RTC may lose big after a ruling on bonds, contracts
Article Abstract:
Judge Pierre N. Leval has ruled that the Resolution Trust Corp (RTC) cannot repudiate bonds issued by Franklin Savings Assn totalling $2.9 billion. His ruling rested on what defense attorneys called a technicality, the failure of the RTC to explicitly delegate that power of repudiation to the man making the bulk of those decisions, William H. Roelle. If this ruling stands, the Indenture trustee IBJ Schroder stands to gain some $140 million, the difference between the purchase price plus interest and the value of the collateral behind them. RTC could lose some $2.9 billion if they cannot be repudiated.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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RICO fades away on Wall Street; Princeton-Newport ends
Article Abstract:
Efforts to investigate and try Princeton-Newport Partners LP executives for racketeering under RICO were expensive and largely fruitless. After five years, no racketeering conviction was upheld on appeal, only two convictions were obtained on any counts and only $300 in fines was received by the government. RICO is now less likely to be used to prosecute white-collar crime cases. Recently enacted statutes, including a 1990 money laundering law and FIRREA, contain all the beneficial features of RICO and are easier to use.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
User Contributions:
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