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BANKRUPTCY CASES TO BE CONSIDERED BY SUPREME COURT PREVIEWED IN NEW "BANKRUPTCY IN DEPTH" VIDEO

ABI's next "Bankruptcy In Depth" video features ABI Resident Scholar Kara Bruce talking with Eric Brunstad of Dechert LLP (Hartford, Conn.) to preview the bankruptcy cases that the Supreme Court will consider during its 2013 term. Brunstad, who has argued many cases before the Court and is an expert in bankruptcy appellate practice, discusses in depth Law v. Siegel, which questions whether the court may use its general equitable authority under §105 of the Bankruptcy Code to surcharge a debtor's exempt assets, and Executive Benefits Insurance Agency v. Arkison (In re Bellingham), which will address the bankruptcy court's authority to adjudicate Article III matters. He also provides a candid view of what it is like to argue a case before the Court and an in-depth analysis of the issues involved with the upcoming cases. Click here to watch a preview of the forthcoming ABI "Bankruptcy In Depth" video.

FEDERAL JUDICIARY BUDGET INCREASES IN LAST-MINUTE BUDGET DEAL

The budget deal Congress approved yesterday to reopen the government and raise the debt ceiling provides $51 million in additional funding to the judiciary and to federal defenders, the Legal Times reported today. Federal court officials and members of the Senate Judiciary Committee greeted the increase as good news, although it is small when compared to $350 million in budget cuts earlier this year as part of sequestration. The extra funding would primarily go to pay the backlog of attorney fees under the Criminal Justice Act, which funds court-appointed private counsel. Payments were suspended in mid-September, when funding ran out two weeks before the end of the fiscal year. The bill also includes $4.8 billion for judiciary salaries and expenses. That amounts to a $25 million annual increase over FY2013, court officials said. The legislation gives judiciary officials the ability to float those funds among accounts to respond to the most urgent budget needs as they arise. Overall, the judiciary budget would rise from about $6.65 billion to about $6.7 billion. Read more.

PROPERTY TAXES, SKIPPED PENSION PAYMENTS BOOST DETROIT'S CASHFLOW

A report released yesterday showed that Detroit's revenue dropped by 9 percent in the first quarter of fiscal 2014 compared with the same period in fiscal 2013, but an influx of property taxes and skipped pension contributions boosted the city's cashflow, Reuters reported yesterday. In his quarterly report to Michigan officials, Kevyn Orr, Detroit's state-appointed emergency manager, said the city ended the quarter on Sept. 30 with a cash balance of $128.5 million that exceeded projections by $56.7 million. However, Orr said that Detroit's financial condition "continues to be dire" as it works its way through bankruptcy court, where its eligibility to remain there will be the subject of a trial next week. City revenue for the quarter, including property, income and gambling taxes, totaled $220.2 million, a drop of about $22 million from fiscal 2013's first quarter. Expenses also fell by about $11 million as the city's headcount dropped to approximately 9,322 workers at the quarter's end from 10,325 in the same period last year, according to the report. Read more.

LATEST SETTLEMENT REPORT FINDS BANKS GIVING TIMELY MORTGAGE RELIEF

The $25 billion national mortgage settlement, intended to help homeowners affected by the housing crisis, appears to be running ahead of schedule, according to a new report by the monitor of the program, the New York Times reported today. However, the number of households helped by the settlement has fallen short of the original predictions, and critics complained that too much relief was given to people who gave up their homes in short sales and not enough to help people retain their homes. Early last year, five banks signed on to the settlement over their use of mass-produced, faulty documents to evict homeowners. As of Dec. 31, they had provided $38.7 billion in relief in raw dollar terms, the report said. But because not every type of relief is counted the same way under the settlement's terms, they had fulfilled only about 80 percent of their total obligation. Prior to yesterday, banks had self-reported their progress in raw dollar terms. The new report is the first in which the monitor, Joseph A. Smith Jr., has disclosed the amount of credit they have earned toward the settlement obligation. The report credited them $4.1 billion for principal reduction on primary mortgages, $2.2 billion for principal reductions in second mortgages, and $5.4 billion in short sales or deeds in lieu of foreclosure, in which the homeowner is allowed to sell the house for less than what is owed or simply hand it over to the bank. It also credited $2.6 billion for allowing people who owed more on their mortgage than their home was worth to refinance at lower interest rates. Read more.

