In Conflict With Other Circuits, Seventh Circuit Rules That Certain Transfers Involving Financial Institution Intermediaries Not Immune From Recovery By Bankruptcy Trustee

Section 546(e) of the bankruptcy code prohibits a bankruptcy trustee from avoiding “settlement payment[s]”, or payments “made in connection with a securities contract,” that are “made by or to (or for the benefit of)” qualifying financial entities, including financial institutions, stockbrokers, commodities brokers and others.

Filed under:
USA, Capital Markets, Company & Commercial, Insolvency & Restructuring, Litigation, Proskauer Rose LLP, Share (finance), Bankruptcy, Debtor, Security (finance), Safe harbor (law), Trustee, Eighth Circuit, Eleventh Circuit, Sixth Circuit, Seventh Circuit, Tenth Circuit
Authors:
James Anderson
Location:
USA
Firm:
Proskauer Rose LLP