Restructuring

Sylvia Mayer, a partner in the Business Finance & Restructuring Department in Weil’s Houston office, was quoted on a recent proposal by the Federal Deposition Insurance Corp. (FDIC) to outline a role for the Securities Investor Protection Corp. (SIPC) under the wind-down facility provided for by the Dodd-Frank Act.  The SIPC, a nonprofit corporation that, among other things, selects trustees to liquidate insolvent broker-dealers, will work with the FDIC to facilitate the liquidation of broker-dealer subsidiaries of financial companies under FDIC receivership. This new framework is intended to create bridge companies to preserve the healthy operations of a failed firm.
Ms. Mayer discussed the importance of conforming inconsistent objectives in the new wind-down proposals. The FDIC and SIPC will have to “figure out how to marry different objectives into a seamless process.”
The article, entitled “FDIC Has Unexpected Partner on Firm Failures,” was written by Joe Adler. Please click here to link to the on-line version of the article (may require registration/subscription).