bankruptcy
The Mortgage Mess Settlement Proposal: Off to an Awful Start
A partial settlement plan has been constructed by a group of state attorneys general and federal regulators. In theory, it addresses banks' flawed mortgage servicing, modification and foreclosure practices. In reality, it just lets the banks off the hook.
Blockbuster Should Liquidate Instead of Reorganize
Blockbuster should liquidate instead of reorganize under new ownership because the video-rental store chain lacks the necessary cash to continue operations after a proposed sale is completed, Home Media Magazine reported, citing a division of the U.S. Justice Department.
Another Way Banks Make Everyone Pay: The MERS Mess
Banks created the Mortgage Electronic Registration System to save themselves a boatload in fees by keeping mortgage transfers off the books of local governments. Now, a New York judge says the whole system violates state law, and banks holding MERS mortgages there can't foreclose. Where will this disaster go from here?
When Banks Outsource Foreclosures, Nothing Good Happens
A Louisiana bankruptcy case involving a single foreclosure best illustrates the problems with the banks' outsourcing their mortgage default work to firms like LPS. The result of this money-saving maneuver by banks winds up costing everyone else dearly.
Coming Soon: New Owners for Blockbuster?
Bankrupt video-rental company Blockbuster may put itself up for sale as early as next week, The Wall Street Journal reported Thursday. The company had previously planned to reorganize, but creditors couldn't agree on a plan to restructure its debt.
Court Gives Hope to Homeowners Lied to by Banks
A California appeals court has ruled that U.S. Bank conned Claudia Aceves out of her home by tricking her into giving up her bankruptcy protections. Now she can sue the bank for damages and fraud, and conceivably, so could other homeowners in similar situations.
Eva Longoria's Las Vegas Nightclub Files for Bankruptcy
A Las Vegas nightclub partly owned by "Desperate Housewives" actress Eva Longoria has filed for bankruptcy, claiming that it's losing $76,000 a month.
Bad News: Defaulted Student Loans Don't Cost the Government
New data show that the federal government recoups at least 85% of amounts owed on defaulted student loans. The reasons why this is so explain a lot, especially about ever-rising tuition expenses at colleges across the country.
Why Safeway's Concerned About Blockbuster's Liquidation Plans
Safeway might not seem to have any connection to Blockbuster, but it turns out the supermarket operator is the landlord of several Blockbuster stores slated for closure. Safeway has filed a motion to ensure the liquidations don't disrupt neighboring businesses.
Another Victim of the Great Recession: Child Support Payments
These payments fell in 2009 for first time in the U.S. in more than three decades, and while the official government report for fiscal 2010 won't be out for months, it's likely that it, too, saw that downward trend continue. Stubbornly high unemployment is the primary culprit.
New York Sues Ernst & Young Over Lehman Bros.
New York Attorney General Andrew Cuomo has filed a civil lawsuit against Ernst & Young, alleging that the accounting giant helped now-defunct investment bank Lehman Brothers hide billions of dollars in debt from its investors via loans disguised as sales.
Bankruptcies: Could 2011 Be Even Better Than 2010?
In another bit of good economic news, the list of U.S. business bankruptcies will likely get shorter, and probably less distinguished, in 2011, just as it did this year. Still, several factors beyond an improving economy are also at play here.
Bank of America Fined for Harassing Ex-Homeowners
Michael and Dolores Kirkbride of North Carolina settled their debt with Countrywide, but the bank and later its new owner, Bank of America, kept calling to demand payment -- hundreds of times. A judge has fined BofA for its egregious conduct.
Former Jewelry Company Owner Charged with Fraud
Ralph Esmerian, the former owner of rare-jewelry seller Fred Leighton, was arrested Monday on charges on fraud and embezzlement. The New York district U.S. Attorney's Office claims his illegal activities caused the company to file for bankruptcy protection in 2008.
Americans Are Most Likely to Go Without Health Care
An survey of 11 industrialized nations finds adults in the U.S. are by far the most likely to go without health care or skip filling a prescription because of costs, due to a high-cost health care system that lags behind those of other modern countries.
National Enquirer Parent Files for Bankruptcy
It's not just mainstream news publications that are have difficulty surviving in the recession. American Media, the parent of tabloids the National Enquirer and Star, filed for Chapter 11 bankruptcy protection Wednesday.
Owners of Manhattan's 'Lipstick Building' File for Bankruptcy
The owners of Manhattan%u2019s landmark Lipstick Building, which housed convicted Ponzi schemer Bernie Madoff's opulent offices, has filed for chapter 11 bankruptcy protection. Could new owners make the economics work?
Ambac Sues U.S. Over $700 Million in Tax Returns
Ambac Financial Group, which Monday declared bankruptcy, is suing the U.S. for attempting to seize $700 million in tax refunds. The bond insurer warns that seizing the refunds could ruin its chances of reorganizing.
Dubai Raises Questions About Islamic Finance
While the worst of the crisis may be past for the emirate, Dubai's financial troubles have highlighted some of the thorny issues underlying the Islamic world's integration with worldwide finance.
MGM Files for Chapter 11 Bankruptcy
Metro-Goldwyn-Mayer Studios has filed for a re-organization bankruptcy, the studio announced Wednesday.
Tribune Creditors Sue Chairman and JPMorgan for Alleged Fraud
Tribune Co. creditors are suing for billions of dollars in damages, alleging Tribune Chairman Sam Zell and lender JPMorgan Chase pushed the company into bankruptcy when Zell purchased it mainly with debt in 2007.