Narrower Harbors: Supreme Court Holds that ยง 546(e) Securities Safe Harbor Does Not Protect Transfers in Which Financial Institution Is Only a Conduit By Kevin C. Maclay, Todd E. Phillips, and Kevin M. Davis
The Bankruptcy Code provides bankruptcy trustees, debtors, and creditor committees with “avoidance powers” that allow them to set aside and recover certain transfers that a debtor made before filing for bankruptcy.[1] These avoidance powers are, however, limited by a number of exceptions enumerated in the Bankruptcy Code, including the securities safe harbor at § 546(e). […]