Sylvia Mayer, a partner in the Business Finance & Restructuring Department in Weil’s Houston office, was quoted on a recent proposal by the Federal Deposition Insurance Corp. (FDIC) to outline a role for the Securities Investor Protection Corp. (SIPC) under the wind-down facility provided for by the Dodd-Frank Act. The SIPC, a nonprofit corporation that, among other things, selects trustees to liquidate insolvent broker-dealers, will work with the FDIC to facilitate the liquidation of broker-dealer subsidiaries of financial companies under FDIC receivership. This new framework is intended to create bridge companies to preserve the healthy operations of a failed firm.
Ms. Mayer discussed the importance of conforming inconsistent objectives in the new wind-down proposals. The FDIC and SIPC will have to “figure out how to marry different objectives into a seamless process.”
The article, entitled “FDIC Has Unexpected Partner on Firm Failures,” was written by Joe Adler. Please click here to link to the on-line version of the article (may require registration/subscription).
More from the Bankruptcy Blog
Copyright © 2019 Weil, Gotshal & Manges LLP, All Rights Reserved. The contents of this website may contain attorney advertising under the laws of various states. Prior results do not guarantee a similar outcome. Weil, Gotshal & Manges LLP is headquartered in New York and has office locations in Beijing, Boston, Dallas, Frankfurt, Hong Kong, Houston, London, Miami, Munich, New York, Paris, Princeton, Shanghai, Silicon Valley, Warsaw, and Washington, D.C.