Banks, Lenders Oppose Bankruptcy Legislation

February 12, 2009
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The cramdown legislation being fasttracked in Congress may cut back on the number of foreclosures in the country but the controversial proposal is already being opposed by bankers and lenders.  The bill allows bankruptcy courts to dictate the lender as to the total amount owed by the homeowner to the lender to prevent a foreclosure.  For example, you owe your lender $300,000 but the bank can tell your lender that since the property is only worth P$150,000 then that’s all you owe and need to pay to avoid foreclosure.

Once it becomes a law, the cramdown legislation will empower the courts to cram down or cut the interest rates as well…

Condo Maker Corus In The Lookout For Fresh Capital

February 5, 2009
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Condominium maker Corus Bankshares Inc is looking for possible sources of additional capital after it got wind of the likelihood that its request for government finance assistance will be turned down by the Treasury Department. Corus, which is known for its glass and steel condominium towers that line up the commercial districts of major cities like Los Angeles, recently suffered a quarterly loss worth $260.7 million. It is also faced with $4.1 billion non performing outstanding loans.

Corus’ standing as a well-capitalized bank may not be for long as there is a possibility that banking regulators would soon strip it of its present standing. Corus chief executive Robert Glickman said it…