'Soft Dollar' Claims — Not Protected By SIPA

Law360, New York (September 7, 2012, 6:21 PM EDT) -- In In re Lehman Brothers Inc., the bankruptcy court for the Southern District of New York recently ruled — as a matter of first impression nationwide — that bankruptcy claims based upon commission credits held in soft dollar accounts (“soft dollar claims”) do not qualify for treatment as customer claims for purposes of the Securities Investor Protection Act of 1970, 15 U.S.C. §78aaa et seq. (SIPA).[1]

Consequently, soft dollar claims will no longer qualify for the enhanced protection afforded to customer claims by SIPA: guaranteed and...
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