Seven Banks to Pay $324MM in Rate Rigging Case

Seven of the world’s biggest banks have agreed to pay $324 million to settle claims they conspired to rig an interest rate benchmark used in the derivatives market. ABF Journal illustrator Jerry Gonzalez envisions the judgement day.

Lenders Beware: Failure to Investigate Suspicious Facts Can Void Your Security

If a deal seems suspicious in the early stages, the lender is required to go the extra mile to confirm that the borrower is being 100% honest. Michael Molinaro explains that the court expects a lender to check for fraud before a transfer of collateral is made. Failure to investigate can prove expensive.

Factoring Business Owner Charged With Lying to FBI

A New Jersey factoir reported a fraudulent client to the FBI. Instead of working with the Feds as they requested, he sold accounts to another factor. ABF Journal illustrator Jerry Gonzalez illustrates the fraud triangle.

What’s In a UCC Name Requirement? When to Use Specific and Generic Names

Revisions in the Unified Commercial Code have made collateral descriptions on financial statements simpler. But there are times when only specific names will do. Attorney Jeffrey Wurst explains when a generic name will suffice and when a specific name is critical to ensure a security interest.

Claims Trading Warps the Bankruptcy System Honest Debtors Are Hampered by “Self-Interested Meddlers”

The Bankrupcty Code was designed to enable honest debtors to reorganize and get a fresh start. But the growing number of claims traders purchasing these debts from lenders is warping the process, contends Kenneth A. Rosen, a nationally recognized bankruptcy expert.

The Deceptive Balance Sheet: Determining Value in Liquidation Analysis

A customer’s balance sheet can appear straightforward, but there are hidden triggers that can cause unexpected problems during chapter 11 proceedings. Kenneth Rosen, who leads the bankruptcy department at Lowenstein Sandler, reveals these unexpected traps.

Negative Effects of Hidden Liens: How to Identify, Avoid and Protect Against Pitfalls

Attorneys Jeffrey Wurst and Jonathan Bodner discuss how lenders can identify and avoid lending into problem situations that involve hidden liens. The authors note that these liens come in many varieties, including tax, agricultural, materialmen and construction related.

Secured Lenders Beware: Credit Bid Minimization Trend Creates Uncertainty

Attorney Kenneth D. Peters examines the current trend of limiting the credit bidding rights of secured creditors. To protect lien interests, he encourages properly perfecting assets on the front end of deals, and being aware of the unfair uncertainty of lender lien rights on the back end in bankruptcy.

Suit Claims 22 Banks Manipulated Treasury Securities

ABF Journal illustrator Jerry Gonzalez shares his take on a suit filed by the Boston Retirement System which accused 22 banks, including Bank of America, Merrill Lynch, Citigroup and Goldman Sachs Group of manipulating the market for U.S. Treasury securities.

Lending to the Healthcare Industry: What to Expect From Medicare Receivables

Attorney Samuel Maizel examines important aspects of lending against Medicare receivables, specifically
setoff and recoupment rights, as well as the length of time it can take for Medicare to make payments and
conduct audits.