On Friday, the Nevada Financial Institutions Division closed SouthwestUSA Bank, headquartered in Las Vegas, Nevada, and appointed the FDIC as receiver for the bank. As receiver, the FDIC entered into a purchase and assumption agreement with Plaza Bank, headquartered in Irvine, California, to assume all of the deposits of SouthwestUSA Bank.
On Friday, the Georgia Department of Banking & Finance closed Crescent Bank and Trust Company, headquartered in Jasper, Georgia, and appointed the FDIC as receiver for the bank.
On Friday, the Office of the Minnesota Department of Commerce closed Community Security Bank, headquartered in New Prague, Minnesota, and appointed the FDIC as receiver for the bank. As receiver, the FDIC entered into a purchase and assumption agreement with Roundbank, headquartered in Waseca, Minnesota, to assume all of the deposits of Community Security Bank.
SMITH v. SIPI, LLC (July 27, 2010)
In a decision filed on July 7th, the United States Court of Appeals for the Third Circuit affirmed a district court decision upholding a bankruptcy court order granting summary judgment to American Home Mortgage Investment Corp. (American Home) in connection with a repurchase transaction entered into in 2007 under which American Home sold certain certificates to Bear Stearns International Ltd. (Bear Stearns) for $19,534,000 and agreed to re-purchase the certificates at a later date for $19,636,879.07. In re American Home Mortgage Holdings, Inc., 2010 WL 2676383 (3d Cir.
On Friday, the Illinois Department of Financial and Professional Regulation, Division of Banking closed Ravenswood Bank, headquartered in Chicago, Illinois, and appointed the FDIC as receiver for the bank.
In this memorandum opinion, the Court of Chancery considered a motion to dismiss claims brought on behalf of Insilco Technologies, Inc. (“Insilco”) by the plaintiff, a bankruptcy court appointed Creditor Trustee. Among other claims, plaintiff brought claims for breach of fiduciary duty against Insilco’s controlling stockholder, a group of affiliated funds (the “DLJ Funds”) allegedly dominated and controlled by DLJ, Inc. and DLJ Merchant Banking, Inc. (“DLJMB”) (collectively, “DLJ”), and a group of DLJ-affiliated directors who comprised a majority of Insilco’s board.
FTC Amends Telemarketing Sales Rule: On July 29, 2010, the FTC announced new amendments to the Telemarketing Sales Rule that will prohibit debt relief companies from collecting advanced fees.