As part of Dodd-Frank, a new federal agency was created: the Consumer Financial Protection Bureau (CFPB). The board of the American Factoring Association, notes that the CFPB, which is authorized to promulgate regulations relating to consumer protection, could deem crucial aspects of factoring transactions as being “abusive” and impermissible.
Here’s something to think about: Does the UCC create a limit on the damages a senior credit presumes it can recover from a junior creditor if the junior creditor breaches? This article addresses a particular circumstance when a senior creditor’s contractual expectation may not be protected vis-à-vis a subordinate junior creditor as a result of the senior creditor’s misplaced reliance on a less than well-crafted subordination agreement.
Working Capital Solutions’ Tom Siska provides both the yin and the yang for the factoring industry in 2012. The good news: Things will not be as bad as the Great Recession of 2008 and 2009. The bad news: Things will most likely get worse in 2012 before they get better, and no one knows when that will be.
So far this year, asset-based lending (ABL) has been one for the record books — although the accompanying enthusiasm has been fairly muted. Looking forward to Q4/11 and into 2012, prospects for deal flow are in a bit of a fogbank in terms of where new deals will come from. And while it’s been a good year for ABL in terms of issuance, the rest of the year is unclear.
In July 2011, the Federal Reserve Board conducted a Senior Loan Officer Opinion Survey on bank lending practices over the past three months. Lenders from 55 U.S. banks continued to ease lending standards and most terms on all major types of loans other than loans secured by real estate.
What’s all this about Stern v. Marshall? Commentators and courts have scrambled to take the Supreme Court at its word, and attempt to limit the impact of the Stern decision. Whether these decisions will stand up under future Supreme Court review, if and when it occurs, is not so clear. Early decisions seem favorable, but it is likely that litigants emboldened by Stern—including those adverse to secured creditors—may probe the limits of bankruptcy court authority.
ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.
The 2011 IFA Business Profile & Performance Survey was distributed to factoring industry members in January 2011. The purpose of this comprehensive study was to provide factoring industry members with information that could be used to benchmark their own individual performance. ABF Journal reviewed the 150-page report to provide readers with a sampling of the data along with commentary gleaned from the survey.
Working with distressed companies is challenging because of the constant need to take action amid uncertainty and stress. Emotional intelligence is a key tool to help navigate these situations and to develop flexible leadership styles that have the highest probability of success. Using emotional intelligence in these situations will improve leadership effectiveness and project outcomes, and will leave a long-lasting impression with clients and stakeholders.