Banking Misconduct Blog

Our phones have been ringing off the hook. Hotel and mall owners need help. The hospitality and retail industry went into crisis mode virtually overnight. According to Fitch Ratings, 2,600 commercial borrowers have already sought help. And that was in just two weeks of March! We suspect many...

As lender liability law firms go, we are one of one of the few that only represent borrowers. Never banks, special servicers or lenders. Our mission is to protect property owners from predatory lenders. Today many borrowers are at risk. The COVID-19 pandemic has everyone in the hospitality...

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...

[Editor’s Note: This post originally appeared in September 2014 on our sister site Mahany Law. The post has been rewritten and moved to this site. Important information appears at the end relative to the coronavirus pandemic and its impact on the hospitality industry.]
Imagine that you...

Hope for Hotels, Malls and Other CMBS Borrowers March 15th 2020. The City of Boston closed bars and restaurants in South Boston section of the city. Disney is closed. Colleges have sent students home. Airlines are flying near empty planes. Cruise ships are empty. New York Governor Cuomo created a...

If a confession of judgment sounds ominous, it is. These provisions allow the debtor to appoint the creditor as his or her agent and appear before a court and confess judgment in the event of default. As a practical matter, when a default occurs, the creditor can obtain a judgment without advance...

Watch any reality cop show and you will likely hear the words, “Anything you say can and will be used against you.” Pre-Negotiation Agreements (often called PNAs) are much the same. Many unscrupulous lenders will stuff these agreements with one-sided waivers and clauses favoring the...

Banks want as much security as they can when they loan money. Conversely, borrowers want to avoid as much personal liability as possible. It is been that way since the beginning of banking.
One tool that has found favor in recent years is a “springing guaranty” or “bad...