FANNIE MAE SURVIVAL IS BACK ON THE TABLE FOR POLICYMAKERS

The consensus in Washington, D.C., that Fannie Mae and Freddie Mac should be dismantled is weakening amid opposition from hedge funds, regional banks and others who could benefit if the companies survive in some form, Bloomberg News reported yesterday. President Barack Obama and lawmakers from both parties have called for the two mortgage-finance companies to be replaced by a new U.S. housing system. While the official position hasn't changed, a bipartisan group of U.S. senators writing legislation is grappling with how to ensure that changes to Fannie Mae and Freddie Mac don't disrupt the recovering housing market. Some Democrats said that they are leery of engineering a switch that would liquidate the government-sponsored enterprises (GSEs), leaving it to private entities to risk their own capital on home loans. Since they nearly collapsed during the 2008 credit crisis, the two companies have drawn $187.5 billion from taxpayers and have been considered too politically toxic to be preserved. While the U.S. holds controlling stakes, the outcome will affect private investors including hedge funds Perry Capital and Paulson and Co., which have accumulated preferred shares and have spent months lobbying for Fannie Mae and Freddie Mac to be recapitalized. The hedge funds gained little traction in early meetings with senators such as Bob Corker (R-Tenn.), who publicly rejected their pleas in the spring. As the legislative process advances and involves a wider group of lawmakers, some are listening to the argument that an entirely new system could risk instability in the market. Read more.

FED WEIGHS SURCHARGE ON BANKS' PHYSICAL COMMODITY BUSINESSES

Federal Reserve officials are considering imposing a new capital surcharge on Wall Street banks that own oil pipelines, metals warehouses and other lucrative physical-commodities assets, the Wall Street Journal reported today. Such an approach could encourage banks to pare back their involvement in physical commodities, which has increasingly raised concerns among regulators and lawmakers. While no decision has been made, imposing a surcharge would allow the Fed to sidestep a legal jam caused by existing laws that set Goldman Sachs Group Inc. and Morgan Stanley apart from peers and give the former investment banks broad leeway to own commodities. The Fed has been considering scaling back the ability of banks to own such assets amid concerns that commodities ownership has expanded beyond what regulators originally envisioned. To avoid a regulatory situation where only some banks can own commodities, the Fed is considering a surcharge that would ensure that all banks hold more capital to account for potential risks posed by the assets they own or lease. Read more. (Subscription required.)

ABI LAUNCHES SIXTH ANNUAL WRITING COMPETITION FOR LAW STUDENTS

Law school students are invited to submit a paper between now and March 4, 2014 for ABI's Sixth Annual Bankruptcy Law Student Writing Competition. ABI will extend a complimentary one-year membership to all students who participate in this year's competition. Eligible submissions should focus on current issues regarding bankruptcy jurisdiction, bankruptcy litigation, or evidence issues in bankruptcy cases or proceedings. The first-place winner, sponsored by Invotex Group, Inc., will receive a cash prize of $2,000 and publication of his or her paper in the ABI Journal. The second-place winner, sponsored by Jenner & Block LLP, will receive a cash prize of $1,250 and publication of his or her paper in an ABI committee newsletter. The third-place winner, sponsored by Thompson & Knight LLP, will receive a cash prize of $750 plus publication of his or her paper in an ABI committee newsletter. For competition participation and submission guidelines, please visit http://papers.abi.org.

RISKY TIMES FOR SECURED LENDERS AND SERVICERS TO BE FOCUS OF FIRST ABI WORKSHOP PROGRAM- ATTEND IN PERSON OR VIA LIVE WEBSTREAM!

You will not want to miss the abiWorkshops series' inaugural program, "Risky Times for Secured Lenders and Servicers." The program is cosponsored by TMA (Chesapeake), IWIRC (D.C./Greater Maryland) and RMA (Potomac), and will be held on Nov. 6 from 9 a.m. to 3 p.m. ET in the ABI Headquarters Conference Center in Alexandria, Va. The abiWorkshops series provides attendees two great ways of participating: You can register to attend in person at the ABI Conference Center, or you can participate via a live webstream! Topics that will be covered on the Nov. 6 program include:



- Living with the New CFPB Mortgage Servicing Rules

-
Business Lending: Navigating What Lies Ahead

- Business Lending: Recent Legal Developments



For more information or to register for the "Risky Times for Secured Lenders and Servicers" abiWorkshop on Nov. 6, please click here.

