October 9, 2008

The Daily Bankruptcy News

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Law:

BigLaw and the Bottom Line: Firms Cut Hiring and Expenses, Expect Falling Profits
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Lawyers worry about liability if banks holding client trust accounts fail
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Lawyers at Failing Banks Consider Their Employment Options
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Average GC Compensation Flat in 2007
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UK trio lead on Icelandic bank administrations
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No Strong Interest in Heller People, Offices
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Firms Withdraw Offers to Absorb Large Groups of Heller Lawyers
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Anatomy Of A Dissolution: Why Buy The Cow When You Can Get The Milk For Free?
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Firms Spin Market Collapse as Good for Associates
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Summer Associates Tell Firms: Turn Up the Heat
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Some Law Firms Hire in Slump
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A Lawyer for All Wall Street Navigates Tempestuous Times
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Eversheds curbs travel in bid to cut costs
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Tough M&A markets provide flight to Square Mile's finest
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Wall Street Mess May Have Firms Eyeing Mergers
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Chadbourne Forms Interdisciplinary Financial Crisis Task Force
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Chadbourne the latest to hop on 'crisis' bandwagon
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Bankruptcy advice booming
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Bankers Still See Law Firms as Good Credit Risks
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Where Do I Send My Resume Now?
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Stevens Judge Penalizes Prosecutors, Won't End Case
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More NY Lawyers Settle in Pension Probe; $1.28M Recovered to Date by AG
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Be a Lawyer, Not an Employee
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Chinese Lawyers Face Pressure to Drop Milk Cases
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Lawyer Agrees to Plea Over Claims He Groped Female Colleagues
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Suspended Lawyer's 'Sextortion' Conviction is Upheld
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To The Window; To The Wall; Till The Sweat Drips Down My Boalt?
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Lawsuit of the Day: Brunette Weeps Alone
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Say What?!
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Judges:

Litigator chosen to replace bankruptcy judge who resigned over DUI arrest
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Attorney tapped for bankruptcy judge role
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Wall Street:

Thurs.: Wall Street Set for Higher Open
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Thurs.: Stocks Gain in Europe, but Asian Shares Are Mixed
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Russian Stocks Soar 17%, Leading Rally for Emerging Markets
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Traders Shrug At Central Banks
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Love of Cash Is Stronger Than Rate Cuts
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Rate Cut Fails To Scare The Bears
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European markets tumble despite rate cuts
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Crisis closes three stock exchanges
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Trading suspended in Jakarta
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Markets continue to crash as interest rates fall
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Down market hits 1-year mark with no clear bottom.
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Wall Street panic rolling over consumers worldwide
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Merrill to report wider third-quarter loss
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How a Dublin Firm Roils Money Market
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If You Bought $1000 Of Stock A Year Ago
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When Hedgies Attack: Morgan Stanley Drops 40% on Rumors
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Defiant Mack at Morgan Stanley Throws Punches
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Did JPMorgan Almost Fail?
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Goldman Saw Fall in Fair-valued Assets
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Bear: The SEC's Failed Cover Up
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Ban on Short Sale Ends - Hold Your Breath
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Five New Careers Await World's Unemployed Bankers
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Retailing:

Retailers' Sales Fall Sharply at Both High End and Low
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JC Penney, Nordstrom Lower Forecasts
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Target warns
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Pier 1 sinks to 17-year low
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Dillard's Sept. same-store sales drop 12 percent
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Stein Mart: Big drop in Sept. same-store sales
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Abercrombie warns
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TJX lowers outlook on weak Sept. same-store sales
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Rite Aid hit by store performance and debt worries
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Men's Wearhouse cuts 3Q outlook as traffic falls
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Retailers' sales set stage for a tough holiday
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99 Cents Only sees 3Q sales climb 9 percent
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How long can General Growth avoid restructuring?
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Linens 'N Things says bidder would liquidate co.
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Luxury shopping pullback hitting major retailers
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Advertising:

Yahoo! Shares Plunge to Five-Year Low
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Aviation:

