US Trustee Publishes New List of Approved Banks

Chapter 11 debtors are required to close their bank accounts and open new ones once the case is filed.  The new accounts must be only with banks “approved” by the UST.  Attached is the most current list of approved banks, as of May 15, 2014.  Having this “list” actually makes sense because the banks, in order to get on the list, must put up some sort of additional collateral or securities so that there is no risk to the estate if the bank fails.  Unfortunately many banks appear to limit the debtors they will allow to open new accounts to those who will be class A customers, something most debtors are not, at least prior to the filing.  The list can be accessed here.

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