EXPERTS TO EXAMINE STUDENT LENDING AND BANKRUPTCY AT ABI WORKSHOP PROGRAM ON NOV. 15

Experts will tackle the hot topic of student lending issues in bankruptcy on the abiWorkshops series' new program, "You Can't Discharge Student Loans in Bankruptcy - Or Can You?" The program will be held on Nov. 15 from 9 a.m. to 3 p.m. ET in the ABI Headquarters Conference Center in Alexandria, Va. The abiWorkshops series provides attendees two great ways of participating: You can register to attend in person at the ABI Conference Center, or you can participate via a live webstream! Topics that will be covered on the Nov. 15 program include:

- Student Lending Today: Who Borrows, How Much, Delinquency & Default Trends

- Repayment Options: Income Based Repayment and New Lender/Servicer Programs

- Litigation under Sect. 523(a)(8): What Proofs Are Needed? Evidence Demonstration

For more information or to register for the "You Can't Discharge Student Loans in Bankruptcy - Or Can You?" abiWorkshop on Nov. 15, please click here.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: UTNEHMER V. CRULL (IN RE UTNEHMER; 9TH CIR.)

Summarized by Hilda Montes de Oca of the U.S. Bankruptcy Court for the Central District of California



Applying California partnership law, the Ninth Circuit Bankruptcy Appellate Panel reversed the bankruptcy court because it erred when it decided that a partnership existed between the debtor defendant and plaintiff creditor based upon the terms of a loan agreement. As there was no partnership, the debtor owed no fiduciary obligations to the creditor. The BAP further found that the bankruptcy court used the wrong mens rea standard for defalcation. As a result, the bankruptcy court erred in determining that debtor's debt to creditor was excepted from discharge as a defalcation by a fiduciary pursuant to § 523(a)(4).

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: OCC'S COMMERCIAL REAL ESTATE LENDING HANDBOOK MISSES THE MARK ON POTENTIAL LEGAL ISSUES

The Bankruptcy Blog Exchange is a free ABI service that tracks more than 80 bankruptcy-related blogs. A recent blog post finds the new version of the Office of the Comptroller of the Currency's (OCC) Commercial Real Estate Lending Handbook to be lacking in addressing potential legal issues associated with risks in commercial real estate lending.

The abiWorkshops series' inaugural program, "Risky Times for Secured Lenders and Servicers," on Nov. 6 will cover potential legal issues associated with commercial lending. Attend in person or via live webstream.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

Does the bankruptcy court's Section 105 power enable it to surcharge the debtor's exempt property?

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

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2013

October

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- abiWorkshop: "Risky Times for Secured Lenders and Servicers"

   Nov. 6, 2013 | Alexandria, Va.

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

-abiWorkshop: "You Can't Discharge Student Loans in Bankruptcy - Or Can You?"

   Nov. 15, 2013 | Alexandria, Va.

- Delaware Views from the Bench

   Nov. 25, 2013 | Wilmington, Del.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

January

- Western Consumer Bankruptcy Conference

    Jan. 20, 2014 | Las Vegas, Nev.

- Rocky Mountain Bankruptcy Conference

    Jan. 23-24, 2014 | Denver, Colo.

REVERSE-MORTGAGE RULE ON SURVIVING SPOUSE TOSSED BY JUDGE

A rule of the U.S. Department of Housing and Urban Development governing repayments of reverse mortgages by surviving spouses conflicts with federal law, a U.S. District Judge has ruled, Bloomberg News reported yesterday. HUD erred "when it insured the reverse mortgages of plaintiffs' spouses pursuant to regulation, which permitted their loan obligations to come due upon their death regardless of whether their spouses were still alive," U.S. District Judge Ellen Huvelle said yesterday. The widowers who sued HUD cited a federal law that defers an obligation to pay off such loans until the homeowner's death and defines "homeowner" to include the surviving spouse. HUD rules make it more likely that a surviving spouse will end up in foreclosure, according to the suit, which was filed in 2011. The language HUD used when implementing the law states that the loan comes due "if a mortgagor dies and the property is not the principal residence of at least one surviving mortgagor." Read more.

