The Federal Reserve continues its program of injecting money into the economy. This is accomplished in several ways. The first way referred to in the quotes below gets money to banks with the idea that the banks will then loan it out to customers. Of course, that may or may not be [...]

Vallejo, California filed for bankruptcy protection under Chapter 9 (available only to municipalities and a form of reorganization, not liquidation) last Friday in the Eastern District of California. The city has been struggling with personnel costs and low taxes from the housing market. The voluntary petition estimates between one to five thousand creditors, $500 [...]

The FBI has been working with the Securities and Exchange Commission in investigating over 1,300 mortgage fraud cases and 19 corporate investigations. Some interesting statistics were released yesterday in an FBI report concerning fraud cases linked to the subprime lending crisis.
Year Cases Pursued [...]

In late February we discussed the city of Vallejo in California that was contemplating on filing Chapter 9 Bankruptcy. Tuesday night the City Council unanimously agreed to the bankruptcy filing after the two-month long mediation sessions with unions failed to balance the fiscal plan long-term. The city public information officer, JoAnn West, stated, [...]

Many Americans are trying to work out new loans for their mortgages to avoid foreclosure–no surprise there. An article at CNNMoney.com gives an explanation that might explain why some Americans are finding it difficult to accomplish this task. The person who will decide whether or not the homeowner will get a new loan [...]

In order to avoid a widening of the banking/credit crisis, the Federal Reserve has opened the window wide. That is, unprecedented amounts of money have been loaned to banks as well as (in a recent move) to brokerage firms. So, while the official word is that all is well and things are about [...]

On May 5 the Six Flags Mall in Arlington filed for bankruptcy protection under Chapter 11 — the same day the property was posted for foreclosure auction by three lenders. In the last six months lenders have had their foreclosure efforts averted five times. The major creditors include the IRS, the Texas Workforce [...]

Last Tuesday the City Council of Vallejo, California, unanimously agreed to the bankruptcy filing after the two-month long mediation sessions with unions failed to balance the fiscal plan long-term. Monday the unions proposed a $10.6 million salary reduction in a press conference that could avert the bankruptcy filing. “We do not believe the [...]

The 7th Circuit Court of Appeals recently rendered a decision which held that an accounting firm would not be held liable for giving an auditing opinion involving a purchaser company shortly before it acquired a dot.com-based business.
Before reviewing the decision itself it is quite interesting to read what the 7th Circuit stated about Trustee suits [...]