Where Repo And 'Customer’ Claims Differ Under SIPA

Law360, New York (July 10, 2013, 4:10 PM EDT) -- Judge James M. Peck of the Bankruptcy Court for the Southern District of New York held, on June 25, 2013 (the “Lehman Op.”),[1] that claims under repurchase transactions (repos) do not qualify as customer claims and therefore are not entitled to the priority or coverage provided for customers’ claims under the Securities Investor Protection Act (SIPA).

The trustee overseeing the liquidation of Lehman Brothers Inc. (LBI) filed a motion seeking a bankruptcy court order confirming his determination that repo claims were not customer claims under SIPA....
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