The Investigation that Drove Sun Country into Bankruptcy
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United Airlines to lay off 414 mechanics
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United Airlines not cleared for takeoff
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Airline Pilots Face Market Turmoil
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Aer Lingus set to axe third of staff
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Autos:

Grim Forecast for Auto Sales
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Mercedes Foresees Higher Car Sales
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Stock woes slam Ford, GM
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Chapter 11 means a smaller Delphi
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Judge to reconsider fraud in Delphi/Appaloosa suit
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Offer for Heard dealership could come within 2 weeks
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2 Power dealerships close doors
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GM Is Said to Offer 1% Dealer Payments on 2009 Models
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Auto Makers More Willing To Help Cover Rising Materials Costs
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GM Supplier To Shut It's Doors
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Further cuts for European auto industry
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Politics:

Obama against McCain homeowner bailout
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McCain's $300 Billion Mortgage Plan: Better Than the $700 Billion Rescue?
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McCain has pundits 'scratching' heads
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Taxpayers, Not Lenders, Would Bear Costs of McCain's Mortgage Proposal
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Obama money from abroad could total $3.3 million
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Obama Wraps His Hopes Inside Economic Anxiety
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Asked about possible choices for Treasury Secretary, both presidential candidates had the same idea
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Comparing McCain and Obama on Wall Street Regulation
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Book Reviews:

The New Buffett Bio
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Hotels:

Kapalua Bay makeover financing falls through
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Bankruptcy Statistics:

Florida bankruptcies rise sharply
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Sports:

Which Sports Teams Could Face Bankruptcy Threat?
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Finance:

What Funding Freeze? Some Firms Get Theirs
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Airtight credit markets show some signs of easing
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Libor Holds Central Banks Hostage as London Makes World Freeze
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Derivatives:

Is This Buffett's Nightmare Scenario?
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N.Y. Fed, Dealers to Reconvene Meeting on Credit Swaps Clearing
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SEC head asks for reins on credit default swaps
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Credit default swaps cited as turmoil culprit
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Municipalities:

N.Y. Officials: the Rest Is Up to Alabama
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California, States Urge Feds to Broaden Credit Market Bailout
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CA retirement system bailout feared
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California Leaders Seek Answers to Credit Crunch
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California May Point Way for U.S.
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Massachusetts Won't Need US Loan, State Treasurer Cahill Says
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Fed Must Restore Confidence in Munis, Arizona Treasurer Says
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Phila. budget crisis could worsen, mayor warns
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Defamation:

Bankruptcy judge, lawyer in libel suit to view Adelson file
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Economy:

Global gamble: the fightback begins
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U.S. May Take Ownership Stake in Banks
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IMF Calls for Aggressive Response to Crisis
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IMF: World economy to slow sharply, led by US
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IMF sees greatest shock since 1930s
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Financial Crisis: How to Stop the Panic
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Jobless claims drop from 7-year high
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Pelosi Says $150 Billion Stimulus Legislation Needed
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Paulson Says US to Use All 'Authorities' in Crisis
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Bailout Role Elevates U.S. Official
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Mistake to trust Wall Street insiders to clean up mess
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Bernanke running out of ammo
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Paulson says it will be 'several weeks' before first asset purchase
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Reverse auctions useful but no panacea
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It's Only Bankruptcy - If the global economy were a single company, it would be nearing the point of declaring bankruptcy
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Bank co-operation 'unprecedented'
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Easy Money Causes Bubble; Easy Money Cures Bust
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Fed In Talks With Pimco to Help Manage Commercial Paper Fund
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Harvard's Feldstein Says US Recession to Be Longer Than Usual
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National Debt Clock Too Small
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Taking Hard New Look at a Greenspan Legacy
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The current financial crisis compared to the Great Depression
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Has the Fed run out of tools to fix the crisis?
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In Praise of Bernanke
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Financial storm tips world toward recession
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Treasury moves fast to hire bailout help
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Ten things to love about the credit crunch
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Credit crisis finally hits the real economy
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Economic woes may give planet a breather from 'Global Warming'
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United States Socialist Republic?
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Real Estate:

