Madoff Liquidator Can Sue Feeder Fund Banks

Nov 1 2013 | 1:27pm ET

The trustee in the Bernard Madoff case has won a rare victory in his battle to recoup money from banks.

U.S. District Judge Jed Rakoff, who earlier ruled that Irving Picard did not have standing to sue third-parties allegedly involved in the fraud, now says that Picard can go after banks that got money from Madoff feeder funds. Picard hopes to seek about $8 billion from 50 banks and financial institutions.

In a ruling released Wednesday, and which clarifies a December ruling, Rakoff said that forcing Picard to sue each entity that transferred funds to banks individually would be took expensive and "could cause bankruptcy proceedings to drag on unnecessarily for years, wasting court resources as well as creating unnecessary uncertainty."


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...