11th Circ. Sows Doubt Over Insolvent Bank Tax Refunds
January 3, 2014, 6:04 AM EST
Law360, New York (January 3, 2014, 6:04 AM EST) -- In the context of the insolvencies of banks and their holding companies, one highly litigated issue has been the ownership of tax refunds that result from losses suffered by the bank. While early in 2013 the issue may have seemed fairly settled, two Eleventh Circuit decisions have left the direction of the law on this issue uncertain.
When a bank holding company and its subsidiary bank become insolvent, the holding company may file for bankruptcy, but the bank cannot. Instead, an insolvent bank is typically placed...