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Which legal system has a claw back period on withdrawals? Can you imagine rolling back wire payments 90 days old!

mediaman 4y ago
It’s not always 90 days, but the American federal bankruptcy system does allow for clawbacks on payments made immediately leading up to a filing. Meaning, the bankruptcy administrator will absolutely file and get a judgment on your assets, which will be forcibly collected, if you received a payment from a bankrupt entity within the window established by the court.
- bombcar 4y ago
  This is mainly but not limited to trying to prevent a bankrupt entity from “getting rid” of all its assets. I don’t know if it would apply to a bank wire transfer of “your own money” unless it was a literal fraud situation (pyramid scheme).
  - WWLink 4y ago
    I can't imagine that going well. "No we're taking your $50k life savings back so we can give it all to a client that had $5mil and deserves your $50k life savings more than you do"
    - bombcar 4y ago
      Well up to $250k wouldn’t be touched, but yeah, doing a clawback for a bank could cause a run on all banks.
    - lordnacho 4y ago
      Not sure if this type of cynicism is more Reddit than HN, but somehow I suspect the rules are more likely to be written by the guy with the 5M deposits and his even richer friends.
    - iEchoic 4y ago
      Check out the Madoff documentary on Netflix, there are interviews with people who had exactly that happen as they clawed back funds to try to make everyone whole.
      - bombcar 4y ago
        Madoff was an actual pyramid scheme; once criminal fraud enters the picture it’s a different story.
- arcticbull 4y ago
  It's up to a year for high-up individuals and their families as I suspect Alex Mashinsky is going to be able to tell us all about.
- techlover14159 4y ago
  Bank insolvency is not handled by courts. FDIC has sole and complete control of bank insolvencies. FDIC is the receiver or conservator for handling bank insolvencies by law. FDIC doesn't claw back bank transactions that have "settled". So if you wire cleared, you are good for the money. Search for "FDIC Discretion Without Ongoing Judicial Oversight" in the document below No ongoing judicial oversight Pursuant to Section 11(d)(13)(D) of the FDI Act, except as otherwise provided, no court has primary jurisdiction over any claims or action for payment from, or actions seeking a determination with regards to, an institution for which the FDIC has become a receiver. Further this provision also limits courts’ ability to engage in a review of any claims relating to acts or omissions of the institution or the FDIC as receiver. Under Section 11(d)(13)(C) of the FDI Act, no court may issue an attachment or execution over the assets that are in the possession of the FDIC as receiver. https://corpgov.law.harvard.edu/wp-content/uploads/2008/10/092608-overview-fdicasconvervator-receiver.pdf https://corpgov.law.harvard.edu/wp-content/uploads/2008/10/0...

It’s not always 90 days, but the American federal bankruptcy system does allow for clawbacks on payments made immediately leading up to a filing. Meaning, the bankruptcy administrator will absolutely file and get a judgment on your assets, which will be forcibly collected, if you received a payment from a bankrupt entity within the window established by the court.

bombcar 4y ago
This is mainly but not limited to trying to prevent a bankrupt entity from “getting rid” of all its assets. I don’t know if it would apply to a bank wire transfer of “your own money” unless it was a literal fraud situation (pyramid scheme).
- WWLink 4y ago
  I can't imagine that going well. "No we're taking your $50k life savings back so we can give it all to a client that had $5mil and deserves your $50k life savings more than you do"
  - bombcar 4y ago
    Well up to $250k wouldn’t be touched, but yeah, doing a clawback for a bank could cause a run on all banks.
  - lordnacho 4y ago
    Not sure if this type of cynicism is more Reddit than HN, but somehow I suspect the rules are more likely to be written by the guy with the 5M deposits and his even richer friends.
  - iEchoic 4y ago
    Check out the Madoff documentary on Netflix, there are interviews with people who had exactly that happen as they clawed back funds to try to make everyone whole.
    - bombcar 4y ago
      Madoff was an actual pyramid scheme; once criminal fraud enters the picture it’s a different story.
arcticbull 4y ago
It's up to a year for high-up individuals and their families as I suspect Alex Mashinsky is going to be able to tell us all about.
techlover14159 4y ago
Bank insolvency is not handled by courts. FDIC has sole and complete control of bank insolvencies. FDIC is the receiver or conservator for handling bank insolvencies by law. FDIC doesn't claw back bank transactions that have "settled". So if you wire cleared, you are good for the money. Search for "FDIC Discretion Without Ongoing Judicial Oversight" in the document below No ongoing judicial oversight Pursuant to Section 11(d)(13)(D) of the FDI Act, except as otherwise provided, no court has primary jurisdiction over any claims or action for payment from, or actions seeking a determination with regards to, an institution for which the FDIC has become a receiver. Further this provision also limits courts’ ability to engage in a review of any claims relating to acts or omissions of the institution or the FDIC as receiver. Under Section 11(d)(13)(C) of the FDI Act, no court may issue an attachment or execution over the assets that are in the possession of the FDIC as receiver. https://corpgov.law.harvard.edu/wp-content/uploads/2008/10/092608-overview-fdicasconvervator-receiver.pdf https://corpgov.law.harvard.edu/wp-content/uploads/2008/10/0...