• Bankruptcy Safe Harbors under Attack
  • August 14, 2013
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The “safe harbor” provisions of the Bankruptcy Code protect firms that trade derivatives, and other participants in financial and commodity markets, from the rigidity that bankruptcy law imposes on most parties. Since their inception in 1982, the safe harbor statutes have gradually grown broader, to reflect a Congressional intent of protecting against secondary shocks reverberating through those markets after a major bankruptcy. The liberalizing of safe harbors traces - and may well be explained by - the rapidly expanding use of derivatives contracts generally.