In a surprise decision, the U.S. Court of Appeals for the Seventh Circuit declined to follow the “plain meaning” approach adopted by the Second, Third, Sixth, Eight and Tenth Circuits, and rejected an opportunity to expand the safe-harbor protections afforded by Bankruptcy Code section 546(e) to protect “securities transactions” in the private market where the extent of a financial institution's involvement is to serve as an intermediary or conduit.
Seventh Circuit Takes the Road Less Traveled, and Looks to the Substance of ' 546(e)
In a surprise decision, the Seventh Circuit declined to follow the "plain meaning" approach adopted by other circuit courts, and rejected an opportunity to expand the safe-harbor protections afforded by Bankruptcy Code section 546(e) to protect "securities transactions" in the private market.
By
Sheryl P. GiuglianoThis premium content is locked for The Bankruptcy Strategist subscribers only
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