Based on Merit Management, the Sixth Circuit vacated the bankruptcy court's ruling and remanded. The bankruptcy judge who had issued the initial decision had retired and the newly assigned judge received renewed briefing on the summary judgment motion in light of Merit Management The court held that, under Merit Management, Defendants needed to show that either Defendants or Holdings was a financial institution. (Defendants argued that Merrill Lynch's status was also relevant because the transfer was for Merrill Lynch's "benefit," based on the fees it received for the transaction, but the court concluded that the "for the benefit of" language in section 546(e) only applies when the value of the property transferred corresponds to the benefit conferred.) Defendants argued that Holdings was a financial institution because it was a customer of Merrill Lynch and Merrill Lynch acted as "agent or custodian" in connection with the transactions. The court rejected these arguments.