COMMENTARY: OBAMA'S DETROIT BAILOUT

The White House announced on Friday a $320 million aid package for the bankrupt city of Detroit because of "exceptional" circumstances. According to an editorial in today's Wall Street Journal, the action creates a slippery slope, because other struggling cities will also want a financial infusion. The federal funds, which were cobbled together from programs including TARP and the Federal Emergency Management Agency, are supposedly intended to encourage private investment. The aid includes $150 million to remove blight and spur redevelopment; $30 million for public safety and to hire 150 firefighters; and $140 million to improve transportation. The administration is also offering its technical expertise to help overhaul the city's dysfunctional computer systems. Foundations such as Kresge, Ford, Knight and Skillman have already poured more than $70 million this year into initiatives to rebuild Detroit. Kresge alone has committed $35 million for the city's new street-car system and $150 million over five years to implement the Detroit Future City plan to revive downtrodden neighborhoods. Two weeks ago, NCB Capital Impact and Kresge announced a $30.25 million fund to support development along the street-car line. Read the full editorial. (Subscription required.)

CLOCK STARTS ON SEC'S CEO PAY DISCLOSURE RULE

The Securities and Exchange Commission is set to publish a rule requiring companies to disclose how much they pay their top executives, and has started the clock on a two-month comment period for the contentious proposal, The Hill reported yesterday. Unveiled earlier this month, the draft rule is required under the Dodd-Frank Wall Street reform law. The statute calls for regulations forcing companies to reveal the median income of rank-and-file employees and the salaries of chief executives. Firms would also be required to calculate the pay ratio reflecting the difference between the two figures. Proponents of the rule argue it would help shame companies that heap exorbitant salaries on their top officers and give lower-level employees more leverage to negotiate for higher pay. But business groups and banks warn that the cost of complying with the new regulations would be overly burdensome, with some estimates placing the price tag at $100 million for a single multinational firm. To allay those concerns, the draft regulations call for a flexible approach to calculating the figures, with firms able to choose from a series of alternative compliance options. Read more.

Click here to view the draft regulations.

COMMENTARY: TOO BIG TO BAIL APPEARS TO TAKE HOLD FOR BANKS

While there are currently many experts who share the view that taxpayers would have to bail out the world's largest banks if another financial crisis hit, that view may be flawed, at least judging by the behavior of the bond market and the behind-the-scenes work of policymakers, according to an analysis in today's Wall Street Journal. Five years after the painful discovery that some firms were "too big to fail," regulators and banks remain incapable of coping with teetering financial behemoths. Any hope of avoiding a repeat of the messy actions of 2008 rests on two premises: that there is a credible plan to take over a failing financial firm and that market participants understand that losses will fall on them and not taxpayers. In short, according to the commentary, investors have to believe that banks are "too big to bail." On the first point, the Federal Deposit Insurance Corp. believes it has a plan ready to go when the next big bank gets close to failure. The FDIC would take over the bank's holding company while trying to keep alive its operating subsidiaries -- the units that run its branches and its trading and wealth-management operations, etc. This variation on the "bad bank/good bank" split should have the advantage of staving off a potential run on the institution. Shareholders would be wiped out, creditors -- even those holding senior debt -- would sustain losses, and top executives probably would be fired. Read more. (Subscription required.)

NEWEST TITLE IN ABI'S BOOKSTORE EXAMINES ISSUES SURROUNDING STUDENT LOANS AND BANKRUPTCY

ABI's newest publication, Graduating with Debt: Student Loans under the Bankruptcy Code, tackles issues surrounding bankruptcy and student loan debt. Student loan debt in the U.S. exceeds $1.1 trillion -- more than any other type of consumer debt except for mortgage loans -- while new education lending continues at an explosive pace. Profs. Daniel A. Austin of Northeastern University (Boston) and Susan E. Hauser of North Carolina Central University School of Law (Durham, N.C.) authored the book with both borrowers and creditors in mind to introduce readers to the basics of student loan debt, including different types of loans and loan-forgiveness programs, delinquency and default, and administrative and nonjudicial remedies for borrowers having trouble repaying their loans. Graduating with Debt covers Bankruptcy Code provisions governing student loans, relevant case law and judicial precedent in all federal circuits, local practices and policies, partial discharge of student loan debt, and specialized treatment of student loan debt in chapter 13. The soft-cover, 250-page book also includes extensive appendices replete with sample pleading and discovery forms. To receive special ABI member pricing, be sure to log in to the ABI Bookstore when pre-ordering.

