Bill on Bankruptcy: Unprecedented Actions by Two District Judges
Sept. 26 (Bloomberg Law) — District Judge Lynn N. Hughes in Houston took a case entirely away from the bankruptcy judge rather than hear an appeal. District Judge Jed Rakoff, while sitting on the appeals court in a case involving Bernard Madoff’s fraud, wrote an opinion in which he, in substance, told himself how to rule in another Madoff case he’s hearing as a district judge.
Former chairman of the Securities and Exchange Commission Richard C. Breeden, appointed to distribute $2.2 billion forfeited to the U.S. government, hinted he might give money to some victims of the Madoff Ponzi scheme who were denied claims by the trustee under the Securities Investor Protection Act.
Investors in stock and bonds issued by bankrupt Overseas Shipholding Group Inc. received a surprise when the company published disappointing projections. They were more surprised when the securities dropped precipitously in value.