6th Circuit Won’t Rehear Ruling That State Street Was Prudent During GM Bankruptcy
Mealey's (January 19, 2016, 9:52 AM EST) -- CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Jan. 14 denied rehearing of its divided ruling rejecting claims that State Street Bank and Trust Co. breached its statutory duty of prudence as fiduciary of the General Motors (GM) Employee Stock Ownership Plan (ESOP) (Raymond M. Pfeil and Michael Kammer v. State Street Bank and Trust Company, No. 14-1491, 6th Cir.; 2015 U.S. App. LEXIS 19536).
(Order available. Document #54-160210-001R.)
On Nov. 10, the panel majority wrote that State Street’s “actual processes demonstrated prudence.” Moreover,...