Higher education debt suddenly has become one of the nation's hottest domestic issues. In response, a number of lawmakers believe they have a way to preserve both the integrity of the financial system and the opportunities to attend college. Several weeks ago the House and Senate introduced legislation to enable adults to discharge outstanding student loans in bankruptcy court that had been underwritten by private-sector lenders. The bills, the Fairness for Struggling Students Act (S.114) and the Private Student Loan Bankruptcy Fairness Act (H.R. 532), would repeal the portion of the 2005 bankruptcy law overhaul that removed this option.
The bailout of Chicago-based ShoreBank has hit a serious snag as the Federal Reserve and Treasury drag their feet on whether to provide funding to the ailing South Side lender, sources close to the situation say….
The Treasury is deferring to the Federal Reserve. One source said some at the Fed want ShoreBank to raise more private dollars before it gets government money.