Grede v. FCStone, LLC

Issue: (1) Whether, in mass financial fraud bankruptcy and federal receivership cases, all victims of a debtor"s fraud should share equally in the distribution of commingled funds (a) without regarding to whether an individual creditor has attempted to pursue a trust remedy against such funds or has elected to rely on the trustee to recover and distribute the recovered funds equally to all creditors; and (b) even where "actual tracing" is possible; and (2) whether 11 U.S.C. § 546(e), which neither expressly nor implicitly pre-empts state law causes of action brought outside of bankruptcy cases, pre-empts a trustee from asserting a state law cause of action that is assigned to the trustee by creditors under the theory that the state law claim constitutes an "end run" around 11 U.S.C. § 546(e).