Silicon Valley: Major big bank goes under in Silicon Valey. The bank served mostly technology workers and venture capital-backed companies.

Regulators rushed Friday to seize the assets of one of Silicon Valley's top banks, marking the largest failure of a U.S. financial institution since the height of the financial crisis almost 15 years ago.

Silicon Valley Bank, the 16th-largest bank in the U.S., failed after depositors hurried to withdraw money this week amid anxiety over the bank's health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008.

The bank served mostly technology workers and venture capital-backed companies, including some of the industry's best-known brands.

Read more at: https://www.cbc.com

USA (Donald Trump)-Saudi Relations: Saudi prince helped save Trump from bankruptcy—twice — by Max de Haldevang

Donald Trump's relations with the Saudi Kingdom are extensive

Donald Trump claimed on Twitter recently that he has no “financial interests in Saudi Arabia.” But his financial ties to the kingdom go back a very long way.

In 1991, Donald J. Trump was a mid-tier real estate developer with $900 million in debt, a collapsing casino business, and a name perhaps best known for a headline-dominating split with his wife Ivana. 

With his empire at risk of falling apart, Trump was searching for cash everywhere; his father even illegally bought $3.35 million worth of casino chips and never gambled them, to help Trump make a massive bond payment a year earlier.

A helpful burst of cash from a Saudi prince eased some tension with his creditors. Alwaleed bin Talal bought Trump’s yacht for somewhere between $18 million and $20 million (reports vary). 

It wasn’t a great bit of business for Trump—he had bought it from the Sultan of Brunei three years earlier for a reported $29 million.

In 1995, Trump was still in deep trouble—and Alwaleed swooped in again. The prince, who calls himself the “Warren Buffett of Saudi Arabia,” took over Trump’s 51% stake in his beloved New York Plaza hotel. As a result, Trump’s creditors forgave $125 million of his debt.

Alwaleed, who was one of several royals to be detained by Crown Prince Mohammad bin Salman in 2017, is deemed the world’s 74th richest man by Bloomberg, and owns stakes in companies like Apple, Snapchat, Twitter and Citigroup.

As late as 2015, Trump was still happy to boast about his connections with Saudi Arabia. Speaking at a rally in Alabama, he bragged: “Saudi Arabia, I get along with all of them. They buy apartments from me. They spend $40 million, $50 million. Am I supposed to dislike them? I like them very much.”

Read more: A Saudi prince helped save Trump from bankruptcy—twice — Quartz

USA Retail Stores In Trouble: Sears is teetering on the edge of bankruptcy and Kmart could be its first casualty - Hayley Peterson

Wall Street analysts have made the same prediction every year for nearly the last decade: Sears is imminently going bankrupt. But the retailer has managed to stay afloat with loans from its CEO, the sale of valuable real estate, and the slow dismantling of its exclusivity over some big American brands.

This year is no different. Sears' pool of assets is shrinking and its core business is showing no signs of improvement, making the possibility of a bankruptcy or restructuring seem more likely than a turnaround at this point, according to Christina Boni, vice president at Moody's Investors Service.

"Continuing to fund shortfalls is becoming more challenging, particularly as Sears continues to bleed its asset pool," Boni told Business Insider. "This increases and elevates the risk of a bankruptcy."- by Hayley Peterson

Read more: Sears is teetering on the edge of bankruptcy and Kmart could be its first casualty

Germany: Air Berlin files for bankruptcy protection

Crisis-stricken German airline Air Berlin is seeking protection from its creditors after running out of cash to stay solvent.

But the airline says it wants to remain in operation following a government bailout.

Read more: Air Berlin files for bankruptcy protection | Business | DW | 15.08.2017

Saudis Brace for Bankruptcy, Bring Dramatic Measures to Public Sector

A two-year drop in oil prices has inflicted a dramatic blow to the economy of one of the world’s richest countries. If no changes are made, Saudi Arabia, according to some Saudi experts, will go bankrupt in three to four years.

Since 90 percent of the kingdom's income is derived from oil exports, the price drop, from over $110 per barrel in mid 2014 to a low of just over $30 recently, is a disaster, as national monetary reserves are depleted at a  breathtaking rate.

In 2015, Saudi foreign reserves were estimated at $654.5 billion, after the Saudi monetary agency lost almost $73 billion following the oil price drop, according to a 2015 Al Jazeera report. The monetary agency also withdrew some $70 billion managed by overseas financial institutions, and the state budget deficit that year was estimated at $98 billion.

