reuters reported. The new regulation, adopted over the banking industry's vocal opposition, closes what the CFPB described as a 1960s "loophole" from the era when checks were still in widespread use and that banks had since turned into a profit center. Lael Brainard, President Joe Biden's National Economic Council Director, added in a statement that the new rule amounted to "real relief for families." "The CFPB's new rule, which caps overdraft fees as low as $5, is expected to save many families as much as $225 a year," she said. The American Bankers Association reacted negatively, saying the CFPB had exceeded its legal authority in finalizing the rule and that the trade group was considering its options. Under the rule adopted Thursday, banks with more than $10 billion in assets who lend depositors money to cover account overdrafts have three options, according to the CFPB. They may charge $5, a fee that covers no more than costs or losses, or they may offer credit at a profit, as long as this complies with laws governing credit cards and other lending. CFPB officials said in January that about 23 million households paid such fees, which generated $12.9 billion in 2019. Read more.

Nationwide Foreclosure Filings Ease During Holiday Season​​​

Nationwide foreclosure filings fell 9% in November from last year, and 5% from the month prior, NationalMortgageProfessional.com reported. However, foreclosure rates remain relatively high across Florida, Nevada and Connecticut, according to ATTOM’s November 2024 Foreclosure Market Report. The company's CEO, Rob Barber, noted that the decline in foreclosure activity during November is typically observed this time of year, though higher foreclosure filings persist in some states. “As we move into 2025, we’ll be closely monitoring how economic pressures and market dynamics may influence a potential rebound in activity,” Barber said. In November 2024, one in every 4,795 housing units nationwide had a foreclosure filing. States with the highest foreclosure rates were Nevada (one in every 2,941 housing units), Florida (one in every 3,047), Connecticut (one in every 3,210), Maryland (one in every 3,535) and Indiana (one in every 3,567). Among metropolitan areas with populations of at least 200,000, California saw some of the highest foreclosure rates. Those occurred in Modesto, Calif. (one in every 1,890 housing units), Reading, Pa. (one in every 2,133), Bakersfield, Calif. (one in every 2,155), Riverside, Calif. (one in every 2,207), and Chico, Calif. (one in every 2,270). 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.
 

FDIC: Number of Problem Banks Increased Slightly in Q3 2024​​​

The number of banks on the FDIC’s “Problem Bank List” increased from 66 to 68, according to the Calculated Risk blog. Total assets held by problem banks rose $3.9 billion to $87.3 billion. Problem banks represent 1.5 percent of total banks, which is within the normal range of 1 to 2 percent of all banks during non-crisis periods. Overall, third quarter net income for the 4,517 FDIC-insured commercial banks and savings institutions decreased $6.2 billion (8.6 percent) from the prior quarter to $65.4 billion. The quarterly decrease in net income was largely driven by the absence of about $10 billion in one-time gains on equity security transactions reported in the previous quarter. The absence of these nonrecurring gains was partially offset by strong net interest income in the third quarter. Read more.

U.S. Applications for Jobless Benefits Rise to Highest Level in 2 Months but Remain Relatively Low​​​

U.S. applications for unemployment benefits jumped to their highest level in two months last week but remain low relative to historical standards, the Associated Press reported. Jobless claim applications climbed by 17,000 to 242,000 for the week of Dec. 7, the Labor Department reported Thursday. That’s significantly more than the 220,000 analysts were forecasting and yet another data point that reflects a cooling labor market. This week’s report also showed that continuing claims, the total number of Americans collecting jobless benefits, rose by 15,000 to 1.89 million for the week of Nov. 30. The four-week average of weekly claims, which softens some of the week-to-week volatility, rose by nearly 6,000 to 224,250. Read more.

Judge Sontchi Discusses Moments that Helped Shape His Career on ABI's "Party in Interest" Podcast​​​

Hon. Christopher S. Sontchi, an International Judge of the Singapore International Commercial Court and a former Chief Judge of the U.S. Bankruptcy Court for the District of Delaware, where he served for 16 years, talks with ABI Executive Director Amy Quackenboss about moments that helped shape his incredible restructuring career — and provides tips to new practitioners entering the industry. Click here to listen!

Tenth Circuit Accepting Applications for Bankruptcy Judge Vacancy in Utah​​​

The U.S. Court of Appeals for the Tenth Circuit is seeking applications for a bankruptcy judgeship in the District of Utah. Bankruptcy judges are appointed to 14-year terms pursuant to 28 U.S.C. § 152. The position is located in Salt Lake City and will be available July 1, 2025, pending successful completion of a background investigation. The current annual salary is $223,836. Go to https://ca10.uscourts.gov/hr/jobs to view the position requirements and download the application. The deadline for applications is Wednesday, January 22, 2025.

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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