TOMORROW! ABI'S UNSECURED TRADE CREDITORS COMMITTEE INVITES YOU TO A DISCUSSION ABOUT CLAIM-TRANSFER TRANSACTIONS

Members are encouraged to join ABI's Unsecured Trade Creditors' Committee in a discussion tomorrow at 4 p.m. ET about considerations that arise out of claim-transfer transactions. Bankruptcy claim transfers are an active part of the bankruptcy process in today's marketplace, and for this reason, the Judicial Conference of the United States imposed a new fee on each transfer, effective May 1, 2013. The moderator for the call, Neil B. Glassman of Bayard, P.A. (Wilmington, Del.), will lead a discussion focusing on the steps in a claim-sale transaction, standard provisions in the transaction documents, developments in the industry, and tricks and traps creditors' counsel can avoid. If you would like to participate on the free committee call, please contact Martha Cannon at mcannon@abiworld.org.

THURSDAY! ABILIVE WEBINAR LOOKS AT THE INTERSECTION OF INTELLECTUAL PROPERTY AND BANKRUPTCY: KODAK, NORTEL AND OTHER CASES

IP experts will shed light on the mysteries of understanding IP law and navigating the often puzzling sales processes, drawing from their experiences in Nortel, Kodak and other important cases, in an abiLIVE webinar on Oct. 3 from 1:00-2:15 p.m. ET. Speakers will include David Berten (Global IP Law Group, LLC; Chicago), Pauline K. Morgan (Young Conaway Stargatt & Taylor, LLP; Wilmington, Del.), Cassandra M. Porter (Lowenstein Sandler LLP; Roseland, N.J.), Kelly Beaudin Stapleton (Alvarez & Marsal; New York) and Christopher Burton Wick (Hahn Loeser & Parks LLP; Cleveland). To register, click here.

ABI LAW REVIEW/ST. JOHN'S SYMPOSIUM ON FRIDAY TO EXAMINE HEDGE FUNDS IN BANKRUPTCY- FREE PROGRAM!

ABI Law Review and St. John's School of Law Center for Bankruptcy Studies invite members to attend the Fall 2013 "Hedge Funds in Bankruptcy" Symposium on Oct. 4 The free program will be held at St. John's School of Law in Queens, N.Y., from 9 a.m. to 2:30 p.m. ET. Distinguished scholars and professionals in the hedge fund and bankruptcy fields will discuss the growing role that hedge funds now play in the bankruptcy process and to assess the desirability of maintaining, expanding, limiting, or otherwise changing this role by means of changes in bankruptcy law, policy or practice. While there is no fee to attend the symposium, advance registration is required. To register, please complete and submit the online registration form.

FIRST ABI WORKSHOP PROGRAM LOOKS AT RISKY TIMES FOR SECURED LENDERS AND SERVICERS! ATTEND IN PERSON OR VIA LIVE WEBSTREAM

You will not want to miss the abiWorkshops series' inaugural program, "Risky Times for Secured Lenders and Servicers." The program is cosponsored by TMA (Chesapeake), IWIRC (D.C./Greater Maryland) and RMA (Potomac), and will be held on Nov. 6 from 9 a.m. to 3 p.m. ET in the ABI Headquarters Conference Center in Alexandria, Va. The abiWorkshops series provides attendees two great ways of participating: You can register to attend in person at the ABI Conference Center, or you can participate via a live webstream! Topics that will be covered on the Nov. 6 program include:



- Living with the New CFPB Mortgage Servicing Rules

-
Business Lending: Navigating What Lies Ahead

- Business Lending: Recent Legal Developments



For more information or to register for the "Risky Times for Secured Lenders and Servicers" abiWorkshop on Nov. 6, please click here.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: HOPE V. ACORN FINANCIAL INC. (11TH CIR.)

Summarized by Paul Avron of Berger Singerman PA

A chapter 13 trustee who, depsite having actual knowledge that a secured creditor's lien was unperfected as of the date the debtor filed the bankruptcy case, and who affirmatively recommended confirmation of the debtor's chapter 13 plan which treated the creditor as secured, is bound by the order confirming the plan and cannot thereafter bring suit against the creditor to avoid its lien.