National index of pending home sales rises
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Lower Mortgage Rates May Be Silver Lining in Turmoil
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Beyond The Bailout - "The practical equivalent of amending the bankruptcy law for homeowners"
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Kimball Hill to decide fate by late November
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Fresh start for Diablo Grande
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Judge appoints Renaissance committee
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Three Homebuilders Get a Break
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Sheriff in Chicago won't evict in foreclosures
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IndyMac's Fast-Track Mortgage Modification Program
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W.Va. not overwhelmed by Countrywide settlement
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Another 'Extreme Makeover' Home in Trouble
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Banking:

Wells Fargo, Citigroup Extend Truce in Wachovia Fray
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Wachovia Talks Snag Over Division of Its Assets
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Citigroup, Wells Fargo Working on 'Grand Solution'
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Recriminations fly in scuffle for Wachovia
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Wells Fargo's Quest for Deposits Challenges Citigroup
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Paulson: more bank failures ahead
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Bank of America shares drop on stock sale
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BofA's wobbles take shine off Merrill rescue
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Half-Time Lessons From the Battle for Wachovia
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Class-action status sought for suits alleging predatory lending by major lenders
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Credit Suisse sees itself as winner in market turmoil
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Deutsche Bank to Cut Jobs, Expand in Consumer Banking
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Insider Compensation:

UK FSA to Create Code on Bankers' Bonuses and Pay
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Re-examining executive compensation in the post-Disney era
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Wall Street millionaires are saying goodbye to mega-bonuses and outsized base pays - for good
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Alternative Fuels:

Gateway Ethanol files Chapter 11 bankruptcy
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Biofuel plants hit economic road block
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Beatrice to ask to convert its case
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Health Care:

Physicians Medical Center Carraway may file bankruptcy soon
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Carraway negotiating with city to avoid bankruptcy
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Economic worries take toll on mental health
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Lincoln Park Hospital on life support and up for sale
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Sickened Capitol Health files Ch. 11
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AG's office takes bite out of dental business
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8 out of 10 Americans stressed because of economy
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Fraud:

Dirty money: tracking the political contributions of Tom Petters
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Petters in jail: Family man or flight risk?
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Ex-Entellium execs charged with wire fraud for lying to investors
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Poulsen's attorney questions FBI's National Century probe
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National Century faked receivables, agent says
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Corporate Reform:

Lifting the Lid - Wall Street probes target complex securities
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Criminal Prosecutions Predicted to Surge Over Financial Crisis
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How to Defend Against Wave of Expected Indictments
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SEC, DOJ Looking at Trident Stock Options
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Why Wall Street CEO's Must Go To Jail And Payback Billions In Bonuses
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Taking It to the Mat
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Despite S&L Debacle Decades Ago, Most Hard-Hit States Didn't Amp Up Regulation
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Gambling:

September revenue up at MGM Grand Detroit, down at other two Detroit casinos
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Greektown Casino in Detroit seeks potential buyers
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Detroit pushing Greektown to sell
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Morgan-Backed Casino May Have Funding Gap
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Movie Industry:

Movie Gallery converts debt
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Hollywood: What financial crisis?
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Oil/Gas:

OPEC members seek emergency meeting
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Oil prices skid to 2008 low
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SGLP stock continues to fall
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Default:

Problem syndicated loans nearly triple
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Financial Literacy:

'Money Matters' could become graduation requirement
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High school students get Wall Street lessons
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Bonds:

S.F. sues bond insurers, saying subprime scheme cost city millions
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S&P Moves FSA to Negative Watch
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Science:

Credit woes 'devastating' to science
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Corporate Governance:

Faulting 'Tepid' Response by Company's Board, Court Reinstates Backdating Action
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Layoffs:

Closures & Layoffs (Oct. 5 -11): Another 159,000 Jobs Gone
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Shipbuilding:

Bankruptcy threat stalks Asian shipyards
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Distressed Investing:

Billionaire Rupert May Ally With Sovereign Funds to Buy Assets
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Investment Opportunity Viewed in Distressed Construction Loans
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Hedge Funds:

