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500Lawdragon Q & A with:James GiddensIf a brokerage firm is in bankruptcytrouble, James Giddens, head of Hughes Hubbard’s corporatereorganization and bankruptcy group, usuallyfinds himself in the middle of it. In recent years, withfinancial titans such as Lehman Brothers falling preyto the global financial crisis, Giddens’ services havebeen in high demand.The Securities Investors Protection Corporation(SIPC) has selected Giddens to be Trustee on several ofthe largest liquidations in history. For example, whenLehman Brothers filed for bankruptcy in 2008, he wasappointed by the SIPC to oversee the liquidation of theinvestment bank’s assets, worth more than $117 billion.Lehman’s complex liquidation work involved transferringmore than 110,000 accounts with an aggregatevalue of $92 billion and analyzing over 14,000 customerclaims in excess of $50 billion. Giddens also has tooversee multiple U.S. lawsuits arising from customerclaims of approximately $17 billion and all of theLehman-related proceedings in 16 countries. Heobtained a favorable ruling from the U.K. SupremeCourt that should lead to greater recoveries for theinvestment bank’s customers. In June 2011, Gidden’slegal team managed to wrestle back an estimated $4.8billion in assets from Barclays.In addition to all the liquidation-related work,Giddens’ team conducted the statutory investigation ofthe probable cause that led to Lehman’s demise andlessons that may be learned from a regulatory and legislativeperspective. The Trustee’s preliminary reportregarding the collapse of Lehman was submitted to theU.S. Congress, regulators and the Bankruptcy Court inAugust 2010. The SIPC appears to be pleased withGiddens’ handling of the Lehman work. Recently, theSIPC appointed him to handle the liquidation of yetanother headline-grabbing case, MF Global Inc.LAWDRAGon: You’ve been appointed as trustee in someof the largest corporate bankruptcy cases in history.What is the secret to being successful in this area?JAMES GIDDEns: Expertise in broker-dealer and financialservice firm liquidations. I have been involved withthe Securities Investor Protection Corporation since itscreation in 1970 and the enactment of the SecuritiesInvestor Protection Act. I recently served as a memberof the “SIPC Modernization Task Force,” whose reportwas submitted to the Board of Directors of SIPC andthe public in February 2012.LD: What makes some bankruptcy cases more compli-bY Xenia Kobylarzcated and challenging than others?JG: I am the Trustee for the liquidation of MF Global,Inc., the broker-dealer, and Lehman Brothers, Inc., thebroker-dealer. As Trustee, I manage the conduct of theliquidations, including marshalling assets and payingcreditors. Both these cases involve separate and distinctproceedings in multiple jurisdictions world-widewith different legal approaches to insolvency. I findthese cross border issues among the most challenging,and fascinating, areas of the practice today.LD: In litigation over commercial disputes there areclear winners and losers. In your view, what would youconsider a successful bankruptcy case?JG: A successful bankruptcy case is one in which creditorsrealize the maximum value that is possible fortheir claims in a reasonable time, be it through liquidation,a sale of assets or a successful, reorganized ongoingbusiness. Litigation in my view is not necessarilyzero sum; in bankruptcy the effort is often best spentfor creditors making the best of a bad situation, andpreserving value for all stakeholders.LD: What’s the most frustrating aspect of your job?JG: The “gamesmanship” of some parties seeking toelevate their interests at the expense of others withoutrecognition that a fair solution might require someconsideration of public interest or compromise.LD: Do you consider the Lehman bankruptcy one of themore unique or challenging cases you’ve handled? Ifso, in what respect?JG: Yes, absolutely. The liquidation of LehmanBrothers, Inc. involved the administration of more than$140 billion in assets and the analysis and adjudicationof claims involving virtually every major financialinstitution in the world.LD: What skills are important for bankruptcy lawyers?JG: Patience, intelligence and empathy for the divergentstake-holders.LD: Do you have any advice for young lawyers embarkingin this field?JG: Enrich your education and networking opportunitiesby joining national and international bankruptcy professionalgroups such as the ABI, INSOL or IBA.LD: How do you establish a reputation in this area oflaw?JG: By excellent work and results.LD: What is the most pressing legal concern your clientshave these days?JG: Achieving cost-effective results. See the Q&A atwww.lawdragon.com/lawyer-limelights/james-giddens.L A W D R A G O N 158 I s s u e 13Photo by: Greg Endries