Two regulations amending the EU Securitisation Regulation and the Capital Requirements Regulation (the “CRR“) respectively have now come into force. Regulation (EU) 2021/557 of the European Parliament and of the Council (the “SR Amendment Regulation“) and Regulation (EU) 2021/558 of the European Parliament and of the Council (the “CRR Amendment
Derivatives
Second Circuit: Lehman Brothers “Flip Clause” Payments Are Protected Settlement Payments and Not Void as Ipso Facto Bankruptcy Provisions
By J. Paul Forrester on
Posted in Bankruptcy, Derivatives
Almost 12 years after the commencement of the Lehman Brothers bankruptcy case, we now know the answer to one of that case’s most interesting questions—namely, whether so-called “flip clauses” are protected settlement payments or void as ipso facto bankruptcy provisions.
On August 11, 2020, the US Court of Appeals for the Second Circuit (Court) issued a decision in the closely followed case of Lehman Brothers Special Financing Inc. v. Bank of America N.A., 18-1079, which raised this question in the context of synthetic collateralized debt obligations (SCDOs).Continue Reading Second Circuit: Lehman Brothers “Flip Clause” Payments Are Protected Settlement Payments and Not Void as Ipso Facto Bankruptcy Provisions
Federal judge orders CFTC commissioners to testify about public statements following the issuance of a consent order in CFTC v. Kraft
Posted in CFTC, Derivatives
The Wall Street Journal recently quoted Mayer Brown Partner Matthew F. Kluchenek regarding a federal judge’s demand that the new chairman and two commissioners of the Commodity Futures Trading Commission (“CFTC”) testify in response to a motion for contempt and sanctions. U.S. District Court for the Northern District of Illinois Judge John Robert Blakey ordered CFTC Chairman Heath Tarbert to testify about agency statements regarding a $16 million consent order (“Consent Order”)[1] with Kraft Foods Group Inc. and Mondelez Global LLC (“Kraft and Mondelez”) to settle a 2015 complaint that alleged wheat market manipulation.[2]
Continue Reading Federal judge orders CFTC commissioners to testify about public statements following the issuance of a consent order in CFTC v. Kraft