A lesson from 1929 for the hedge funds
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Building Materials:

Monarch gains final OK to use cash
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ARS:

Bank of America, Canada Bank Settle Auction Probes
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Metals:

Giant metal shredder to be sold in online auction
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Enron:

Shankman, Ex-Enron Executive, Sued by New York Gallery Over Art
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New Bankruptcy Opinions
(No new opinions today) 

Bankruptcy Court Web/Pacer Site Directory

Chapter 7, 12 & 13 Private Trustee Locator
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Recent Ch. 11 Filings
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Bankruptcy Jobs:

(1), (2), (3), (4), (5), (6), (7), (8), (9), (10)
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____________

Insurance:

White House: AIG retreat spending was 'despicable'
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AIG, Castigated for Resort Event, Plans Another One Next Week
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Fed to lend billions more to AIG
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AIG May Tap $37.8 Billion From Fed, on Top of $85 Billion Loan
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AIG Not Sorry For Spending Your $$
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AIG's Gall And Stupidity
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Brokers confident in stability of AIG, survey finds
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MetLife Plummets on Planned Stock Sale, Profit Drop
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MetLife, Hartford Talked Deal
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Moody's puts Hartford under negative review
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Accounting:

Global Accounting Body Backs Quick Rule Changes Amid Upheaval
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SEC Gives CFOs a Chance to Defend Asset Values
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Blame Accounting Alchemy for Market Evaporation
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Don't kill fair value
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Food/Drink:

Wonder Bread parent posts wider quarterly loss
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Restaurant Brands 1st-Half Profit Slumps
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Ruby Tuesday profit and shares tumble
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Former Archway workers get few answers
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H&H Meat creditors still have long wait
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Lehman:

Lehman CDS settlement auction timeline
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Nomura to lose 60% of Lehman Japan equity employees
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You might think Lehman boss Fuld would be chastened
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J.P. Morgan Made Dual Cash Demands
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Allen & Overy's Patricia Hynes to Fuld's Rescue
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Lehman Bankruptcy's Ripple Effect on Lawyers
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Lehman's $2.5B Bonus Cache Eyed By Creditors
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Lehman: One Big Derivatives Mess
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Litigation in the limelight
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Lehman Brothers Private Equity 3Q NAV Drops 2.8% Vs 2Q
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On divvying up Lehman's art collection
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Newspapers:

Columbian could file bankruptcy
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Employees Agree to Buyouts and Work Concessions to Save Star-Ledger in Newark
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Bankruptcy Crimes:

Pittsford man sentenced in bankruptcy fraud
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UK:

Brown Announces $868 Billion Rescue Package For British Banks
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Cost of Govt rescue equivalent to 7% of GDP
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Banking sector split in two on issue of taking state capital
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New World Order
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Brown's Bank Stakes Take U.K. Beyond Paulson's Bad-Debt Buyouts
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UK May Own 30 Percent of Big Banks in Bailout Plan
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Brown urges EU to match guarantee of inter-bank lending
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Will Britain's rescue plan work?
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UK May Borrow 50 Billion Pounds More to Fund Bank Rescue
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Bail-out deal means curbs on executive pay and dividends
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Banks will accept curbs, says PM
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London Banks to Slash Bonuses By 60 Percent in 2008
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Fatcat Barclays bankers jet off to Italy for lavish £500,000 banquet as country faces up to financial crisis
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RBS May Need to Speed Up Asset Sales After UK Bank Bailout
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Banks face a regulatory revolution
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Indebted football clubs face ban
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With Banks as Main Sponsors, Soccer Teams Could Feel Crisis
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Tchenguiz loses £1bn in 24 hours
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UK councils prepare for possible Icelandic losses
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UK Opposition Seeks '1 Billion Pound' Iceland Audit
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300,000 UK savers face claims for Icesave cash
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More conservative lenders to reap rewards of change
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UK House Prices Decline the Most in 25 Years
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McGrigors strengthens restructuring
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EU:

