Template:Erisa netting: Difference between revisions

Famously, ERISA plans tend to be set '''not''' to [[Netting|net]], and for the unholiest of reasons, courtesy of the phantasmagorical imagination of the opinions committee of a [[U.S. law firm]] which prudence counsels it would be wiser not to name<ref>Definitely not Cadwalader, obviously.</ref>, upon whom the whole market relies.

This opinion is predicated on the risk that a court would interpret the {{tag|ERISA}} act as applying the US [[Bankruptcy Code]] ''as it stood in 1971'' to the insolvency of an {{tag|ERISA}} plan, rather than ''as it stands at the time of insolvency''. That’s a problem, because the “[[safe harbor]]s” one relies upon for safely [[Close out|closing out]] swaps were only put into the [[Bankruptcy Code]] in the 1980s.<ref>Being WHEN SWAPS WERE INVENTED. See [[swap history]].</ref> So, no netting [[ERISA plan]]s. Just in case.