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: FORECLOSURE CRISIS UPDATE

The Bankruptcy Blog Exchange is a free ABI service that tracks more than 80 bankruptcy-related blogs. A recent blog post examines the trends and developments that have emerged over the course of the past six years since the foreclosure crisis began.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

Does the bankruptcy court's Section 105 power enable it to surcharge the debtor's exempt property?

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

2013

October

- abiLIVE Webinar: The Intersection of Intellectual Property and Bankruptcy: Kodak, Nortel and Other Cases

     Oct. 3, 2013

- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum

    Oct. 4, 2013 | Kansas City, Mo.

- Professional Development Program

    Oct. 11, 2013 | New York, N.Y.

- Chicago Consumer Bankruptcy Conference

    Oct. 14, 2013 | Chicago, Ill.

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- abiWorkshop: "Risky Times for Secured Lenders and Servicers"

   Nov. 6, 2013 | Alexandria, Va.

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Austin Advanced Consumer Bankruptcy Practice Institute

   Nov. 10-12, 2013 | Austin, Texas

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

- Delaware Views from the Bench

   Nov. 25, 2013 | Wilmington, Del.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

- ABI/St. John’s Bankruptcy Mediation Training

    Dec. 8-12, 2013 | New York

January

- Western Consumer Bankruptcy Conference

    Jan. 20, 2014 | Las Vegas, Nev.

- Rocky Mountain Bankruptcy Conference

    Jan. 23-24, 2014 | Denver, Colo.

DETROIT CHAPTER 9 SENDS WARNING TO OTHER CITIES, BONDHOLDERS

Bankruptcy Judge Steven Rhodes' decision on Tuesday to authorize Detroit's chapter 9 bankruptcy serves as a warning for government leaders who are grappling with budget problems, bondholders and unions that are fighting cuts, the Detroit Free Press reported today. Although no one expects a sudden rush of municipal bankruptcy filings, unions fear that chapter 9 may become a more viable option for distressed municipalities after Judge Rhodes ruled that pensions could be cut as a way for Detroit to dig itself out of debt. The ruling comes as pensions, which are straining municipal budgets throughout the country, have become the target of other cities and states that are dealing with chronic debt. As Rhodes was issuing his ruling Tuesday that pensions are fair game for cuts under bankruptcy, state lawmakers in Illinois were passing a bill to overhaul that state's pension system, cutting an estimated $90 billion to $100 billion in pension benefits over three decades. In California, several cities have filed for bankruptcy in recent years with huge pension obligations looming -- but none have targeted pension cuts. "This is going to be a playbook used by other cities," University of Michigan bankruptcy law professor John Pottow said of Detroit's strategy. "It's pretty huge because the courts in California, which has very similar laws, have tried to avoid coming to a decision on it before." Read more.

STUDENT DEBT OWED BY CLASS OF 2012 RISES TO $29,400

U.S. college students are leaving school with higher amounts of debt as they increase borrowing to keep up with rising tuition, Bloomberg News reported yesterday. Graduates of the class of 2012 who took loans for bachelors' degrees owed an average of $29,400. The level of debt represents an average annual increase of 6 percent from the $23,450 incurred by borrowers who graduated in 2008, the last year the federal government reported the data, according to a report released yesterday by The Institute for College Access & Success, an Oakland, California-based nonprofit group. The share of college seniors with debt rose to 71 percent from 68 percent in the four-year period. States with the highest debt were in the Northeast and Midwest, led by Delaware. Read more.

For further analysis of the student debt and bankruptcy issues, be sure to pick up a copy of ABI's Graduating with Debt: Student Loans under the Bankruptcy Code, now available in the ABI Bookstore.

TREASURY SECRETARY: REFORMS MAKING FINANCIAL SYSTEM SAFER

U.S. Treasury Secretary Jacob Lew said that post-crisis efforts to bolster the financial system have made the U.S. economy safer, but added that more work is needed, including international protections that mirror those here, the Wall Street Journal reported today. Lew said that while efforts to implement the 2010 Dodd-Frank law have "taken longer than we hoped," the rules are largely falling into place and are helping to bolster the financial system. He said that more needs to be done, including ensuring that U.S. regulators have resources to enforce the rules and the adoption of robust protections by global counterparts to fortify the international financial system. Lew said that the regulatory efforts have reduced the attractiveness of being a large bank by raising the cost -- part of an effort to ensure no bank remains "too big to fail." He stopped short of declaring victory in saying that the U.S. has ended the chance that any bank is so large it would need a government rescue if it ran into trouble, but added that while he believes the U.S. "will meet that test ... there is no precise point at which you can prove with certainty that we have done enough." He said that the U.S. was prepared to go further if necessary. Read more. (Subscription required.)

