A federal judge threw out most of a $19.9 billion lawsuit against JPMorgan Chase and a $2 billion case against UBS by the trustee seeking money for victims of epic swindler Bernard Madoff's fraud, according to Reuters.
The decision by U.S. District Court Judge Colleen McMahon in Manhattan is one of the largest setbacks for the trustee, Irving Picard, who has spent nearly three years liquidating Bernard L Madoff Investment Securities LLC.
JPMorgan had been Madoff's main bank for two decades, and McMahon's decision wipes out about $19 billion of Picard's case against the largest U.S. bank.
"The trustee's theories fail," McMahon wrote in an opinion released on Tuesday. She said Picard had no power to pursue common law claims against the banks, saying such claims properly belong to former Madoff customers. The judge returned what is left of the cases to the U.S. bankruptcy court in Manhattan. Picard plans to appeal to the federal appeals court in New York…
Learn more at http://www.reuters.com/article/2011/11/01/us-madoff-jpmorganchase-idUSTRE7A06TU20111101
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