Banking and Financial Matters
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Western District of Wisconsin Ranks 2nd in the Nation in Chapter 12 Farm Bankruptcy Filings in 2018
The latest federal bankruptcy statistics contain more bad news for Wisconsin’s farmers. Chapter 12 farm bankruptcies continue to rise even though overall bankruptcies continue to fall. Although total bankruptcy filings (including Chapter 7, Chapter 11, Chapter 12 and Chapter 13) in the Western District of Wisconsin fell 2.8% in 2018 and have decre…
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Expanded Examination Cycle
The OCC, the Board of Governors of the Federal Reserve System, and the FDIC published an interagency interim final rule effective August 29, 2018. The interim final rule amends the regulations governing eligibility for an 18-month on-site examination cycle. Under the interim final rule, qualifying depository institutions with less than $3 billion…
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Is Your Website Accessible to Individuals with Disabilities?
Many are unaware that the Americans with Disabilities Act (“ADA”) applies to websites as well as physical facilities. A review of court dockets around the country shows that plaintiffs are filing an increasing number of lawsuits against companies alleging that their websites are not “accessible” to individuals with disabilities as required by the A…
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Interagency Guidance on Accounting and Reporting Implications of Tax Cuts & Jobs Act
On January 18, 2018, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency released guidance on the accounting implications of the Tax Cuts & Jobs Act (the “Act”) signed into law on December 22, 2017. The guidance provides information on the effect of …
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Ruder Ware Attorney Provides Comments on Ag Lending Market
Chris Seelen, a member of Ruder Ware’s Banking and Financial Institutions Focus Team, recently provided comments on Wisconsin’s ag lending market for Wisconsin Public Radio. The WPR story focused on new federal court data that shows the Western District of Wisconsin had the highest number of farm bankruptcies in the country last year.
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Western District of Wisconsin Ranks 1st in the Nation in Chapter 12 Farm Bankruptcy Filings in 2017.
Low grain and milk prices have negatively affected Wisconsin’s ag economy for a few years now. As further evidence of the financial stress on Wisconsin farmers, the national bankruptcy statistics show that, in 2017, more Chapter 12 farm bankruptcy cases were filed in the Western District of Wisconsin than in any other district in the nation. Out …
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Conference of State Bank Supervisors Urges Federal Regulators to Simplify Regulatory Capital Rules
On September 27, 2017, the FDIC, the Federal Reserve, and the OCC (the “Agencies”) issued a proposed rule that simplifies the compliance requirements of the existing regulatory capital rules and is intended to reduce the regulatory burden imposed by it. Developed with small- and medium-sized banks in mind, the proposed rule would: replace the co…
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Examiners are Carefully Scrutinizing Financial Institutions’ Compensation Arrangements
It has come to our attention that some examiners have recently been carefully scrutinizing financial institutions’ employee compensation arrangements. Although it now appears unlikely that the proposed Dodd-Frank rules on financial-institution incentive compensation (which only apply to institutions with at least $1 billion in total assets) will ev…
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OCC Updates Guidance on Business Combinations
The Office of the Comptroller of the Currency (“OCC”) has recently updated its “Business Combinations” booklet, which is part of the Comptroller’s Licensing Manual. The revised booklet replaces the prior version, which was issued by the OCC in December 2006. The booklet incorporates a variety of updated procedures and requirements for national b…
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To Arbitrate or Not Arbitrate? House Weighs In on CFPB Arbitration Rule
Yesterday, the U.S. House of Representatives overwhelmingly passed House Joint Resolution 111 which would rescind the Consumer Financial Protection Bureau’s “Arbitration Rule”. Finalized on July 17, 2017, the Arbitration Rule places significant limitations on financial institutions’ ability to designate arbitration as the dispute resolution mechan…
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Recent Bankruptcy Decision from the Western District of Wisconsin Discusses Negative Equity, Car Loans, and the Chapter 13 Cram Down
A quick introduction for those of you who are not bankruptcy nerds. For certain types of collateral, Chapter 13 allows a Debtor to reduce a secured creditor’s claim down to the value of the collateral. This is called “cram down.” But, there are certain limits on the Debtor’s “cram down” powers. For example, the Debtor can’t cram down the value …
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Condominium Issue with Long-Term Tax-Exempt Bond Financing
We recently helped a client complete long-term tax-exempt bond financing of a portion of a mixed-use condominium. These projects raise interesting issues. Long story short, if you find yourself in a similar situation, you need to be very careful as to how you document costs and how you define each condominium element. Quick, simplified background:…
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Banks and Credit Unions Agree to a (Temporary) Cease Fire
It’s not every day that community bankers and credit unions agree. Whether it is over tax-exempt status or capital requirements, we have become accustomed to the battle between community banks and credit unions. For example, an entire section of the Independent Community Bank Association’s website is dedicated to advocating against the “expansioni…
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Are Too Many Eggs in One Basket?
In the last two weeks, 75 Wisconsin dairy farmers were notified by their dairy that it could not accept their milk. The dairy and its farmer suppliers are caught in a U.S.-Canada trade dispute over “ultra-filtered” milk. Almost overnight, a market disappeared. The net result is a million pounds of milk per day in Wisconsin needs a new home, and t…
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2016 Bankruptcy Statistics for the Western District of Wisconsin: Overall Filings Decreased 5.5%, but Chapter 12 Farm Bankruptcies Increased 31%
The 2016 bankruptcy statistics tell an interesting story. While the total number of bankruptcy cases filed in 2016 in the Western District of Wisconsin (“WDW”) fell 5.5% to its lowest level in ten years, Chapter 12 farm bankruptcy cases actually increased 31% from 2015. Total Filings. There were 4,362 total bankruptcy cases filed in the WDW i…