Nearly every year, changes are made to the set of rules that govern how bankruptcy cases are managed — the Federal Rules of Bankruptcy Procedure. Normally, the changes address issues identified by an Advisory Committee made up of federal judges, bankruptcy attorneys, and others. This year, the amendments to the national bankruptcy rules are mainly
Chapter 7
The SIPC And SIPA Liquidations: When A Brokerage Firm Goes Bankrupt
By Bob Eisenbach on
Posted in Business Bankruptcy Issues
It’s an organization that can go for years without ever making the news. Then along comes a financial crisis — and Lehman Brothers and Madoff — and suddenly the SIPC finds itself at the center of some very big stories. This post takes a look at the SIPC, its role in broker-dealer liquidations, how a SIPA liquidation differs…