Emboldened by a favorable court ruling, JPMorgan Chase and UBS urged a federal judge to throw out many claims by the bankruptcy trustee seeking to recover billions of dollars for victims of Bernard Madoff's Ponzi scheme. CNBC reports
The requests came after U.S. District Judge Jed Rakoff in Manhattan, in a case against HSBC, last Thursday said the trustee Irving Picard exceeded his power in suing third parties such as banks on behalf of former customers of Bernard L. Madoff Investment Securities.
If you remember, JPMorgan was sued by Picard for $19.9 billion, and UBS for $2 billion. Their cases are among the largest of the roughly 1,050 lawsuits seeking more than $103 billion that Picard has filed since Madoff's firm collapsed on Dec. 11, 2008.
Many defendants have challenged Picard's authority to sue, or claimed that they are victims and should not pay a red cent...
Read more at http://www.cnbc.com/id/43987460
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