WALL STREET TRADE GROUPS SUE CFTC OVER DODD-FRANK RULES

Wall Street's biggest lobbying groups have banded together to sue the Commodity Futures Trading Commission, seeking to curb the overseas reach of its rules and rein in a regulatory barrage by its departing Chairman Gary Gensler, Bloomberg News reported yesterday. The suit, filed yesterday in federal court in Washington, D.C., seeks to overturn guidance that the CFTC approved in July. The trade associations, which represent Goldman Sachs Group Inc., JPMorgan Chase & Co., Deutsche Bank AG and other swap dealers, say that the agency illegally set regulations by issuing guidance documents and staff advisories rather than formal commission-approved rules. The lawsuit focuses on the often arcane way that agencies set policy. Formal agency rules require cost-benefit analysis and votes by commissioners, who are picked by the president and confirmed by the Senate. The guidance document in July, which was approved in a commission vote, lacked economic analysis. The advisories in November lacked both economic analysis and a formal vote. While the groups asked the court to vacate the CFTC policy, the case could have the practical effect of slowing the foreign trading rules. Read more.

ANALYSIS: SMALLER MORTGAGE LENDERS LEAD FIELD

Big banks have been retrenching from the mortgage business recently, leaving smaller players to pick up larger chunks of business, the Wall Street Journal reported today. As of the third quarter, smaller mortgage players held a 60 percent market share of the U.S. origination market, up from 39 percent in 2009, according to industry publication Inside Mortgage Finance. In the third quarter alone, the smaller lenders, defined as those outside the top five, gained about six percentage points of market share, according to data compiled by Paul Miller, an analyst with FBR Capital Markets. The midsize and smaller players have grown despite tightening their underwriting standards, much like larger banks have since the financial crisis. But the smaller banks' capital rules aren't as stringent as those that make mortgages a costly enterprise for the biggest firms. Big banks began pulling out of certain mortgage businesses after new international rules required them to hold more capital for certain assets. Big banks "don't have the same view of the value of those assets relative to the cost of capital today," explained Jim Cutillo, chief executive of Stonegate Mortgage. Read more. (Subscription required.)

LATEST ABI PODCAST EXAMINES RECENT BANK SETTLEMENTS AND "TOO BIG TO JAIL"

In light of recent bank settlements over bad behavior stemming from the financial crisis, ABI Resident Scholar Prof. Kara Bruce talks with Prof. Gregory Gilchrist of the University of Toledo Law School about why more indictments against banks or their employees have not occurred. Gilchrist, who is the author of the forthcoming University of Colorado Law Review article, "The Special Problem of Banks and Crime," discusses recent settlements and the issues surrounding "too big to jail." Click here to listen.

NOW AVAILABLE FOR PRE-ORDER: BEST OF ABI 2013: THE YEAR IN CONSUMER BANKRUPTCY

Now available for pre-order in the ABI Bookstore is Best of ABI 2013: The Year in Consumer Bankruptcy. This must-have reference contains the best ABI Journal articles and papers from ABI's top-rated educational seminars selected by ABI Board Member Alane Becket of Becket & Lee LLP (Malvern, Pa.) to cover the most important developments in consumer bankruptcy for 2013. The book delves into such timely topics as the foreclosure crisis, tax issues, the latest on chapter 13, student loans and much more, and it also features relevant case summaries drawn from ABI's Volo site (volo.abi.org). Make sure to log into www.abi.org to get your discounted ABI member pricing. The book will ship in mid-December. Click here to order.

ATTENDING ABI'S WINTER LEADERSHIP CONFERENCE? MAKE SURE TO USE THE WLC APP!

If you are currently attending ABI's 25th Annual Winter Leadership Conference in Rancho Palos Verdes, Calif., be sure to utilize the WLC app currently available for Apple iOS and Google Android devices. Use the app to pull up the conference schedule, download program materials, find out about speakers and sponsors and let your voice at the conference be heard over social media! Click here to download the app.

