Banking Misconduct Blog


LNR Partners... Coronavirus Scrooge Award

LNR Partners... Coronavirus Scrooge Award

Yesterday Goldman Sachs predicted America’s GDP for the 2nd quarter would plunge a breathtaking 24%. Previously, the largest drop in U.S. history occurred in 1958. That was just 10%. Despite all the doom and gloom, both the government and private sector are working together to keep businesses...


Special Servicers – Do They Answer to Anyone? CMBS Post

Anyone commercial property owner facing a special servicer soon learns the deck is stacked. Many commercial loans today are securitized and packages into loan pools. These pools are sold to a trust that is owned by institutional investors. Unlike a bank that has offices and employees, a CMBS trust...

CMBS Mortgage Post – Mall Vacancies at Record High

As I write this post from my hotel room in Kingston, New York, a Toys R Us store sits empty in the parking lot across the street. Toys R Us is one of many big box retailers that have either closed completely or are going through a dramatic downsizing. For mall owners, that could mean...

New Hope for California Homeowners - HAMP LOAN MODIFICATION POST

The housing and banking crisis of 2008 is long over. It’s been a decade since many homeowners woke up to find themselves underwater and owing the banks hundreds of thousands of dollars more than their house was worth. For others, it was worse. They woke up to no job and no ability to get...

Lone Star Funds – Distressed Investors or Vultures?

Distressed investing is the politically correct term these days for buyers of distressed properties. There will always be property owners that find themselves in over their heads. Sometimes their problems arise from unforeseen market events and at other times, it is just from being inexperienced...

Is Your Bank Unsafe? (Lender Liability Post)

Between 1990 and today, some 8500 banks have disappeared. (Since the banking crisis in 2008, 525 banks have closed by regulators according to problembanklist.com) In most instances, FDIC insurance will protect deposits. The real harm often comes to commercial borrowers.

Danger Faced...

CMBS for Novice Investors

Understanding Commercial Mortgage Backed Securities (CMBS) can be a daunting task for the novice investor. As lender liability lawyers, we grapple with complex loan arrangements daily. We understand the jargon, the many different players in a CMBS transaction and how all the pieces fit together....

Non Payment Defaults in the Energy Service Sector

With a record number of defaults in the oil and gas sector, banks and other lenders are pulling back on loans and credit lines. And not just to the oil and gas companies. The entire energy sector is feeling the pain including oil field service companies. Typically banks won’t call a loan...

Can a Lender Declare a Nonpayment Default Because of “Political Risk”?

If most business owners ever bothered to read the fine print in bank loan documents, they would be shocked. Unlike residential lending which has come under increased scrutiny since the 2008, commercial lending is still the Wild West of the banking world. And usually it is the bank that has far more...