When a company files for bankruptcy, employees often face uncertainty about their jobs and financial security, especially regarding unpaid wages and benefits. The Bankruptcy Code provides some protections, but the process and outcomes depend on the type of bankruptcy case. In Chapter 7 cases, the company is liquidated and all employees are laid off. Employees owed wages or benefits as of the bankruptcy filing date may file claims against the company, and certain claims may be entitled to priority treatment under federal law.

On August 15, the Federal Reserve Board announced a significant shift in its approach to supervising novel activities within banking organizations. The Board decided to sunset its Novel Activities Supervision Program, which was initially established to enhance oversight of activities related to crypto-assets, distributed ledger technology (DLT), and complex partnerships with non-banks. This program, launched in 2023, aimed to address the unique risks posed by these innovative financial activities, ensuring they were appropriately managed within the banking sector.

When an employer files for bankruptcy, employees may wonder what happens to their employment and noncompete agreements. The Bankruptcy Code gives debtors broad authority to assume or reject contracts, which can impact an employee’s rights and future obligations. Most employment agreements are considered executory contracts, meaning the debtor can choose to honor or reject them, with important consequences for both parties.

On August 1, the Securities and Exchange Commission (SEC) announced the formation of a new task force dedicated to harnessing artificial intelligence (AI) to enhance innovation and efficiency across the agency. This initiative, led by Valerie Szczepanik, SEC’s newly appointed Chief AI Officer, marks a significant step in the agency’s commitment to integrating this technology into its operations.

WASHINGTON, D.C. – Troutman Pepper Locke served as counsel to Simmons First National Corporation (Simmons), an Arkansas corporation and the bank holding company for Simmons Bank, an Arkansas state-chartered bank, in connection with Simmons’ underwritten public offering of 18,653,000 shares of its Class A common stock (including 2,433,000 shares pursuant to the underwriters’ option to purchase additional shares of common stock in the offering). The public offering price of shares of common stock sold in the offering was $18.50 per share, and the underwriters agreed to purchase the shares from Simmons pursuant to the underwriting agreement at a price of $17.575 per share.

When a bankruptcy case transitions from Chapter 11 to Chapter 7, stakeholders experience significant changes. Chapter 11 focuses on reorganization, allowing debtors to restructure their debts and operations, while Chapter 7 shifts the focus to liquidation. This conversion often occurs when a debtor’s estate becomes administratively insolvent, meaning it lacks sufficient funds to cover the costs of the bankruptcy process. Consequently, a trustee is appointed to manage and liquidate the debtor’s assets, aiming to pay off creditors as much as possible.

Troutman Pepper Locke’s Securities Investigations + Enforcement Practice

Our Securities Investigations + Enforcement practice has expanded significantly due to our recent merger, enhancing our capabilities nationwide, including in our San Francisco, Dallas, and New York offices. We counsel and defend clients throughout all stages of securities enforcement proceedings, representing a diverse range of clients, including major financial institutions, senior corporate executives, boards of directors, and various entities in the financial services industry. Our team handles investigations by regulatory bodies such as the SEC, FINRA, and the Department of Justice. Leveraging decades of experience and including former key government officials, we develop informed and effective strategies tailored to each client’s unique needs. To read more about our capabilities, please click here.

On July 18, America’s Credit Unions sent a letter to the Honorable Kyle Hauptman, Chairman of the National Credit Union Administration (NCUA), urging the agency to initiate rulemaking that would allow credit unions to take custody of digital assets for their members. This request comes in the wake of the recently enacted “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025” (GENIUS Act), which provides a comprehensive federal framework for the regulation of payment stablecoins.

The landscape of subscription line lending is undergoing significant transformation, with both private credit funds (PCFs) and traditional banks playing crucial roles. PCFs, which pool capital from institutional and high-net-worth investors, are increasingly becoming key players in providing credit facilities to private equity firms, secured by investor commitments. This shift introduces new dynamics alongside traditional banks, which have historically dominated this space. While PCFs offer greater flexibility and customized financial solutions due to fewer regulatory constraints, traditional banks bring extensive experience and stability, relying on deposits and adhering to regulatory requirements. Together, these entities are reshaping the subscription line market, offering diverse options for borrowers.