POWERS OF THE
A SIPC trustee may reduce to money customer
securities constituting customer property or in the general estate
of the debtor. 15 U.S.C. § 78fff-1(b). The trustee must, however,
deliver securities to customers to the maximum extent practicable.
15 U.S.C. § 78fff-1(b)(1). Subject to prior approval of SIPC, but
again without any need for court approval, the trustee may also
pay or guarantee any part of the debtor’s indebtedness to a
bank, person, or other lender when certain conditions exist. 15
U.S.C. § 78fff- 1(b)(2).
The trustee is responsible for investigating
the acts, conduct, and condition of the debtor and reporting
thereon to the court. 15 U.S.C. § 78fff-1(d)(1). The trustee must
also provide a statement on the investigation to SIPC and to other
persons as the court might direct. 15 U.S.C. § 78fff-1(d)(4).
Moreover, the trustee must make periodic reports to the court and
to SIPC on the progress of distribution of cash and securities to
customers. 15 U.S.C. § 78fff-1(c).