N.Y. Fed Reserve: Household Debt Rose Modestly; Delinquency Rates Remain Elevated in 3Q 2024​​​

The Federal Reserve Bank of New York’s Center for Microeconomic Data yesterday issued its Quarterly Report on Household Debt and Credit, which showed that total household debt increased by $147 billion (0.8%) in Q3 2024 to $17.94 trillion. The New York Fed also issued an accompanying Liberty Street Economics blog post examining the evolution in aggregate debt-to-income ratios and what that suggests about Americans’ ability to manage their debt obligations. “Although household balances continue to rise in nominal terms, growth in income has outpaced debt,” said Donghoon Lee, Economic Research Advisor at the New York Fed. “Still, elevated delinquency rates reveal stress for many households, even amid some moderation in delinquency trends this quarter.” Mortgage balances increased by $75 billion from the previous quarter and reached $12.59 trillion at the end of September. HELOC balances increased by $7 billion, representing the tenth consecutive quarterly increase since Q1 2022, and stood at $387 billion. Credit card balances increased by $24 billion to $1.17 trillion. Auto loan balances saw an $18 billion increase and stood at $1.64 trillion. Other balances, which include retail cards and other consumer loans, were effectively flat, with a $2 billion increase. Student loan balances grew by $21 billion and now stand at $1.61 trillion. Read more.

CFPB Survey Reveals Impacts of Student Loan Debt Relief and Repayment Challenges​​​

The Consumer Financial Protection Bureau (CFPB) yesterday issued its first results from its Student Loan Borrower Survey, providing insights into the effects of student loan debt relief programs and the challenges borrowers face in navigating repayment options. The survey, conducted between October 2023 and January 2024, gathered data from a representative sample of student loan borrowers as the federal student loan payment pause ended and many borrowers returned to repayment. The report found that nearly 61% of borrowers who received debt relief reported positive life changes. In addition, nearly 42% of federal student loan borrowers have only ever used the standard repayment plan, with many unaware of alternative options that could help lower their payments. Click here to read the CFPB's report.

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.
 

U.S. Weekly Jobless Claims Fall; Unemployment Rolls Shrink​​​

The number of Americans filing new applications for unemployment benefits fell last week, suggesting that the labor market continued to chug along and that the abrupt slowdown in job growth in October was an aberration, Reuters reported. Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 217,000 for the week ended Nov. 9, the Labor Department said on Thursday. Economists polled by Reuters had forecast 223,000 claims for the latest week. Claims surged in early October amid distortions from Hurricanes Helene and Milton, as a well as a strike by factory workers at Boeing, but layoffs have remained historically low, which is underpinning the economy. The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased 11,000 to a seasonally adjusted 1.873 million during the week ending Nov. 2, the claims report showed. The decline in the so-called continuing claims likely reflected the end of Boeing-related furloughs and waning disruptions from the hurricanes. Read more.

'Underbanked' Households More Likely to Own Crypto, FDIC Report Says​​​

American households that rely on services like check cashing and payday loans to make ends meet are more likely to hold cryptocurrencies, with all the risks they bring, than those who have more access to traditional banks, according to a government report released Tuesday, Reuters reported. The report from the U.S. Federal Deposit Insurance Corporation also showed that one in eight shoppers using buy-now-pay-later (BNPL) services had made a late payment or missed it on at least one purchase. The findings are contained in the latest periodic survey of "underbanked" and "unbanked" households: those with little or no access to traditional banking. The FDIC surveyed 30,000 households in June 2023 as part of a series of surveys begun in the wake of the global financial crisis that began in 2007. The share of households deemed "unbanked," or those that did not use any checking or savings accounts, has fallen by about half since 2011 to 4.2%, or 5.6 million households, according to the survey. But large disparities remain among different groups, with poorer Black, Hispanic, Native American, Alaska Native and single-parent households, or those with working-age members who are disabled, substantially more likely to be unbanked. Such households were also much more likely to be underbanked, meaning they had access to bank accounts but had also met their needs over the prior 12 months by borrowing from pawn shops and title lenders, or used check-cashing services, among other services. Read more.

Gary Gensler’s SEC Agenda Could Be Near Its End​​​

Donald Trump’s election win means the almost certain end of Gary Gensler’s leadership of the Securities and Exchange Commission and the ambitious agenda he forged, the Wall Street Journal reported. Gensler’s push for new climate disclosure rules, strong cryptocurrency enforcement and a focus on environmental, social and corporate-governance issues could be scaled back — or simply end — under a new SEC leader of Trump’s choosing. Gensler’s Senate-approved term runs to 2026, but SEC leaders customarily resign when a new administration is elected, and he hasn’t indicated in public appearances that he would buck the norm. “Traditionally, presidents get to decide who chairs the SEC, and that’s a good part of democracy,” Gensler told a reporter last month. Gensler’s tenure at the SEC coincided with changes in capital markets and business such as the commercial use of generative artificial intelligence, continued growth in popularity of cryptocurrency and a sustained campaign from some activists and investors to advance environmental and social considerations, particularly climate-related concerns. Gensler responded with new rules and enforcement pushes, but some of his work remains unfinished and may be reversed by a future chair. (Subscription required.) Read more.

Video Replays of Sessions from the Howard D.R.E.A.M.S Event Now Available!​​​
ABI, the American College of Bankruptcy (ABC) and Howard University School of Law presented the Discovering Restructuring Expertise and Mentorship Symposium (DREAMS) on Nov. 6 at Howard University School of Law in Washington, D.C. The program provided insights for students on the insolvency industry, while also providing substantive panels for insolvency practitioners. The free program included discussions on careers and diversifying the insolvency profession. The event wrapped up with a networking session.

Video replays from the Howard D.R.E.A.M.S event include the following panel sessions:

- Opportunities in Restructuring - Unjust Debts

- Student Loans

- Paying It Forward to Make a Difference

- Clerkships and Internships

– Set Sail in an Awesome Direction

Enjoy complimentary access to the video replays by clicking here.

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.

Sign up Today to Receive Rochelle’s Daily Wire by E-mail!
Have you signed up for Rochelle’s Daily Wire in the ABI Newsroom? Receive Bill Rochelle’s exclusive perspectives and analyses of important case decisions via e-mail!

Tap into Rochelle’s Daily Wire via the ABI Newsroom and 'X' (Formerly known as Twitter)!