Anmerkungen:
In: 93 U. Colo. L. Rev. 1095 (2022)
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 21, 2022 erstellt
Beschreibung:
In May 2020, the U.S. District Court for the Southern District of New York decided that syndicated term loans are not “securities” as defined by the Securities Act and Securities Exchange Act in Kirschner ex rel. Millennium Lender Claim Tr. v. JPMorgan Chase Bank, N.A. This decision seems contrary to both well-established legal precedent and the intent of the Securites Acts. However, if the court decided that syndicated term loans were "securities," it would wreak havoc on the U.S. banking system, causing fire sale liquidation of syndicated loans.This note identifies the divergence between established securities law precedent and the treatment of syndicated loans, discusses the financial turmoil that would result from the loans' reclassification, and proposes Congress act to solve the disparity and avoid macroeconomic distress