NEXT WEEK'S ABILIVE WEBINAR LOOKS AT HOW TO HIRE THE RIGHT FINANCIAL ADVISORS

ABI's Financial Advisors & Investment Banking Committee
is proud to present the next abiLIVE webinar, "How to Hire the Right Financial Advisors," on Dec. 11 from 1-2:15 p.m. ET. The program will provide attendees with an overview and basic understanding of the different types of financial advisors that may be relevant for in- and out-of-court cases. Topics include:

- The different types of financial advisors available;

- The benefits and limitations for each category of advisor; and

- How to select the right advisor for the job.

Speakers on the webinar include:

-Daniel F. Dooley of MorrisAnderson (Chicago)

-Gregory S. Hays of Hays Financial Consulting LLC (Atlanta)

-Ivan Lehon of Ernst & Young (New York)

-Allen Soong of Deloitte CRG (Los Angeles)

-Teri Stratton of Piper Jaffray & Co. (El Segundo, Calif.)

Registration is $75 for ABI members/$175 for non-members. Have a number of colleagues that would like to participate? Take advantage of group pricing for ABI members: register 5 or more and the registration cost drops to $60 per person!

Click here for more information and to register.

ABI IN-DEPTH

RENEW YOUR ABI MEMBERSHIP BY DEC. 31 AND SAVE!

Beginning in January 2014, ABI will institute its first dues increase to the regular dues rate in six years. The $20 increase will ensure that ABI can continue to provide you with the latest and most effective tools available in insolvency information and education. You can lock in 2013 rates, and additional discounts, for up to three years by using a multi-year renewal option (save $75!). You can also save 10 percent on future dues by opting into the automated dues program. To renew your membership and save, please go to renew.abi.org.

ABI LAUNCHES SIXTH ANNUAL WRITING COMPETITION FOR LAW STUDENTS

Law school students are invited to submit a paper between now and March 4, 2014 for ABI's Sixth Annual Bankruptcy Law Student Writing Competition. ABI will extend a complimentary one-year membership to all students who participate in this year's competition. Eligible submissions should focus on current issues regarding bankruptcy jurisdiction, bankruptcy litigation, or evidence issues in bankruptcy cases or proceedings. The first-place winner, sponsored by Invotex Group, Inc., will receive a cash prize of $2,000 and publication of his or her paper in the ABI Journal. The second-place winner, sponsored by Jenner & Block LLP, will receive a cash prize of $1,250 and publication of his or her paper in an ABI committee newsletter. The third-place winner, sponsored by Thompson & Knight LLP, will receive a cash prize of $750 plus publication of his or her paper in an ABI committee newsletter. For competition participation and submission guidelines, please visit http://papers.abi.org.

NEW CASE SUMMARY ON VOLO: JONES V. U.S. TRUSTEE, EUGENE (9TH CIR.)

Summarized by David Shemano of Peitzman Weg LLP

The Ninth Circuit ruled that fraud that would have served as grounds for denying a chapter 7 discharge if it had been known at the time of the discharge can serve as grounds for the later revocation of that discharge.

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: RISK OF LENDER CONCENTRATION OVERLOOKED IN HOUSING REFORM DEBATE

The Bankruptcy Blog Exchange is a free ABI service that tracks more than 80 bankruptcy-related blogs. A new blog post finds that ignoring the effects of loan seller origination, sourcing and servicing processes in a post-GSE secondary market could generate losses for taxpayers.

For witness testimony and a video of the hearing, please be sure to visit http://commission.abi.org.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A holder of an unstayed judgment, which is subject to an ongoing appeal, can qualify as a petitioning creditor under § 303(b)(1).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

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2013

December

-abiLIVE Webinar

    Dec. 11, 2013

January

- Western Consumer Bankruptcy Conference

    Jan. 20, 2014 | Las Vegas, Nev.

- Rocky Mountain Bankruptcy Conference

    Jan. 23-24, 2014 | Denver, Colo.

February

- Caribbean Insolvency Symposium

    Feb. 6-8, 2014 | San Juan, P.R.

- VALCON14

    Feb. 26-28, 2014 | Las Vegas, Nev.

March

- Bankruptcy Battleground West

    March 11, 2014 | Los Angeles, Calif.