This year's budget deficit is expected to be only slightly smaller. Riyadh, in an unprecedented move, offered its first international bond sale last week, worth $17.5 billion, to bring in additional much-needed cash.

Read more{ Saudis Brace for Bankruptcy, Bring Dramatic Measures to Public Sect

Netherlands Exonomy: Dutch retail chain V&D declared bankrupt

Vroom & Dreesman, the largest Dutch department store chain, has been declared bankrupt, it said in a statement published on its website on Thursday.

V&D, with 10,000 workers at 67 stores, has suffered in recent years as the Dutch economy stagnated and on-line stores won away customers. After weak sales in the Dutch holiday season, which falls in early December, it filed for protection from creditors on Dec. 22.

A statement on the company's website said it hopes to remain in business after a restructuring, and that it has been contacted by "dozens" of potential investors.

"Together with the curators and our employees, we're working hard on the best restructuring possible," it said.

The stores ran into liquidity problems in recent months and owner Sun Capital stopped providing emergency funding, V&D's Chief Executive John van der Ent said last week.

U.S. private equity firm Sun Capital Partners Inc bought the retailer in 2010. 

Read more: Dutch retail chain V&D declared bankrupt | Reuters

Greece debt crisis: Tsipras announces bailout referendum

Is the party over for Greece?

Greece will hold a referendum on 5 July on a controversial bailout deal with foreign creditors, Prime Minister Alexis Tsipras has announced. 

In a televised address, he described the plan as "humiliation" and condemned "unbearable" austerity measures demanded by creditors.

The Greek government earlier rejected the proposals, aimed at avoiding the country defaulting on its debt.

Greece has to make a €1.5bn ($1.7bn; £1.06bn) IMF debt repayment on 30 June.

In the speech, Mr Tsipras said: "These proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people."

"The people must decide free of any blackmail," he added.

Read more: Greece debt crisis: Tsipras announces bailout referendum - BBC News

Turkey: Economy Depressed - Nearly 14,000 companies close in 4 months says TOBB

A total of 13,926 commercial enterprises closed down between January and April of this year, according to a statement released by the Turkish Union of Chambers and Commodity Exchanges (TOBB) on Friday.

TOBB also cited a decline in the number of new enterprises founded in April compared to the previous month. The number of firms closing down in April of this year increased 6.43 percent compared to April of last year.

During this period 24,094 firms and cooperatives were founded in Turkey. A total of 1,557 enterprises were founded by foreign nationals, with more than a quarter of these being Syrian citizens.

This week it was reported that major clothing chain Seven Hill was declared officially bankrupt, while the Elgin Group, a prominent citrus exporter, went under after accumulating TL 300 million in debt.

A number of high-profile firms have gone bankrupt this year, particularly those holding debt in foreign currency that has rapidly expanded as the lira weakened during the first four months of the year.

Read more: TOBB: Nearly 14,000 companies close in 4 months

European Banking Industry: Banco Madrid files for bankruptcy

Spanish bank, Banco Madrid has filed for bankruptcy. The move comes after the US Treasury accused the bank’s Andorran parent of laundering money for organized crime groups.

Customers of Banco Madrid, which caters for wealthy clients rushed to empty their accounts after the US allegations.

The cash withdrawals prompted Banco Madrid to halt business and seek protection from its creditors, the Bank of Spain said on Monday.

Banco Madrid had 15,000 clients with assets under management of about 6 billion euros before the authorities took over its parent bank and suspended its chief executive and board of directors.

Read more: Banco Madrid files for bankruptcy | euronews, economy

Argentina: The ‘Walking Dead’: Dealing with the economic collapse - by Veronique de Miguel

If today you were to arrive in Argentina with a 10 dollar bill in your hand, you would experience scenes similar to a “Walking Dead” episode. Immediately, tens of people – including the government – would perceive the green breath of life in your pocket and pursue you with one single intention: obtaining your dollar bill. 

Jokes aside, the economic collapse in Argentina, and in particular its eternal romance with the American dollar, is at its maximum boiling point and ready to explode. Like millions of Argentines, I have to deal with this chaotic period, uncertainties, unknowns and a super-inflation that makes a visit to the grocery store an adventure full of unpleasant surprises with the unexpected rise in price of absolutely everything. And don’t get me started on lines of credit or plans for future payments.

