Citi asks Revlon lenders to return mistaken $900 million
The bank has recouped part of the payment, which it blamed on a clerical error, but some of the lenders say they were owed the money in connection with an ongoing dispute.
Law and legal issues
States’ lawsuit alleges OCC rule enables ‘rent-a-bank’ schemes
The complaint filed by New York, California and Illinois argues that the regulation, issued in response to the 2015 Madden decision, undermines state laws intended to protect consumers.
Approved Hertz agreement preserves cash flow for ABS notes
The proposed combination of lease payments and required vehicle sales proceeds would will boost credit enhancement to around 45% by December, compared to 34% in June, according to Moody's.
By
Glen Fest
Two Harbors seeks for-cause termination as manager dispute escalates
The mortgage REIT's external manager responded by filing a new lawsuit against it, calling the move "baseless and retaliatory."
Hertz to pay $650 Million to halt lender fight over fleet
Under the accord, Hertz will for the rest of the year halt its effort to cancel some of the nearly 500,000 leases on the cars the company rents out to consumers. A separate Hertz entity owns the vehicles, which the company leases back under a contract that gives lenders strong collateral rights.
Lower-tier mall properties face increased strain from department-store woes
Moody's says anchor stores like J.C. Penney and Neiman Marcus represent only a small portion of CMBS retail exposure, but their deteriorating fortunes will hasten the decline in credit quality of CMBS-held loans backed by Class "B" and "C" malls.
By
Erin Joyce
Small-business bankruptcy program adds new risk to home equity loans
Mortgages taken out to fund business operations can now be modified in bankruptcy. That’s a relief to borrowers — particularly with business failures expected to increase as the pandemic drags on — but a possible headache for banks and investors that hold the loans.
CFPB declares most agency rules still valid after high court decision
The agency sought to provide certainty that most actions from the past eight years remain in effect despite the ruling that the bureau's leadership structure is unconstitutional.
Credit markets: bankruptcies pile up while leveraged-loan pipeline slows
Retailers and energy firms filed for bankruptcy protection in record numbers in the first half of 2020. Meanwhile, the volume of leveraged loans mandated but yet to launch is down 55% from the end of May.
After ruling, stage set for new battles over CFPB’s future
The Supreme Court threw out a key statutory provision concerning the agency’s leadership structure, but the presidential election and possible legislative reforms could bring about more changes to the embattled bureau.
Loan investors sign on for Chesapeake’s Chapter 11 plans
Stakeholders in a $1.5B term loan (which include CLO managers) overwhelmingly approved the failed energy company's voluntary bankruptcy plan, providing them a 76% pro-rata share of new common stock in the company after it emerges from bankruptcy.
By
Glen Fest
Consumer advocates allege bias in CFPB task force
A lawsuit filed Tuesday argues that the bureau's establishment of the panel looking into regulatory changes violated the Federal Advisory Committee Act.
Balbec Capital raises $1.2B distressed-debt fund
The new $1.2 billion InSolve Global Credit Fund IV will pursue a subset of the alternative asset manager’s specialty in non-performing distressed loans, including those in insolvency, restructuring or liquidation, according to a company release.
By
Glen Fest
S&P: Workout plan would better suit Hertz debtors than liquidation
The best outcome for creditors and ABS noteholders with approximately $6 billion in outstanding bonds is likely to be through a renewal of Hertz’s operations, rather than liquidation, according to analysis from the ratings agency.
By
Glen Fest
CFPB proposes legislation to pay whistleblowers who tip off agency
The agency's effort to engage with lawmakers on a whistleblower award program is one of three initiatives the bureau announced to advance its strategy of preventing consumer harm.
CFPB proposes making debt collectors disclose statute of limitations
Debt collectors would have to tell consumers upfront that they cannot sue to recover "time-barred" debt under a proposal issued Friday by the Consumer Financial Protection Bureau.
CFPB backers tell high court that agency’s structure is legal
Democratic lawmakers, state attorneys general and others filed briefs with the Supreme Court rebutting claims that the agency’s leadership structure is unconstitutional.
Lawyer picked to defend CFPB before high court backs agency structure
The Supreme Court appointed Paul Clement to represent the agency after the bureau’s current director questioned its constitutionality.
Senate Dems urge CFPB watchdog to investigate restitution practices
In a letter to the agency's inspector general, the 15 lawmakers pointed to specific cases where they said the bureau departed from legal standards in deciding not to require restitution.
CFPB critics to Supreme Court: The agency must go
The case before the court deals mainly with a statutory clause limiting the president’s ability to fire a CFPB director. But briefs filed with the court say striking that provision does not fully solve the bureau’s constitutional problems.
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