Structured Finance Is Safe Despite Merit Ruling

By J.R. Smith and Shannon Daily (June 1, 2018, 1:46 PM EDT) -- In Merit Management Group LP v. FTI Consulting Inc.,[1] the U.S. Supreme Court scrutinized the proper application of the safe harbor found in U.S. Bankruptcy Code[2] Section 546(e), which protects from avoidance certain transfers made in connection with securities, commodity and forward contracts. Resolving a circuit split,[3] the Supreme Court held that Section 546(e) only protects from avoidance qualifying transfers by and to entities enumerated in Section 546(e) and does not protect transfers that merely pass through such entities. While the Supreme Court's decision seemingly narrowed the reach of the safe harbor, it did little to change the landscape for the multibillion-dollar U.S. structured finance industry, including warehouse lending....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.

A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!