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    Resolution plans/living wills - summary of final rule on Orderly Liquidation Authority, and future impacts on financial companies, creditors, potential investors, and senior executives
    2011-07-11

    The July 6, 2011 Federal Deposit Insurance Corporation Board of Directors (the “FDIC Board”) meeting marked the changing of the guard from Chairman Sheila Bair to FDIC Vice Chairman Martin Gruenberg. Chairman Bair’s valedictory meeting was not merely ceremonial; it also covered several key developments regarding the timing of a final rule on resolution plans under section 165(d) of Title I and a final rule on the Orderly Liquidation Authority (“OLA”) under Title II.

    A. RESOLUTION PLANS/ LIVING WILLS

    Filed under:
    USA, Banking, Insolvency & Restructuring, Morrison & Foerster LLP, Shareholder, Board of directors, Debt, Federal Reserve Board, Liquidation, Bank holding company, Advance healthcare directive, Subordinated debt, Financial Stability Board, Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
    Authors:
    Dwight Smith , Alexandra Steinberg Barrage , Jeremy Mandell
    Location:
    USA
    Firm:
    Morrison & Foerster LLP
    FDIC final rule on orderly liquidation authority
    2011-07-11

    On July 6, the FDIC adopted a final rule addressing the rights and powers of the FDIC as a receiver of a nonviable systemic financial company under the orderly liquidation provisions of Title II of the Dodd-Frank Act.  The rule addresses: (i) recoupment of compensation from senior executives and directors as well as the receiver's power to avoid fraudulent and preferential transfers; (ii) the priority of claims; and (iii) the receivership administrative claims process as well as secured claims procedures.  The lin

    Filed under:
    USA, Banking, Insolvency & Restructuring, Orrick, Herrington & Sutcliffe LLP, Fraud, Federal Register, Liquidation, Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
    Location:
    USA
    Firm:
    Orrick, Herrington & Sutcliffe LLP
    FDIC issues final rule addressing certain provisions of the orderly liquidation authority of the Dodd-Frank Act
    2011-07-15

    On July 6, 2011, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule (the “Final Rule”) addressing certain provisions of the Orderly Liquidation Authority (“OLA”) contained in Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).1

    Filed under:
    USA, Banking, Capital Markets, Insolvency & Restructuring, Sidley Austin LLP, Consumer protection, Board of directors, Liquidation, Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
    Location:
    USA
    Firm:
    Sidley Austin LLP
    Decreto-Ley nº 48/2024, de 25 de julio, y la limitación de la prevalencia del derecho de retención sobre la hipoteca.
    2024-08-02

    En este artículo abordamos un cambio significativo en la legislación portuguesa: el Decreto-Ley nº 48/2024, de 25 de julio, que aportó una nueva dinámica a la prevalencia del derecho de retención sobre la hipoteca. Este tema es crucial para comprender las implicaciones en el marco jurídico actual, especialmente en los casos de insolvencia y rescate de empresas.

    Filed under:
    Portugal, Banking, Insolvency & Restructuring, Litigation, Lamares Capela & Associados, Commercial mortgage
    Location:
    Portugal
    Firm:
    Lamares Capela & Associados
    JPMorgan sues FDIC in third-party suit
    2011-08-01

    On July 25, 2011, JPMorgan Bank filed a third-party complaint against the FDIC in the Southern District of Ohio, claiming the FDIC indemnified JPMorgan when it agreed to buy assets from Washington Mutual, which went bankrupt in 2008.  JPMorgan alleges that it only accepted certain narrow WaMu liabilities in its agreement with the FDIC, specifically excluding liabilities relating to WaMu's pre-closing activities.  Western and Southern Life Insurance Company has since sued JPMorgan for fraudulent misrepresentation in connection with the sale of $650 million in mortgage-backed securi

    Filed under:
    USA, Banking, Insolvency & Restructuring, Insurance, Litigation, Securitization & Structured Finance, Orrick, Herrington & Sutcliffe LLP, Bankruptcy, Life insurance, Liability (financial accounting), Mortgage-backed security, Federal Deposit Insurance Corporation (USA), JPMorgan Chase, US District Court for Southern District of Ohio
    Location:
    USA
    Firm:
    Orrick, Herrington & Sutcliffe LLP
    Decree-Law no. 48/2024 of 25 July and the limitation on the prevalence of the right of retention over the mortgage.
    2024-08-02

    In this article we address a significant change in Portuguese legislation: Decree-Law no. 48/2024 of 25 July, which brought a new dynamic to the prevalence of the right of retention over the mortgage. This topic is crucial to understanding the implications for the current legal framework, especially in cases of insolvency and company rescue.

    Filed under:
    Portugal, Banking, Insolvency & Restructuring, Litigation, Lamares Capela & Associados, Commercial mortgage
    Location:
    Portugal
    Firm:
    Lamares Capela & Associados
    Bankruptcy Court Applies First-of-Its-Kind Valuation Method to Estimate Cryptocurrency Claims (US)
    2024-07-23

    The bankruptcy court presiding over the FTX Trading bankruptcy last month issued a memorandum opinion addressing valuation of cryptocurrency-based claims and how to “calculate a reasonable discount to be applied to the Petition Date market price” for certain cryptocurrency tokens.

    Filed under:
    USA, Banking, Insolvency & Restructuring, IT & Data Protection, Litigation, Squire Patton Boggs, Bitcoin, Cryptocurrency, FTX
    Authors:
    Mark A. Salzberg , Kyle F. Arendsen
    Location:
    USA
    Firm:
    Squire Patton Boggs
    UK Jurisdiction Taskforce Concludes Digital Assets Compatible With English Insolvency Law
    2024-04-29

    The Legal Statement applies areas of insolvency law to digital assets, providing valuable guidance on the approach English courts will take.

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, IT & Data Protection, Litigation, Latham & Watkins LLP, Cryptocurrency, Insolvency, Financial Conduct Authority (UK)
    Authors:
    Bruce Bell , Jessica Walker , Tim Bennett
    Location:
    United Kingdom
    Firm:
    Latham & Watkins LLP
    (UK) What practical changes can IPs expect from the proposed amendments to FCA guidance?
    2024-04-29

    The UK Financial Conduct Authority (FCA has issued a consultation about proposed changes to its Guidance for Insolvency Practitioners. The aim is to clarify existing guidance and provide more information to insolvency practitioners (IPs) on how to deal with regulated firms.

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, Squire Patton Boggs, Financial Conduct Authority (UK)
    Authors:
    Rachael Markham , John Alderton
    Location:
    United Kingdom
    Firm:
    Squire Patton Boggs
    Digital asset insolvency issues not insoluble for English law
    2024-04-19

    Digital assets may be new, but existing English insolvency laws and principles can deal with them. So finds the UK Jurisdiction Taskforce (UKJT) in its ‘Legal Statement on Digital Assets and English Insolvency Law’, published this week.

    Key takeaways include:

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, IT & Data Protection, Litigation, CMS Cameron McKenna Nabarro Olswang LLP, Blockchain, Cryptocurrency, Insolvency, Financial Conduct Authority (UK)
    Authors:
    Julian Turner , Vanessa Whitman , Kushal Gandhi , Rachel Harrison
    Location:
    United Kingdom
    Firm:
    CMS Cameron McKenna Nabarro Olswang LLP

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