Trichet Engineers 'Regime Change' at ECB as Europe Banks Totter
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Trichet Can't Rule Out More Cuts, Offers Cash Flood
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ECB Steps Up 'Fight,' Offers Banks Unlimited Cash
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Financial Bonds in Europe Drop to Lowest in 10 Years
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EU countries act or face pressure to follow UK
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Governments to Cover Dexia Loans
(WSJ: separate paid subscription required)

Bank Crisis Is Bypassing Central and East Europe
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Iceland:

Iceland Teeters On Bankruptcy
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In Flailing Iceland, Disbelief and Regret
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Iceland's FSA Takes Over Kaupthing as Economy Nears Collapse
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Factbox: Iceland in crisis
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Gordon Brown vows to sue Icesave
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Iceland plunges further into financial turmoil
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ING Agrees to Buy UK Deposits From Iceland Banks
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Iceland Drops Krona Defense; Abandons Bank Purchase
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Struggling Iceland takes control of third bank
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Terror law used for Iceland deposits
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Iceland suspends trading
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Canada:

Canada May Keep Reducing Key Rate to Half-Century Low
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Down in the dumps with debt
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Canadian bankruptcies decline in August
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Workers discarded 'like scrap metal'
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Australia:

Sydney Office Vacancies Set to Double
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Aussies joke - and hope - that China can save capitalism
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Japan:

Bankruptcy debt skyrockets after Lehman failure
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Japan's New City Residence fails with $1.1 bln debt
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France:

France floats bank rescue fund amid merger talks
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No More 'Abusive' Perks in France
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Korea:

Korea: Credit Crisis Sinks In; Won Plunges
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Its currency slumping, South Korea sits on the brink of crisis
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China:

China cuts rates in step with the west
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FerroChina Says It Can't Repay Loans, Blames 'Crisis'
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Russia:

Russia to Start Handing Out Emergency Cash in 'Days'
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In Russia, a Struggle for Markets Just to Stay Open
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Putin: US image damaged forever over economy woes
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A Black Hole in Russian Banks
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Taiwan:

Taiwan's central bank cuts key interest rates
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Hungary:

Hungary to raise bank deposit guarantee next week
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Middle East:

Gulf states face a reality check
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Germany:

Hypo Real Estate Denies Report It Withheld Data on Liquidity
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Italy:

Italy Backs Bank Deposits, Excludes Any Failure
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Access to certain links in the Daily Bankruptcy News is available only to readers holding a paid subscription.  These links are currently marked with a "DBN Subscription Required" notation. The cost of a subscription is $50/year, payable annually.  Volume discounts are available for sites with multiple users. Click here to see a schedule of discounts. Complimentary subscriptions are available for full-time educational and governmental employees and for full time students. For information about discounts or educational/governmental subscriptions, contact us by clicking here. A separate password is required for each member of a firm wishing access to restricted links. New readers can receive a free password good for 30 days by going to http://bkinformation.com/RegistrationForm.cfm. Readers who wish to change their passwords should go to http://bkinformation.com/ChangePasswordForm.cfm. Readers who have forgotten their password should go to http://bkinformation.com/GetPassword.cfm

Adding Your Email Address To The Distribution List
If you would like to start receiving the Daily Bankruptcy News by email each day, go to http://bkinformation.com/SubscribeDBNForm.cfm  and fill in the information requested.  There is no charge to be placed on the distribution list to receive the headlines, although access to many of the links behind the headlines requires a paid subscription (see above, under Passwords). If, after adding your email address to the distribution list, you do not receive an email confirming the addition, please contact us by clicking here for help.  

Removing Your Email Address From The Distribution List
If you already receive Daily Bankruptcy News by email and you wish to remove your email address from the distribution list, click here and send the email that should appear.  Note that the email must be sent from the same email address at which you are receiving the Daily Bankruptcy News. You do not need to type anything in the body of the email message.   If you do not receive an email confirming deletion of your email address from the distribution list  for the publication, contact us by clicking here for help.

Daily Bankruptcy News is published each business day by BKINFORMATION.COM, L.L.C.  You can reach us at 281-402-3957 or at accounting@bkinformation.com (email inquiries are usually answered substantially more quickly than phone inquiries).