The average Argentine is so used to distrusting his own currency that it was a tradition to save one’s money in dollars, until the government banned this practice. The people continued doing it, of course, except they started to buy much more expensive black market dollars in exchange caves. The summary of the current situation is that the government intends to remedy the fall of reserves with currency printing, which is not supported in the same way by the dollar. The calculation is simple, many more pesos and fewer dollars in reserve to support them, means more pesos needed for each dollar. This is called devaluation, and it’s making a lot of people very upset.

The average citizen suffers in this financial mess. Still, President Cristina Fernández denies any economic crisis is present even when, among other measures, the government has announced a freeze on prices of commodities.

Despite big ads on storefronts, those products are often missing from the shelves of supermarkets. It is common to see posters in empty shelves announcing that you are allowed to buy only item per person.

Prices of all products constantly increase day by day. Consequently, the consumption of some basic items like bread, milk and other similar items is falling at an alarming rate. People don’t buy bread – as it is a very expensive good now – and have to get along with crackers. The price of vegetables has almost become a state matter.


Read more: The ‘Walking Dead’: Dealing with the economic collapse in Argentina | Voxxi

Chicago Tribune: CIT to file for bankruptcy protection after rescues fail -- chicagotribune.com

For the complete report from the chicagotribune.com click on this link

CIT Group Inc.'s board of directors, in what would be among the biggest corporate bankruptcies ever, said Sunday it has approved the filing of a prepackaged reorganization plan. The formal filing in U.S. Bankruptcy Court was expected to follow within hours. CIT, a major lender to small and midsize businesses, has struggled to avoid collapse since the recession triggered billions of dollars in loan losses and the financial crisis cut the company off from its main source of financing. "The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," Chairman and CEO Jeffrey M. Peek said in a statement.

With roughly $60 billion in assets, CIT's filing is probably the fourth-largest bankruptcy in U.S. history, ranking between General Motors and Enron. The bankruptcy of Lehman Brothers, which collapsed last year, was the biggest.

Bloomberg: GM Bankruptcy Plan Developing as Board Seeks Savings - by Jeff Green

For the complete report by Bloomberg.com click on this link

GM Bankruptcy Plan Developing as Board Seeks Savings - by Jeff Green

General Motors Corp. is speeding up preparations for a possible bankruptcy filing even as directors scout for deeper savings this week to avoid that outcome, people familiar with the plans said. GM would focus on forming a new company from its best assets if court protection is needed, said the people, who asked not to be named because the details aren’t public. The efforts to set a new cost-cut goal center on how to go beyond a proposal to slash debt by 46 percent and shed 47,000 jobs in 2009, and will include talks with Treasury officials, the people said.

The moves are a response to President Barack Obama’s March 30 rejection of GM’s bid to keep $13.4 billion in federal loans. With bondholders and the United Auto Workers balking at concessions, a push for more savings makes bankruptcy more “probable,” Chief Executive Officer Fritz Henderson has said.

The Deal/Reuters: Bankruptcy's global onslaught - by Matt Miller

for the complete report from The Deal/Reuters click on this link

Bankruptcy's global onslaught - by Matt Mille

It's a frightening world out there: Chinese factories by the thousands lock their doors, and their owners disappear into the night. Russia's once-mighty resource giants scamper to restructure crippling debt and avoid going under. Ukraine and Latvia teeter on Iceland-like insolvency. Financial institutions just about everywhere seize up and are shut down or nationalized. On just one day late last month, a Danish bank collapsed, a Japanese finance company went bankrupt and two German states were forced to pour almost $4 billion into a crippled lender to keep it afloat.

Bankruptcy Reading

Doing Business Blog - The World Bank Group

"Bankruptcy Reading

Time to dust off the old bankruptcy books. With the financial crisis starting to affect some large companies in the US and Europe, ripple effects are going to be seen throughout emerging markets.

Enter a recent study on bankruptcy by Oliver Hart, Caralee McLiesh and myself, which was just accepted at the Journal of Political Economy. We present insolvency practitioners from 88 countries with an identical case of a hotel about to default on its debt, and ask them to describe in detail how debt enforcement against this hotel will proceed in their countries. We use the data on time, cost, and the likely disposition of the assets (preservation as a going concern versus piecemeal sale) to construct a measure of the efficiency of debt enforcement in each country. In Japan and Singapore, secured creditors collect 96 cents on the dollar; in the United States, 86 cents; in Germany, 57 cents; in France, 54 cents. In contrast, Brazilian creditors fear bankruptcy: they would collect 13 cents on the dollar if their debtors entered insolvency. Turkish banks are even more fearful: they would collect 6 cents on the dollar."