Limiting the SEC's Role in Bankruptcy

16 Pages Posted: 23 Jul 2011 Last revised: 18 Sep 2011

See all articles by Kelli Alces Williams

Kelli Alces Williams

Florida State University - College of Law

Date Written: July 22, 2011


SEC involvement in corporate bankruptcy cases reveals weaknesses in the bankruptcy system and also raises concerns about the use of SEC resources. If the bankruptcy system is functioning properly as designed, and if the SEC is devoting its resources to the most pressing problems confronting the securities markets, then SEC involvement in corporate bankruptcies should be negligible. Instead, we see the SEC participating in many aspects of major corporate bankruptcy filings and assuming an oversight role over not just the corporate debtor, but also the bankruptcy courts and the independent United States Trustee, a branch of the Department of Justice. This officious participation in a fully functioning federal system designed to resolve financial failures in a manner consistent with important public policies is an inefficient use of federal resources and may undermine bankruptcy policies and priorities.

Keywords: SEC, bankruptcy, trustees, securities, fraud

Suggested Citation

Williams, Kelli Alces, Limiting the SEC's Role in Bankruptcy (July 22, 2011). American Bankruptcy Institute Law Review, Vol. 18, p. 631, 2010, FSU College of Law, Public Law Research Paper No. 511, FSU College of Law, Law, Business & Economics Paper No. 11-13, Available at SSRN:

Kelli Alces Williams (Contact Author)

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States
(850) 644-5079 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics