U.S. Says Bankrupt Jewish History Museum’s Schwab Account Risky

The bankrupt Museum of American Jewish History can’t keep its brokerage account with Charles Schwab because it’s not a government-approved institution for debtors, the Justice Department’s bankruptcy watchdog branch said.

The museum hasn’t provided adequate reasoning for its request for a waiver from a bankruptcy code provision that requires all bankruptcy estates to maintain financial accounts only with institutions approved by the government, the U.S. Trustee said in a March 20 filing with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.

“Generally, unless the funds are insured, guaranteed, or backed by the full faith and credit of the ...