Is one of the biggest failed banks in history being held in contempt?  After months of bitter campaigning by shareholders, WaMu was awarded a bankruptcy examiner— an ex-anti criminal fraud official under the Department of Justice.  The examiner pending court approval, Joshua Hochberg, has already made a show of his pledge to fair ruling by selling his 300 JP Morgan Chase shares. The long complaining efforts of WaMu shareholders has paid off—the U.S.  Office of Trustee’s appointment is in direct response to their sustained outrage for not receiving a penny from WaMu’s bankruptcy.

Almost two whole years have passed since WaMu’s initial failure.  FDIC took over the bank overnight and sold its remaining assets and debt obligations to JPMorgan for a bargain $1.9 billion.  The holding company remained a separate entity, with $33 billion in assets and $8 billion in liabilities.  In March 2009, WaMu received a hefty tax credit, out of which JPMorgan tried to snag $1.4 billion out of WaMu’s $2.6 billion tax refund, nearly covering JPMorgan’s discount purchase of the bank entirely. WaMu filed a lawsuit stating JPMorgan gained the bank under unlawful circumstances (at which the FDIC had trouble containing their laughter). 

At the time of their multi-billion dollar tax refund, there were rumblings that WaMu would be the biggest turnaround after one of the biggest failures in banking history.  JPMorgan quickly put their foot down to try and squash those dreams, and other creditors followed suit.  Even as WaMu negotiated with their creditors to repay $6.8 billion in their bankruptcy plan, the neglected shareholders were the biggest hold-out.  Under the current bankruptcy plan, shareholders stand to regain none of their investments.  They are particularly indignant because they maintain that WaMu’s holding company has somehow retained assets upwards of $30 billion, which WaMu of course has not publicly admitted to.

The bankruptcy examiner’s and (former?) fraud crime-fighter Josh Hochberg’s biggest challenge will be handling the ideological question:  especially because they are nursing plans to reopen and not simply walk off with tens of billions of dollars, how much does WaMu really deserve to keep?

Other high-profile bankruptcy cases that received bankruptcy examiners include Lehman Brothers, Enron, and Tribune Company, and is introduced as a neutral party who is the deciding voice in gray areas including alleged fraud. In a consumer bankruptcy and most business bankruptcy cases, the job of the examiner is carried out by the bankruptcy trustee and the judge.  Often, a bankruptcy examiner is cross-trained in areas of accounting and law.

If and when you decide to file personal Chapter 7 or Chapter 13 bankruptcy, a trustee will be appointed to account for your assets and debts, and negotiate with your lawyer what you are entitled to keep.  The right attorney will be essential to helping you come out on top.   For a free bankruptcy consultation, call the office of Legal Helpers toll-free at 1-800-260-1402.  We are waiting for your call.  www.legalhelpers.com

Obama and Congress Confirm Creation of Warren’s Consumer Protection Bureau, but Who Will Confirm Her?

There is a federal agency to protect consumers of rancid spinach and juicing baseball players.  There is a federal agency to protect consumers from streams filled with three-headed fish.  As of July 21, there is a long-awaited federal bureau to warn the average consumer of things like bad mortgages and credit scams.  It is the adversary on the horizon to payday loan companies, shady mortgage lenders, and internet scams such as the “free” subscription-only credit report websites that were recently flagged by the FTC.   President Obama signed a bill passed by Congress to officially set up the Consumer Financial Protection Bureau.

The bureau’s creator, bankruptcy expert Elizabeth Warren, may or may not have a future as the leader of her own domain.  Why?  Her adversaries have her pegged as just another right-leaning Harvard law professor, and therefore a built-in Obama wingwoman.  Even her staunch Democratic supporters second-guess her appeal to “reach across the aisle”, especially as President Obama’s approval ratings dip.  Some of Warren’s biggest skeptics come from inside the White House, who believe she is too outspoken and presents too much of a Joe Biden-esque wild card when it comes to delicate negotiation with banks.

The U.S. Chamber of Commerce is not a fan of the bureau, having funded a million dollar campaign declaring it an enemy of the banking industry.  Incidentally, the U.S. Chamber of Commerce advocates to consumers that bankruptcy should be considered the “absolute last resort”, but more for the sake of the banks who have to cover up the canceled debt than for the sake of the average consumer.  Other critics simply wonder just how much can the academic author of over a hundred scholarly articles really democratize, or see eye to eye with the average consumer.  The bankruptcy expert’s biggest supporters, however, feel that as the first Harvard professor to ever win two teaching awards, Elizabeth Warren is the perfect candidate to demand and enforce more consumer-friendly transparency.

Especially with an expert on bankruptcy laws at the helm, the Consumer Protection Financial Bureau could be a way to extend the consumer-friendly principles of 2005’s Bankruptcy Abuse Prevention and Consumer Protection Act.  Any potential change to bankruptcy as we know it and new banking regulations would probably not take place for over a year while the bureau is set up and staff is appointed.

While the government thinks up new ways to aid the struggling consumer, bankruptcy is still the most reliable escape out of insurmountable debt.  It is the most effective way to save a home and overcome the credit trap.  For a free consultation, contact the office of Legal Helpers toll-free at 1-800-260-1402.  We will guide you about taking the first step towards serious debt relief.

Unless you have been on a walkabout in Australia’s Outback for the past two years, you are well aware that the U.S. is suffering from the worst recession since the “Great Depression” and is experiencing close to a 10% unemployment rate.

Getting a job used to mean asking around; your friends and neighbors, your parents’ friends and neighbors, your cousins’ friends and neighbors and… you get the picture.

In today’s ultra-competitive job market, job seekers need to widen their net of references ten, twenty, thirty-fold.

According to Tory Johnson, CEO of Women for Hire and the workplace contributor on ABC’s Good Morning America, “Online social networks are the rage in this job market because applicants need to use every tool in the shed to find work. If you're looking for work, you've already asked your best friends and family if they know anyone who's hiring -- and likely they don't. The best connection to your next job comes not from your strong ties, but from your weak links -- those distant friends and contacts that you make through networking.”

Johnson goes on to explain the benefits of LinkedIn, Facebook and Twitter, three popular and free social networking sites. She explains that they are an exemplary way to get in touch with people you don’t even know; they also offer an easy means to track industries, companies and executives in which you may be interested.

LinkedIn is the most professionally oriented of the three, with nearly 20 million members in the United States. HR people search LinkedIn using targeted keywords, so include your industry's hot buttons to make your profile easy to find. You can also easily build your professional connections as you ‘search’ for former colleagues and classmates.

Facebook  works essentially the same way, but in a more social and relaxed environment, which can still be a valuable networking strategy. Of the 50 million people in the United States on Facebook, the fastest-growing demographic is people 35 and older.

Twitter is limited to 140 characters per tweet, so make your profile unique by describing your skills succinctly. A main advantage of Twitter is that you can use it to "follow" the posts of anyone you want, including the companies and people you're targeting. Many companies also post their job openings on Twitter.

If you have been unemployed for the past year, you may have run out of funds and amassed high credit card debt; you may be considering filing Chapter 7 or Chapter 13 personal bankruptcy. Call Legal Helpers toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 sites across the country. For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, trust the attorneys from Legal Helpers, www.legalhelpers.com.