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  "No Fault" Divorce Law
 

Many states have enacted no fault divorce laws, pursuant to which residents can obtain a divorce without establishing that the other party did something wrong. Typically, the trial court is permitted to grant a divorce if it finds that the marriage relationship has broken down to the extent that the objects of matrimony have been destroyed and there is no reasonable likelihood that the marriage can be preserved. Depending upon state law, issues of "fault" may still be relevant to child custody and the division of property.

In a ruling that could have a significant impact on proceedings involving failed banks, the Federal Deposit Insurance Corp. has been rebuffed in its attempt to assert a $905 million priority claim against the holding company of the failed Colonial Bank. A federal bankruptcy judge in Alabama has ruled that the bank's bankrupt holding company, Colonial Bancgroup, could not be held liable for the shortfall in the bank's assets.

When it comes to Big Law jobs, Steven Harper has been on both sides of the interviewing table. Harper, an adjunct professor at Northwestern University and a retired Kirkland & Ellis partner, reveals the question he would ask today if he were a law student interviewing for a job, and why.

The Federal Deposit Insurance Corp.'s new power to take over and liquidate nonbank companies whose failure would jeopardize the financial system is intended as a "third way" between bankruptcy and bailout. But the prospect of a new regime for dissolving megacompanies -- one with almost no judicial oversight and in which creditors' rights are few -- is sending shockwaves through the bankruptcy bar. The FDIC is tackling nearly 40 major rulemakings to flesh out the details of the law, and Wall Street is waiting anxiously.





 

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